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October 30, 2018, 07:31:44 AM |
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So, educate me, because I am a Debbie Downer.
Hypothetically, let's say using Bitcoin for Purchases is only 1% as opposed to the 3% merchants pay, and that the merchant processing company converts it automatically back to FIAT and deposits it into their bank for that 1%.
And, hypothetically you the customer would have to pay a small fee to convert your FIAT in America to Bitcoin to buy something in Bitcoin, involving (1) an extra step, and (2) an incurred cost of conversion.
So, vendors would offer a 1% discount if you pay with Bitcoin, so that you the customer, save a very small amount, and the vendor saves a large amount over the cost of a month.
The question then is, will someone convert to bitcoin to merely save a few cents and also do the extra step? And what's there to prevent Visa or MasterCard from dropping their prices to small amounts too? After all, if they use blockchain technology, then every transaction becomes guaranteed and secure, and their costs drop as there is less fraud so they can lower the costs to the merchants. Is this accurate?
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