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Will Electronics Retailer Newegg Follow Overstock’s Lead and Accept Bitcoin?
Coin Desk | 10 January, 2014 | Nermin Hajdarbegovic

Posted on 01/10/2014 6:06:49 AM PST by Errant

Newegg, the online electronics retailer worth at least $2bn in annual revenue, has tweeted yet another hint that it will begin accepting bitcoin payments in the near future. The California-based company posted this teaser today:

"Still waiting for an update, but will let you all know as soon as we receive word! RT @TheIanMerrill: @Newegg do you take #bitcoin yet?"

There has been much online speculation over the past month as to what Newegg might be planning. A company of this size accepting bitcoin would be one of the biggest gestures toward mainstream bitcoin acceptance yet.


TOPICS:
KEYWORDS: bitcoin; cryto; newegg; overstock
No word yet on how successful Overstock's rollout was, but I suspect it was pretty big!

In Other News:

Bitcoin Stares Down Impending Apocalypse (Again)

China's Bitcoin exchanges aim to work around rules

Imogo Joins Bitcoin Community

Taxpayer Advocate to IRS: We Need Bitcoin Guidance

Bitcoin Takes Stage In Texas Campaign

A Look Inside the “New York Stock Exchange” of Bitcoin

1 posted on 01/10/2014 6:06:49 AM PST by Errant
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To: Lurkina.n.Learnin; nascarnation; TsonicTsunami08; SgtHooper; Ghost of SVR4; Lee N. Field; DTA; ...

Click to be Added / Removed.
2 posted on 01/10/2014 6:07:37 AM PST by Errant (Surround yourself with intelligent and industrious people who help and support each other.)
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To: Errant
Can you give a quick bottom line on “bitcoin?” I never heard of it. Is it safer then PayPal?
3 posted on 01/10/2014 6:12:08 AM PST by celmak
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To: Errant

I suspect that newegg’s margins a re lower than overstock’s. On the other hand, they need a leg up Amazon.


4 posted on 01/10/2014 6:15:41 AM PST by Dr. Sivana (Five years, my brain hurts a lot.)
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To: celmak
Check out this link for basic info about Bitcoin: A beginner's guide to bitcoin

Is it safer then PayPal?

In what regard?

5 posted on 01/10/2014 6:16:29 AM PST by Errant (Surround yourself with intelligent and industrious people who help and support each other.)
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To: Errant

I wouldn’t, at least not yet. NewEgg, being an electronics retailer, probably operates at low margins. BitCoin values are too unstable for use as an exchange medium.


6 posted on 01/10/2014 6:17:02 AM PST by Pearls Before Swine
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To: Dr. Sivana
I suspect that newegg’s margins a re lower than overstock’s.

Agree. I've bought a lot of equipment from Newegg. I rate their customer service as high, perhaps even higher, than Amazon.

7 posted on 01/10/2014 6:18:42 AM PST by Errant (Surround yourself with intelligent and industrious people who help and support each other.)
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To: celmak

Look it up on WikiPedia for more info than I could possibly give here. It’s been the rage for the past year or so—it’s a cryptocurrency that exists on computers. PayPal is more like a banking wallet, using dollars. This is quite different. It bypasses the normal fiat currencies, but the value fluctuates. Governments are looking at it with a jaded eye, liking neither competition nor confidentiality.


8 posted on 01/10/2014 6:19:15 AM PST by Pearls Before Swine
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To: Pearls Before Swine
Purchases are converted to dollars at time of purchase by the service the retailer is using, at least in Overstock's case.

Speaking of low margins, they also don't have to worry about chargebacks, or a 2+% fee to CC companies. It's more like 1% for the retailer when using Bitcoin for transactions, IIRC.

9 posted on 01/10/2014 6:22:29 AM PST by Errant (Surround yourself with intelligent and industrious people who help and support each other.)
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To: Dr. Sivana

Amazon operates at a loss, but they make up for it in bulk. I love Newegg for PC building, but I’m afraid they’re going to go the way of other custom shops.


10 posted on 01/10/2014 6:28:00 AM PST by rarestia (It's time to water the Tree of Liberty.)
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To: rarestia
More News:

New Phillipino Bitcoin Exchange Targets Remittance Market

"There are an estimated 2.2 million Filipino expats around the world, and last year they sent over $13.9bn back home. This is obviously a huge untapped market."

That's more than the entire value of ALL of the Bitcoins that exist in the world today!

11 posted on 01/10/2014 6:33:34 AM PST by Errant (Surround yourself with intelligent and industrious people who help and support each other.)
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To: celmak

12 posted on 01/10/2014 6:35:42 AM PST by narses (... unless you eat the flesh of the Son of Man and drink his blood, you do not have life within you.)
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To: rarestia
Amazon operates at a loss, but they make up for it in bulk.
Hmmm, where have I heard that line before?
13 posted on 01/10/2014 6:38:13 AM PST by oh8eleven (RVN '67-'68)
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To: All
Related:

Currency Chiefs Tell New York Fed Probes May Change Practices

So, Who's Lying?

