 Hello, today's episode of The Bitcoin Show is brought to you by bit-pay.com and mountcox.com, mtgox.com, and tradehill.com, and usgoldcoins.com, and mezzegrill, mezzegrill.com. Hello, everybody, and welcome to The Bitcoin Show, episode number 32. Today is, what is it, July 28th? Oh my gosh, it's almost August. I'm Bruce Wagner. This is Manny Mena. And we are here to talk about some really cool new stuff as always. We always are. Today we've got the munchies. I guess we should have actually done this on April 20th, but it's gotten delayed a little bit. Everybody has the munchies. I know I do, especially computer geeks. I mean, we're notorious for the Twinkie defense. Twinkies and Diet Coke, it really would be all I would need to live on. But that and Bitcoin, of course. So, today with us, we have a very special guest, Ira Miller, who is the founder of bitmunchies.com, and a new launching enterprise he's going to share with us today as an exclusive announcement, of course. So, hey Ira, how are you doing? Good, how are you, Bruce? Where are you? I mean, besides the TV here. I'm in Denver, Colorado. Oh, I've heard of that. That's where the mountains are and the beautiful plains and mountains and skiing. We fly into Denver to go drive all the way over to Aspen, because I'm with Dr. Frugal, of course. That's how you do it. That's how you get to Aspen if you're with Dr. Frugal. That would be in Denver, but we love it out there. So, tell us about bitmunchies. How long have you had the munchies going on here? I've had the munchies going on for, let's see, maybe three months, four months. Wow. Which in the Bitcoin world is, I guess, a while. I was going to say, that's three or four years in Bitcoin time. Yeah. Things move quickly around here. That's not even a new enterprise anymore. No. And we've had a lot of bumps along the road, which hopefully I'll tell you a little bit more about later. But just a quick introduction, we sell everything soup, oatmeal, Indian food, socks, toothpaste. It's April 20th. You get your rolling papers from us. Oh my gosh. Nice. You can do that too. That'll give you the munchies. Oh my gosh. That's right, yeah. Rolling your own cigarettes and then you'll be eating jars of Nutella or something. Right from the jar with a big ol' spoon. So, show the page, Ed. I've got it on the screen right now. It's bitmunchies.com, just like it sounds. And there's a big bite out of a Bitcoin right there. And one of the things we were... Who was it that was talking about? Oh yeah, that guy from Wired Magazine from the... I think it was the CNN piece, I think. No, it was the Al Jazeera English piece that they did. And they had some guy from Wired Magazine who totally didn't get it. And he's like, you can't buy milk and groceries with a Bitcoin. It's just a wacky crazy currency. That's going to be his tagline. That wacky crazy guy. Well, you've been proving him wrong since way before that, right? Yeah. So what all can you buy? He didn't do his research. He didn't do his research. That's lazy journalism, right? That's my tagline. It's a simple Google search. I mean, I know. They really need to learn how to use Google. Google knows everything. Well, God knows everything, but he uses Google. Or MSN, whatever, Bing, whatever. But let's see. So what all can you... It looks like... I mean, you actually sell clothing. Dude, they have contraceptives, too. Oh, my gosh. Flavor, among others. Oh, my God. I guess... You know, I didn't even see this before. I'm like amazed. He's like, where are my Bitcoins right now? I totally hit the nail on the head, didn't I? You've got a category called pipe and smoke. Good grief. Okay. And medicine cabinet. Okay. So this is actually Silk Road 2.0. You got Crest and Glide and Dove and Irispring. I wonder if Procter & Gamble knows that their products are for sale for Bitcoin. I don't know. So how do you do this? How many items would you say that you have right now? How many different items? Probably a couple hundred. We just put out a big shipment for a lot more. So hopefully it should be expanding very quickly in the next month. So... I'll go ahead. Well, as I said, you mentioned clothes, pipe and smoke. Those are the two areas that we're really trying to expand. Clothing and... Yeah. What is in clothing? Let me see. I haven't seen. Oh, my gosh. Ecosocks and stuff. Ecosocks, yeah. Ecosocks. Oh, my God. Thanks for your petition. I wear this myself. They're comfortable. So now you're in competition directly with the alpaca socks, guys. Uh-oh. Well, it depends. I mean, you don't have alpaca. You've got cotton or alpaca. For special occasions, you wear alpaca. Orville, Redenbacher, Welch's, Squeeze Grape, Jelly. We don't need... What do they call that in New York? It's called Fresh Direct and everywhere else it's called... Fresh Direct. Peapod. Peapod. So you could get all your groceries this way, except for produce and dairy. I'm sure you're not going to ship that. Do you actually inventory this stuff and stock it yourself? I do, yeah. And we're working on a lot more produce, milk, you mentioned, things like that. At least for Denver. So I can open up a location in New York. You fellas are going to have to make do. Well, yeah. Maybe we can clear out the file server room. We're going to make a stock room here full of... Yeah. Oh, and this is... I mentioned it, but I didn't realize this is the best sellers category. Number one is Natella. Yeah. So it must be being in Australia. Yeah. Right, number... Are you shipping outside of the US to Australia? I haven't gotten any orders from Australia. I get a lot from Europe. Germany, Scandinavia, a lot Northern Western Europe, yeah. Wow. I'm surprised because Natella is from Australia. Isn't that an Australian thing? I thought maybe not. Oh, Canadian. Oh, Canadian. Oh, well, it's global. Just like Bitcoin, it's all global, right? So freeze-dried fruit chips, jiff creamy peanut butter, active butter lovers popcorn. That's my favorite. Progresso chicken noodle, shells and real-age cheddar. This is all health food. These are like all my favorite things. Munchies is right. Chocolate chip, peanut butter crunch, energy bar. Wow, I need one right now. H&S noodle soup. What is that little stuff that we eat that's 50 cents? Kraft macaroni and cheese. Roman noodles. Yeah, Roman noodles. That's for