Re: GAW Zen Hashlet PayCoin unofficial uncensored discussion. ALWAYS MAKE MONEY :-)
Does this guy know what he is talking about? From this post on HT
https://hashtalk.org/topic/15099/i-think-i-figured-out-josh-s-plan
So lets say you're a big retailer, take Amazon for example. Sure, they could accept bitcoin, it's just software. But they wont, because your investment can go down as well as up. Amazon are not going to sell things for a currency that could be worthless tomorrow. Bitcoin has value right now, but tomorrow the price could fall to pennies and never come back up. This is true of all investments, not just bitcoin
Its my understanding that company's like newegg, overstock.com etc. are hosted by company's like coinbase etc. and transactions are managed and converted to fiat for the seller instantly at current BTC value, thus there is no risk for seller, coinbase excepts all the risk of BTC "falling to pennies" as he says in his HT post. lol So I guess his assumption is wrong or he is just uninformed. The retailer holds no BTC
He needs to do his homework a little more.
https://hashtalk.org/topic/15099/i-think-i-figured-out-josh-s-plan
So lets say you're a big retailer, take Amazon for example. Sure, they could accept bitcoin, it's just software. But they wont, because your investment can go down as well as up. Amazon are not going to sell things for a currency that could be worthless tomorrow. Bitcoin has value right now, but tomorrow the price could fall to pennies and never come back up. This is true of all investments, not just bitcoin
Its my understanding that company's like newegg, overstock.com etc. are hosted by company's like coinbase etc. and transactions are managed and converted to fiat for the seller instantly at current BTC value, thus there is no risk for seller, coinbase excepts all the risk of BTC "falling to pennies" as he says in his HT post. lol So I guess his assumption is wrong or he is just uninformed. The retailer holds no BTC
He needs to do his homework a little more.
Yes and no. The point is that these companies are simply dumping for fiat, as you say instead of holding the crypto. Insta dumping hurts the value.
GAW's vision is to create a stable coin so these companies won't immediately dump. It's going to take time to get companies on board with this.
Dumping by retailers is mostly neutral. The coins are either acquired just for the transfer purposes, or would have been dumped by the buyer to be able to buy the product for fiat, if the retailer wouldn't accept crypto. Actually it probably reduces the selling pressure a little bit, because the coins are being held a little bit longer, if only for a few seconds.
This can expand into retailer-supplier payments etc, and all that would have a positive effect on stability. That's sustainable albeit slow growth. Artificial incentives like super-high-yield deposits are not sustainable.