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Thread: Getting Paid in Bitcoin?
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05-20-2014, 11:10 AM #1
Getting Paid in Bitcoin?
One of my clients has a customer who wants to pay in bitcoin. Transaction will be about $20K. Client's bank (US Bank) doesn't accept virtual currency.
Anybody have experience getting paid in bitcoin? Any advice on the easiest way to set up and process payments? Best payment processor, setup hassles, etc?
FWIW Client will be totally above board with reporting and taxation of these payments.
Thanks
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05-20-2014, 11:14 AM #2
Run, don't walk.
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05-20-2014, 11:18 AM #3
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05-20-2014, 11:21 AM #4
Depending on the time it takes to turn the bitcoins into paper money, I'd do it for a premium.
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05-20-2014, 11:21 AM #5Good-lookin' wool
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Your client's customer wants to unload something that is barely transferable. I am assuming your client knows he/she will have the same problem coupled with complete speculation on any long term value. I know you are looking for just the facts, maam, but dear Jeebus why? Is it because your client doesnt expect to get any payment unless its bitcoin and the owed amount is right in that monetary range that precludes filing suit for fear of spending as much pursuing as the principle amount?
edit: the Brit basically said the same thing in fewer words.
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05-20-2014, 11:23 AM #6Hugh Conway Guest
sure, settle for a 100% premium on the exchange rate at the day payment's due.
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05-20-2014, 11:24 AM #7
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05-20-2014, 11:30 AM #8
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05-20-2014, 11:30 AM #9
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05-20-2014, 11:35 AM #10
make sure you get at least 40k in BTC
1:1 ratio would be retarded
try and defraud the guy tooZone Controller
"He wants to be a pro, bro, not some schmuck." - Hugh Conway
"DigitalDeath would kick my ass. He has the reach of a polar bear." - Crass3000
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05-20-2014, 11:35 AM #11
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05-20-2014, 11:53 AM #12
As long as the magic beans - or magic bullets for that matter - can be monetized in short time frame, I'm still in.
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05-20-2014, 12:21 PM #13
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05-20-2014, 12:34 PM #14Good-lookin' wool
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No response from telebob yet = (telebob = telebob's client)
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05-20-2014, 12:40 PM #15
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05-20-2014, 12:47 PM #16
Yup we know bitcoin values are volatile and theft isn't covered by FDIC. And the routine hacking of the exchanges make things interesting.
This is a one-off or at best infrequent deal. Customer operates on the ragged edge of legitimacy and takes bitcoin as a matter of course.
Client's payment terms are 50% down, 50% at shipment. Client has no interest in maintaining a bitcoin account - they will convert to USD at earliest possible moment.
Bitpay claims to process/deposit USD into client's bank same day at "best rate" among all the bitcoin dealers. So, it seems to us like the downside is we have to recall the shipment if the second half of the payment goes sideways. Like Mazderati sez, if you can convert to a fungible currency quickly, who cares?
So, any of this august body have actual experience transacting in bitcoin?
And no, I don't take bitcoins as payment. I want a solid reputable currency, like C$, but am forced to accept USD.
ETA for commonlaw - nope, not me. Transaction costs too high to play in bitcoin. Client builds/sells cutting edge capital equipment that COULD be used to manufacture products that are legal in some states, notsomuch in others.
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05-20-2014, 12:54 PM #17Good-lookin' wool
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- Oct 2005
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05-20-2014, 12:54 PM #18
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05-20-2014, 12:57 PM #19
Here's an idea: if they're legitimate, let the customer convert their BitCoins to USD and THEN pay the client. I know there are fees involved in both of those, but it's their fucking problem for running a quasi legit business and taking payments in a crypto currency, or whatever it's called.
If they gripe about doing this because of legal/tax ramifications, then you know it's time to bail.
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05-20-2014, 01:03 PM #20
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05-20-2014, 01:05 PM #21
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05-20-2014, 01:09 PM #22
OP are you that dumb?
stop fucking asking everyone for their experiences and get paid.
whats your overhead? zero probably... shut the fuck up and start exploitingZone Controller
"He wants to be a pro, bro, not some schmuck." - Hugh Conway
"DigitalDeath would kick my ass. He has the reach of a polar bear." - Crass3000
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05-20-2014, 01:11 PM #23
Aren't there some odd rules with the IRS treating Bitcoin as property and not currency?
"These are crazy times Mr Hatter, crazy times. Crazy like Buddha! Muwahaha!"
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05-20-2014, 02:05 PM #24
Strippers get upset when you stuff bitcoins in their g-strings
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05-20-2014, 02:14 PM #25
I advise B2B manufacturing and technology businesses on finance and biz dev matters.
Commonlaw - read again. My Client sells to the Customer, which Customer regularly transacts in bitcoin. My Client transacts payments in USD but the basic rule is "make it easy for customer to do business with you". With a lot of large companies (Tesla, Overstock and Virgin come to mind) accepting Btc, seems like the risks can be managed.
BitPay claims they convert bitcoins to USD on same day as transaction with no backsies, so it doesn't seem much different from getting paid in renminbi, Mexican pesos or S African Rand. It's all a matter of volatility between payment and settlement - I think. That's why I inquired of the padded room crew for practical guidance - figured a bunch of outlaws like y'all would know the inner workings
Char - yep, there's a IRS notice (2014-21) on topic. It applies to anyone that keeps an inventory in bitcoin- gain/loss recorded when converted to USD. Same principles apply when someone holds any currency other than USD or does any sort of barter xaction.
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