Saturday, August 10, 2013

The broken system - an example

Here is a story from reddit.   I personally believe the current system is broken, and ripe for technological advance.   Here is just one bitcoin users story.

I wanted to tell the story of my extremely frustrating day which really illustrates how useful Bitcoin can be for many situations. I apologize for the length, but I think it just shows how frustrating a process this was.
I'm moving into a new apartment and my landlord needs money for the security deposit and rent before I move in. This comes to just under $4,000 which she would only accept by certified check, money order, or cash.
So, not wanting to carry around that much cash, I plan to get a certified check. There are no branches of my bank near me, so I need to take a bus to and from the branch (~1 hour travel by bus for $5). When I get to my bank, they inform me that they do not do certified checks. Their suggestion is that I go to a 7-Eleven and do a money order. However, first I need to call my bank to up my daily withdraw limit to $4,000. After calling the bank (and being put on hold), my limit is raised.
Next, I head to 7-Eleven. They tell me that they can only do money orders in increments of $500 (~$2 fee each). I try to use my debit card to just buy a bunch, but they only take cash. I then head over to the ATM which I learn has a $400 limit per transaction. Seeing that this was going to be a huge pain, I call a currency exchange a few blocks away and am told that they can do 1 money order for the full amount.
At the currency exchange, I'm again told that they only take cash for the money order, so I go to find another ATM. This one has an $800 limit, so I stand at the machine taking out the maximum amount for 5 transactions (at $3 each).
My pants now stuffed with $4,000 in 20s (since they don't dispense hundreds), I head back to the currency exchange. The person counts the nearly 200 $20 bills, makes me give her my license and fill out some paperwork, I pay the $10 fee, and then I finally have my money order to give to the landlord.
A bitcoin transaction for this amount would have taken me at most 10 seconds and would have been effectively free. Instead, I wasted about 3 hours of my day and spent $30 on the transaction.
TL;DR - I wasted money and a big chunk of my day to make a transaction which would have been effortless using Bitcon
.

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