Topic: How are wallets like XAPO earning money? (Read 2761 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.
that is plain for anybody to see in their reported earnings.
And you further illustrate my point that you fail to understand their business model. They will never have reported earning, they've said as much from day 1.
Rewind back to 2013 and read this: http://www.businessinsider.com/amazons-profits-what-people-dont-understand-2013-10
Or google "amazon profit" and you'll figure it out eventually.
I'm a professional Mike ... and I've heard it all before. Enjoy your kool-aid while it lasts.
that is plain for anybody to see in their reported earnings.
And you further illustrate my point that you fail to understand their business model. They will never have reported earning, they've said as much from day 1.
Rewind back to 2013 and read this: http://www.businessinsider.com/amazons-profits-what-people-dont-understand-2013-10
Or google "amazon profit" and you'll figure it out eventually.
Note that Amazon.com is not even profitable yet ...
You (and almost everyone who uses Amazon as an example) misunderstand Amazon's "no profit" business model. You think they've been losing money the past 20 years? They are very profitable, they reinvest almost all of it and forgo reported profits for market share..
Not by any traditional measures. Amazon is not profitable, and cannot sustain indefinitely in its current state. This is a bald fact, that is plain for anybody to see in their reported earnings.
Now if you want to be creative, and start calling 'free shipping' a type of 'investment' rather than expense as it is properly reported, then perhaps you can make such a statement.
Note that Amazon.com is not even profitable yet ...
You (and almost everyone who uses Amazon as an example) misunderstand Amazon's "no profit" business model. You think they've been losing money the past 20 years? They are very profitable, they reinvest almost all of it and forgo reported profits for market share..
For example, Xapo ... they have some minor income streams as people mentioned, but these are not 'paying the bills' anytime soon.
Xapo investors have deep pockets, and they are building a franchise for the long-term, with potentially very lucrative income streams that are not actionable yet. For example, in the future perhaps they can facilitate safe and secure, recurring micro-payments for consumers and businesses. Anyway I'm not sure what their long-term strategy is ... but I'm sure their profitability is mapped for sometime in the distant future.
Note that Amazon.com is not even profitable yet ... because they also are still 'building the franchise.' Anyway, you can see how a business like Amazon can secure a very high valuation (multi-billion USD) without any near-term prospect of profitability.
Xapo investors have deep pockets, and they are building a franchise for the long-term, with potentially very lucrative income streams that are not actionable yet. For example, in the future perhaps they can facilitate safe and secure, recurring micro-payments for consumers and businesses. Anyway I'm not sure what their long-term strategy is ... but I'm sure their profitability is mapped for sometime in the distant future.
Note that Amazon.com is not even profitable yet ... because they also are still 'building the franchise.' Anyway, you can see how a business like Amazon can secure a very high valuation (multi-billion USD) without any near-term prospect of profitability.
don't know about them in particular, but I've found lots of bitcoin companies (especially the no-fee types) make money via the bitcoin spread. They buy a bitcoin for 200 and sell it to you for 205, etc.
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.
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
XAPO don't earn from advertisements
they earn from their premium service like highly secured cold storage, or some trading
mostly newly found companies invest their money to earn the customers and takeover the market then later they find a way to earn the money
they earn from their premium service like highly secured cold storage, or some trading
mostly newly found companies invest their money to earn the customers and takeover the market then later they find a way to earn the money
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.
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?
I don't know about Xapo but blocklchain.info makes money from advertisements so I assume xapo has ads too.
no man xapo dont earn from advertisements..
if you use their vault they do take some charges..
mainly i think they earn by investing your coins..not sure about it.
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?
I don't know about Xapo but blocklchain.info makes money from advertisements so I assume xapo has ads too.
I am very much satisfied with Amph that bank doesnt take fees to do transaction rather they pay you intrest ..like wise xapo collects your coins like bank do for money and invest them,i think so..so they exempt us from transaction fees..
btw they are revolutionary in idea..
btw they are revolutionary in idea..
Besides their Vault option and the card fees, they also allow to buy Bitcoins and certainly charge something for such service... They probably even mine Bitcoin 
all storage wallets like blockchain, xapo and others. certainly benefit from the transaction fee
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...
Bitcoin being disinflationary and volatile makes it very dangerous to lend at the moment. Xapos business model is fine.
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...
They also charge fees on their card.
https://support.xapo.com/95219-What-fees-are-associated-with-the-Xapo-Debit-Card
A 1% purchase fee for bitcoin -
https://xapo.com/terms/
and are likely paying their current bills with venture capital funds at the moment while they grow.
https://support.xapo.com/95219-What-fees-are-associated-with-the-Xapo-Debit-Card
A 1% purchase fee for bitcoin -
https://xapo.com/terms/
and are likely paying their current bills with venture capital funds at the moment while they grow.
OP, don't know the answer to your question, but I'll give you one guess as to how Elwar is making money.
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?
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.
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?
Basically they do not earn any money on storage of your bitcoins. But services like that will work hard to give you options where you can spend your coins ( any use case where you either directly pay,send, spend bitcoins or convert it to fiat for the same reasons ). That is where they will make money, if any.
Also its too early stage at the moment and every such is focused on customer feedback, maturing product and gaining market share on use cases.
Regards
Also its too early stage at the moment and every such is focused on customer feedback, maturing product and gaining market share on use cases.
Regards
Some of them also partner with companies and various other services.
https://bitcointalksearch.org/topic/how-does-blockchaininfo-make-money-238637
https://bitcointalksearch.org/topic/how-does-blockchaininfo-make-money-238637
Xapo has a long term storage service that they charge their customers for.
So it's actually the opposite? OP makes it sound as if you can make money off having your BTC stored there like a bank gives you some interest.
His question was:
"How are wallets (e.g. Xapo) actually earning money?"
Xapo has a long term storage service that they charge their customers for.
So it's actually the opposite? OP makes it sound as if you can make money off having your BTC stored there like a bank gives you some interest.
Xapo has a long term storage service that they charge their customers for.
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?
What do I know is that every wallet can't do the earning. It just the same as blockchain just to stored your bitcoin there. If you want to earn bitcoin
you can do some trading, signature campaign, faucets (which I dont recommended it) and gambling
I think you misunderstand my question. I would like to know how a wallet provider like Xapo is earning money to cover the costs?
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?
What do I know is that every wallet can't do the earning. It just the same as blockchain just to stored your bitcoin there. If you want to earn bitcoin
you can do some trading, signature campaign, faucets (which I dont recommended it) and gambling
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?
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