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Using Bitcoins as a payment processor? (Read 2582 times)
dansbanners
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Using Bitcoins as a payment processor?
15th Jan, 2017 at 9:41pm
 
Exactly how does it work using Bitcoins as the payment processor? I was thinking since the price is very high at the moment, wouldn't that work to your disadvantage if you use it as a processor? Am I missing something here? Thanks.
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moneymarketing
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Re: Using Bitcoins as a payment processor?
Reply #1 - 16th Jan, 2017 at 12:19am
 
dansbanners wrote on 15th Jan, 2017 at 9:41pm:
Exactly how does it work using Bitcoins as the payment processor? I was thinking since the price is very high at the moment, wouldn't that work to your disadvantage if you use it as a processor? Am I missing something here? Thanks.


It can work against you because it is always fluctuating but if you take it from the perspective that it will always be growing in value then it is worth taking the risk now

For bigger purchases in the hundreds, I'll usually transfer the money into btc the same day and then to the vendor. That way you are not risking much volatility.

At this point I have built up a float that I will keep in BTC and then use my PTC cash flow to put and take from that. I've determined to already keep a certain level for my BTCs believing that it will continue to grow so as long as I keep that level as a minimum, I don't worry about the fluctuations

Because I am keeping the float, when I transfer bigger amounts to BTC I don't need to wait for the money to clear and I usually get credited for the amount transferred in right away
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Re: Using Bitcoins as a payment processor?
Reply #2 - 16th Jan, 2017 at 7:12am
 
The only time using btc is bad is when it is dropping and you have bought it higher. So if you bought it for $1000 and it drops to $500 your purchasing power is cut in half. It takes twice as many btc to buy the same item. If it is steady or on the rise it works in your favor because when it rises your purchasing power is increasing

How high it is doesn't really have an impact because the btc will just be broken down to smaller units anyway. The higher it is valued the more purchasing power you have
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Re: Using Bitcoins as a payment processor?
Reply #3 - 16th Jan, 2017 at 3:56pm
 
Is the main reason why you use Bitcoins as a processor is to give you another option other than Paypal or Payza? Any other benefits?
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moneymarketing
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Re: Using Bitcoins as a payment processor?
Reply #4 - 16th Jan, 2017 at 6:34pm
 
dansbanners wrote on 16th Jan, 2017 at 3:56pm:
Is the main reason why you use Bitcoins as a processor is to give you another option other than Paypal or Payza? Any other benefits?


since paypal is not used by almost all the PTCs now yes, the second main option is definitely a reason. Plus, many online payers are moving to btc and will probably adopt them in the future. I see btc as taking the place of paypal in a few years and we will probably see paypal accepting btc at some point also

Plus there is huge upside. Because btc is limited, it should continue to rise as the governments of the world continue to print and devalue their currencies. It should go to between $10,000 - $50,000 though I don't know how long that will take but expect the term 'satoshi' to be common
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« Last Edit: 16th Jan, 2017 at 8:18pm by moneymarketing »  

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Re: Using Bitcoins as a payment processor?
Reply #5 - 19th Jan, 2017 at 11:36am
 
Bitcoin has another advantage other processors: fees.
Many sites won't charge fees for bitcoin withdrawals, or they are much lower than with Payza or Payeer, for example.
Take Twickerz and Yougetprofit, for example. They charge a 5% fee for a Payza withdrawal and then Payza charges another fee when you receive the money.
Bitcoin? 0%  Cool

One way to protect yourself from volatility is to keep most of the money in an EUR or USD account at a wallet like Coinbase or Bitstamp. When you receive or have to send BTC, you can just exchange between currencies. At bitstamp the conversion fee is 0.25%, so it's an aceptable price to give you some peace of mind.
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Re: Using Bitcoins as a payment processor?
Reply #6 - 19th Jan, 2017 at 3:24pm
 
Ok, I'll keep that in mind. Thanks.
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Re: Using Bitcoins as a payment processor?
Reply #7 - 19th Jan, 2017 at 10:37pm
 
ruicarlov wrote on 19th Jan, 2017 at 11:36am:
One way to protect yourself from volatility is to keep most of the money in an EUR or USD account at a wallet like Coinbase or Bitstamp. When you receive or have to send BTC, you can just exchange between currencies. At bitstamp the conversion fee is 0.25%, so it's an aceptable price to give you some peace of mind.

And I guess conversions are instant, right?

So when you get paid and hold the cash in an EUR or USD balance.. does that mean that you actually own money on that currency or is it just a projection of your bitcoins' actual value at that specific time?
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Re: Using Bitcoins as a payment processor?
Reply #8 - 20th Jan, 2017 at 12:51pm
 
Yes, conversion can be instant if you put a market order or take a bit more if you aim for a better price and choose a price between bid and ask. Just like buying a stock or something.
So it's not a projection of your bitcoin wallet. When you deposit money it goes to your EUR account, and that balance does not move no matter what the bitcoin does.
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