the students. Yeah, and now they can buy that on Bitcoin. Kraft macaroni and cheese. Yeah, just mine for Roman noodles. That's the poor students. The more we go over this, the more dangerously hungry I guess. I know. I know. Blood sugar attack right now. So it's amazing. So you actually decided to set this up and you started inventorying this stuff yourself. Like you warehouse it in your, I hope you have a walk-in closet in Denver. You got bigger space out there. A basement full of this stuff. A basement. That is so cool. That's pretty awesome. So you get the full markup. I know there are a lot of retailers that are popping up online, of course, in the Bitcoin space. And most all of them are just wrapping some other service. They're, I don't know how they're doing it. Drop shipping. Drop shipping. And yeah, they're like, somehow there's, I'm sure there's an inside wholesale distribution network. That's how most sites work. Yeah, it's already there. So they're just taking existing products. But now, do you have a return policy? Like if I try the Nutella and I eat like two thirds of it and I'm just like, you know what? I want another one. So can I return this? You know, I never had anyone ask to return anything. I accidentally sent someone the wrong thing once or twice and just issued them a refund. Okay. Well, I guess, I mean, I guess you don't have much that you could return. I mean, the food, of course not. And I guess even the socks, you probably wouldn't want to take returns on. Especially you socks. Yeah, you have to pay more if they're, depends on who wore them. But beverages, you've got all kinds of stuff. So how do you manage this? Do you manage this all on your own? No, and I'm actually looking to hire someone just to handle all the shipping in the next month or so, because it's quite a lot of work. It's turning into now. Yeah, I can see that. Five hour energy drink for one point. Let's see. What is this? 0.16 Bitcoin. Now, are these prices that are priced in Bitcoin, are they updated like in real time? Well, actually, that was the other thing I want to talk to you about today. You mentioned all the other retailers and services that are popping up in the Bitcoin economy. And we had a lot of trouble with basically completing the revenue stream when we opened Bitmunchies. How do you accept and confirm payments? How do you set and update exchange rates? Converting Bitcoins is quite a hassle in some ways. You've got Trade Hill and Mt. Gox as your sponsors and they're great. We use them, but for your average store owner, it's a lot to handle. Particularly when withdrawals have to go through a third party. So in solving all these issues for Bitmunchies, I actually have been building tools for other merchants using Bitcoin to use. Which brings us to BT Sitch. Yeah. Which is end merchant services for Bitcoin stores, including in-person payments, instant conversion. So you don't expose yourself to the market. You're in business to do sales, to sell things directed to customers, not to speculate, not to trade. We can handle all those things for you. So let me understand. Okay, so BT Sitch. It's btcinh.com. And what exactly does BT Sitch do then? BT Sitch is end-to-end merchant services, as I said. We function a lot. You're familiar with PayPal. You go to a store site. It'll say, check out with BT Sitch. Take you to our payment page so that stores don't have to worry about setting their own exchange rates, updating them dynamically. Or how to price things, how to confirm payments, any of those things. We handle it all for them. Wow, okay. So this is a completely separate thing from BitMunchies. Yeah. All right. So I know that you sent me an invitation, or you actually sent me money. I didn't send you money. And I didn't get around to doing it, but I thought, that's perfect, because we'll just do it right here on the show. Can we do that live? Yeah, go for it. So this is the email that Ira sent me. Look, it's signed. There's a signature. And it says, someone sent you money on BT Sitch, 0.05. That's it? That's hardly worth my time. Okay, 67 cents. Why didn't you send me 100? Okay, so to claim them, click the link below. All right, so I'm clicking the link, and there it is. Ah, now, enter your username and password. So at this point, do I already have a username and password, or do I have to create one? You create a username, password, and a pin number. Okay, enter your new username of it. Oh, so this is creating the new account, right? Yeah, that's correct. Okay, so I'm going to use the same login. Hold on, let me make it bigger so you can see. Probably shouldn't tell everybody. Yeah, my login, I'll tell everybody. It's Bruce Wagner, and then my password is Bruce Wagner. No, I'm kidding. It's Bruce Wagner 1, right? Bruce Wagner password. I don't know, I can't remember. It doesn't matter. Four digit pin. Okay, one, two, three, four. I'll just use the example there. No. I like things easy. Just kidding, you know I'm kidding. You use a strong password. This is money, not email. Your username and password have been set login. Cool. Okay. Why does it ask me my username and password when I just told it? My username and password anyway. All right. I know, I know, I'm kidding. That's actually on the agenda for this week to fix, so. Oh, really? Yeah. No, I mean, it's like, okay, or login using open auth. Okay. Yeah, please remember me. Don't ever ask me that again. Okay, so logging in, waiting, boom, done. If you go to your dashboard now, you can see the funds I sent you. Oh, dashboard. You see that? Is that big enough? Can you see that? Make it bigger. How about there? Can you see it now? Bigger yet? Okay. That's better, yeah. Okay, cool. All right, so. I'm watching live. Watching live. Okay, cool. So welcome to BT Cinch. This is your dashboard. You can view information about your account, recent transactions and strange rate. TMW, too many words. There it is. Exchange rate. Bitcoin exchange rates, 1309. Your rate is 1270. What does that mean? My rate is different? Retail. Well, yeah. Okay. As I mentioned, this is primarily merchant services. So you can set up with, if you own an individual account. So you might use this, for instance, put a Bitcoin on it, go out about your day. And at lunch, you might go to Mezgrill and on your phone, or if you want to bring your