A pretty unusual drop on the dollar index today:


14 posted on 01/10/2014 6:46:46 AM PST by Errant (Surround yourself with intelligent and industrious people who help and support each other.)
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To: Errant

Newegg actually has staff that monitor review sites and contact complainants directly to fix problems.


15 posted on 01/10/2014 6:58:08 AM PST by Crazieman (Are you naive enough to think VOTING will fix this entrenched system?)
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To: Errant
Agree. I've bought a lot of equipment from Newegg. I rate their customer service as high, perhaps even higher, than Amazon

I bought a computer from them a month ago.

Great service and it got here fast.

16 posted on 01/10/2014 6:58:17 AM PST by painter ( Isaiah: “Woe to those who call evil good and good evil,")
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To: oh8eleven

That’s literally how they work. Even their CEO admits that they lose money on most sales but make it up with things like Amazon Prime memberships and big ticket items.


17 posted on 01/10/2014 7:02:20 AM PST by rarestia (It's time to water the Tree of Liberty.)
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To: Errant

Would kind of suck if NewEgg took in $1 million in Bitcoin orders at $600/@ only to see the Chinese attack BC the next week, and seeing it close at $300/@.


18 posted on 01/10/2014 7:03:00 AM PST by montag813
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To: Errant

“reaching 51 percent of all hashing power is a serious threat to the bitcoin community”

OK. So THIS time a “crisis” was averted simply due to altruism. What about the next time? What if a MALICIOUS consortium decides to grab 51% of hashing power? Then what?


19 posted on 01/10/2014 7:22:36 AM PST by catnipman (Cat Nipman: Vote Republican in 2012 and only be called racist one more time!)
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To: Errant

You make good points... they don’t inventory the coins. I guess the charging/cashout would have to be automated to happen quickly and 24/7 to limit volatility, but I don’t see why that should be a problem.


20 posted on 01/10/2014 7:40:19 AM PST by Pearls Before Swine
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To: catnipman

What is often considered a very large flaw in the design of Bitcoin is that hypothetically, if a single entity contributed the majority of the network’s mining hashrate, they would have full control of the network and would be able to manipulate the public ledger (blockchain) at will.

It is an interesting concept because it is theoretically possible; the network is free and open, so if someone were to have enough computational power (which would cost a huge amount by itself), there is no bitcoin authority to stop them from doing so. In the event that such an attack successfully takes place, it is likely confidence in the currency would be lost and it’s value as a currency would decline rapidly.

“Wait, they’d have complete control of the network? They could do anything?”

Not quite. There’s only a couple things someone with 51% of the network hashrate could do. They could prevent transactions of their choosing from gaining any confirmations, thus making them invalid, potentially preventing people from sending Bitcoins between addresses. They could also reverse transactions they send during the time they are in control (allowing double spend transactions), and they could potentially prevent other miners from finding any blocks for a short period of time. That’s really about it – enough power to cause some serious mayhem (as that’s all stuff that isn’t supposed to be able to happen) but nothing that would seriously cripple the network – at least not immediately. They couldn’t reverse transactions from long ago, create new coins out of thin air (besides through regular mining), or steal coins from other people’s wallets.

In reality a 51% attack is feasible – especially with the rise of mining pools (groups of people mining together as a single unit). However the potential damage one could cause is small – though enough that it cause a panic that would seriously threaten bitcoin’s use as an online currency. At current network mining difficulty levels, not even large-scale governments could easily mount a 51% attack.

http://learncryptography.com/51-attack/

It’s pretty far down the list of threats. More likely a group of large governments attempt to dissuade its use by making it illegal.


21 posted on 01/10/2014 7:46:17 AM PST by Errant (Surround yourself with intelligent and industrious people who help and support each other.)
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To: Pearls Before Swine
I purchased a couple of watches from Overstock to test how it works. I was very surprised by how easily it went. After I went to checkout, I selected Bitcoin as the form of payment. It gave me an address to send to and a button to click on to save it to my "clipboard". It also gave me the price in Bitcoin and popped up a confirm when sent button.

I opened my Bitcoin wallet; went to send; pasted in the address; entered the amount in Bitcoin; and hit send. The wallet application asked if I was sure I wanted to send XXX amount to the address. I clicked yes, and the application then asked for my private passphrase, which I entered and clicked ok.

So I go back to Overstock's webpage and hit the confirmed sent button and I get a message telling me my Bitcoin payment was received and I it gives me a confirmation number showing that my order was completed.

It was very easy to do. A pleasant and secure feeling that I don't get when entering credit card information to make a purchase online. I also don't like having to check my credit card statement every month, looking for a fraudulent charge and etc., of which I've had a few over the years. I've even had to cancel more than one card and had to wait days for another to arrive - stressful!

Even the CC companies are looking at ways of implementing the "push" technology that Bitcoin uses.

