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Crypto replaces a major painpoint (chargeback, getting 0% of your money) with a minor painpoint (volatility, losing or gaining <10% of your money). There are o

by a13n 7y ago

Crypto replaces a major painpoint (chargeback, getting 0% of your money) with a minor painpoint (volatility, losing or gaining <10% of your money). There are other cryptocurrencies (eg Tether) that follow USD (eg 1 Tether is almost always equal to $1.00 USD), to avoid issues with volatility. I guess another issue is that you'd have to pay taxes on any gains/losses between receiving your crypto and cashing it in for USD, and that would be pretty annoying to calculate manually. I'm not the biggest fan of crypto but I think it actually solves this problem pretty well. There are probably other solutions too though (like only accept debit cards / payment methods that can't be charged back).

Qwertystop 7y ago
> There are other cryptocurrencies (eg Tether) that follow USD (eg 1 Tether is almost always equal to $1.00 USD), to avoid issues with volatility. One of us is behind the times on Tether; last I heard they were in pretty significant legal/financial trouble re: money laundering, not actually having most of the backing dollars they claimed to, and possibly market manipulation.
- andrewla 7y ago
  There have been various stories floating about litigation, solvency, and market manipulation in tether. So far, the market [1] remains unconvinced: tether trades pretty close to parity (sometimes even at a premium; liquidity preferences being what they are), and prices between tether-based exchange and USD-based exchanges are also pretty tight. So for the moment accepting payment in tether USD is entirely feasible. [1] https://trade.kraken.com/markets/kraken/usdt/usd https://trade.kraken.com/markets/kraken/usdt/usd
- a13n 7y ago
  "All Tether tokens are fully backed by reserves." https://www.coindesk.com/tether-says-its-stablecoin-is-fully-backed-again https://www.coindesk.com/tether-says-its-stablecoin-is-fully... Tether (USDT) $1.00 USD https://coinmarketcap.com/currencies/tether/ https://coinmarketcap.com/currencies/tether/
mrmuagi 7y ago
What's the turn around time between receiving crypto currency and getting that into e.g. USD in a bank for you? As long as that is short, volatility is minimized. I think the volatility issue is a major pain-point to people though. As long as you keep your money liquid in cryptocurrency, isn't it essentially holding stock (albeit driven by BTC mining and transactions) in terms of capital gains and losses? But if you use stock, I believe you are required to hold it for periods by the SEC (don't quote me, but, blah blah Holding Period?), so maybe crypto wins in this regard anyway...

by a13n 7y ago

Qwertystop 7y ago

> There are other cryptocurrencies (eg Tether) that follow USD (eg 1 Tether is almost always equal to $1.00 USD), to avoid issues with volatility. One of us is behind the times on Tether; last I heard they were in pretty significant legal/financial trouble re: money laundering, not actually having most of the backing dollars they claimed to, and possibly market manipulation.

andrewla 7y ago
There have been various stories floating about litigation, solvency, and market manipulation in tether. So far, the market [1] remains unconvinced: tether trades pretty close to parity (sometimes even at a premium; liquidity preferences being what they are), and prices between tether-based exchange and USD-based exchanges are also pretty tight. So for the moment accepting payment in tether USD is entirely feasible. [1] https://trade.kraken.com/markets/kraken/usdt/usd https://trade.kraken.com/markets/kraken/usdt/usd
a13n 7y ago
"All Tether tokens are fully backed by reserves." https://www.coindesk.com/tether-says-its-stablecoin-is-fully-backed-again https://www.coindesk.com/tether-says-its-stablecoin-is-fully... Tether (USDT) $1.00 USD https://coinmarketcap.com/currencies/tether/ https://coinmarketcap.com/currencies/tether/

mrmuagi 7y ago

What's the turn around time between receiving crypto currency and getting that into e.g. USD in a bank for you? As long as that is short, volatility is minimized. I think the volatility issue is a major pain-point to people though. As long as you keep your money liquid in cryptocurrency, isn't it essentially holding stock (albeit driven by BTC mining and transactions) in terms of capital gains and losses? But if you use stock, I believe you are required to hold it for periods by the SEC (don't quote me, but, blah blah Holding Period?), so maybe crypto wins in this regard anyway...