What does this do to BitPay? | Bitcointalksearch.org

Coincrazy

newbie

Activity: 28

Merit: 0

Quote from: DeathAndTaxes on April 12, 2013, 08:37:04 AM

(a) They are always long some amount of BTC. This is unavoidable however the BTC they are long are ALREADY on the exchanges. .....

(b) ...... it will take more outside the box thinking.

(a) thanks. I was on this line ...oh.... without much thinking outside the box.

(b) I see

DeathAndTaxes

donator

Activity: 1218

Merit: 1079

Gerald Davis

Quote from: Coincrazy on April 12, 2013, 07:48:02 AM

Quote from: BitPay Business Solutions on April 12, 2013, 05:13:19 AM

We are fine. We have already moved nearly all of our trading off Gox, because we max out their monthly limits in 5 days. All of the exchanges we use are fully operational with no delays in trading or withdrawals.

Could you please Help me here

Lets take a example scenario

your customer ..say a bicycle vendor ... quotes a bicycle as = 1 BTC on his website. that time BTC is = $70.

This bitpay Customer (cycle seller) Sells 10 bicycles to Mr. CoinCrazy.... that time BTC is = $75.

You (bitpay) receive BTC from the Mr. CoinCrazy (bicycle buyer) ..that time BTC is= $77

You credit your customer total of $ Huh

it could be $700 or $ 750 or $770 ... still I am ok with you crediting him the least bcause uptill here it its ok

You go to your NON mtgox exchange 10 minutes later and sell these 10 BTC when BTC = $ 50 !!!!

what happens ??

alternatively IF you say you will only credit customer after selling BTC in your exchange, customer will get $ 500 which is way below his selling price ...so its just a matter of time before he folds up ??

TIA & regards

Why not look at their website. The bicycle merchant would set a price in USD. Say $700. Bitpay collects BTC and the merchant gets $700 (minus fees). Not $750, not $770, not $632.388382989839289. $700. Bitpay is then long the equivelent BTC. You guys really have no imagination do you. Bitpay can do a nearly unlimited amount of business by just having BTC exposure equal to one hour of business for the entire month.

How? Bitpay is long some amount of BTC. They are always long some amount of BTC. This is unavoidable however the BTC they are long are ALREADY on the exchanges. So bycicle merchant sells a bike for $700. Bitpay quotes customer an amount in BTC. Say 10 BTC. As soon as customer pays (0-confirm), Bitpay immediately (within seconds) sells 10 BTC (which are already on the exchange). When customer payment has 1-confirmation they transfer it to the exchange.

Come on people start thinking outside the box. If you want Bitcoin to grow (real growth in terms of number of users, transactions, merchants) it will take more outside the box thinking.

DeathAndTaxes

donator

Activity: 1218

Merit: 1079

Gerald Davis

Quote from: dg2010 on April 11, 2013, 11:21:48 AM

If the $5m figure was REAL, then the only conclusion I can come to is that they are HEAVILY overexposed, since they would have to be dumping those coins very quickly, and I just don't think they would have. I don't know what their payment policies are but most payment merchants can be 14-30 days for a payout. So maybe they were betting on the market and thinking if they wait a few weeks before cashing out they will have twice as much money.... and now they are in big trouble.

It is pretty easy to see what their payment policies are ... they payout next day. Would have taken you less time to just lookup their policy then come up with your wild fantasy.

beckspace

hero member

Activity: 931

Merit: 500

Quote from: zoolander on April 12, 2013, 05:52:14 AM

Quote from: BitPay Business Solutions on April 12, 2013, 05:13:19 AM

We are fine. We have already moved nearly all of our trading off Gox, because we max out their monthly limits in 5 days. All of the exchanges we use are fully operational with no delays in trading or withdrawals.

What exchanges are you using out of interest?

I am also interested in whether the recent chaos has impacted the volume of trading for you and other bitcoin-based businesses.

+1

Coincrazy

newbie

Activity: 28

Merit: 0

Quote from: BitPay Business Solutions on April 12, 2013, 05:13:19 AM

We are fine. We have already moved nearly all of our trading off Gox, because we max out their monthly limits in 5 days. All of the exchanges we use are fully operational with no delays in trading or withdrawals.

Could you please Help me here

Lets take a example scenario

your customer ..say a bicycle vendor ... quotes a bicycle as = 1 BTC on his website. that time BTC is = $70.

This bitpay Customer (cycle seller) Sells 10 bicycles to Mr. CoinCrazy.... that time BTC is = $75.

You (bitpay) receive BTC from the Mr. CoinCrazy (bicycle buyer) ..that time BTC is= $77

You credit your customer total of $ Huh

it could be $700 or $ 750 or $770 ... still I am ok with you crediting him the least bcause uptill here it its ok

You go to your NON mtgox exchange 10 minutes later and sell these 10 BTC when BTC = $ 50 !!!!

what happens ??

alternatively IF you say you will only credit customer after selling BTC in your exchange, customer will get $ 500 which is way below his selling price ...so its just a matter of time before he folds up ??

TIA & regards

loanexpress

newbie

Activity: 56

Merit: 0

Yes, definitely share which exchanges you support. This will provide confidence to others to show there are alternatives, plus add liquidity which can only be a good thing for you too.

zoolander

member

Activity: 75

Merit: 10

Quote from: BitPay Business Solutions on April 12, 2013, 05:13:19 AM

We are fine. We have already moved nearly all of our trading off Gox, because we max out their monthly limits in 5 days. All of the exchanges we use are fully operational with no delays in trading or withdrawals.

What exchanges are you using out of interest?

I am also interested in whether the recent chaos has impacted the volume of trading for you and other bitcoin-based businesses.