22 posted on 01/10/2014 8:07:29 AM PST by Errant (Surround yourself with intelligent and industrious people who help and support each other.)
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To: Errant

I can imagine Newegg doing this.

When I need anything electronic, Newegg is the place I’ll look first, and rarely will I need to look anywhere else. Newegg rocks!!


23 posted on 01/10/2014 8:16:01 AM PST by KoRn (Department of Homeland Security, Certified - "Right Wing Extremist")
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To: Errant

Which exchanges have you worked with, and are there any you prefer?


24 posted on 01/10/2014 8:19:57 AM PST by Pearls Before Swine
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To: Pearls Before Swine

I forgot to tell you what was really cool; right after I bought the first watch from Overstock, I get an email from the mining pool telling me that my little “miner” had earned another 0.1 Bitcoin. :)


25 posted on 01/10/2014 8:21:47 AM PST by Errant (Surround yourself with intelligent and industrious people who help and support each other.)
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To: Pearls Before Swine
I've never traded. My minor amount of Bitcoin and Litecoin, I accumulated through mining, mostly for fun and to better understand the process. The excess heat from the computer helps warm my hydroponics too. lol

I know several people who do trade them and they seem to prefer Btc-e.com. It might be fun to do some of that later, as mining is becoming more and more difficult. The transactions fees paid to the miners do help offset that some though.

26 posted on 01/10/2014 8:41:12 AM PST by Errant (Surround yourself with intelligent and industrious people who help and support each other.)
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To: KoRn
Newegg is the place I’ll look first...

For computer related items, Ditto.

Amazon for all my other "tinkering" needs. Amazon Prime is a heck of a value for $79 a year, if you order online and watch TV over the internet.

27 posted on 01/10/2014 8:45:18 AM PST by Errant (Surround yourself with intelligent and industrious people who help and support each other.)
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To: oh8eleven

GREAT movie!!!!!!!


28 posted on 01/10/2014 8:56:42 AM PST by LibLieSlayer (FROM MY COLD, DEAD HANDS! BETTER DEAD THAN RED!)
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To: Errant
In what regard?

As far as personal information.

29 posted on 01/10/2014 9:05:25 AM PST by celmak
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To: celmak
Use of Bitcoin for online purchases doesn't require any personal information, except for ship to info. Paypal acts as a more trusted agent between yourself and a vendor, but still maintains your personal information, including access to your bank and credit card information and the ability to immediately charge either. So in that regard, Bitcoin would be way more secure.

Where Bitcoin isn't as secure for the purchaser, is in reversing charges or if they are stolen. From a vendor's point of view, chargebacks cost them time, money, and bookkeeping headaches, so they like it that all transactions are final (and hopefully pass on the savings). That doesn't mean they won't offer refunds, it just means a payment can't be reversed by a CC company or bank.

30 posted on 01/10/2014 9:30:42 AM PST by Errant (Surround yourself with intelligent and industrious people who help and support each other.)
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To: Errant
No word yet on how successful Overstock's rollout was, but I suspect it was pretty big!

Has Overstock actually rolled it out yet? I poked my head in there and looked. Didn't see anything about bitcoin. (Nor, anything I wanted to buy.)

31 posted on 01/10/2014 11:10:24 AM PST by Lee N. Field ("You keep using that verse, but I do not think it means what you think it means.")
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To: Lee N. Field

Yep, Used it myself to buy a couple of watches just last night.


32 posted on 01/10/2014 11:11:27 AM PST by Errant (Surround yourself with intelligent and industrious people who help and support each other.)
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To: All
On another FR thread:

Target says stolen info in data breach almost doubles to 70 million

33 posted on 01/10/2014 11:13:22 AM PST by Errant (Surround yourself with intelligent and industrious people who help and support each other.)
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To: Errant

Excellent info! Thanks very much!


34 posted on 01/10/2014 1:02:01 PM PST by celmak
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To: celmak; Lurkina.n.Learnin; nascarnation; TsonicTsunami08; SgtHooper; Ghost of SVR4; Lee N. Field; ..
In First Day With Bitcoin, Overstock Does $126,000 in Sales


Click to be Added / Removed.

35 posted on 01/10/2014 1:37:04 PM PST by Errant (Surround yourself with intelligent and industrious people who help and support each other.)
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To: KoRn

Yep, Newegg does indeed rock! I picked up many parts for the new miner I built with them. I’m not pushing it at all and I’m getting on average 3600 KH/s.

By the end of 2014 every retailer will accept Bitcoin. Corporate profits come in at around 3 to 4% and companies have the opportunity to double their profits just by using Bitcoin for remittence, shareholders will demand this.

It’s been a real pleasure getting up to speed and learning about cryptocurrency although it is exhausting but there is so much to learn.
We are still in the very early stages of adoption and future growth is unlimited, this is powerful technology and it won’t be long before the adoption curve goes parabolic.


36 posted on 01/10/2014 4:30:54 PM PST by TsonicTsunami08
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