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102 sats \ 4 replies \ @SimpleStacker 11h \ on: Square terminals to allow pay in $, receive in btc tomorrow bitcoin
How do they determine the exchange rate and what fees do they charge for the conversion service?
I imagine there is a lot of room for them to skim off the transaction.
If they are saving card payment processing fees, that should balance off the conversion fee. Btc is already one of the most liquid assets in the developed world (judging by volume and bid-ask spreads), even more liquid than most traded commodities and currencies (outside major pairs).
So they should be able to pass some of that savings from credit card companies to the consumer. And as more merchants adopt, buy, sell, convert, the liquidity pool gets bigger further reducing the bid ask spread. That is how adoption spreads.
Eventually, BTC will be so liquid that it becomes the denominator, not numerator.
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Doesn't matter anymore, important is that the flow is going to bitcoin and not the way around.
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Yeah, I'm sure that plays a role.
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Which I'm actually semi ok with, as long as it's not abusively high. They should be able to earn a bit of return for promoting bitcoin adoption
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