Bitcoin Bitpay VISA card
Updated
I was just thinking..... I recently signed up for a Bitpay Visa Card. I got it the other day in the mail. It costs $9.95 to setup the card. There is also a Bitpay wallet app for your smartphone. The download is like any other. A few minutes to download, install, setup and you are done. It's actually pretty cool. You can download BTC from your other wallets to your Bitpay phone app and/or your Bitpay VISA card. As a test I moved $100 from my Bitcoin Wallet to my Bitpay phone app. Once I got my VISA card I moved $50 from my Bitpay phone app to my Bitpay VISA card and proceeded to spend it around town. Not a single failure. It worked everywhere I tried to use it. One of my swipes was at a coke machine and another at an ice cream truck. About as far away from the norm as you can get and it still worked.
This is a great way to easily spend your BTC into the community. But here's the catch and what got me to thinking. When you load your VISA card with BTC what is actually happening is the BTC you move is being sold and the dollar equivalent is being loaded on your card. The BTC you load does not float with the market. The dollar amount is fixed the second you load it onto the card. OK Fine. Don't load huge amounts of BTC. Maybe just enough to get you through the weekend or to buy lunches and gas for the week. Easy peasy, no problem. Leave the bulk of your Bitcoin stash in your regular wallet to float up and down with the current market prices and only load some BTC to your card when prices are high.
But... here's the rub. How does this work from VISA's perspective? What if you load $1000 in BTC on the first of the month and by the 15th of the month the BTC you loaded is only worth $750? Bitpay VISA has just taken a loss right? I don't think so and here is why. THEY KNOW Bitcoin will be worth FAR MORE in 6 to 12 months than the pittance in dollars they are putting on your card today. Right? I mean if they did not believe this with every fiber of their being they would never advance you cash against something they thought would tank and bankrupt them. NO. They know dam well that if you put a large sum on your VISA card today you are just screwing yourself for tomorrow while they make out like bandits. I suppose they could sell the BTC as soon as they bought it from you but I suspect they are banking it to sell latter. That's right. They give you $50 or $100 cash now from something they will sell in a year for $5,000 or $10,000. Their profit potential far exceeds any perceived risk they may be taking. They know it, and now YOU know it too.
Do you get where I'm coming from? Just another reason to keep stacking those Sats. The big boys KNOW where this is all headed and they are setting up the mechanisms now to skim their piece of the pie off the top. We need to get as much of the pie as we can before they take it all.
More food for thought...
This is a great way to easily spend your BTC into the community. But here's the catch and what got me to thinking. When you load your VISA card with BTC what is actually happening is the BTC you move is being sold and the dollar equivalent is being loaded on your card. The BTC you load does not float with the market. The dollar amount is fixed the second you load it onto the card. OK Fine. Don't load huge amounts of BTC. Maybe just enough to get you through the weekend or to buy lunches and gas for the week. Easy peasy, no problem. Leave the bulk of your Bitcoin stash in your regular wallet to float up and down with the current market prices and only load some BTC to your card when prices are high.
But... here's the rub. How does this work from VISA's perspective? What if you load $1000 in BTC on the first of the month and by the 15th of the month the BTC you loaded is only worth $750? Bitpay VISA has just taken a loss right? I don't think so and here is why. THEY KNOW Bitcoin will be worth FAR MORE in 6 to 12 months than the pittance in dollars they are putting on your card today. Right? I mean if they did not believe this with every fiber of their being they would never advance you cash against something they thought would tank and bankrupt them. NO. They know dam well that if you put a large sum on your VISA card today you are just screwing yourself for tomorrow while they make out like bandits. I suppose they could sell the BTC as soon as they bought it from you but I suspect they are banking it to sell latter. That's right. They give you $50 or $100 cash now from something they will sell in a year for $5,000 or $10,000. Their profit potential far exceeds any perceived risk they may be taking. They know it, and now YOU know it too.
Do you get where I'm coming from? Just another reason to keep stacking those Sats. The big boys KNOW where this is all headed and they are setting up the mechanisms now to skim their piece of the pie off the top. We need to get as much of the pie as we can before they take it all.
More food for thought...
Trade closed: target reached
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