ElectricMucus

legendary

Activity: 1666

Merit: 1057

Marketing manager - GO MP

Quote from: BitPay Business Solutions on April 12, 2013, 05:13:19 AM

We are fine. We have already moved nearly all of our trading off Gox, because we max out their monthly limits in 5 days. All of the exchanges we use are fully operational with no delays in trading or withdrawals.

Good to hear, if the rest of the community is as sane as you are perhaps we will see stable prices within a reasonably timeframe.

BitPay Business Solutions

hero member

Activity: 742

Merit: 500

We are fine. We have already moved nearly all of our trading off Gox, because we max out their monthly limits in 5 days. All of the exchanges we use are fully operational with no delays in trading or withdrawals.

Bees Brothers

sr. member

Activity: 457

Merit: 291

Quote from: dg2010 on April 11, 2013, 11:15:10 AM

Customer pays BTC. Bitpay credits customer account in USD. Bitpay then sell their BTC at the relevant rate.

Not all of BitPay's customers get USD.

We keep all our sales in BTC. But we are a really small business.

dg2010

sr. member

Activity: 462

Merit: 250

Quote from: fcmatt on April 11, 2013, 11:17:29 AM

And the people who start these bitcoin companies tend to be true believers.. which makes me think they
held onto as much btc as possible as it was making money for them over the last months...

this should be awesome to watch unfold over the next few days.

Alternative scenario: the $5m trade figure was a load of bullshit and they did very little business. nobody complains because they had barely any customers.

If the $5m figure was REAL, then the only conclusion I can come to is that they are HEAVILY overexposed, since they would have to be dumping those coins very quickly, and I just don't think they would have. I don't know what their payment policies are but most payment merchants can be 14-30 days for a payout. So maybe they were betting on the market and thinking if they wait a few weeks before cashing out they will have twice as much money.... and now they are in big trouble.

fcmatt

legendary

Activity: 2072

Merit: 1001

Quote from: dg2010 on April 11, 2013, 11:15:10 AM

Quote from: BIGMERVE on April 11, 2013, 10:32:10 AM

Bitpay will keep doing exactly what they've been doing. They have no reason to stop or freeze just because the price is going down. Since most items' prices are tied to USD, Bitpay will recieve the same percentage no matter what the exchange rate is.

Not likely. Bitpay may be be massively overexposed since they were acting as an exchange on behalf of their clients.

Customer pays BTC. Bitpay credits customer account in USD. Bitpay then sell their BTC at the relevant rate.

The problem is the time lag between them crediting a customer in USD and them selling the BTC in USD. If they were holding onto too many BTC, given the meteoric rise in recent days, it's quite likely. In which case they may not have enough USD to cover merchant payouts.

I would most worry if I were a merchant waiting to be paid out.

And the people who start these bitcoin companies tend to be true believers.. which makes me think they
held onto as much btc as possible as it was making money for them over the last months...

this should be awesome to watch unfold over the next few days.

dg2010

sr. member

Activity: 462

Merit: 250

Quote from: BIGMERVE on April 11, 2013, 10:32:10 AM

Bitpay will keep doing exactly what they've been doing. They have no reason to stop or freeze just because the price is going down. Since most items' prices are tied to USD, Bitpay will recieve the same percentage no matter what the exchange rate is.

Not likely. Bitpay may be be massively overexposed since they were acting as an exchange on behalf of their clients.

Customer pays BTC. Bitpay credits customer account in USD. Bitpay then sell their BTC at the relevant rate.

The problem is the time lag between them crediting a customer in USD and them selling the BTC in USD. If they were holding onto too many BTC, given the meteoric rise in recent days, it's quite likely. In which case they may not have enough USD to cover merchant payouts.

I would most worry if I were a merchant waiting to be paid out.

Ekaros

hero member

Activity: 728

Merit: 500

Quote from: BIGMERVE on April 11, 2013, 10:32:10 AM

Quote from: Manticore on April 11, 2013, 10:07:37 AM

Does BitPay freeze for 12 hours? Do they accept coins at a rate which may change dramatically when we resume trading?

Bitpay will keep doing exactly what they've been doing. They have no reason to stop or freeze just because the price is going down. Since most items' prices are tied to USD, Bitpay will recieve the same percentage no matter what the exchange rate is.

My soap bars that I sell are tied to USD. So now that the exchange rate has gone down the amount of BTC it cost goes up. Bitpay will still receive the same USD percentage.

But isn't bitpay basicly taking the price info from retailer in USD, converting that info to BTC and then taking BTC in payments and selling this at market price and then moving this to retailer?

But if they can't sell the BTC where do they get money? And if the exchange race drop don't they have potential for large losses?

yokosan

hero member

Activity: 700

Merit: 500

They file bankrupcy and bitcoin crashes to $0.01

WOOOOOOOO!

BIGMERVE

hero member

Activity: 728

Merit: 500

Quote from: Manticore on April 11, 2013, 10:07:37 AM

Does BitPay freeze for 12 hours? Do they accept coins at a rate which may change dramatically when we resume trading?

Bitpay will keep doing exactly what they've been doing. They have no reason to stop or freeze just because the price is going down. Since most items' prices are tied to USD, Bitpay will recieve the same percentage no matter what the exchange rate is.

My soap bars that I sell are tied to USD. So now that the exchange rate has gone down the amount of BTC it cost goes up. Bitpay will still receive the same USD percentage.

Manticore

member

Activity: 70

Merit: 10

Does BitPay freeze for 12 hours? Do they accept coins at a rate which may change dramatically when we resume trading?

Topic: What does this do to BitPay? (Read 1263 times)