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I just bought a $1000 plane ticket a few days ago for bitcoin. Seems like that's fulfilling the role of a currency. You should know that you don't actually ha
by ok_craig 13y ago
I just bought a $1000 plane ticket a few days ago for bitcoin. Seems like that's fulfilling the role of a currency.
You should know that you don't actually have to hold bitcoin to accept it as a payment method. Services like Coinbase let you instantly exchange it to cash if you use their merchant tools, so the merchant is actually exposed to zero risk.
- sentenza 13y agoAh, that explains it. It would be interesting to know what mechanisms Coinbase et al use to avoid balance sheet fallout by sudden downward fluctuations.
- YourCupOTea 13y agoThey would have to employ some sort of currency risk hedge. http://en.wikipedia.org/wiki/Foreign_exchange_hedge http://en.wikipedia.org/wiki/Foreign_exchange_hedge
- jonknee 13y agoEasier said than done when you don't have an actual currency to hedge against and the complete lack of a functioning options market.