every transaction paid with Bitcoin will be dumped on the nearest exchange immediately
I don't believe that BitPay gets all, or maybe even most, of their dollars from exchanges.They probably have underwriters who want to accumulate bitcoins without going through the exchanges who buy them from BitPay.
They've had this kind of arrangement in the past - according to rumours some people became Bitcoin millionaires via this route - but I don't know if they still do it.
yeah, i suspect they broker deals off exchange. but it's also hard to say when off-exchange demand is drying up. maybe it is, maybe it isn't. at some point, bitpay may still have to dump on exchanges.
They could have some deal with the big buyers and earn some percentage also there, since they become *free*.