laptop with you, pay for your lunch for this account. And it'll clear instantly. Okay. So this shows that recent transactions was a send of 5-bit cents, confirmed, and account status, basic. So I have a 5-bit cent balance, $0. So I can have dollars and Bitcoin, fund distribution. What does that mean? 90% Bitcoin, 10% US dollars. Just like, if you had balances in both, it would show you what percent you had in each? Actually, what that is, so for instance, at Bitmuncheats, we've been using all these tools for about six weeks to test them out. So when someone sends us money or when a customer checks out, it chooses, in our case, it's actually a 60-40 split, 60% Bitcoin, 40% dollars. And it converts them instantly so that you don't have to, you can minimize your exposure to the market. Okay. Is that an option? Is that an option? That's an option. Yeah, you set it whatever you want. Oh, so if you want to be... All of it, none of it. Okay. So if you're a merchant and you don't want to take any currency risk of the value going up or down, well, there's only a risk if it goes down. Then you can say convert it to dollars immediately and there's no risk at all. That's correct. So I can accept Bitcoin through this, but I get paid in dollars. I can set the prices in dollars and I still receive Bitcoin and I still collect Bitcoin, you collect Bitcoin, whatever on my behalf and then I get paid in dollars. That's correct. So it can be placed in dollars and I get dollars and it's the same as any other. Yeah, and we will actually ACH the funds directly into your account. ACH. Okay. I think that's something unique. I haven't seen that anywhere else in the Bitcoin economy. It's really quicker to get your money out. Okay. That's cool. And we can trust ACH. I mean, you can trust ACH as long as you're doing the sending. It's when you're receiving an ACH, you don't want to get trapped by that. We talked about that a lot recently. So, all right. So that's my balance. Now, let's say, how do I... Oh, there it is. Look, I just hovered and found funds withdraw because I want my five bit cents. Oh, wait. Do you do an exchange too? Like if I want that converted into dollars? There's a convert tab there you can do that with. Oh, right there. Wow. I like that it's so easy. I can even find it when I'm not even... Don't know what I'm doing. Convert Bitcoin to dollars. How much would you like to convert? No way. So how does that work? That I want to convert these five bit cents. Is it going to operate as an exchange? It's not operating as an exchange. It's not finding a third party who's trying to meet this price for you. What we do is we monitor multiple exchanges all the time to try to find the best rate for you, the best rate for your customers. And when you convert them, we will enter an order. We can essentially buy them from you at that rate and enter an order on whatever exchange has the best rate so that we can actually get them out ourselves in the end. So basically... So you are actually doing the conversion for me and then you're just covering yourself by doing a matching conversion on the exchanges. Okay. Is there a way that you monetize that? You charge a percentage over or how does that work? Depending on the type of account you have. There's a small fee for conversion which ranges anywhere from half a percent to two percent. Okay. Which is actually the only fee so far in BT Cinch. You can as a store use the service end to end free if you just forward your bitcoins on somewhere else. And for exchanging, did you automate that at all? How does that work? Or do you have to do everything manually? Because I can imagine... No. That is all automated. Sweet. We built a trade bot that handles this. It actually talks to multiple exchanges and just finds the best price. Okay. So now I have a zero dollar balance and I'm going to try and withdraw five cents as an ACH and see what it says. Withdraw via dollar. Oh, dolla. Dolla. You got to convert it first. You can't withdraw dollars if you don't have any. Yeah, I figured. Oh, minimum withdrawal for this method is $50. Yeah, I wondered when it was going to tell me that I didn't have any. All right. So my funds is my balance. So because I have Bitcoin, I can withdraw Bitcoin. But if I want to withdraw it, then... Oh, funding options. When someone sends a Bitcoin to me, what percent do you like to convert immediately into dollars? Oh, wow. That's what you're talking about. So again, when somebody sends me any Bitcoins, it'll convert 100% of the Bitcoins. Oh, 100% into dollars or leave 100% in Bitcoins or any percentage there, 90, 10, 80, 20, and so on, so on, so on. I wonder why you would want to do that. Wouldn't you want all or nothing? I guess... Hey, how about yourself? Do you keep everything in Bitcoin or do you keep everything in dollars? As I said, we do 60, 40. You know, we need to get some of the revenue back in dollars so that we can cover our costs, inventory, so on. But I'm pretty bullish on Bitcoin myself and I'd like to keep my money in Bitcoins when I can. That explains it. Well, that answered my question because, so yeah, yeah, that makes sense. If I'm Missy Grill and I was doing this online ordering, for example, or any business and I need a certain percentage, I know I'm going to need 40% or 60% in dollars to cover my costs and my cash flow situation. I can convert 40% into dollars immediately and leave 60% into Bitcoin that I can cash later. And I can convert it any time I want just by going into funds convert. Right. Well, you didn't tell me this was so cool, Ira. So if I... I mean, you didn't tell me this at all. So if I want to convert, I'm going to convert my half of a Bitcoin, oh well, actually it's a five-bit sense into dollars. I'm going to hit submit. It wants my pin number. What is it again? One, two, three, four. Okay. And then it's been processed. It should show up in your account within days. Oh, no, no, seconds. So $12.70 per Bitcoin approximately is what I got. And so if I go to funds, it says within seconds. So let's see. Wait, how do I... Oh, I have to go to the dashboard, I guess, to see my balance. Is that what I do? Okay. Go to dashboard and then scroll down and converted. It says converted half a bit. Oh, the balance is all the way at the bottom. So now... Oh, now I have 64 cents. Now, is the