How Not to Sell Bitcoin on eBay for 300% Profit

#1

Post by dysruption » Sun, Aug 25, 2013, 4:23 AM UTC

How Not to Sell Bitcoin on eBay for 300% Profit
whatilearnedtoday.jameslarisch.com

Re: How Not to Sell Bitcoin on eBay for 300% Profit

#2

Post by noonespecial » Sun, Aug 25, 2013, 4:36 AM UTC

Ebay absolutely lacks the seller protection to ever make this kind of transaction. If I purposely tried to design a market that supported this kind of fraud, (even encouraged it, in a nurturing "please do this" sort of way). I couldn't do better.

Re: How Not to Sell Bitcoin on eBay for 300% Profit

#3

Post by ydnaod » Sun, Aug 25, 2013, 5:14 AM UTC

So interesting

Re: How Not to Sell Bitcoin on eBay for 300% Profit

#4

Post by tghw » Sun, Aug 25, 2013, 5:20 AM UTC

Really? PayPal has always protected buyers more than sellers. This scam has been running since BitCoin started being traded.

Re: How Not to Sell Bitcoin on eBay for 300% Profit

#5

Post by yelnatz » Sun, Aug 25, 2013, 5:24 AM UTC

Yep, the classic paypal chargeback scam.

People buying your bitcoins for 100-200% above market price.

After you send the bitcoins, they do a charge back on you.

Can't get your bitcoins back and Paypal is on the buyer's side. SOL.

Re: How Not to Sell Bitcoin on eBay for 300% Profit

#6

Post by smsm42 » Sun, Aug 25, 2013, 5:25 AM UTC

noonespecial wrote: post #2

Ebay absolutely lacks the seller protection to ever make this kind of transaction. If I purposely tried to design a market that supported this kind of fraud, (even encouraged it, in a nurturing "please do this" sort of way). I couldn't do better.

I'd guess that's PayPal that lacks protection, since they are the ones making the decision. Probably because their arbitrators are ignorant in what Bitcoin is and how it works. I don't even blame them - they can't know everything, but one must know there's a risk PayPal would rule against you if you sell something that you can't prove is delivered to their satisfaction.

Re: How Not to Sell Bitcoin on eBay for 300% Profit

#7

Post by STRML » Sun, Aug 25, 2013, 5:26 AM UTC

This is the most classic bitcoin scam - buy with paypal, then claim you didn't receive the item. The seller has no way of proving that you did, and Paypal will rule on the buyer's side every single time.

This is why trading channels like #bitcoinotc discourage any use of paypal - but for times where you have to use it, there's the trust system.

Re: How Not to Sell Bitcoin on eBay for 300% Profit

#8

Post by fixxer » Sun, Aug 25, 2013, 5:26 AM UTC

tghw wrote: post #4

Really? PayPal has always protected buyers more than sellers. This scam has been running since BitCoin started being traded.

True. This is neither new, nor limited to Bitcoin. I got burned last year on a small sale.

I did appreciate the author's "discovery" of a market mechanism... I'm going to go bid on some bitcoin now and do this arb the right way!

Re: How Not to Sell Bitcoin on eBay for 300% Profit

#9

Post by tadfisher » Sun, Aug 25, 2013, 5:29 AM UTC

I am surprised that in his research, the author didn't come across any warnings not to sell Bitcoin on Ebay. This is pretty common knowledge these days.

I was also under the impression that PayPal does not allow selling Bitcoin or Bitcoin hardware. This transaction should have been stopped automatically, and it's a shame Ebay doesn't have automatic tools to stop blatant abuse of their own policies.

Re: How Not to Sell Bitcoin on eBay for 300% Profit

#10

Post by ck2 » Sun, Aug 25, 2013, 5:30 AM UTC

Selling virtual items on ebay is a bad idea.

But you can also block non-US buyers I believe which will slightly reduce your risk.