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Ask HN: advice needed on how to overcome objections to my new Bitcoin product

5 pointsby antonwinterabout 11 years ago
I have developed a software application that literally creates Bitcoins from nothing. Well strictly speaking it looks for arbitrage opportunities on the cex exchange, and sometimes when the market conditions are just right, a couple of simple trades conjures bitcoin out of thin air.<p>It works, for real. My software conjures money essentially out of thin air.<p>BUT I have a couple of really thorny problems and I&#x27;d like to ask for the help of HN.<p>1: - no one believes me. They think it&#x27;s a scam. And indeed it SOUNDS scammy. How the heck to counter this?<p>2: - people don&#x27;t trust me. I&#x27;m an ordinary middle aged man with a family who has been developing software for more than 20 years. I know I&#x27;m trustworthy, but in the bitcoin world, no one trusts anyone. How do I get people to use my software when they are super paranoid about being hacked etc because it seems that everything bitcoin gets hacked.<p>FYI extra information: my software does not make any great quantity of bitcoin in any given trade - we&#x27;re talking fractions of a bitcoin each time the opportunity comes up. However I think there&#x27;s plenty of room to grow this across exchanges and limits on any one users trading limits the amount that can be made.<p>Any advice welcome. The software is called &quot;coinfinder&quot; and the site is www.bcoinex.com<p>Thoughts? Advice?<p>Anton<p>One thing to note: for the purposes of easy explanation, I have said &quot;bitcoin&quot; above but its actually trading gigahashes which are used by cloud mining to create bitcoin. A future version of my software will automatically exchange the gigahashes for bitcoin so it will be native bitcoin finding.

5 comments

fabulistabout 11 years ago
I&#x27;ve seen a number of scams revolving around forex&#x2F;sports arbitrage, and it would warm my heart if you could appropriate their marketing techniques for a genuine product. There was one in particular which I read all the copy for in sickly fascination. I couldn&#x27;t find it again, but if I do I will post it to this thread.<p>They often have a ticker of out-of-date arbitrage opportunities, to demonstrate their capabilities. Your trial is superior to this in one way, and inferior in another (which is key.) You offer real moneymaking opportunities, proving the value. But potential clients, as you&#x27;re well aware, do not yet trust you. And running your code requires trust. I think you should take a leaf from the con men&#x27;s book, and show out-of-date opportunities on your site.<p>The scammers give an explanation of what arbitrage is, and what &quot;separates&quot; their system from a get-rich-quick scheme. They invoke images of fast cars and big houses. They are, of course, exaggerating to prey on the naive and desperate, but the principle holds for a real product. The wikipedia page you link to is sterile. If it were me, I&#x27;d write an explanation which dealt directly with gigahashes, and which sought to excite your customers and inspire them to imagine their pile of BTC growing every six seconds.<p>These next thoughts are more my own. If your software is any good, people are going to reverse engineer it; why not post the mathematics behind your system on your site? If people can see the basis behind your program, they&#x27;ve a reason to trust it. Even if they don&#x27;t understand the principles, they&#x27;ll be reassured to see that there are indeed principles. I&#x27;d put up all the personal details you&#x27;re comfortable sharing. If people can read a bio blurb and see your face, and feel you&#x27;ve made yourself vulnerable, they&#x27;re much more apt to make themselves vulnerable to you. (Of course, if you put up too much information the vulnerability ceases to be metaphorical.)<p>Additionally, while I understand you can&#x27;t compromise your competitive advantage, I&#x27;m curious to learn more about your system. Is six seconds an arbitrary number, or did you arrive there empirically? Are you running the tool yourself? How much have you made? What would be the impact if many people started running your tool, and (if their clocks sync up) take advantage of the same opportunities? Would that degrade its utility?
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olalondeabout 11 years ago
The obvious question is why don&#x27;t you use your software instead of selling it?
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antonwinterabout 11 years ago
@olalonde,<p>I am using it. it works quite well, but it is not big money. it makes as much as the volume and volatility of cex. So that works out at about a $1 a day right now. if cex grows, or if there is more volatility then it will increase.<p>right now i am starting to look the coding for other exchange.<p>maybe its not something bitcoiners are going to accept because it seems too good to not be a scam or it doesnt seem like there is enough in it to make it worth while.<p>currently the feedback i get is that people think its a scam<p>I am thinking of doing a speech at the local bitcoin events but that doesnt seem too scalable
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antonwinterabout 11 years ago
Just an update on the product launch.<p>I&#x27;ve got a handful of sales coming in which is great. Mostly driven by a post on the bitcoin forum.<p>People there are certainly raising the trust&#x2F;hacking issue. I am being open and honest with them and trying to communicate in a responsive manor. Maybe honesty, responsiveness and time will be the key.
markmassieabout 11 years ago
Here is a great example of what not to do:<p><a href="https://coingeneration.com" rel="nofollow">https:&#x2F;&#x2F;coingeneration.com</a>
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