only way to cash that out is through ACH or did you have anything else planned out for that? We can mail you a check. We have with Dwarla withdrawals as well, but ACH is the premier as far as I know, unique and certainly the fastest way to get your money out. Absolutely. Yeah, so I can... See, I'm on the withdrawal screen. If you go to... Well, I actually don't have it, I guess. But they can see... I go to the withdrawal funds and there's... I can withdraw Bitcoin, obviously. I can withdraw US dollars as either check, ACH or Dwarla. So if I say ACH, I don't know if it's going to let me withdraw 65 cents via ACH, will it? No, no, it's a $50 minimum, right? Did you charge anything for ACH? No, we don't charge anything for any of these services. We charge Dwarla's fee just to cover our cost of the Dwarla transaction. But aside from third-party fees, the only fee associated with BT SINCH is the conversion fee. And I want to say that I think you said it was $12.90 or something like that, that you got a conversion rate. The basic account obviously has the lowest conversion rate. So, you know, the business rates and premium business rates are higher. They get a better rate. Oh, the businesses always get a better deal. But then that's not always true. When it comes to things like that, yes, because of volume. But when it comes to buying things, it seems like businesses always get charged the most too on a lot of cases. Okay, so now I see, I'm exploring. I'm playing around here and under funds, there's a send funds button. And I can send Bitcoins. So I can put in an email address and a number of Bitcoins and a message. That's cool. There have been services that do this before, which is so nice, it's so easy. Well, and that's actually, actually that's what we did, isn't it? Because you sent me a link and I clicked on it, I created an account and I put it in my account automatically. Right now. Exactly what I did. Okay, so what happens if I send this to an email address that's like a faulty email address or somebody who just ignores that and deletes the message? What happens to the Bitcoins? They will, the transaction will be recovered if not claimed within a month. And we're working on the ability to cancel it yourself. You know, if you know you've sent it to the wrong email address or something. Okay. So I'm going to send Ed a thought of a million Bitcoins. Happy holidays. Okay. And it wants my pin number again. What is it? One, two, three, four. Yeah, everything's to require a pin number. Insufficient funds. Everything I do says insufficient funds. Okay, but that's cool. Now, can I send dollars to or only Bitcoins? Right now we don't allow that. All the infrastructure is in place. One of the reasons why we're still beta testing aside from the fact that this is obviously very sensitive. You know, we're dealing with financial data here. Potentially we're dealing with companies' revenue streams. Right. But I need to talk to the lawyer about sending dollars like this. Yeah. Okay. When you actually withdraw, let's say you converted your money you want to withdraw. Do you have any limits imposed to how much you could withdraw at once? Right now we've got a $1,000 a day limit. But based on what I've been told recently by my lawyer on this subject, that is probably not necessary and will hopefully be lifting it soon. Yeah, especially if you're just dealing with Bitcoin because, well, if you're dealing with merchants that are selling things in dollars, then there's no limit. As long as they're, you know, as long as you know your customer going into their bank account and all that. But sending Bitcoin transactions, Bitcoin to Bitcoin, that's not even money legally. It's just virtual goods or commodities. No limit on that. No limit there. That's why I asked about sending funds if you send dollars. But on the other hand, obviously, needless to say, if I have dollars in my account, I can convert them to Bitcoins with that one button, send them via email with the other button, then somebody can receive it and now they have Bitcoins into their account and then they can convert it into dollars and they see it right back into their account. And is there any fee for sending that way? Nope. There are no fees anywhere except conversion. So it's kind of like Dualla except there's no fee at all. Yeah. And basically, you can send dollars, but you just have to convert them into Bitcoins first and that's, you're not sending dollars. You're converting them into Bitcoins and then you're sending Bitcoins. So obviously Bitcoins are always superior. We knew that. So this is the Bitcoin show. All right, so now I go to funds transactions. Oh, there it is. And there's a ledger of everything that I've done, sends and conversions. How many people did you say are using this already? Right now, it's primarily, we've been testing a lot of the tools. For instance, making sure that we get the right rates set all the time, making sure that all the transactions are processing correctly. It's been processing all of the back ends for Bitmunchies for about six weeks. And I've invited basically a few people that, I've sent refunds in this manner. I've sent some money to you, sent some money to other business partners of mine just to try it out. And there's just a little less than a hundred people using it right now. Okay, I love the interface. It's so, so easy. It's really well laid out. We designed it that way so that it can be used from a mobile phone. So to give you an example of how this might be used in the real world, merchant accounts get a QR code that they can print out that goes directly to their payment page. So they could, for instance, print this out, tape it onto their counter and then a customer walks in and, you know, their smartphone makes a picture of it. They're automatically sent to the payment gateway and all they do is enter their pen and the amount clear as instantly and they get their coffee or whatever it is. So I don't have a merchant account. I just have a basic account. You've got a basic account. Okay, so I don't get that. I was going to say how can I, I guess I would have to, now like if I wanted to, right now, I'm not accepting new merchant accounts. What? Well, we're still patching all this. Oh, okay. You know, it seems like a lot of Bitcoin businesses, particularly