QUESTION: Buying Steem direct with my credit card?
As the price is falling down and becoming a more and more attractive for buyers, I am here sitting in my home wondering about something.
There as been a lot of social media experiments where you could influence the outcome of "the game" by buying "points". One that comes into mind is EmpireAvenue, but more recently Minds.com allow the purchasing of points directly via credit cards to increase exposure.
In many aspects, I dont see how steem tokens are any different except that they are traded on exchange and traded p2p.
Why can't any front end, such as steemit.com and others, have the option of buying steem or SMTs directly with their credit card? How are those tokens any different than centralized tokens like the one of MINDS.com?
I will upvote the best answers.
credit card is an bad idea cause it´s unsafe as @journeyoflife mentioned.
As Steem is decentralized there is no company that provides Steem for all to buy. You will need an exchange where you can buy from any people who want to sell. But this is not the Problem we already have this somehow (blocktrades). Problem is the gate to Fiat where different laws in different countries take place. I think in Germany for example you need a Banklicense. (No Bitcoin ATM in Germany for example) ... and so forth and so forth , I´m not a lawyer
Only bigger companies can use visa/mastercard, probably cause it takes a lot of money for partnership also.
Because the governing agencies that created that fiat will not allow simply anyone to create an exchange. China and USA are already two huge examples. The exchange and the blockchain must comply with the rules of the government their customers live in. (AML) and (KYC) are two popular ones that prevent decentralized exchanges opening in certain countries.
MINDS.com uses points instead of currency. Their points are not marked as a security by the SEC, as they are not traded openly on any market and therefore do not need to follow the same rules.
This argument started over 10 years ago when the USA made it illegal to transfer funds from a bank account to a known poker/gambling website. So the website owners got smart. Instead of using cash to play, they sell a monthly membership for tokens used as a way to enter a sweepstakes to win the prizes. The sweepstakes however, is still the same poker tournament/ gambling game.
First thing that pops up in mind is : where will the Steem be taken from ?
You have to setup some kind of Steem wallet account. How would this account be provided with Steem ? Derive part of Steem Curation or Author money ?
Also I suppose if you want to make a credit card service you have to register it somehow on some financial institution. Where will the fiat money go ? You have to setup a bank account.
I guess every time you set a link to fiat, you have to follow KYC/AML rules (see crypto exchanges where you can get/send to fiat).
It is a matter of time that you can scan a QR with your smartphone and click "send" direct to steemit or amazon or whateva... and not even to your wallet, it could be to a comment ... reply...
so we will be using our smartphones as a credit cards in no time. with just a scan and "click"
This would be a game changer as it will lessen the stress of having to buy btc then later converting to steem via exchangers and the transaction fee would also be removed or decreases that way, one can acquire more steem at a very affordable price when compared to before. Wow nice idea love this and a great write-up
I have been asking this same question and wanting a better way as well. It honestly takes a little over a week to make a transaction from CASH to Bitcoin and then Bitcoin into Steem. In a day where blockchains should be crazy fast and in seconds I still have to use the crazy slow system to try and buy more steem and many times either the price of bitcoin has fallen or the price of steem is on the rise so I end up losing out a bit in the transaction. It honestly sucks lol
P.S I use to use EmpireAvenue a ton! What is yours im curious to check out your profile and see if we where already vested in each other. I will have to check out minds.com though never heard of that one till now.
Want to buy with a Credit Card!!
I may be completely wrong here, but with the arrests that have been happening lately to people running crypto exchanges where one can exchange fiat for crypto, suddenly licensing becomes a big issue when fiat is involved. Since Steemit is based in the US, I can only assume these laws would also apply to them, and I don't really see Steemit as much of an exchange, but that Steem is simply something TO BE exchanged.
Here's the most recent one I heard of:
https://www.coindesk.com/michigan-man-charged-unlawful-bitcoin-exchange/
Thanks for sharing this info.
Resteemed and Share on Steemit Viral Facebook Page also on Steemit Viral Twitter and Steemit Viral Linkedin Group by @irfansardar Good Luck!