The complexity of Bitlander withholding income more than two weeks after earned, and charging buy in fees for a higher rate of earning demonstrates complexity as previously discussed due to it having characteristics of more than one type of financing.
We discussed use of a instantaneous purchase as a method for establishing the correct, or ideal present value. How do you find the correct purchase price. Bitcoin proves to be deceptively difficult to purchase or use, as opposed to what we might except for a product touted for its helpful characteristics. For example, look at the many attempts of Paypal to insinuate itself into Bitcoin transactions, and its unapologetic harvest of a greater percentage of transfer than by a conventional credit card. Paypal, with whom Bitlander long associated itself with, badly gouged the consumer.
Another interesting point came to light in a study of Bitcoin money transfers to the nation continent of Australia. The study showed that consumers paid exactly the same amount for the money transfer, as they would using a regular credit card.
Using these types of sellers, or transferors as the point of reference yields Bitcoin not advantageous to fiat currency, and, as the basis for comparison for methods such as Bitlanders, which presumably should compare disadvantageously with a instantaneous transfer, renders not only Bitlanders, but all methods of Bitcoin as not providing a yield to match the increased risk resulting from Bitcoin use.
It would be a very bad thing if the story ended there, but luckily it does not. There are Bitcoin sellers, and Bitcoin changes, that charge a very small margin on sales and trades. It is critical to the consumer, as well as to the Bitcoin industry itself, that consumer go to exchanges, see what the exchange trade rate and refrain from using any method of purchase or transfer that charges more than than the exchange trade rate.
Even though it might prove at first difficult for the consumer to gain access to the low cost methods of transfer, our analysis disregards the cost of acquiring this knowledge for one simple reason: there is no alternative. A consumer who will not disregard PayPal, and other disreputable market participants, the consumer might just as well use a VISA debit card.
Having made the decision to disregard the cost of research, and procedural barriers, the exchanges provide a highly reliable method of determining the current value of bitcoin. There are 5 or 6 major exchanges, each of which shows a slightly different market value for bitcoin at any given time. These market do not vary much, and any one of these could serve as an accurate reference. The zealous consumer will take an average the value showing at four or five exchange.