services, are rushing to the market. There's a sense of urgency, it seems. And we certainly want to first the market as well, but as an engineer and a business owner, I particularly deal with financial transactions, as I said. I want to be sure that everything is stable and that I'm delivering the best products before releasing it to the public. So we've got about two weeks left in the current testing phase. If all continues to go well as it has so far, we'll open it up to select public enrollment for basic accounts like you see here. A couple brick-and-mortar stores and online stores have already asked to be testers for the merchant accounts. I want to be a tester. Can I be a tester? You can be a tester. Thank you. Did you just answer this? How many are you going to allow to do the beta testing? You know, we haven't set a set number. I was targeting three or four brick-and-mortar businesses around Denver who I've already talked to about this and they're on board. As for online merchants, we'll see how much interest there is. This is really slick. I'm just so anxious to see the business accounts dashboard to see how... Is there a widget, like an HTML widget that I'm given? Or how does that work? How do I integrate it into my site as a business? Well, one of the things I want to show you now is a Zencart and OS commerce plugin that will plug in directly to BT Cinch. Just like you can find a PayPal plugin for Zencart. We're building one to not only allow people with existing e-commerce Zencart sites to use BT Cinch, but also as an example for other sites that would like to integrate. For me, for OS commerce or did you have Zencart I heard in there? Did you have multiple planned out? We're currently only building OS commerce and Zencart plugins, but if those go well, then we'll build probably a open cart plugin next and see where we go from there. Cool. I'm back to Bitmunchies. I'm hungry. To look at the shopping cart, and so what I'm looking at then is my account information when I go to check out and if I enter my account information, is this actually part of BT Cinch or not yet? So what you'll see there are the Bitcoin addresses that you get, the exchange rates, all those are being fed from BT Cinch. So Bitmunchies is really just a shell. All the transactions, all of the Bitcoin back ends is being handled by BT Cinch. It's asking me for a password. This is a password for Bitmunchies now, right? Bitmunchies. I'll use the same password, Bruce Wagner for everything. My account has been created. Congratulations, this account has been created. So now I have an account on Bitmunchies. Now it's got my shipping address already and oh, shipping method. I want my Nutella personal post. I can add comments like hurry, I'm hungry, and then hit continue and delivery address, shipping method and so that's what you're saying that the 0.298 or 0.289 that is Bitcoin is up to the minute and that's coming from BT Cinch. So which came first, BT Cinch or Bitmunchies? Bitmunchies came first and I realized that there was a lot of trouble for a Bitcoin business to actually, you know, end to end get their revenue back, particularly if you need some of it back in dollars which most businesses will at one point or another. And, you know, when I started it I had to learn about Tuvala, learn about Mt. Gox, make an account and all these different things and just week over week it took hours and hours just managing all these transactions and trying to get my money out. So BT Cinch basically grabbed your own need for a checkout, a Bitcoin checkout which I think obviously a lot of people are in the same boat. That's what's great about Bitcoin if there's a need, you know, the market will fill it. Exactly. See my screen now, it says my order all I did was tell it what I wanted it says my order has been processed now it says your address for this order is please notify me about updates to Nutella. You can view your order history on the My Accounts page okay, you might want to change that to say your Bitcoin address and like send bit, because what I got to do was copy that address and I have to remember oh wait, I've sent that many Bitcoins to the address as soon as four confirmations oh, oh okay so I have to send that many Bitcoins now what happens if I send the wrong number like let's say I'm dyslexic or something and I do 1.090 or something like that too many or not enough Bitcoins then what happens? Well that's how the emailing Bitcoin Bitcoins came around if someone sends just a little too much or you have to issue a partial refund or something of that nature we used to have to email the user try to get them to send us a new address so that we could send them a refund and that's just a lot of hassle but this way we send it to the email address and they just claim it alright, so if I let's see, if I check my email is there going to be a message telling me that I didn't send it or does it notify me by email that that this is due I should, yeah okay, alright let me check my email they don't need to see all my email alright, so let's see welcome to Bitmunchies, here we go order process alright, so the first email I got was order and then it's just a confirmation of my whole order, alright, let me see what the second one is welcome to Bitmunchies, that was when I created my account okay and then, am I going to get another email address I mean another email that tells me that I need to the Bitcoin address and the amount to send it to again in case I forgot is that not in the, it should be in the order processing email order process, let me look again it says okay, well there's a link to the detailed invoice it says the number of Bitcoin I don't, it's not saying the Bitcoin address to send it to maybe if I click you can log in and we'll look at the order in your history it'll tell you there, oh there it is yeah, if I click the link see that, show that it the order information, order number, pending if I just click the link it shows me the whole thing including the Bitcoin address in case I lost it off my clipboard alright cool, and then once I send Bitcoin to that address will I get another email confirming that it's been received and usually the next email you get will say it's shipped wow, is it true is it really been shipped like that fast like as soon as I send you a Bitcoin it's been shipped