4 ms·

Ask HN: If a company adopted Bitcoin, how do they convert it into real currency?

4 points by mmaunder 15y ago

A real world company has to pay employees, cover expenses etc. How does a company reliably convert Bitcoin into real currency?

drcube 15y ago
The answer is "it IS real currency". How do you tell "real" currency from fake? If people accept it as a store of value, it's real. Actually, it is real to the extent that people accept it. So Bitcoins aren't AS real as dollars, but they're still real. And hypothetical bitcoin company will have the same problems as a company that uses some obscure third-world currency.
wmf 15y ago
Mt. Gox?
- drcube 15y ago
  Currency exchange. https://mtgox.com/ https://mtgox.com/
iwwr 15y ago
There is no way other than a gray market mechanism. To extract cash from Mtgox, you can move it through Liberty Reserve and try to get it into a bank (it may not work). Alternatively, you may be able to find someone willing to trade larger volumes. It's possible to exchange small sums via paypal, though that's not very relevant to a business. Right now there is too much hype and too little time to establish a stable valuation. Bitcoin is moved by the speculators and not investors or savers.
adrianwaj 15y ago
There exists an open source bitcoin exchange, but it is still in its early phases (mentioned in the Calacanis interview.) Theoretically, if the company was large enough, they could open an exchange. That's what PayPal should do: accept bitcoin and open up an exchange. here it is: https://gitorious.org/intersango/ https://gitorious.org/intersango/ by http://bitcoinconsultancy.com/ http://bitcoinconsultancy.com/
ChrisNorstrom 15y ago
Using MTGOX.com just convert it back to USD, you'll be charged however a 0.65% fee. From there you can transfer it to a personal or business Dwolla account for only $0.25 cents. From Dwolla you can deposit it into your bank account for free. Too many steps in my opinion but hey, it is an entirely new currency.
RandyHelzerman 15y ago
Is there any way to remove spam from pyramid schemes from HN??? Please?
indrax 15y ago
Depending on how much of your income it represents, you might consider giving it to employees as part of their compensation. They might convert it, but might get better value looking for things they need. (Their demands will be more diverse than a business.)
deleted 15y ago
[deleted]
JoeCortopassi 15y ago
Easiest way to turn Bitcoin into real currency: 1. Establish a company and go public with it. 2. Invest all said company's money in Bitcoin 3. Short the company's stock 4. $ Profit $

4 points by mmaunder 15y ago

A real world company has to pay employees, cover expenses etc. How does a company reliably convert Bitcoin into real currency?

drcube 15y ago

The answer is "it IS real currency". How do you tell "real" currency from fake? If people accept it as a store of value, it's real. Actually, it is real to the extent that people accept it. So Bitcoins aren't AS real as dollars, but they're still real. And hypothetical bitcoin company will have the same problems as a company that uses some obscure third-world currency.

wmf 15y ago

Mt. Gox?

drcube 15y ago
Currency exchange. https://mtgox.com/ https://mtgox.com/

iwwr 15y ago

There is no way other than a gray market mechanism. To extract cash from Mtgox, you can move it through Liberty Reserve and try to get it into a bank (it may not work). Alternatively, you may be able to find someone willing to trade larger volumes. It's possible to exchange small sums via paypal, though that's not very relevant to a business. Right now there is too much hype and too little time to establish a stable valuation. Bitcoin is moved by the speculators and not investors or savers.

adrianwaj 15y ago

There exists an open source bitcoin exchange, but it is still in its early phases (mentioned in the Calacanis interview.) Theoretically, if the company was large enough, they could open an exchange. That's what PayPal should do: accept bitcoin and open up an exchange. here it is: https://gitorious.org/intersango/ https://gitorious.org/intersango/ by http://bitcoinconsultancy.com/ http://bitcoinconsultancy.com/

ChrisNorstrom 15y ago

Using MTGOX.com just convert it back to USD, you'll be charged however a 0.65% fee. From there you can transfer it to a personal or business Dwolla account for only $0.25 cents. From Dwolla you can deposit it into your bank account for free. Too many steps in my opinion but hey, it is an entirely new currency.

RandyHelzerman 15y ago

Is there any way to remove spam from pyramid schemes from HN??? Please?

indrax 15y ago

Depending on how much of your income it represents, you might consider giving it to employees as part of their compensation. They might convert it, but might get better value looking for things they need. (Their demands will be more diverse than a business.)

deleted 15y ago

[deleted]

JoeCortopassi 15y ago

Easiest way to turn Bitcoin into real currency: 1. Establish a company and go public with it. 2. Invest all said company's money in Bitcoin 3. Short the company's stock 4. $ Profit $