Bitcoin Transactions

When you are involved in a Bitcoin transaction, there are a number of things that can go wrong. Sometimes it might be an ordinary type of problem, such as a dispute over payment or over the quality and quantity of goods. Other issues may arise from the specific features of a digital currency, which can hamper a transaction in distinctive ways. From his office in Orange County, Bitcoin attorney Roger E. Naghash uses his extensive knowledge of business transactions and the nuances of virtual currency to assist clients across California and all over the United States.

In many types of ordinary transactions, the time between payment and receiving goods can be days or even weeks. Furthermore, some types of transactions are ongoing, such as an apartment lease where rent is paid throughout the year. Paying with Bitcoin can complicate matters because its value can fluctuate dramatically. This volatility may require a clause that uses some measure for the value of Bitcoin and then adjusts the price or voids the contract when its value fluctuates too much. Another alternative might allow for payments in dollars.

Digital currency is vulnerable to technical problems as well. It may be hard to decide when control over funds changes. This could happen when the transfer is initiated, or when it is verified in the block chain ledger. Using the latter system can potentially add minutes to the transaction. If you are buying a car in virtual currency, the seller might want to wait hours, or even a day, to make sure the sale really went through. It is unclear whether the buyer or the seller should bear the burden if the transaction fails.

Technical problems can evoke a variety of competing solutions. People can restart the transaction, switch to dollars, or simply walk away from the deal. If you switch to using dollars, you will need to decide the dollar amount that comprises a fair equivalent to the proposed amount of Bitcoins.

There are several common transaction problems that Bitcoin does not address. Contract disputes often arise over:

• Failure to deliver goods or services
• Non-conforming goods or services
• Late delivery or non-delivery
• Late payment or non-payment

When you buy goods or services with a digital currency, there is often no guarantee that the goods or services will be delivered to you, or that they will meet your expectations. Also, they may arrive too late. This might mean you no longer need what you bought, or that its value has dropped while you are waiting for it to arrive.

On the other end of a Bitcoin transaction, you could be selling goods or services. You might expect payment on a certain date, and a late payer could put a serious strain on your finances.

In any of these situations, digital currency doesn’t provide answers better than those of a traditional payment mechanism. In fact, if you’ve pre-paid for goods or services, using a virtual currency can add to your headaches. Getting a refund can become complicated, and a digital currency doesn’t always have a built-in refund solution.

If a virtual currency transaction has gone bad, or if you want advice on how to implement it in advance, call Bitcoin lawyer Roger E. Naghash at his Southern California office. With his background in business litigation, consumer law, real estate, and digital currency, Mr. Naghash has the knowledge and dedication to resolve your concerns. For a free initial consultation, call 949-955-1000, or use our online form.