What happens to the market, would it just basically shut down for a short period of time?
I noticed BTC has dropped nearly $30 in just a day and it's probably going to go a bit lower by tomorrow.
how do suppliers handle a BTC crash?
What happens to the market, would it just basically shut down for a short period of time?
I noticed BTC has dropped nearly $30 in just a day and it's probably going to go a bit lower by tomorrow.
[5 Points] tangocharliefriend:
[4 Points] None:
If they are smart, they would not cash out all at once. I mean it is similar to cash transactions. Just because you sold $100,000 worth of drugs does not mean you have $100,000 worth of usable currency.
As for how they actually cash out, I have no idea as I have never had to launder money, but I would assume that they do not cash out instantly, and always have a sizable stockpile of BTC on hand.
The price will go back up sooner or later and then you can cash out a little more. And when it goes down cash out a little less. Perhaps if it flat lined really low you would be truly screwed.
[2 Points] stupidDNManswer:
How should or how do they?
should : Find a steady bulk BTC buyer before start vending, or use one of the many electronic services where you can hedge instantly.
How most act : Complain and ask for FE, this will often lead to exit scam.
[1 Points] UndefinedExperience:
They either act like idiots and cancel transactions or they continue business like usual and save those coins, they always go back up.
[1 Points] sapiophile:
Some vendors hedge with short sell orders on exchanges, so that they basically get the BTC price locked in. This of course involves some additional opsec precautions, and may not be an option for everyone.
[1 Points] orbitingabigblack_o_:
If they're good people they wont worry. I've had btc lose 50% of its price in escrow and the vendor still took the hit. To me when a vendor does something like this I'll more than likely be a return customer.
[1 Points] None:
i noticed recently many vendors used the drop to justify raising their price by almost 50% and requiring FE's
[1 Points] NuclearGarageSale:
Vendors tend to mark up their products to a point where, if a significant crash does happen, we're still covered. We might not be making as much off that sale, but because of the attached markup, we'll never completely lose out and go in the red on a deal.
[1 Points] Vendor_BBMC:
I have escrow and FE versions of all product listings.
When bitcoin is stable and agora doesn't keep crashing, its not much cheaper to choose the FE listing. 90% of my customers choose the FE listings. Partly for the discount, but partly because they don't have to login to release the escrow when they are getting high.
Worrying that you haven't paid a vendor because of page timeouts and incorrect capcha codes is Buzz Killington.
The post is very fast in the UK, especially the tracked express options. Somebody can click "buy" at 3PM, and be guaranteed to have their order in their hands by either 9AM or 1PM the next day in England, Scotland, Wales or Northern Ireland.
Money is typically in escrow for a day, and its swings and roundabouts - sometimes bitcoin in escrow goes UP.
[1 Points] Vendor_BBMC:
I have quite a few people to pay as part of the production process, even people who buy solvents etc online for a commission.
They all get paid in bitcoin, so only my moderate profits need to be cashed out, rather than my entire takings.
It seems strange at first, being the boss of somebody you never meet. Bitcoin allows that.
None of it would be possible without android phones, which our encryption-hating governments have overlooked, and to which bitcoin-hating Apple have handed the drug trade on a plate.
I often have to move bitcoin very quickly when the price is going mad, and I'm not always near a laptop. I don't know how I would get by without a load of pre-paid androids that can read QR codes, copy and paste addresses etc.
[1 Points] forgetmyshit100001:
Many vendors use their capitol to hedge on orders. Say they are entering escrow on a $200(0.93BTC) order. They would immediately sell 0.93 BTC for $200 at an exchange. That 0.93 BTC is then replaced when the escrow clears.
Buyers can also do this, in reverse. This method maintains your fiat float and negates BTC fluctuation, but cuts out any opportunity that that fluctuation would otherwise gain you.
[1 Points] AllJoociedUP:
If they are smart they lower their price with a drop n the BTC value to increase sales, so when the BTC price bounces back up the come up. Or The buy more bitcoin when the price is low and use it as an investment.
[0 Points] None:
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How did they handle it when the price went up 1000% in a few weeks?