1- On paycard, how my bitcoins will be traded to dollar?
There was a followup article where this was discussed:
There are multiple options for card funding being investigated. BTC->USD conversion could occur:
- When the BTC arrives at the address on the card (Charlie called this the "worst-case scenario")
- When a purchase is made with the card (Charlie called this the "best-case scenario" and said it relies on integration with the banks that probably won't happen)
- On-demand via a smartphone app or web site (Charlie called this the "middle-of-the-road scenario" and confirms it's the most likely to actually happen)
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http://codinginmysleep.com/bitcoin-mastercard-followup-interview-with-charlie-shrem/2- Will Bitinstant have accounts on "all" Exchanges? How I'll be sure that my bitcoins will be traded by the best value?
3- Will BitInstant have any tool to automatically scan "all" exchanges to see the best bid values including the fees charged by the exchanges, when the user be converting the coins to dollar.
I have no idea how BitInstant will come up with the exchange rate that will be used before subtracting the 1.5% fee (or whatever ends up being the rate). One problem is that the quantity is a factor that will affect that rate due to slippage.
Because BitInstant will likely be immediately entering trades for the coins received, it is unlikely they will simply be able to route orders to the "best bid" and instead will need to trade where there is both liquidity and the ability to move those fiat funds to wherever the debit card reserves are held.
With the international card though, if the debit card balance is for a currency other than USD (e.g., EUR) then it might be interesting though where the coins might be traded on BTC/EUR markets instead of through BTC/USD ones.
Here's a thread on the Paycard with BitInstant's comments:
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http://bitcointalk.org/index.php?topic=101838.0
