I am excited to announce that I recently began accepting Bitcoin as payment on BungeeBones. And, along with accepting Bitcoins I am also offering commission payment as bitcoin. You can see BungeeBones listed here among the fast growing list of companies that accept Bitcoins. In case you are not familiar with BitCoin visit Bitcoin.org to get the basics.

I plan on writing frequently about it since I often write about the Fed Reserve, the US national debt and the fallacy of fiat money but what I would like to do in this introductory is list some reasons I believe BungeeBones fits so well with Bitcoin.

BungeeBones was built with the idea that web advertising costs could and should be offset by earnings when those websites contribute web traffic. At its basic level BungeeBones is functioning as a link exchange. In a perfect world every website would be equal in both their demand for advertising and their contribution for web traffic. But in the real world, new websites, for instance, usually want more web traffic than they contribute and more mature web site draw enough traffic to warrant selling some. So, when one site wants traffic and another wants to sell it we have what is normally referred to as “the marketplace”. Part of what markets help determine is pricing and that is part of what BungeeBones is doing.

To purchase a better position for your ad in the BungeeBones directory (and, at the same time, a better position in all the sites that have downloaded and installed it) you need to establish a “slush fund” of sorts from which monthly payments can be deducted. Those slush funds could be funded in three ways previously and now there is four with the addition of Bitcoin. You can add funds using 1) PayPal 2) Commissions earned through sales of paid positions through a web directory installed on your website 3) vouchers or promotions issued by BungeeBones and now 4) Bitcoin.

Why You Would Want To Spend BitCoins At BungeeBones.com

Notice that I start this paragraph with the assumption that you already have Bitcoin and are looking for a place to purchase product with them. If you don’t have Bitcoin already there may not be a benefit to converting your native currency to Bitcoin, but then again, there may be (read on).

If the transaction fee for the method of payment you are using is higher than the purchase or broker fee for acquiring Bitcoin then it may pay to purchase Bitcoin with your native currency and pay BungeeBones with Bitcoin. Practically speaking, unless you have a large advertising budget with BungeeBones there would not be enough savings to warrant the effort. But there are some countries where access to payment methods such as credit cards or PayPal is difficult. In those situations, if they can acquire Bitcoin there will be easy, free transfer back and forth between BungeeBones and them afterwards.