Just to add, a bitcoin merchant keeping all his coins means that the merchant does not use BitPay to convert his bitcoins to fiat.
A merchant could possibly dump his coins at exchanges, if he finds it cheaper than using BitPay.
Topic: [2014-12-14] CCN: More than 4400 BitPay Merchants Keep All Their Bitcoins (Read 1206 times)
December 15, 2014, 12:49:27 PM
December 14, 2014, 10:12:54 AM
But do Bitpay sell all the BTC that merchants do not keep?
Let's just put it this way: they would be more profitable if they were simply building up as much BTC and fiat holdings as they can, and then paying merchants out of those holdings. "Business model" and "transaction" are actually separate concepts, believe it or not
Let's just put it this way: they would be more profitable if they were simply building up as much BTC and fiat holdings as they can, and then paying merchants out of those holdings. "Business model" and "transaction" are actually separate concepts, believe it or not
December 14, 2014, 08:24:48 AM
It's impossible to say how much will be kept in bitcoin if you do not know the revenues per merchant.
If 10% keeps them you can not conclude that 10% of $1 million will be held in bitcoins.
If all merchants would have exactly the same revenues in bitcoin:
10% of merchants keep 100% = $100,000
41% of merchants keep some, lets say 25% = $102,500
Total = $202,500 per day, a rough estimation based on averages
If the price will go up or down depends on the amount of new bitcoins purchased for the transaction with fiat money. If only old bitcoins will be used then the price would sure go down.
Bitcoins purchased with other cryptocurrencies makes it extremely complex to make an estimation plus there are also newly mined coins.
If 10% keeps them you can not conclude that 10% of $1 million will be held in bitcoins.
If all merchants would have exactly the same revenues in bitcoin:
10% of merchants keep 100% = $100,000
41% of merchants keep some, lets say 25% = $102,500
Total = $202,500 per day, a rough estimation based on averages
If the price will go up or down depends on the amount of new bitcoins purchased for the transaction with fiat money. If only old bitcoins will be used then the price would sure go down.
Bitcoins purchased with other cryptocurrencies makes it extremely complex to make an estimation plus there are also newly mined coins.
December 14, 2014, 07:48:40 AM
More than 4400 BitPay Merchants Keep All Their Bitcoins
https://www.cryptocoinsnews.com/more-than-4400-bitpay-merchants-keep-bitcoins/
BitPay, the largest and oldest bitcoin payment processor with a daily volume of $1 million bitcoin transactions supporting more than 44,000 merchants, stated in an email exchange to CCN that more than 4,400 of their merchants keep all of their settlement in bitcoin, almost 18,000 keep some of their settlement in bitcoin while the remaining 22,000 convert it all to fiat.
This is good news and takes the punch out of "Merchants dump bitcoin and so its price crashes" argument.
https://www.cryptocoinsnews.com/more-than-4400-bitpay-merchants-keep-bitcoins/
BitPay, the largest and oldest bitcoin payment processor with a daily volume of $1 million bitcoin transactions supporting more than 44,000 merchants, stated in an email exchange to CCN that more than 4,400 of their merchants keep all of their settlement in bitcoin, almost 18,000 keep some of their settlement in bitcoin while the remaining 22,000 convert it all to fiat.
This is good news and takes the punch out of "Merchants dump bitcoin and so its price crashes" argument.
so roughly 10% of all the merchants they support keep their coins?
90% sell all or keep some?
90% sell all or keep some?
Sounds about right got 10% that are holders a little less than 40% that do both and a bit more than 50% that just sell and convert to fiat.
I guess the bigger question is which ones by market size are the ones that hold sell and do both.
4,401+17,600=22,001
22,001>22,000
How do you figure more than 50% sell and convert to fiat?
I'm assuming 17,499 is definitely not "almost 18,000."
Are you assuming "almost 18,000" is definitely between 17,500 and 17,599?
Also, to be extremely literal (in spite of the imprecise numbers), out of "more than 44,000" the "remaining 22,000" is less than 50% by definition.
2) Are you a huge optimist, or are you trying to twist the news so that it sounds negative?
It is very surprising to me that just about (and most likely over) 50% of BitPay merchants keep at least some of their settlement in bitcoin. So that this "seems just about right to you" seems very ho-hum to me.
Quite frankly, I would have been very surprised to find out that 40% hold at least some.
December 14, 2014, 06:00:38 AM
10% are smarter than the 90%... wait and see
December 14, 2014, 02:35:16 AM
so roughly 10% of all the merchants they support keep their coins?
90% sell all or keep some?
90% sell all or keep some?
Sounds about right got 10% that are holders a little less than 40% that do both and a bit more than 50% that just sell and convert to fiat.
I guess the bigger question is which ones by market size are the ones that hold sell and do both.
December 14, 2014, 12:52:00 AM
so roughly 10% of all the merchants they support keep their coins?
90% sell all or keep some?
90% sell all or keep some?
December 14, 2014, 12:41:15 AM
More than 4400 BitPay Merchants Keep All Their Bitcoins
https://www.cryptocoinsnews.com/more-than-4400-bitpay-merchants-keep-bitcoins/
BitPay, the largest and oldest bitcoin payment processor with a daily volume of $1 million bitcoin transactions supporting more than 44,000 merchants, stated in an email exchange to CCN that more than 4,400 of their merchants keep all of their settlement in bitcoin, almost 18,000 keep some of their settlement in bitcoin while the remaining 22,000 convert it all to fiat.
This is good news and takes the punch out of "Merchants dump bitcoin and so its price crashes" argument.
https://www.cryptocoinsnews.com/more-than-4400-bitpay-merchants-keep-bitcoins/
BitPay, the largest and oldest bitcoin payment processor with a daily volume of $1 million bitcoin transactions supporting more than 44,000 merchants, stated in an email exchange to CCN that more than 4,400 of their merchants keep all of their settlement in bitcoin, almost 18,000 keep some of their settlement in bitcoin while the remaining 22,000 convert it all to fiat.
This is good news and takes the punch out of "Merchants dump bitcoin and so its price crashes" argument.
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