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They also wrote the customer agreement such that they would refund Bitcoin purchases in either dollars or Bitcoin[1], depending on which was more profitable. Th
by bidirectional 5y ago
They also wrote the customer agreement such that they would refund Bitcoin purchases in either dollars or Bitcoin[1], depending on which was more profitable. This can be used to effectively get free options on a highly volatile asset[2].
[1] https://twitter.com/TBPInvictus/status/1375088089002094595 https://twitter.com/TBPInvictus/status/1375088089002094595
[2] https://twitter.com/macrocephalopod/status/1375099069497028615 https://twitter.com/macrocephalopod/status/13750990694970286...
- iamacyborg 5y agoThe alternative was to essentially provide free options to customers. It was stupid whichever way they did it.
- bidirectional 5y agoNo, the alternative was to issue refunds in the currency of transaction. There's no reason they would ever offer customers the choice of refund currency.
- rdsubhas 5y agoThat doesn't work. Say you purchase car for 0.5BTC today. Tommorrow BTC goes up. You ask for a refund and immediately buy the same car back for say 0.25BTC. Free discount. Who would not do it? Core of this is that BTC (atleast right now) is a highly volatile, speculative asset. There is no way direct payments in BTC will make common "market sense" until volatility stabilizes. Until then someone has to take responsibility for bearing that volatility, either the customer or the manufacturer. In this case, it's apt that the customer bears it (as they should, it's their gamble).