Post
Topic
Board Hardware
Re: Recieved 50GH BFL Single Today!
by
Freakin
on 20/06/2013, 23:44:45 UTC
BFL did not receive bitcoins for preorders.  BFL received USD and allowed customers to exchange BTC for USD using BitPay for their own convenience.
Customers paid in BTC. Bitpay acted on behalf of BFL (like a bank or credit card company would) to receive that BTC. What BFL instructed Bitpay to do with that BTC after receiving it is BFL's business. If BFL received USD from Bitpay, then it was only because BFL instructed Bitpay to convert the BTC into USD.

When a customer placed an order they immediately exchanged their BTC for USD and used that USD to pay for the order.  This is exactly the same as if you sold bitcoins for cash, deposited cash into your bank account, then used your debit card to pay for the preorder, except that it is much much easier and quicker.  BFL did not gamble on any currency, they did exactly the opposite.  
You clearly did not read the bitpay faq here: https://bitpay.com/faq
Bitpay does what the merchant instructs with the funds. If BFL wanted the BTC so they could escrow it and refund it like they claimed to, then Bitpay would have sent them BTC. If BFL wanted to instead spend that BTC on operations and development, then Bitpay would have converted it to USD for them.

My mistake, you are correct.  Didn't realize there were multiple options for what happened with your funds.  
Can someone point me to the post where BFL says they kept the funds in bitcoins?
BFL says they kept the funds in escrow so that if customers wanted a refund they could depend on their funds being there. The only reason BFL would convert them to USD would be to spend them on something which they promised they would not do until the orders were shipped.

Or because they didn't want to base the entire future of their electronics manufacturing business on a highly volatile currency. The USD is probably not going to crash in price overnight, but bitcoin could and has.  You're telling me you'd trust a company *more* if they kept their holding entirely in BTC?


Quote
Also, I can't seem to find a screenshot of BFL's page showing the prices in bitcoins.  Link?
The price in bitcoins is shown when you get to the checkout screen having chosen "pay with bitcoins".

So the prices were all posted in USD?  And customers who want to purchase the devices saw a price in USD that they agreed to?