Re: Wall Observer BTC/USD - Bitcoin price movement tracking & discussion
My point was that it was incorrect assumption because payment processors do help merchants take payment from other currencies including BTC.
The example argued that was used did not acknowledge that even if product is priced in USD does not mean that you can't pay for it with other currencies, like CAD, BRL, CNY, YEN, BTC as long as they payment processor used by the merchant takes said payment.
The example argued that was used did not acknowledge that even if product is priced in USD does not mean that you can't pay for it with other currencies, like CAD, BRL, CNY, YEN, BTC as long as they payment processor used by the merchant takes said payment.
It is not just a matter of definitions.
Dell USA has bank accounts. In those bank accounts there are only dollars, not JPYs or BRLs, and one can only deposit dollars in them. dell does not have a receiving blockchain address, or a bitcoin-denominated account in some bitcoin service. They have an account at BitPay, but they do not keep bitcoins there. Like most merchants that "accept bitcoin", when a customer chooses to "pay with bitcoin":
* the customer is redirected to a BitPay page, and the merchant tells BitPay the price in USD;
* BitPay computes the amount of bitcoin needed and displays that to the customer;
* the customer issues a blockchain transaction request that sends the bitcoins to BitPay;
* BitPay checks whether that transaction request is valid and has propagated to enough nodes;
* Bitpay tells the merchant that the customer paid the specified USD amount;
* the merchant trusts Bitpay and tells the customer "payment received, purchase successful";
* at the end of that day, Bitpay wires the USD amount to the merchant's bank account;
* eventually the bitcoin deposit into BitPay's wallet is confirmed by the network;
* sometime later, Bitpay sells those bitcoins to replenish their USD reserves.
Note that at no time the merchant had possession of the bitcoins.
To be honest you are assuming that they are not keeping a % of the payment in BTC with their payment processor.
Also what is important to note is that BTC like USD,CAD,YEN,CHY,GBP and any other currency is being accepted for payment
I think it could be close minded to assume that large corporations do not hedge against currency fluctuations. In and by doing so they need to convert between various currencies. Once sufficient instruments are in place btc could be used to move funds internally between a corporations different subsidiaries. The placeholder is what I see as being crucial.