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Harley997
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June 30, 2014, 02:48:01 AM |
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These sites must estimate the percentage of reversals they'll have.
Then add a premium price greater than that percentage.
Right. They do all the math and figure out the averages and what price they can sell the btc at and make profit. They just calculate the risk vs reward and deal with the chargebacks. I wonder how big the market is for legitimate bitcoin buyers who purchase with their credit cards. Probably big enough. The problem is there's no easy way distinguish them. Because there is no easy way to distinguish the good buyers from the bad buyers, the people/exchanges accepting reversible payments need to charge a pretty high premium to off-set the risk, which IMO makes the market quite small (ie only those aiming to buy a little bitcoin will use paypal or credit cards). Buying bitcoin via a credit card on one of these kinds of sites is kind of like using a faucet in a sense that it may be good to allow you to get try and see how bitcoin works but is an very bad deal for users if they use it over the long term. |
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Nagato4
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June 30, 2014, 03:20:33 AM |
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Buying bitcoin via a credit card on one of these kinds of sites is kind of like using a faucet in a sense that it may be good to allow you to get try and see how bitcoin works but is an very bad deal for users if they use it over the long term.
Pretty much so. I don't think people will use the sites repeatedly, paying a high premium. |
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newIndia
Legendary
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Activity: 2198
Merit: 1049
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June 30, 2014, 08:37:17 AM |
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Buying bitcoin via a credit card on one of these kinds of sites is kind of like using a faucet in a sense that it may be good to allow you to get try and see how bitcoin works but is an very bad deal for users if they use it over the long term.
Pretty much so. I don't think people will use the sites repeatedly, paying a high premium. So, in short, irreversible payment against irreversible payment is what makes both buyer & seller happy. |
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Buziss
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June 30, 2014, 09:29:21 AM |
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Buying bitcoin via a credit card on one of these kinds of sites is kind of like using a faucet in a sense that it may be good to allow you to get try and see how bitcoin works but is an very bad deal for users if they use it over the long term.
Pretty much so. I don't think people will use the sites repeatedly, paying a high premium. So, in short, irreversible payment against irreversible payment is what makes both buyer & seller happy. Well the one sending first could still get scammed, so they still need an escrow. |
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Harley997
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July 04, 2014, 08:15:44 AM |
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Buying bitcoin via a credit card on one of these kinds of sites is kind of like using a faucet in a sense that it may be good to allow you to get try and see how bitcoin works but is an very bad deal for users if they use it over the long term.
Pretty much so. I don't think people will use the sites repeatedly, paying a high premium. Very much unlikely so, but if they for example took out a loan in BTC and need to pay back the loan in BTC then they may be a repeat user if this is the only way they can purchase bitcoin |
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PRIMEDICE The Premier Bitcoin Gambling Experience @PrimeDice
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BigMac
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Activity: 896
Merit: 1000
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July 04, 2014, 08:47:55 AM |
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Buying bitcoin via a credit card on one of these kinds of sites is kind of like using a faucet in a sense that it may be good to allow you to get try and see how bitcoin works but is an very bad deal for users if they use it over the long term.
Pretty much so. I don't think people will use the sites repeatedly, paying a high premium. Very much unlikely so, but if they for example took out a loan in BTC and need to pay back the loan in BTC then they may be a repeat user if this is the only way they can purchase bitcoin I don't think credit card would be the only way to buy bitcoin for many people. People could choose from a bunch of exchanges if they don't mind verification, and they can use localbitcoins or bitcointalk to find people selling bitcoin. |
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Harley997
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July 04, 2014, 11:03:28 PM |
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Buying bitcoin via a credit card on one of these kinds of sites is kind of like using a faucet in a sense that it may be good to allow you to get try and see how bitcoin works but is an very bad deal for users if they use it over the long term.
Pretty much so. I don't think people will use the sites repeatedly, paying a high premium. Very much unlikely so, but if they for example took out a loan in BTC and need to pay back the loan in BTC then they may be a repeat user if this is the only way they can purchase bitcoin I don't think credit card would be the only way to buy bitcoin for many people. People could choose from a bunch of exchanges if they don't mind verification, and they can use localbitcoins or bitcointalk to find people selling bitcoin. If someone were to have zero cash and their only source of credit would be their credit cards. This happens to more people then you would imagine. |
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PRIMEDICE The Premier Bitcoin Gambling Experience @PrimeDice
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newIndia
Legendary
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Activity: 2198
Merit: 1049
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September 29, 2014, 08:54:37 PM |
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These sites must estimate the percentage of reversals they'll have.
Then add a premium price greater than that percentage.
Right. They do all the math and figure out the averages and what price they can sell the btc at and make profit. They just calculate the risk vs reward and deal with the chargebacks. I wonder how big the market is for legitimate bitcoin buyers who purchase with their credit cards. I just read that Circle is selling Bitcoin against credit card at the market rate. Howz that possible ? Are not they exposing themselves to forgery ? |
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