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I used to work in actual currency trading and currency volatility is a pretty well understood problem when your dealing with smaller currencies (especially curr
by ig1 14y ago
I used to work in actual currency trading and currency volatility is a pretty well understood problem when your dealing with smaller currencies (especially currencies used in politically unstable countries). You just need to maintain a bid-ask spread that's wide enough to protect you from the typical volatility (based upon recent historical data) and have a real-time trigger that suspends trading if the volatility exceeds your spread.
- taligent 14y agoSure. But the majority of countries in which Bitcoin would be realistically used don't have currencies that fluctuate so wildly.
- ig1 14y agoYes, but I'm saying that there's a standard way to handle it, which is essentially taking the payment at a discount to the market rate in order to give you time to change it to your own currency without taking a loss.
- wmf 14y agoIf you do that, you'll realize that accepting Bitcoin has higher fees than credit cards. People won't understand this if their identity depends on them not understanding it.
- SlipperySlope 14y agoCoinbase charges only 1% !! I do not know of any credit card that charges the merchant less, when monthly account fees are added in.
- wmf 14y agoYou missed the point. If you (or your payment provider) add, say, 5% padding to account for exchange rate volatility and then you also pay 1% to Coinbase, your total fees are 6% which is way higher than credit cards.