Does BitPay actually sell any/most of their coins to investors?

[Its About Sharing]

In light of the recent Federal auction applications which have shown potentially huge buyers lined up for SR's Bitcoins,
I was wondering if Bitpay is doing the same thing? I mean why not charge a 5%-10% premium on coins
collected to parties who agree to it?

This article (3 weeks old) states that Bitpay does $1,000,000 of business a day. That is roughly 1700 bitcoins a day. http://www.coindesk.com/bitpay-now-processing-1-million-bitcoin-payments-every-day/
That is a lot of Bitcoins, and I'm not sure how many of those on a daily basis Bitpay could collect and sell directly
to investors, but for the same reason as the SR coins (Not moving the market), I imagine some LARGE investors
would want in. I imagine Bitpay must at least be doing this in part. I wonder how much it helps/hurts the BTC price...

Anyone?

Thanks,
Its about sharing

[adamstgBit]

they probably do sell some blocks to investors and some on the markets, bitpay use to buy some the coin themselves in the early days, I would imagine the blocks they sell to large investors go for 5-2% below market value or at market value? idk, who knows, speculation

[Its About Sharing]

they probably do sell some blocks to investors and some on the markets, bitpay use to buy some the coin themselves in the early days, I would imagine the blocks they sell to large investors go for 5-2% below market value or at market value? idk, who knows, speculation

I don't see why they would sell a block at 2%-5% below market value when they could sell it at market value? (Plus their fee).
Selling it at market value sort of removes the service they would be providing, so I imagine they would ask for at least 3% and probably more.
The HUGE benefit to the large investor is that they wouldn't be moving the markets. They could accumulate.

[RepublicSpace]

If we're talking about venture investments, it seems no wondering

[justusranvier]

That is a lot of Bitcoins, and I'm not sure how many of those on a daily basis Bitpay could collect and sell directly
to investors, but for the same reason as the SR coins (Not moving the market), I imagine some LARGE investors
would want in. I imagine Bitpay must at least be doing this in part.

My guess is that all the payment processors do this, and as the number large investors wanting in grows, so will the number of payment processors.

I also expect that we'll see the underwriter/investors get more desperate for coins over time, and that will be reflected in the fee structure.

If underwriters are willing to pay a premium above the exchange price, then payment processors can advertise "0% fees" for merchants. Effectively the underwriters would be covering the cost of the payment processor and would use low fees to attract more merchants and thus accumulate Bitcoins faster.

Then you could see payment processors raising their exchange rate so that businesses who use them can advertise cost savings for customers who shop there. Alternately, they could give bonuses to the merchants (negative fees) and have those merchants advertise the situation as discounts for paying with Bitcoin.

All of this would be for the purpose of convincing the customers to shop more so that the underwriters can exit their dollar positions as quickly as possible.

[Its About Sharing]

That is a lot of Bitcoins, and I'm not sure how many of those on a daily basis Bitpay could collect and sell directly
to investors, but for the same reason as the SR coins (Not moving the market), I imagine some LARGE investors
would want in. I imagine Bitpay must at least be doing this in part.

My guess is that all the payment processors do this, and as the number large investors wanting in grows, so will the number of payment processors.

I also expect that we'll see the underwriter/investors get more desperate for coins over time, and that will be reflected in the fee structure.

If underwriters are willing to pay a premium above the exchange price, then payment processors can advertise "0% fees" for merchants. Effectively the underwriters would be covering the cost of the payment processor and would use low fees to attract more merchants and thus accumulate Bitcoins faster.

Then you could see payment processors raising their exchange rate so that businesses who use them can advertise cost savings for customers who shop there. Alternately, they could give bonuses to the merchants (negative fees) and have those merchants advertise the situation as discounts for paying with Bitcoin.

All of this would be for the purpose of convincing the customers to shop more so that the underwriters can exit their dollar positions as quickly as possible.

Very well said. So, when you see bitpay, etc. Offering extra discounts to retailers, then be forwarned that a price explosion is just around the corner.

Perfect plan, get us, the "small time" players to spend BTC and for big money to start/invest in payment processors, buy mining gear, etc. Basically to do anything to keep the price as low as possible for them to build their positions.

I almost don't want to spend coins now! Eheheh

I am even more curious now.
Insiders, care to speak up? 

Coindesk, time for a "HIT" "Peace"'
Its about sharing

[justusranvier]

So, when you see bitpay, etc. Offering extra discounts to retailers, then be forwarned that a price explosion is just around the corner.

FYI: http://blog.coinbase.com/post/88587641102/announcing-merchant-discounts-pass-cost-savings-on-to

[Its About Sharing]

So, when you see bitpay, etc. Offering extra discounts to retailers, then be forwarned that a price explosion is just around the corner.

FYI: http://blog.coinbase.com/post/88587641102/announcing-merchant-discounts-pass-cost-savings-on-to

I don't think that is exactly what I'm talking about. That seems to be a way for merchants to perhaps pass on e.g. CC savings or the like.
But I imagine it is a step in that direction.

But I did just find this for us end users. Very intersting and many do this anyway - Buy back coins right after purchase. http://blog.coinbase.com/post/89402160917/buyback-bitcoin-after-checkout

[franky1]

investors such as the $30mill bitpay investment is as the OP suggests. where the investor puts in $30mill FIAT and in return gets bitcoin.

this helps the investor get coins without having to nibble at exchanges to get coin without causing sudden price rises (costing him more) and
this helps bitpay by not selling on exchanges, preventing the old nibbling down on the exchanges causing price drops

[justusranvier]

I don't think that is exactly what I'm talking about. That seems to be a way for merchants to perhaps pass on e.g. CC savings or the like.
But I imagine it is a step in that direction.

Investors don't just need to underwrite payment processors - they can underwrite bitcoin-accepting businesses directly.

[Its About Sharing]

investors such as the $30mill bitpay investment is as the OP suggests. where the investor puts in $30mill FIAT and in return gets bitcoin.

this helps the investor get coins without having to nibble at exchanges to get coin without causing sudden price rises (costing him more) and
this helps bitpay by not selling on exchanges, preventing the old nibbling down on the exchanges causing price drops

I never considered that. I thought the 30 million was for infrastructure, new hires, etc. Are you saying that money is to be funneled back out as BTC?
That would be a very generous use of the word "investor" and not sure that is accurate.

[NotAtOld]

If we're talking about venture investments, it seems no wondering

Yeah especially if we consider that BitPay receives $510,000 from investors http://bitcoinmagazine.com/bitpay-receives-510000-from-investors/