2013-11-23 OnBitcoin - Newegg Hints at Accepting Bitcoin

[bitcool]

If Newegg do it first, Amazon is going to lose a big chunk of their business. at least from me 

[Tirapon]

If manufacturers in China start asking for BTC instead of USD, they can convert to Renminbi at 20% markup on Chinese exchanges.

Oh man that is so tempting to hope for... But the reality is that the amounts of wealth that those exporters get paid per shipment would be too big to simply drop on BTCChina... It'd be a major sell there that tanks the price for weeks... Each time.

They'd have to want to hold some in bitcoin; perhaps half of every shipment. That might help them avoid taxation too so it's not completely out of the question.

I was thinking maybe a few smaller scale manufacturers would be the first to realise the opportunity - maybe the odd business owner who does a few million in turnover per year. They would usually accept dollars as payment, and then convert into Renminbi to pay workers and buy raw materials etc. Now they hear about this new thing called Bitcoin, which allows them to take irreversible payment, clears within hours rather than days, and they can offload on BTCChina and receive an extra 20% - what's not to love about it? They tell their American partners to convert their dollars using Coinbase (We're talking a few tens of thousands of dollars at a time) and make payment that way...

[uhoh]

If manufacturers in China start asking for BTC instead of USD, they can convert to Renminbi at 20% markup on Chinese exchanges.

Oh man that is so tempting to hope for... But the reality is that the amounts of wealth that those exporters get paid per shipment would be too big to simply drop on BTCChina... It'd be a major sell there that tanks the price for weeks... Each time.

They'd have to want to hold some in bitcoin; perhaps half of every shipment. That might help them avoid taxation too so it's not completely out of the question.

I was thinking maybe a few smaller scale manufacturers would be the first to realise the opportunity - maybe the odd business owner who does a few million in turnover per year. They would usually accept dollars as payment, and then convert into Renminbi to pay workers and buy raw materials etc. Now they hear about this new thing called Bitcoin, which allows them to take irreversible payment, clears within hours rather than days, and they can offload on BTCChina and receive an extra 20% - what's not to love about it? They tell their American partners to convert their dollars using Coinbase (We're talking a few tens of thousands of dollars at a time) and make payment that way...

This,

Bitcoin is a wet dream for all the merchants on Alibaba

[hacknoid]

Here is a thought.  The more major merchants that accept bitcoin the wilder the exchange rate will be.  Merchants especially large one won't keep the coins they have to convert right away so that means large dumps on exchanges that might not get bought.  Or I could be wrong.

Planning to buy a billion dollar TV?

I'm not but people generally shop at predictable times of day.  Newegg isn't worldwide and no merchants that currently are announcing that they are accepting bitcoin actually are planning to keep the bitcoins.  So either it's just publicity which is more likely because otherwise newegg would have to cash out a large amounts of coins on an exchange.  Maybe there are bids to buy them all and maybe not.  It adds to volatility. All these companies getting interested is great for bitcoin exposure but they aren't interested in keeping bitcoins as far as I have seen.

[Damn.. looking for the interview that had it and can't find it right now.  However...]  Tony Gallippi has stated that some merchants at least (seem to recall he said "many") keep at least a small fraction of their sales in Bitcoin.  I know the Bitpay interface does allow for that (converting some, not all, of the Bitcoins directly into cash, and holding the remainder as BTC).

[markjamrobin]

Here is a thought.  The more major merchants that accept bitcoin the wilder the exchange rate will be.  Merchants especially large one won't keep the coins they have to convert right away so that means large dumps on exchanges that might not get bought.  Or I could be wrong.

Planning to buy a billion dollar TV?

I'm not but people generally shop at predictable times of day.  Newegg isn't worldwide and no merchants that currently are announcing that they are accepting bitcoin actually are planning to keep the bitcoins.  So either it's just publicity which is more likely because otherwise newegg would have to cash out a large amounts of coins on an exchange.  Maybe there are bids to buy them all and maybe not.  It adds to volatility. All these companies getting interested is great for bitcoin exposure but they aren't interested in keeping bitcoins as far as I have seen.

[Damn.. looking for the interview that had it and can't find it right now.  However...]  Tony Gallippi has stated that some merchants at least (seem to recall he said "many") keep at least a small fraction of their sales in Bitcoin.  I know the Bitpay interface does allow for that (converting some, not all, of the Bitcoins directly into cash, and holding the remainder as BTC).

