Bitcoin Forum

i wonder if coinbase does

https://www.youtube.com/watch?v=z8sNiawoG8o&feature=youtu.be

This is actually quite interesting and surprising. As far as I recall I haven't seen anyone ever saying that they don't. It was a general idea that they were instantly converting and that it was pushing the price down.
They should have spoken out sooner. I'm going to assume that they don't really have people working there that are following this community (at least not closely).

This is actually why some people have been avoiding merchants that have been cooperating with Bitpay. There was also a list of merchants that do not exchange Bitcoin to fiat (I believe that it was in this very section).

I'm interested in the impact that a major "dump" by bitpay would have in the market. Are there any recent or real time values of bitpay's volume?

I remember reading a while back that they had quite a bit of volume... Enough to push the market down quite a lot.

So if I understand this correctly, the investors that invested in bitpay will get the bitcoin that they have in the end? And therefore they are not allowed to sell bitcoin? Is this the easiest way for the investment companies to get bitcoin without the need of shady exchanges?

I'm not sure, but something tells me that Jason said a tad too much about BitPay's business model.

Sonny Vleisides of BFL passed over ten million dollars through BitPay treating it as an exchange oppose to just a third-party payment processor.

if bitpay does not dump its coins on exchanges what, exactly, does it do with them? horde?

Thats something new to hear. I believe bitpay is the biggest payment processor for people who wish to buy something using their bitcoins. Doing this would actually be good for the price if they happen to hold it for a decade as said in the video.
Bitpay should have made this public a long time back. Coins being dumped is one fear I always had and never used it for large sized transactions.

The "investors" that they sell to, they can dump on exchanges, hedge ect. If they sold the coins they would need to
get a trading desk , a whole dept for selling the coins and not just "dump". imo

This is my take on the video:

Bitpay do not dump their coins on exchanges. They do dump them, just not on exchanges. They sell the coins to "investors" and pay fiat to their clients. Some of the investors may not be selling the coins, but some can. the "investors" buy coins from bitpay, so they buy less from exchanges. Same effect on the exchnage price, different mechanism.

lol it seems they do. They want to get all. Anyone knows how much bitcoins they hoarded so far? It has to be a lot.

i've been saying it for years.. its not been a secret at all

no, no, no

they pay wages to their staff in bitcoin and they also have private OTC trades they do with investers and venture capitalists..

there was big news ages back that bitpay got 32million.. in exchange the investor gets bitcoins..

there are many many ways to swap bitcoin for fiat without using the exchanges. and its more suprising that the community are so transfixed on exchanges that they completely ignore the other ways..

Here's a 1,000 BTC sent to Bitstamp: https://www.walletexplorer.com/wallet/BitPay.com-old?page=194

i think so that is surprising fact the insight story of bitpay come out in interesting way but that is just one side story any official spokesman of bitpay can clear the whole situation after this video but i am still in doubt they can dump their coins on exchanges for fiat to recover their expenses to pay salary and for other stuff.    

There are definitely more ways to convert your bitcoins into fiat, but its extremely hard to sell a large amount off the exchanges. Considering they get a large amount every now and then , they might be selling it to the private investors who can buy a large amount without getting the price up.  But that again is any day better than them selling it on the exchanges.

Yeah, at the end of the day people are going to end up doing whatever they want with their money. If they want to dump, they will dump. They don't dump, someone else will.
We shouldn't be worried about people dumping their coins, but about demand lowering. As long as there is demand, who cares if people dump.

It's all about the relation between the supply and the demand. But I agree with you, we should worry about decreasing demand. Now more and more people know about Bitcoin, we should experience an increase in demand (which increases the current value too). There will always be people selling or dumping their coins; there's no way to stop that. Increasing the demand for Bitcoin is the way to go.

nah.. the way to go is for people to stop blindly folowing the crappy exchanges that use php and mysql databases.. especially those coded by people under 25yo with no financial work experience prior to bitcoin.

many of the current "exchanges" seem flawed.. the amount of resistance (huge lumps(walls) of bitcoin) seems low. where just 20-200 bitcoin can make the price change dramatically.

when there are investors wanting to bite into $30mill worth of bitcoins. the last place they should visit is an exchange. and thus it should be the last place people use to value their coin.

exchanges these days are just for bots to mess around day trading. definitely not a place for serious investors who want to invest longterm

They've mentioned figures of $1 million a day in the past but in general they seem to be relatively coy. It must be a fair bit lower now.

I share your opinion, however, I don't think investors should use exchanges for their investment plans. If you want to invest in Bitcoin (or other altcoins), that's great. But then use exchanges (or other parties) to BUY bitcoin, and not to store them. Cold wallets are the way to go with regard to storing them.

But I agree, if you have a lot of money to invest, the history told us it is not really safe to deposit them into an exchange in order to buy Bitcoins over time - for a acceptable price.

The solution to this problem is one global orderbook. 200BTC dumps wouldn't stand a chance then. I really hope it becomes reallity at some point in the future.

Coinbase is an exchange itself, it must have a huge reserve of bitcoins,same way that bitpay,and bitpay doesn't dump cause someone must buy them

For sake of argument, let's assume that BitPay doesn't dump on the exchanges and indeed sells off ONLY to investors in however fashion.

BitPay is ONLY licensed as a third-party payment processor. Anything they do outside said license requirements would be up for an investigation assuming that they're not in compliance.

Unless I'm mistaken, the following is what their business model consist of [sans the use of an exchange].

Various patrons purchase products or services from vendors that accept bitcoins of which BitPay processes.

One million dollars worth of bitcoins exchanged hands (used as an example).

Within 48 hours, BitPay remits to the vendors' banks one million dollars.

The investors who had a million dollars on account now has a million dollars worth of bitcoins on account.

The known investors have no choice but to play fair, thus the moneys that changed hands have a legit paper trail.

All the powers-that-be would have to do is look at BitPay's bank account and see each and every investors' transactions and learn who they are.

One false move, and the house of cards tumbles down. Enter BFL, namely Sonny Vleisides, who opted to used BitPay as his own private exchange oppose to as a third-party payment processor to the tune of easily over ten million dollars.

You or I CAN NOT sell a million dollars worth of whatever via bitcoins, have BitPay convert it to fiat remitted to our bank, then turn around and remit to BitPay another million dollars worth of bitcoins unrelated to that previous sale and have that too converted the same. Yet, that's exactly what Sonny Vleisides did over and over and over and over again. And, here's the kicker, NOT ONE MOTHERFUCKIN' BITCOIN-THEMED PERIODICAL HAS PENNED AN ARTICLE OUTLINING SUCH. It's like everybody inside the Bitcoin space is well aware of this fact, but let's not let this get out to the mainstream.

I was paid 10 BTC indirectly to keep my mouth shut when I first revealed this fact back in Q3, 2013. The same fucker that paid me now has a protection order on my ass due to all the lies he convinced a judge in KC to further keep my mouth shut on other BFL doings. The funny part is that the 10 BTC paid to me is virtually connected to the bitcoin wallet address that a certain million dollars worth of BTC exchanged hands via BitPay, BFL and HashTrade, the latter two no longer viable concerns in the Bitcoin space.