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Topic: Bitcoin exotic-bonds for payment processors like BitPay (Read 563 times)

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How do bitcoin processors process their bitcoins? Smiley
Do they just go to various exchanges and drop their bitcoins or what?

I was thinking, would it be possible for them to sell some kind of financial instrument that let people buy their bitcoins at some price lower than the current/last price before they actually have those bitcoins? I mean something like a bitcoin "bond"..

It could work like this: the processor expects to reach some specific amount in the next x time period, they checkout the order book in some exchange and they know that if they sell those bitcoins they would obtain (obviously) an amount much lower than the "last price", so instead of market-selling, they create a public offer for bonds so people could buy Bitcoins at some price lower than the current market price (or best ask) of some specific exchange BUT higher than the price they would obtain if they market sell.

Seems it could result in a win/win situation since people how buy those instruments are going to get a better price for the bitcoins, and the processor would obtain more fiat, AND also the market would be more stable Smiley

But I really don't know much about economics, so please tell me what do you think.

cheers
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