you like run down to the basement and grab it no, usually the next email after you send it will be a confirmation what Bitmunchies does it checks at 9am every day and any order that has been confirmed the payment that is we process it and ship it okay, this is really cool so I can buy munchies and things that give you the munchies and clothing and beverages and absolutely everything on bitmunchies.com but then we've got BT Sinch which is in beta right now but it's really really cool and it's basically like a Bitcoin US dollar Duala almost, it's like a Duala it's like a PayPal, it's like a merchant processing web based merchant processing solution for all these things, it's a back end and the merchant doesn't pay any fees, it's just the exchange rate that's different, is that it that's correct there are premium fees which you can pay to get a significantly better exchange rate and also extra tuples but for a store to accept Bitcoins through the same way that Bitmunchies does it's free cool cool cool and what do you guys have in place as far as security goes because I'm sure that's going to be a concern for anybody that's using the service has there been anything that you've done in that respect? We've done quite a bit in that respect you know in addition to encrypting all the passwords multiple salted FHA 512 that sort of thing you can see almost the entire site at BT Sinch is SSL Oh SSL Security Encrypted I noticed that the site is encrypted I noticed that it's based on WordPress at the bottom, powered by WordPress that's really impressive WordPress being the free open source web based software famous for bloggers and blogging we use it too on OnlyOneTV.com it's based on WordPress as well but it's just amazing that you can install framework on WordPress I mean I don't know maybe this is too proprietary but what is it coded in? It's mostly PHP PHP Certain back end pieces are Python there's some Ajax in there Did you do it yourself? Pardon me? Did you code it yourself? I did most of it myself, yeah Wow You asked about security we actually stripped down about half of the actual code from WordPress and rebuilt certain areas to be far more secure Wow That's amazing You must have gotten the munchies during that process eating away your profits Well I want to take a break really quick before we get into the next more and more and more there's so much to talk about with this but we were going to thank our sponsors because we really appreciate them and the first one is actually bit-pay.com which is kind of like a competitor it's all about healthy competition it's kind of like the open source world the Bitcoin network the Bitcoin community is all about community and so it's all healthy competition it's all good and we learned from each other obviously so bit-pay.com just launched and has become our newest sponsor and they offer an online widget and optional shopping cart that you can plug into any website and instantly accept Bitcoin or dollars and be paid in Bitcoin or dollars so we're really excited about that we just announced that on yesterday's show and they're going to be coming and attending the Bitcoin conference and world expo here in New York August 19th through 21st and they'll have a lot of things to display about how they're using that as a point of sale system as well as web based Bitcoin so that anybody can plug it into their site so again contact bit-pay.com and thank them for sponsoring the Bitcoin show and only one TV and Mt. Gox, of course MTGOX everybody knows MtGox.com because they have a massive market share in online Bitcoin exchanges so when you want to know the price of a Bitcoin people pretty much say Mt. Gox they have had their challenges with security as so have the biggest banks in the world but they're resilient, they're back they're not hiding or running away they're fixing things and coming back newer, stronger, better than ever and people seem to have really not lost their confidence and their faith in Mt. Gox because they really haven't lost much market share they're still there the volume is still there and people are still using it to create Mark and the gang at Mt. Gox supporting the Bitcoin show and bringing us to you and Trade Hill the other guys probably the second largest exchange but they're newer and they've got lots of new innovative features and new ways to get money in and out quickly, affordably and as painless as possible again we think tradehill.com, if you refer people to Trade Hill, you get the commission earned on all of their trades and they get a discount obviously if you use our referral code you see on the bottom of the screen there TH-R141 you'll be supporting the Bitcoin show and getting 10% off of your fees for life so they have this referral system which is innovative and we have usgoldcoins.com usgoldcoins.com if you're in the USA you can reach them at 1-800-HOT-COIN that's Andy Gauss and I stand behind him is my guru when it comes to all things money not just Bitcoin but all types of money and monetary systems he is the guy, he knows it all in my opinion, he's my guru and he hosts a show called Real World of Money which is a massively popular national radio show and twice a week it's moving to only one TV on Wednesday mornings 10am eastern real soon now as we say RSN and we're really really excited about that but he is the my opinion like I say the world-renowned expert in money in all things monetary and he's totally accessible just call 1-800-HOT-COIN and ask for Andy and he you'll likely get him on the phone but it's usgoldcoins.com what do they do? they sell rare US gold and silver coins as investments numismatic coins it's called so diversify your investments and if you're going to do that we'll talk to you then usgoldcoins.com and Mezzy Grill we never have enough to say about Mezzy Grill not only are they the world's first brick and mortar restaurant that actually accepts Bitcoin and they've got tons and tons of media and press about that as you all know but now this week they announced that they are not only a restaurant that accepts Bitcoins but they are a Bitcoin exchanger apparently the world's first or one of the world's first brick and mortar retail stores that actually has hours 7 days a week you know what their hours are just go to mezegrill.com and if you're in New York or passing