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How does a merchant go by accepting Bitcoins? Is the price conversion based on the last trade? Average of the day/week/month? Are the Bitcoins going to be conve
by nivla 13y ago
How does a merchant go by accepting Bitcoins? Is the price conversion based on the last trade? Average of the day/week/month? Are the Bitcoins going to be converted to $ right way or at certain intervals?
Given the high volatility of bitcoins, there is no way to predict if a transaction will net profit or loss. How do they account for this?
- ocfx 13y agoI'm also interested in how this works. I would imagine they would need to use a webservice to get the actual exchange rate at the time of the order processing to give you an exact amount.
- jeremyw 13y agoYes, a service like BitPay will allow you to think entirely in USD; a BTC price determined dynamically for the customer and an exchange price locked in for your bank account.
- malandrew 13y agoHedging via insurance, futures, put/call options, etc. The same way companies that deal in commodities like grains and metals handle this sort of risks. I'm sure people like the Winklevi are more than happy to offer this sort of service.
- foobarqux 13y agoYour going to have to pay a lot of money to someone to take on btc volatility.