Our company plans to use Counterparty

Hello, Aaron @ BitSpot here.

We’re a brick-and-mortar company based in Ashland, KY. We started as a small group of traders nearly a year ago and we exchanged Bitcoins for fiat currencies through various methods. Our objective in the Bitcoin community is allowing customers to create friction-less trades and be able to exchange Bitcoins from Fiat to Bitcoin or vice versa in a matter of 15 minutes. We want the transition in and out of Bitcoin to be as smooth, quick, and reliable as possible.

Through hard work and dedication we’ve managed to expand our operations and grow faster than imagined. We are nearly amazed at the amount of volume we process everyday for our clients, we had no idea that so many people actively bought and sold Bitcoins in relatively small quantity. All of our clients quickly fell in love with the concept of how we do business and that is: Personal. We develop working relationships with all of our customers and try to accommodate their needs and wants in any way possible. We’ve learned that people enjoy talking to an actual human being and that they prefer doing business with a person rather than an automated machine. Many of our customers are un-banked and would rather not deal with the organizations that are in place now such as: Bitstamp, Coinbase, BTC-E, etc. They are simply wanting to buy or sell only a couple Bitcoin at a time, but they are wanting to do it quickly. This is where we are able to fill the gap, we offer quick liquidity services to the community. About 3 months ago we finally pulled the trigger and acquired our building where we plan to have a fully functional local exchange. Our building consists of 5 Offices, conference room, reception area, 2 bathrooms, and a lounge. We’re hoping to have it become a “meet-up” or “hub” for Bitcoin activity within our area and we seem to definitely have the monopoly in the area.

The way BitSpot currently conducts it’s exchanges is through a Broker-Client transaction. It involves a customer wanting to buy or sell Bitcoin and then having them contact their Broker, who is employed by BitSpot. The brokers reside here in our office where they are employed full-time much like a regular job but of course a lot better. The brokers buy and sell Bitcoins by using our companies pool of funds that are specifically used for this reason. We’ve reached a point now where demand and volume are starting to outpace our ability to process all of our transactions, so we are planning to do a over-haul and possibly implement some better strategies of how we can handle the growth. We never want to be faced with telling one of our clients that we can’t handle that trade for them that day, or we don’t have time. We’ve already scaled to the maximum potential as far as our building goes, it’s just not logical at this point to hire anymore brokers. We’ve ultimately decided to take the route that the former company BitInstant took. We’ve been in talks and negotiations with Western Union & MoneyGram to see who could possibly offer us the best deal in order to accomplish our business plan. The new system we are proposing will allow Customers to send us money from nearly anywhere due to Western Union & MoneyGram’s infrastructure globally. All the customer will need to do is attach a memo of the Bitcoin address they would like to receive their funds at or they could enter the transaction ID into an online portal along with the accompanying bitcoin address they’d like the funds to go to. This flexibility will allow all of our clients / customers to easily send money to us from anywhere around the world just as if they were paying a bill payment through Western Union for example. The fee would be minimal and cost around $5 but on the positive side the customer will receive their Bitcoins within minutes of sending the transaction or before they are even able to make it home. When it comes to selling Bitcoins to us, it would work nearly the same but in reverse.

This system and infrastructure we’ve decided to pursue seems like the most logical step forward in our growing business. We don’t see any other ways to keep up with the growth and demand of our services. We believe we can improve the speed of all of our transactions and possibly even bring them below the level of 15 minute transactions by using this method. We can still retain our core values of great customer service as well by re-focusing the existing brokers into this system and still treating our clients as our fellow friends. We’ve only encountered one problem that could possibly delay transfer times or be a negative to this switch in transaction processing. The new implementation of this system could easily stump our statistical analysis of future growth and we could easily reach our maximum funds limit. At the current state where we are dealing with our clients on an individual 1 on 1 basis we are easily able to predict our future transaction volume, how much funds are needed, and future profit. When we implement this new approach and it’s successful we might become overwhelmed with an influx of new customers, especially if certain events were to arise in the Bitcoin ecosystem. Through this analysis and in hopes of growing our company and further strengthening the community we’ve come to the following decisions below.

We’ve decided to offer our company to the public and let them be a part of our business! This will help by allowing us to raise additional capital for our principal fund pool that is used solely for everyday transactions in and out of Bitcoin. We are at a stage where we are deciding upon the platform we should use to allow the public to become a part of our company. We intend on offering all investors regular dividends for each share they hold so they don’t need to just speculate on the future value and growth of our company. We are already at this point a profitable company and future growth will only compound our success and revenue. The money will be used to process the transactions we handle daily, giving our customers liquidity in the market.

After researching different platforms and certain protocols, we’ve became greatly interested in Counterparty. It seems to be quite revolutionary and a real diamond in the rough. Counterparty meets and exceeds every expectation we need from a platform. We will be able to easily issue the shares of our company, allow dividends to be paid, and also callback our shares at a future date if wanted.

We’re wanting to poll the community of Counterparty about this idea and hear the insight from you. We would like to hear the pros and cons of Counterparty versus other exchanges dealing in assets (such as Havelockinvestments.com, MPOE, Cryptostocks.com). We’re a Bitcoin company and we make an honest living off of the technology we all love and embrace. We want to give back to our clients and our community and hopefully they too can partake in our business and reap some profits and rewards.

We’re more than enthusiastic about Counterparty and the progress thus far. In our humble opinion we do believe this is the next step in the Bitcoin revolution and that’s why we would like to use it as our platform to reach future investors and current clients.

[font=verdana]Any suggestions, help, or questions are more than welcome. [/font]

[font=verdana]Thanks for taking the time to read![/font]
[font=verdana]Aaron @ BitSpot[/font]

You may get more feedback by posting on the Bitcointalk thread. It seems to be a bit more active.


My initial response to your questions is that Counterparty can certainly do what you want it to do. Right now your development plan seems a little too vague to attract investors.

[quote author=sparta_cuss link=topic=327.msg2313#msg2313 date=1399743056]
You may get more feedback by posting on the Bitcointalk thread. It seems to be a bit more active.


My initial response to your questions is that Counterparty can certainly do what you want it to do. Right now your development plan seems a little too vague to attract investors.

Thanks for the input. I will definitely be adding and answering questions in more depth and detail.