through New York you just know where to go it's like an ATM it's not 24 hours but you know it's open they're open for breakfast lunch and dinner so they're open I don't know what time they open but check their hours online 7am they're open 7am until something late like 10 to 10pm most days but check their hours online it's different on the weekends but basically they're there 7 days a week during normal waking hours you can buy and sell Bitcoin for cash a $500 per day per person limit and they're charging 6% in both directions and it's based on the amount gox last price no none of those things are negotiable so don't bother them with emails and try and talk them down no if you want a better rate just open your own retail store in Manhattan and it sells and buys Bitcoins they're doing a great service to the community for the communities benefit just to know that they're there and whenever you're in New York City you know you can go there and buy Bitcoin even if you don't know anybody here you can buy Bitcoin and sell Bitcoin and spend it there too so thank Marwan at mezegrill.com thanks to all these people for sponsoring our show only one TV we're doing great things obviously we're trying to bring you the our mission statement as you know on only one TV is to help as many people as possible on the planet earth in the most profound ways possible so we're back thanks for your patience there Ira so speaking of bit-pay.com I'm encountering all kinds of things every day that are basically there's lots and lots of new startups that are all trying to solve the same problems everybody has a unique creative mind so they're solving them and they're all different, slightly different approaches so how does BT cinch compare or and contrast to services like bit-pay.com and some new ones that I'm hearing about that we're probably going to be having on the show pretty soon too but how does it, what makes it really unique? well I like to start off by saying I've never used bit-pay.com yesterday was the first time I heard of it so I can't speak to what functionality they have but what I tried to do with BT cinch is end to end so everything you need to not only accept bitcoins payment but to get them out you know to convert them in hopefully as short a time as possible minimize your exposure you know get them into your bank account directly but you know no third parties you know no installation of software you don't have to create accounts with exchanges and walla and everything else but I see that you're also not just for merchant processing like one of the differences I notice and I mean I'm just looking at this for the first time and I haven't spent much time on bit-pay.com either really I learned about it on the actual show but I see a difference right now is that I can deposit funds you're not just for merchant processing it's almost acting like a PayPal a PayPal replacement so I can actually deposit funds how much would you like to deposit oh okay so I can only deposit in Bitcoin is that right? right now yet mm-hmm okay so yeah that makes a lot of sense actually that you would want to deposit only in Bitcoin because you know I was having this conversation about all the walla problems and so forth and basically I can't remember who I was talking to a journalist on the ride to work this morning and I was saying that really the problem is old economy meets new economy and old economy is a what do you call it? it is a pull transaction where basically I have a number I have a secret number and I can pull money out of your account that's a pull transaction the new economy Bitcoin is a cash like economy where it's a push transaction and the problem is when a pull type transaction meets a push type transaction you got fraud they're just always always always going to be scamming so when they're pulling money out of an account it will always be reversible somehow and pushing is the opposite that's what Bitcoin is so it makes a lot of sense that if I'm depositing money it's just only accept Bitcoin you know there's no problem with Mastercard Visa or PayPal when you're sending money no problem because you're the one sending it it's receiving it when you're going to get burned so as long as you only accept deposits by Bitcoin you're safe and then withdrawals it doesn't matter you can send it any way you want because you're not going to get burned and you know you're the trusted entity there are you going to deal with euros at all you know it's on the horizon it's just a legal hassle that I'm not ready for yet yeah interesting well I mean yeah the world obviously euros huge but the world's pretty familiar with US dollar values anyway and you're in beta so like okay give you a break you've done a lot it's just amazing how are you going to secure these like do you have a lot of experience yourself or do you have a team of people or how does that work when it comes to securing the actual Bitcoin funds are they stored offline elsewhere we've got a pretty comprehensive system in the works this is another reason why we're really taking our time releasing this we want to put all this infrastructure in place we're intending to store a solid percentage of the funds as yet undetermined percentage in an offline wallet and when I say offline has never been online generated once on a secure computer another portion will be stored in a temporarily offline server which will only be brought online to refresh the working fund server and that that server is as secure as encryption and secrecy can make it so are you expecting I mean for normal transaction processing for commerce you would receive a merchant would receive sales or whatever payments would just become in and process they'd come in and go right back out again but are you expecting with BT Cinch that people if they're using it as a dualla or paypal replacement that's kind of bitcoin centric by the way that's cool right there it's a paypal dualla but it's from the bitcoin world bitcoin is the people's money and BT Cinch are paypal it's our dualla okay anyway sorry but back to this are you anticipating that users are going to keep a balance to do shopping and also along with that are you anticipating that this like BT Cinch could actually be accepted you know how dualla works where like a merchant can accept dualla like with a smartphone