Topic: How are wallets like XAPO earning money? (Read 2730 times)
How does Xapo benefit itself with the fee-less coin sending model?
They are basically a bank. A bitcoin bank.
They gather people's money and they can make whatever investment they like with that money. As long as all the Xapo users do not decide to withdraw all of their money, there won't be a problem.
So, why would people decide to withdraw their money from Xapo? Think about it, If some hacker hacks Xapo and you hear it after, what would you do? You want to withdraw all and gtfo as soon as possible. Just like a real bank.
They gather people's money and they can make whatever investment they like with that money. As long as all the Xapo users do not decide to withdraw all of their money, there won't be a problem.
So, why would people decide to withdraw their money from Xapo? Think about it, If some hacker hacks Xapo and you hear it after, what would you do? You want to withdraw all and gtfo as soon as possible. Just like a real bank.
This is wildly incorrect and FUD. Xapo (and similar hosted wallets/vaults) is a custodian of other peoples' bitcoins -- they do not put the bitcoins on their balance sheet and therefore cannot lend them out or invest them. It is like a gold vaulting service, or a safe-deposit box, vs. a traditional depository bank.
Maybe some bitcoin companies are planning on getting a full banking license and pursuing that model but that is not currently what they do. I don't think a bitcoin "bank" currently exists.
They are basically a bank. A bitcoin bank.
They gather people's money and they can make whatever investment they like with that money. As long as all the Xapo users do not decide to withdraw all of their money, there won't be a problem.
So, why would people decide to withdraw their money from Xapo? Think about it, If some hacker hacks Xapo and you hear it after, what would you do? You want to withdraw all and gtfo as soon as possible. Just like a real bank.
They gather people's money and they can make whatever investment they like with that money. As long as all the Xapo users do not decide to withdraw all of their money, there won't be a problem.
So, why would people decide to withdraw their money from Xapo? Think about it, If some hacker hacks Xapo and you hear it after, what would you do? You want to withdraw all and gtfo as soon as possible. Just like a real bank.
Xapos claims to use a more secured multisig wallet. You need 2 out of 3 person's keys before the funds can be accessed. But in the computer world, anything can happen.
I get your point but that I was giving an example. People may decide to withdraw eveything because of a madly spreading FUD, or... Or they may say "fck all" decide to follow "Goxway".
I hope they have a mechanism in place to prevent a "bank run" if customers panic. haha
They are basically a bank. A bitcoin bank.
They gather people's money and they can make whatever investment they like with that money. As long as all the Xapo users do not decide to withdraw all of their money, there won't be a problem.
So, why would people decide to withdraw their money from Xapo? Think about it, If some hacker hacks Xapo and you hear it after, what would you do? You want to withdraw all and gtfo as soon as possible. Just like a real bank.
They gather people's money and they can make whatever investment they like with that money. As long as all the Xapo users do not decide to withdraw all of their money, there won't be a problem.
So, why would people decide to withdraw their money from Xapo? Think about it, If some hacker hacks Xapo and you hear it after, what would you do? You want to withdraw all and gtfo as soon as possible. Just like a real bank.
Xapos claims to use a more secured multisig wallet. You need 2 out of 3 person's keys before the funds can be accessed. But in the computer world, anything can happen.
I get your point but that I was giving an example. People may decide to withdraw eveything because of a madly spreading FUD, or... Or they may say "fck all" decide to follow "Goxway".
They are basically a bank. A bitcoin bank.
They gather people's money and they can make whatever investment they like with that money. As long as all the Xapo users do not decide to withdraw all of their money, there won't be a problem.
So, why would people decide to withdraw their money from Xapo? Think about it, If some hacker hacks Xapo and you hear it after, what would you do? You want to withdraw all and gtfo as soon as possible. Just like a real bank.
They gather people's money and they can make whatever investment they like with that money. As long as all the Xapo users do not decide to withdraw all of their money, there won't be a problem.
So, why would people decide to withdraw their money from Xapo? Think about it, If some hacker hacks Xapo and you hear it after, what would you do? You want to withdraw all and gtfo as soon as possible. Just like a real bank.
Xapos claims to use a more secured multisig wallet. You need 2 out of 3 person's keys before the funds can be accessed. But in the computer world, anything can happen.
They are basically a bank. A bitcoin bank.
They gather people's money and they can make whatever investment they like with that money. As long as all the Xapo users do not decide to withdraw all of their money, there won't be a problem.
So, why would people decide to withdraw their money from Xapo? Think about it, If some hacker hacks Xapo and you hear it after, what would you do? You want to withdraw all and gtfo as soon as possible. Just like a real bank.
They gather people's money and they can make whatever investment they like with that money. As long as all the Xapo users do not decide to withdraw all of their money, there won't be a problem.
So, why would people decide to withdraw their money from Xapo? Think about it, If some hacker hacks Xapo and you hear it after, what would you do? You want to withdraw all and gtfo as soon as possible. Just like a real bank.
Kinda strange. It must add up a fair bit for them. Personally I'd rather be paying fees with my own wallet and knowing that I'm not going to fall afoul of their terms but it's good to have such options out there.
