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Author Topic: Why would someone continue to buy bitcoins over market value?  (Read 2654 times)
mizike29
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July 09, 2011, 04:29:30 AM
 #1

I have done some bitcoin sales using ebay and forums.  I have this one person that continues to buy them over market value, about 3 bux over MTGOX sell prices.  I am wondering why would someone choose that over just getting them for cheaper at MTGOX, unless someone was using it for illegal items and paid more to not have there bank account or anything linked?  OR AM I JUST BEING PARANOID?  Please any other reasons make sense?

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MoonShadow
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July 09, 2011, 04:33:53 AM
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If you are being paid in paypal or credit cards, you should be paranoid.  If the transactions were local, and he was paying in cash, or otherwise couldn't get funds into MtGox (not easy, I can't do it either) and was otherwise unwilling to wait for the post to make it to one of the cash in the mail dealers, they'd be as legit as any others.

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GeniuSxBoY
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July 09, 2011, 04:43:53 AM
 #3

He's paying face value + ebay fees + paypal fees.


I dunno why.

I dunno why people do a lot of things they do.


For instance:

 Someone asked me how long our footlong subs were. :facepalm:

The obvious follow up question was how big was half? :double facepalm:

geek-trader
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July 09, 2011, 04:54:18 AM
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He's paying face value + ebay fees + paypal fees.

Because he wants to pay with a credit card, so his options are limited.  And he's not paying ebay OR paypal fees, you are.  Seller pays fees, not buyer.  Of course, you factored that into the "$3 over MtGox" and he knows it.

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mizike29
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July 09, 2011, 05:08:48 AM
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No because I charge him 3 bux or more per bitcoin, theres no paypal fees or ebay fees, its sent via paypal as a gift just to my email paypal, and that withdrawls to my bank for free.  So its 3 to 4 dollars profit per coin, easily and only charged the small bitcoin fee for speedy delivery.  It just makes no sense to me if you could do that, why you wouldnt trade through bitmarket.eu for paypal, or link bank to MTGOX/DWOLLA and buy all you want at lower prices.

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July 09, 2011, 05:10:44 AM
 #6

Wire Transfers cost over $50. For smaller in-person transactions, it may be totally worth paying a slight premium. I don't trust Paypal or credit card companies though.

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The_JMiner
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July 09, 2011, 05:13:46 AM
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He can reverse the payment up to 120 days after, I "Heard" (rumor) that if they send it as a donation or a gift it can not be reversed.

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July 09, 2011, 05:19:56 AM
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I read in another thread that the "gift" can be reversed by sending the payment using the TOR network, then complaining to ebay the transaction was unauthorized.

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Stephen Gornick
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July 09, 2011, 05:58:14 AM
 #9

I "Heard" (rumor) that if they send it as a donation or a gift it can not be reversed.

 
Quote
It is thus strongly recommended to avoid using PayPal for bitcoin transactions.
- http://wiki.bitcoin-otc.com/wiki/Using_bitcoin-otc#Notes_on_chargebacks

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July 09, 2011, 06:23:13 AM
 #10

A $3 premium for accepting a high-risk payment such as PayPal isn't unreasonable.

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mizike29
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July 10, 2011, 03:44:34 PM
 #11

I guess I have just been lucky so far using paypal, Yes the gift is tough to freaking reverse, most people are not using tor and saying there account was hijacked, sending multiple gifts at different times.  Regular ebay sales, they could do that once but after that they would be banned.  Yeah maybe saving money on wire transfers or something.  Paypal has been fine and free for all my transactions using the gift method, so I am going to keep rolling with that for now lol   3 bux profit per coin is not much but it starts to add up in the 100 coin range.

koin
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July 11, 2011, 04:20:54 AM
 #12

Paypal has been fine and free for all my transactions using the gift method, so I am going to keep rolling with that for now lol

as long as you are still selling, there's a disincentive for your buyer to start initiating the chargebacks.  as soon as you no longer are selling, that's when it is time to get nervous.

it's your call, though.  best of luck to you with that.
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July 11, 2011, 04:33:38 AM
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If it looks too good to be true...

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July 11, 2011, 04:36:55 AM
 #14

Replying to the question in the title: perhaps they are trying to manipulate the market and increase the value of the coins they hoarded ?

(I dont always get new reply notifications, pls send a pm when you think it has happened)

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mizike29
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July 11, 2011, 01:46:46 PM
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Yeh I think it would be tough or impossible to retract gift payments, but possible.  Thats why I thought about after this week, making sure all the money is pulled out of paypal into my bank then remove my bank information from paypal and set up a new account.  The ones on ebay can not be retracted as positive feedback has already been made on all my ebay sales for bitcoin showing coins received so those are not an issue, and I understood paying higher going through ebay, but if only through paypal, then the user might as well just go through MTGOX, unless you wanted to remain anonymous which is the feeling I am getting from this guy lol

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July 11, 2011, 04:07:15 PM
 #16

I have done some bitcoin sales using ebay and forums.  I have this one person that continues to buy them over market value, about 3 bux over MTGOX sell prices.  I am wondering why would someone choose that over just getting them for cheaper at MTGOX, unless someone was using it for illegal items and paid more to not have there bank account or anything linked?  OR AM I JUST BEING PARANOID?  Please any other reasons make sense?

The answer is, most people are insufferably dense. I'd peg that number to about 80%, give or take. They'll take the most impulsive, ill-reckoned, emotional and haphazard plunges into things that would make a sane person stop and stare in disbelief. And then, they'll do it again.

Just the way things are, I'm afraid...

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kokojie
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July 11, 2011, 04:38:35 PM
 #17

If he's using paypal, he WILL get his money back if he initiate a dispute. A lot of paypal transactions are later reversed by the buyer, it's like a 100% no risk way of getting free money.

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imperi
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July 11, 2011, 04:42:48 PM
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If he's using paypal, he WILL get his money back if he initiate a dispute. A lot of paypal transactions are later reversed by the buyer, it's like a 100% no risk way of getting free money.

This isn't true. I used to sell software over PayPal, and the buyer doesn't get the money back by default. The PayPal side reviews the case first.
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July 11, 2011, 06:48:12 PM
 #19

I used to sell software over PayPal, and the buyer doesn't get the money back by default. The PayPal side reviews the case first.

Apples to oranges.

Selling software for PayPal payments is not against PayPal's Acceptable Use Policy. 

Selling bitcoin for PayPal payment IS against PayPal's Acceptable Use Policy.

mizike29
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July 12, 2011, 12:06:58 AM
 #20

Not sure its against paypal policies, because its given as a gift, thats the way to stay the best protected I believe.  So far so good.  Ebay is another story, but ebay reviews feedback from a user then using just paypal as gift for payment has worked for me so far.  Most of my transations have been through paypal, I have to really search or go just with forum requests to use dwolla, but would be better for sure.

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