CoinBase trouble, Devcoin price slump, and voluntary compliance

Author's note: This article is part of an ongoing blog about my adventures in the world of alternate currencies.

Earlier today I logged on to my fiat bank account and made a rather unpleasant discovery. To add to my list of CoinBase troubles I found an unauthorized debit from my bank account as if I'd purchased Bitcoin, and it was at the height of the latest price surge too. I have not purchased Bitcoin for fiat in many months. I've written support about the debit and asked for a refund. On a brighter note, I decided to break down my repeatedly unsuccessful attempt to send 0.08 BTC to any other address into two transactions, one for 0.07 and one for 0.01 BTC. The 0.07 BTC send immediately showed up in my local wallet as an unconfirmed transaction and didn't take long to clear. The 0.01 BTC send never registered and I suspect it will be an unsuccessful one. But at least I was able to get the bulk of my balance out of there.

Speaking of troubles I still have not gotten my NXT wallet client working properly, and this after having purchased a whole bunch of them because it's likely their value will grow exponentially. The value has already grown threefold since I made my purchase, so I do feel good about having bought, but it's disconcerting to not actually see those coins in my wallet, nor be able to move them back to the exchange to sell them later on. Fortunately I'm viewing this as a long term hold. I have some Devtome admin duties to take care of tonight, then I hope to try again to install the NXT program properly. One thing about these computer coder types is that I don't think it ever occurs to them that there are nonprogramers out there who might actually want to make use of the brilliant code they just wrote. Let's just say I'm a huge fan of intuitive installation wizards which do everything for you in the right order. At the very least I hope that an all in one wallet client install package is one of the features set to be launched on January 3.

I'm not sure if it's Christmas profit taking or plain running out of steam, but the price of Devcoins seems to be in a more continuous slump. At this rate, in another day or two I'll be able to buy back my large amount of Devcoins that I sold off at 47 sat before it all took off to the moon. The only problem is that it will be hard to get those Bitcoins back out of CEX as the price of hashing power is also slumping. It's great to be able to buy more hashing power at such a great price, but I'm not too eager to sell it off at that same price, not to mention that I really like taking out close to 0.02 BTC in mining revenue every day. So it's likely that I'll never pull my BTC out and will never buy back those Devcoins no matter how low the price gets. Ultimately it's easier to just earn more Devcoins than it is to buy them, especially when writing comes fairly easily.

I am faltering, though, in my resolution to sell off all the Devcoins designated as livelihood earnings at market price. Instead I put in some higher sell orders and will wait for them to fill. It's weird how when you've seen the price of Devcoins as high as 100 sat, it seems like such a letdown to sell them for anything less than that, even if before seeing that price you didn't think twice about selling them off for much lower than the current market rate. On the flip side, you find yourself more willing to wait until the good price comes around again, now armed with the experience that it actually can.

When I logged on to my Camp BX account, I noticed that the fiat amount for the BTC I'd recently sold had been removed from my balance, indicating that my request for my very first ACH direct deposit is being processed. I'm looking forward to receiving my first deposit, and hopefully it will be the first of many more. One advantage of earning in Bitcoin is that when it comes to taking profits I only have one exchange rate to deal with. Although I'm longing for the days when Bitcoin was worth over $1000, the truth is $650 is not a bad value. Not at all. But it gets frustrating when I see Bitcoin climbing but then Devcoin is dropping, and I can't quite figure out if I should take advantage of a high in the Bitcoin price by selling Devcoins at a lower than usual price, or if I should hold out for a better Devcoin price and risk the price of Bitcoin tanking in the mean time.

So many decisions. Even so, if I just consider my CEX mining returns, ten to fifteen dollars a day in returns is not bad for someone who once worked super hard for hours on those crowdsourced task sites and really struggled to earn as much as 0.01 BTC in one day, amounting to a dollar of earnings on a good day.

Assuming everything goes well with my first Camp BX ACH direct deposit, I am super relieved to finally have a decent Bitcoin-fiat trading platform. The site doesn't have a lot of bells and whistles, but it gets the job done. Another major reassuring feature about Camp BX is that it has an actual building and physical address in Alpharetta, Georgia. For all I know it could be sharing an office building with any number of my credit card companies. It seems like a lot of financial institutions are headquartered in Alpharetta. It's really nice to see a Bitcoin-denominated financial institution headquartered in Alpharetta as well. Although I know a building and physical address isn't everything, having those things definitely does go a long way towards gaining a reputation of legitimacy in a world where so many things are here today and gone tomorrow.

An additional reputation booster for Camp BX is the fact that it carries the necessary licensing to be able to operate as a legal financial exchange in the United States. While I tend towards a more Libertarian view that government regulation should be kept to a minimum and certainly should not be burdensome, there is something to be said for a business which makes the effort to comply with such regulation and which manages to still turn a profit while giving its customers a great deal. Camp BX also complies with Payment Card Industry (PCI) data security standards, which means that it holds itself to the same standards that VISA and MasterCard must adhere to when it comes to safeguarding their customers' financial and personal data.

I actually hope that other institutions which provide some sort of Bitcoin denominated financial service will begin to voluntarily comply with many of these standards. I'm certainly not holding that up as a requirement for me to do business with them–I guess I've figured out that losing a few Bitcoins isn't the end of the world–but I definitely recommend it. I believe the institutions which voluntarily comply will rise above the rest as cryptocurrencies go more mainstream and mainstream customers bring with them their assumptions from the debt based world, not all of which are bad.

Devtome Writers

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