Exactly! Rolex or Timex will both tell time.
Luxury watchmaker Breitling starts accepting Bitcoin for purchases
- Thread starter johnarb
- Start date
You ultimately have to spend your money on something.
When I was once young, dumb, poor, ignorant, and full of hype and ego....I fantasized about owning, and driving a Porsche 911.
Now...I would absolutely just laugh and cringe at the thought of owning and driving a Porsche 911.
It seems rather incredibly cliche, and tacky, and stereotypical.
Some people like art....ugggh, pretentious mofos.
A fancy, nice, home in a stuffy neighborhood, with stuffy, arrogant, people....no thanks.
Traveling the world over, that's just a pain in the butt adventure process.
Diamonds, gemstones, jewelry...very tacky.
Philanthropy, donations.....ummm, no. It's mine.
A nice watch would be my one, and only, guilty pleasure vice. In my otherwise, middle-class lifestyle image.
Bitpays business model is mainly driven by fees. 1% fee for payment processing plus a network fee in case that 1% doesn't cover TX costs.
In that sense, the profit margins are way higher for them as they are for any other payment provider since blockchain fees are fixed and transaction fees are variable.
So while credit card fees are 1.15-4%, they still have to fork out a good pard of the revenue for settling the balance. If you use batch transactions and the lighting network, your average cost per BTC transaction is about 1-2cts no matter how large the transaction is.
Pay for a 100$ item via Bitpay, they earn 1$ and pay 1cts. If you buy a 100k watch, they earn 1k and pay...1cts.
When it comes to their book, they hedge right away via derivatives (since the transactions are so small they don't have a huge market impact) plus you can buy crypto on Bitpay, too. Meaning they receive BTC at a 1% discount and either hedge it or sell it out right away.
On top of that, they sell data, offer on chain payment tracking, POS integrations, invoicing and other stuff that - of course - is not free. The business model is quite good, tbh. but the company itself...I don't know. I'm not an investor
Bitpays business model is mainly driven by fees. 1% fee for payment processing plus a network fee in case that 1% doesn't cover TX costs.
In that sense, the profit margins are way higher for them as they are for any other payment provider since blockchain fees are fixed and transaction fees are variable.
So while credit card fees are 1.15-4%, they still have to fork out a good pard of the revenue for settling the balance. If you use batch transactions and the lighting network, your average cost per BTC transaction is about 1-2cts no matter how large the transaction is.
Pay for a 100$ item via Bitpay, they earn 1$ and pay 1cts. If you buy a 100k watch, they earn 1k and pay...1cts.
When it comes to their book, they hedge right away via derivatives (since the transactions are so small they don't have a huge market impact) plus you can buy crypto on Bitpay, too. Meaning they receive BTC at a 1% discount and either hedge it or sell it out right away.
On top of that, they sell data, offer on chain payment tracking, POS integrations, invoicing and other stuff that - of course - is not free. The business model is quite good, tbh. but the company itself...I don't know. I'm not an investor
that's what i thought but someone else said they only charge $1.
But to take on principle risk for 1% seems crazy especially as the flow is likely one way: someone selling crypto to buy something tangible.
No, I did not say Bitpay charges $1, I said Bitcoin network transaction fee is less than $1, actually less than 10 cents when I attached the picture
Bitpay has no fees for buyers other than Bitcoin network TX fees, they charge the 1% to the merchants i.e. Breitling
It was in the Bitpay URL I included on my reply to you
Bitcoin trades 24/7/365 so easy for Bitpay to offload the risks on the global crypto exchanges
On my very first reply to you, there's a URL pointed to Bitpay fees
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as I mentioned, flow is two way. They sell fiat for crypto as payment service, sell crypto for fiat as an exchange service and hedge the overhang.
Quite a basic market making operation, really...with a 100bps fixed spread and 100% non-toxic flow. Impressive if you think about the other guys who have to compete for 10bps on average in the lit market.
where’s their natural flow for selling fiat for crypto?
Admittedly, I didn’t understand the first url.
well if you give me crypto and I give you fiat with a 1% mark down...
Basically the same as if the merchant sold his crypto to an OTC desk in exchange for dollars. Or - if you want to view it from the counterparties perspective - the OTC desk is selling dollars to the merchant in exchange for crypto
whose giving them fiat for crypto?