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RE: And they say there is no real-world use cases for crypto...
I thought Overstock's crypto retail transactions are converted directing into fiat. Did that change recently? I'm also aware that percentage of the company's assets held in crypto was far less than the percentage of the value transacted with crypto.
@jrcornel how should I make sense of this as it relates to doing business in crypto?
Whether they convert them to fiat immediately or not is irrelevant. The point is that it lets people transact in crypto if they should so choose. Not only that, but this shows other merchants that it is much cheaper than using credit cards, which should help spur adoption. Things that further legitimize crypto.
How significant do you think the savings are from transacting in crypto when you add conversion fees, as compared to going through traditional merchant processors with fiat?
I don't have any specific numbers except when you add in the fraud department that traditional credit cards require, I would say... at least a tremendous amount.
Now if Overstock didn't automatically convert purchases in crypto to fiat when settling the transaction, those savings would be much larger. Why do they not? Tax reasons?
Perhaps, but they cant buy everything in crypto just yet, and yes also taxes likely are a significant reason.
The CEO mentioned in a talk that they convert half to FIAT and sit on half until it's a good time to sell, for millions in gains.
Good.