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If you pre-order with one Bitcoin today, then you paid the dollar value of one Bitcoin today, plus transaction costs. Future fluctuations in Bitcoin value are i

If you pre-order with one Bitcoin today, then you paid the dollar value of one Bitcoin today, plus transaction costs. Future fluctuations in Bitcoin value are irrelevant.

benbataille 13y ago
1 Bitcoin today and 1 Bitcoin in six months is not the same at all because you lose all the value you could have add from this Bitcoin during the six months so you have to discount it. That's called present value of money and that's one of the way companies manage their investments. Theoretically, you have to use the real rate of return of your money and discount it on the time period. Of course, estimating the real rate of return is an art in itself. Considering value of bitcoin has been shown to be highly volatile, doing any semi-long term investment with it is basically gambling.
- nandemo 13y ago
  That's true, but you're talking "just" about time value (interest), sig's comment was about the volatility of BTC in terms of USD, different things. You'd also lose the interest if the product was denominated in USD or another major currency.
sliverstorm 13y ago
I would agree with you if it wasn't a pre-order. You pay, you get your goods, deal closed. With a pre-order on the other hand, you give them the money and you get nothing for four months. Probably longer.
- unclebucknasty 13y ago
  I'm not sure I see the difference. Once you've commited your 1 Bitcoin at today's value, you have effectively paid that price, irrespective of when you receive the product. If the value of Bitcoin fluctuates between now and the time you receive your product, then you may "lose" or "win", but that's a chance you take, even with the product in hand. In other words, there is still the possibility that your 1 Bitcoin could have allowed you to purchase something more valuable than the product in hand at some point down the road. Seems that the only thing you give up with a preorder is the interest potential or use of the money for some period before receiving the value (i.e. product). But, that would be the case with a preorder irrespective of the currency used.
- csomar 13y ago
  Yes, but in that case you jusr lose the intrest of 4 months on your money which is close to nothing and not something to worry about.

If you pre-order with one Bitcoin today, then you paid the dollar value of one Bitcoin today, plus transaction costs. Future fluctuations in Bitcoin value are irrelevant.

benbataille 13y ago

1 Bitcoin today and 1 Bitcoin in six months is not the same at all because you lose all the value you could have add from this Bitcoin during the six months so you have to discount it. That's called present value of money and that's one of the way companies manage their investments. Theoretically, you have to use the real rate of return of your money and discount it on the time period. Of course, estimating the real rate of return is an art in itself. Considering value of bitcoin has been shown to be highly volatile, doing any semi-long term investment with it is basically gambling.

nandemo 13y ago
That's true, but you're talking "just" about time value (interest), sig's comment was about the volatility of BTC in terms of USD, different things. You'd also lose the interest if the product was denominated in USD or another major currency.

sliverstorm 13y ago

I would agree with you if it wasn't a pre-order. You pay, you get your goods, deal closed. With a pre-order on the other hand, you give them the money and you get nothing for four months. Probably longer.

unclebucknasty 13y ago
I'm not sure I see the difference. Once you've commited your 1 Bitcoin at today's value, you have effectively paid that price, irrespective of when you receive the product. If the value of Bitcoin fluctuates between now and the time you receive your product, then you may "lose" or "win", but that's a chance you take, even with the product in hand. In other words, there is still the possibility that your 1 Bitcoin could have allowed you to purchase something more valuable than the product in hand at some point down the road. Seems that the only thing you give up with a preorder is the interest potential or use of the money for some period before receiving the value (i.e. product). But, that would be the case with a preorder irrespective of the currency used.
csomar 13y ago
Yes, but in that case you jusr lose the intrest of 4 months on your money which is close to nothing and not something to worry about.