1. The company has 0 risk of a bitcoin crash unless they are retarded. In the case of Avalon they take pre order money and immediately pay the suppliers either in bitcoin or fiat converted from the bitcoins. Since they are not hokding on to the coins for extended period of time they have almost no risk. Secondly, they can immediately convert their bitcoins into fiat and eliminate their risk.
Yes, at the current handling they cant lose. It would be good they would have stated from the start how they would pay back. Would they pay back the BTC or fiat. And i read that some pay back the amount of fiat in BTC. Only much less BTC now that the exchange price is higher.
2. The difference for the consumer is he takes on substantial risk of a crash as he doesnt start using his investment right away. Like mentioned before the people who spend 15-20k on an avalon are screwed with a longer return on their investment. Wheras if the purchased the unit for say $5k fiat they wouldnt be in such a bad position.
Thats true too. But thats the risk ot investing into a developing business. Thats why you pay less at the end. If you have the product right away then you will have to pay prices like for the asics from Asicminer. You get them fast and no risk is involved. So you get them for much BTC.
I shouldnt really have to explain this its pretty simple to understand. The value of my investment isnt going to drop by 100% in a short time with fiat because i didnt overpay by 10 times. Bitcoins volatility allows the problem of overpayment for the device, whereas fiat significantly reduces this risk by being much less volatile.
Thats were you dont understand. Fiat is only for your peace of mind. You invest fiat and get fiat back. It doesnt matter. Because think it this way. When BTC were $10 you bought with 10BTC something from an Asiccompany. Later its broken and the BTC is $100 now. You get back only 1BTC now anymore and you think you are scammed. But thats only happening because the BTC were exchanged to fiat and now that amount of fiat exchanged back to BTC. Obviously it is now less BTC.
If you would have invested fiat directly then you would pay $100. Later you get back $100. And youre happy. Really? You could have had $100 exchange to BTC and you would now have $1000 worth of BTC instead. The same goes when you exchange your BTC to fiat only to buy the miner.
Thats why i say that this "buying in fiat" is only for your peace of mind. It doesnt matter. If your money wasnt invested in bitcoins over the time you will go out with less wealth than before.
Thats what i meant.
And by the way... what the heck is the difference when you could pay in fiat?
I don't yet have a miner.
That means that I need to purchase BTC.
That means that I am paying someone arbitrage fees.
The local guy takes cash at a premium... not quite 10%... but still... 10% is quite a bit.
Or I can throw money at what seem to be fly-by-night organizations that hold my fiat for days before allowing me to use my fiat, and hope they don't get hacked, or DDOS'd or hope that once I have my BTC, the price isn't FUD'd before I make my purchase.
Once I have a miner and begin to hold coins that I earned by strengthening the chain --- then it will be easier to purely think in BTC terms.
The cost for me to do biz in BTC isn't simple.
So you cant use any of the exchanges in web? They are far away from 10% fee. I always do it this way and it goes fast and easy. I dont have mining earnings yet too, i only uploaded money to an exchange and use the btc coming from there.
But of course it would be an idea to let people pay in fiat. But i think the thread was more about losing money through providers that have to refund.
Not to mention the miner you buy could lose its value by 2-3x. If you buy the miner for $5k guess what 2-3months later its still worth around the same.
You buy a miner at 75bitcoin x 200 = for $15k that investment fell all the way to $3,750, and is now worth about $7.5k so you just lost half of your money, if you cant see the difference good luck in life, your going to need it.
Thats not how you should look at it. You should only buy a miner if you can break even in a certain timeframe. That means at that time you have the money back that you put in to buy the miner. If you mine after that time you make profit. The worth of the miner only is a plus then.