Any particular reason? Is that like to handle refunds? Or as an investemnt for a company?

[hacknoid]

Here is a thought.  The more major merchants that accept bitcoin the wilder the exchange rate will be.  Merchants especially large one won't keep the coins they have to convert right away so that means large dumps on exchanges that might not get bought.  Or I could be wrong.

Planning to buy a billion dollar TV?

I'm not but people generally shop at predictable times of day.  Newegg isn't worldwide and no merchants that currently are announcing that they are accepting bitcoin actually are planning to keep the bitcoins.  So either it's just publicity which is more likely because otherwise newegg would have to cash out a large amounts of coins on an exchange.  Maybe there are bids to buy them all and maybe not.  It adds to volatility. All these companies getting interested is great for bitcoin exposure but they aren't interested in keeping bitcoins as far as I have seen.

[Damn.. looking for the interview that had it and can't find it right now.  However...]  Tony Gallippi has stated that some merchants at least (seem to recall he said "many") keep at least a small fraction of their sales in Bitcoin.  I know the Bitpay interface does allow for that (converting some, not all, of the Bitcoins directly into cash, and holding the remainder as BTC).

Any particular reason? Is that like to handle refunds? Or as an investemnt for a company?

From my interpretation of it, it sounded like merchants that held some were interested in holding for investment.  After all most companies up to now decided to accept because the wanted to, not to keep up with competition.  So I  think they have at least some belief long term.  Of course they need to convert a certain amount to cover expenditures, but it sounded like many kept part of the profit as bitcoins.  (Still haven't found that link...)

EDIT: Found this link, although I know this wasn't the one I was looking for:

One can also accept bitcoins through BitPay and take bitcoins, either fully or a portion of the sales. Our company is an integrator partner with them, and we know that not all merchants do the fiat conversion. But it's true that only true Bitcoin believers do that. It should change through time though, since it's quite beneficial for companies to simply hold as much bitcoins as humanly possible.

[geofflosophy]

If manufacturers in China start asking for BTC instead of USD, they can convert to Renminbi at 20% markup on Chinese exchanges.

Oh man that is so tempting to hope for... But the reality is that the amounts of wealth that those exporters get paid per shipment would be too big to simply drop on BTCChina... It'd be a major sell there that tanks the price for weeks... Each time.

They'd have to want to hold some in bitcoin; perhaps half of every shipment. That might help them avoid taxation too so it's not completely out of the question.

I was thinking maybe a few smaller scale manufacturers would be the first to realise the opportunity - maybe the odd business owner who does a few million in turnover per year. They would usually accept dollars as payment, and then convert into Renminbi to pay workers and buy raw materials etc. Now they hear about this new thing called Bitcoin, which allows them to take irreversible payment, clears within hours rather than days, and they can offload on BTCChina and receive an extra 20% - what's not to love about it? They tell their American partners to convert their dollars using Coinbase (We're talking a few tens of thousands of dollars at a time) and make payment that way...

This,

Bitcoin is a wet dream for all the merchants on Alibaba

Or anyone doing business with them. Has anyone else ever used Western Union to buy things on Alibaba? Talk about archaic.

[markjamrobin]

If manufacturers in China start asking for BTC instead of USD, they can convert to Renminbi at 20% markup on Chinese exchanges.

Oh man that is so tempting to hope for... But the reality is that the amounts of wealth that those exporters get paid per shipment would be too big to simply drop on BTCChina... It'd be a major sell there that tanks the price for weeks... Each time.

They'd have to want to hold some in bitcoin; perhaps half of every shipment. That might help them avoid taxation too so it's not completely out of the question.

I was thinking maybe a few smaller scale manufacturers would be the first to realise the opportunity - maybe the odd business owner who does a few million in turnover per year. They would usually accept dollars as payment, and then convert into Renminbi to pay workers and buy raw materials etc. Now they hear about this new thing called Bitcoin, which allows them to take irreversible payment, clears within hours rather than days, and they can offload on BTCChina and receive an extra 20% - what's not to love about it? They tell their American partners to convert their dollars using Coinbase (We're talking a few tens of thousands of dollars at a time) and make payment that way...

This,

Bitcoin is a wet dream for all the merchants on Alibaba

Or anyone doing business with them. Has anyone else ever used Western Union to buy things on Alibaba? Talk about archaic.

*Googles Alibaba*
I didn't even know this stuff still existed!