There are many people frustrated with figuring out how to get into bitcoins. It has been shown that people who use PayPal would be willing to spend more per BTC than those going through the exchanges.

The main reason people will not exchange bitcoins via credit cards is because of chargebacks, you could give someone your bitcoins after they pay with a credit card only to have them disappear with your BTC and get their money back onto their card leaving you with nothing.

Most credit card companies have different time scales for different charge backs, the longest being 120 days (from a quick check on Visa).

So, what if we had an exchange that allowed you to pay with a credit card and when you do the purchase the exchange buys bitcoins on your behalf but holds them for you for 120 days. What you receive instead is a bitcoin equivalent credit or colored or slightly transparent coin (however the site wants to do it).

But what you can do with these coins once you get them is trade them on that exchange. Based upon the amount of time that has passed from the time you bought them to the time they actually get switched out for real bitcoins they will vary in value based upon what people are willing to pay.

Say bitcoin is $100/BTC. You go to pay with your credit card and pay $100 (plus credit card fees). You buy 1 BTC for $100. The site buys 1 BTC at $100 and pegs it to your purchase and gives you a red 4 month coin.

You notice on the site that someone is willing to trade .8 bitcoins for a red 4 month coin. You need the bitcoins for something else so you do the trade.

Now the guy with the red 4 month coin holds the coin for a month so it is now an orange 3 month coin. He notices that someone is willing to trade .8 light green 2 week coin for an orange 3 month coin. He has a bitcoin hosting service payment coming up in 2 weeks so he makes the trade.

He waits 2 weeks and the light green coin turns dark green until the final day of the 120 days it turns into a solid bitcoin which the site then transfers to the holder of the coin. He can now take the coin out and use it in his wallet for whatever he wants.

The original person could have waited the 120 days to get the one bitcoin as well.

But people would be motivated to trade based upon the risk of someone doing a charge back. You could even have credit ratings for each person based upon amount of trades and if they have ever done a charge back.

It would allow for easier entry into using bitcoins on the trading side allowing people to pay extra to use their credit card to buy bitcoins (users could be willing to trade their full bitcoin for 1.2 red 4 month bitcoins from an AAA rated seller for example).

Thoughts?