app and things like that could there be a BT Cinch smartphone app that absolutely we are already putting infrastructure in place for that but then is it really necessary because if you can send money with an email what do you even need an app for all you need is a browser and email we already have those apps you know if you got a smartphone it works perfectly well right now so an app would only make it prettier and more I guess easier to use I suppose and I guess you be able to use it like mobily well you can I mean smartphones you can use a browser and email mobily last time I checked that's how I did it the other day exactly so it works I imagine this would make it simpler simpler, easier, just fast whatever, prettier pretty much that's like okay so back to the first so are you anticipating then that individuals or merchants even would carry a balance and keep their funds in there we anticipate it being used as a daily wallet if you will you deposit one or two bitcoins in the morning as you go about your day you get coffee you go to lunch maybe at meds grill or wherever and you gradually use you know a bitcoin or two and because you deposit it in the morning as you you know go to these stores and enter these transactions through your smartphone they clear instantly so there's no waiting right there's no wait so okay if I'm going to go to a merchant that accepts bitcoin like if I go to meds grill today for dinner I I would have to do send funds but wait I do send funds do they have to have an account oh I get or bitcoin address so I could just paste their bitcoin address right into this thing this is basically acting as mybitcoin.com as a as a wallet as a web based wallet as well right it is yes hmm whoa that changes everything too so you can actually keep your funds in here and I can just paste in well I could even if I put in the email address though then it's going to ask meds grill to create their own btsinch account and it'll go into there if they don't have one already if they do it simply shows up it just shows up and they'll get a notification by email that they receive money and you said that's going to be done instant like there's going to be no delay from btsinch user to btsinch user there's no delay no delay so if I do an email then it's going to ask them to create an account if they don't already have one and if I and if they don't have one let's say Marwan probably doesn't have one right now so if I send him this and I send it to his email address then he's going to get an email he has to touch the link and just like me then he creates an account but once he creates an account it shows up in there he can instantly then to withdraw all the bitcoins so but once he has an account he can just leave it in there but if he doesn't want to have an account then it doesn't matter I can just paste their bitcoin address in and put in the bitcoin amount and a message that's optional and it's going to send a bitcoin or whatever number of bitcoins out through the normal bitcoin network and that happens immediately and message oh I get it it says message email only of course so if I'm sending it to a obviously to a bitcoin address you're not going to send an email it's just a normal bitcoin transaction and that happens instantly takes an hour or so to clear no message well it's a normal bitcoin transaction that happens instantly and it'll go out as unverified immediately and then it'll end up with verification just like a normal alright so they should still get notification of it right away let me see let me think so do I get as a merchant do I get a bitcoin address like could I have one standard bitcoin address or would it how does that work well that's one of the issues with accepting bitcoin as a merchant if you put one address out that not only leaves you slightly vulnerable to being tracked but every customer that sends something to that address can then be tracked more easily so we create a unique address for every transaction so if I'm a restaurant let's say I'm a brick and mortar restaurant then do they have to have a kiosk or something for how would I order at Mezzy Grill and get a unique address every time presumably Mezzy Grill would print out a QR code to their payment gateway presumably that is that they have an account with us they would print out a QR code to their payment gateway your phone will decode that and assuming you have the internet on your smart phone you are at the payment gateway you just enter the amount and you are pinned and confirm it it is instantly in Mezzy Grill's account and all they have to do is check their balance okay but both parties have to have a BT cinch account that's correct yeah you could send it to just a bitcoin address but again it won't clear instantly then but that's actually pretty cool because you just use the QR code and then it's going to automatically take you there and then you know there's going to be no delays is there anything else you have in the pipeline that's going to assist merchants like you're doing now there are a lot of things in the pipeline to assist merchants but nothing I'm prepared to talk about at the moment okay well you talk to me offline later because people tell me everything well you're going to be one of our testers after all of course I'm going to know it all but I won't tell so alright I think we're going out of time it's like 60 minutes feels like 5 minutes we're just getting started but I'm anxious to see this in action I'm really anxious to see this in action at Mezzy Grill from Bitcoin in 6 months time is going from a situation of having no point of sale solutions at all to having like 100 of them to choose from it's going to be so interesting Mezzy Grill will probably be prototyping like 12 different point of sale systems and then we have to crash cash registers so it's going to be very interesting but it's going to hash out really well and it's going to be a really really cool day for Bitcoin so we've got seconds left okay thank you Ira and also you know what else is going to be a cool day the Bitcoin conference exactly don't forget the Bitcoin conference and world expo August 19, 20 and 21 coming up go to bitcoinconference.com so we're out of time thanks for joining us and we'll see you tomorrow thank you Ira alright take care everybody and see you tomorrow