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There are no savings given the volatility. Since it can take days to convert to usable currency, you'd have to bake in 3-20% padding to cover volatility.
by pbreit 13y ago
There are no savings given the volatility. Since it can take days to convert to usable currency, you'd have to bake in 3-20% padding to cover volatility.
- unlimited_power 13y agoUse a service like BitPay and it converts instantly.
- pbreit 13y agoThat's just transferring the expense/risk which is not sustainable.
- lhl 13y agoAll payment processors take currency risk. Coinbase has an interesting approach by also being an exchange and doing some algorithmic arbitrage. The current volatility isn't inherent to the protocol, it's just a function of market depth and liquidity which will presumably improve/stabilize as the network grows.
- pbreit 13y agoBut not all currencies have the same risk.
- kolinko 13y agoExchanging into dollars is momentary, it's dollar withdrawal that takes days. So, actually the only risk that's being taken by bitpay is the fifteen minutes between the moment the price is displayed and someone pays (after 15 minutes the proce they lost in btc becomes invalid) And even against that risk they can hedge. So it can really be sustaining.