4 ms·

Bitcoin will be at $20 by the end of 2013. Great move on the part of all the principals involved in this deal.

• bcoates 14y ago
  I don't see any reason for BitPay to be long bitcoin. If you're a payment provider currency volatility is bad both ways.
  • wmf 14y ago
    No, see, when the price goes down it's "volatility" but when it goes up it's an "investment". Also, people think a higher exchange rate "validates" Bitcoin and will encourage more trade.
    • phogster 14y ago
      Reminds me of when NBA announcers call bad players "inconsistent".
  • natrius 14y ago
    BitPay is essentially bitcoin arbitrage. A buyer wants to purchase something with bitcoins. A seller wants to receive payment in USD (or EUR, etc). BitPay buys the bitcoins and gives the seller conventional currency. They're left hanging on to bitcoins. I don't know what they do with the bitcoins once they have them, but I bet they're sitting on them and waiting for their value to increase.
    • wmf 14y ago
      If you want to go long Bitcoin, just buying them would probably be easier. And there is some evidence that BitPay sells off their Bitcoins: https://bitcointalk.org/index.php?topic=89757.0 https://bitcointalk.org/index.php?topic=89757.0
      • natrius 14y ago
        Buying them outright would be easier, but you wouldn't get the 1% transaction fee that BitPay enjoys. Thanks for the link. It sounds like they buy more bitcoins than they can sell off without crashing the market, so they're probably holding on to most of it. Interesting risks there.