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0 pointsmlcrypto5y ago0 comments

They can hold the BTC forever and pay the merchant with their massive cash reserve or 0% interest debt. Profit

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7 comments · 2 top-level

tertius5y ago· 3 in thread

The potential downside on this is 100%. The potential upside on this is... Unknowable.

They would never get away with this as a publicly traded company.

Why would they not? This is effectively buying Bitcoin, slowly, at a discount (they'll surely slap hefty fees/unfavorable exchange rates on it, because there are many people who will happily pay extra for the privilege of paying with crypto, just like people will pay a lot more for anything slapped with an "organic" label).

Tesla, a publicly traded company, got away with buying $1.5 billion in Bitcoin just fine.

PayPal can also sell that Bitcoin to customers who want to buy Bitcoin.

tertius5y ago

Tesla is not a payment processor. Nor is it in the business of profiting off of crypto as a fundamental change in it's business model.

I'm replying to a comment saying they should use their cash reserve to buy bitcoin instead of dividends/buybacks.

And yes, they can sell it and have some level of "float" to support crypto buy/sell exchange. But the comment was a hodl comment to "make them more money."

doomroot5y ago

See Microstrategy... speculative attack on fiat.

oh_sigh5y ago· 2 in thread

They could also accept pebbles and sand as payment, hold them forever, and pay the merchant with their massive cash reserve or 0% interest debt. Profit.

the_local_host5y ago

Pebbles and sand might be safer to hold if they are less volatile than BTC. A company like Paypal needs stability, not a directional bet on an asset.

mlcryptoOP5y ago

USD is very stable in it's decline. Good luck

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