I am using Xapo wallet to collect my Genesis-mining dusts. Previously, when I kept GM dust in my wallet, the outgoing transaction fees are higher than the dust that GM sends me. lol
Kinda strange. It must add up a fair bit for them. Personally I'd rather be paying fees with my own wallet and knowing that I'm not going to fall afoul of their terms but it's good to have such options out there.
Thanks. That's good to know. No fees!
Quote
Xapo has eliminated all transaction fees for transactions between two bitcoin addresses.
Previously, anytime a user sent bitcoins to someone who did not have a Xapo account, the user was charged a small fee by the bitcoin network to send your bitcoins. These fees serve as both a reward and incentive to the people who operate the bitcoin network. Now, anytime a user sends bitcoins to another bitcoin address, Xapo will pay these fees and you will not be charged to send payments to other users.
Please note that fees will still apply for other types of transactions, such as buying bitcoins or using the Xapo Debit Card, as described in more detail in our Terms of Use but there will no longer be network transaction fees for sending funds between bitcoin addresses.
Previously, anytime a user sent bitcoins to someone who did not have a Xapo account, the user was charged a small fee by the bitcoin network to send your bitcoins. These fees serve as both a reward and incentive to the people who operate the bitcoin network. Now, anytime a user sends bitcoins to another bitcoin address, Xapo will pay these fees and you will not be charged to send payments to other users.
Please note that fees will still apply for other types of transactions, such as buying bitcoins or using the Xapo Debit Card, as described in more detail in our Terms of Use but there will no longer be network transaction fees for sending funds between bitcoin addresses.
All Bitcoin wallets earn money from trasaction fees which is differ from wallet to another ,for example , blockchain.info transaction fee is more than XAPO as I know , but blockchain wallet provides better and faster service than others , so its fee is higher , further more , blockchain wallet has some advertsement spaces which are not free for sure ...
Blockchain.info charges at least 100 sats. I don't know what's the max they charge per transaction. That's how blockchain.info earns but with XAPO, there is no transaction fee at all so they don't earn that way so what you said is false.
If you only read the posts before you made this, you'll understand how and why.
All Bitcoin wallets earn money from trasaction fees which is differ from wallet to another ,for example , blockchain.info transaction fee is more than XAPO as I know , but blockchain wallet provides better and faster service than others , so its fee is higher , further more , blockchain wallet has some advertsement spaces which are not free for sure ...
Hi all,
recently I had a discussion with a friend where I tried to convice him on Bitcoin.
He asked the question. How are wallets (e.g. Xapo) actually earning money? I had no real answer...can you help?
recently I had a discussion with a friend where I tried to convice him on Bitcoin.
He asked the question. How are wallets (e.g. Xapo) actually earning money? I had no real answer...can you help?
Since people keep money there they can:
a. optimize the transactions
- the transactions xapo to xapo will be only changes in their database
- the transactions on blockchain can be sent out bulk.
b. use a chunk of the money for various investments, loaning, trading (basically what the banks do with your money when they keep it).
c. various services (eg vault) that cost money.
Can I confirm there is no transaction fee when sending out BTCs from Xapos wallet?
All those bitcoin start ups have huge amount of bitcoin holding, promoting the bitcoin service will raise the value of bitcoin, thus raise the value of their assets, the service is like advertisement
Anyway this is still a very new branch, everywhere is almost empty, like internet in 90s
Anyway this is still a very new branch, everywhere is almost empty, like internet in 90s
yes, so far as I know they are not charging anything for the storage. I think like many others here... They are investing for the long-term and building up a franchise. Earning money is not the most important question for Xapo. First, they want to offer a service which has a high demand
Xapo is for long time business. Stable operations (builds confidence) and a large customer base will give a good price for the service.
Xapo has a long term storage service that they charge their customers for.
That means that in some years we have to pay a storage fee for bitcoins on a wallet like Xapo?
If you use their "Vault" service which keeps your private keys in a very secure vault then you have to pay something like 1-2% per year.
really stupid, bank do not ask you money, to keep your money more safe, if xapo is anything like a bank they should earn profit by investing your money and when you need them they will burrow from another deposit and so on...
this is really a step backward, compared to fiat...
Wrong. Banks charge a crapton of fees to keep their business running, and a lot of European Banks now have more fees than interest nowadays.
For a normal account, interest is 0.0005% per year right now, or something like that.
yeah i know, but those are not fees on deposit, they are fees that come from their credit/debit card(when you buy one for example, you pay something, then you pay every year another additional fee to mantain that card) or comes from withdrawal
but i made that post because with my bank i don't pay anything, zero on everything, thus my conmcern on that
Strange. Banks here give you some nice monthly fees, maintenance fees, deposit fees, "money storage" fees and other bullshit.
yeah it sounded strange for me it, i'm with deutsche bank now and their card account(noo bank account it work without it, you just have your page with credentials and nothing else, to see your heritage, movements ecc...), don't know if you know about it, but it is a very good card(iban included)
They earn money from fees
Just fyi -- Xapo doesn't currently charge for storage.
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