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RE: is about to start payment processing, allowing to buy GRC with PayPal and Credit Cards

in #gridcoin5 years ago

This truly is awesome, I really hope it can take off!
Might I suggest also posting this to r/gridcoin and r/marketgrid?

Be wary though, because if I remember correctly also used to offer gridcoin for paypal/CC and they had to stop because people kept charging back.


It is going to be problematic. As for CC, the plan is to allow only 3D Secure cards (these with additional password confirmation). This way we are protected from chargebacks, but not all the cards will work. For PayPal, we will need a sort of additional verification and limits that will increase for each account over time.
Basically we are about to create a model similar to VirWox platform. As longs as chargebacks are bellow standard (of about 3%) we should be good to go.

As for the spreading news widely, such as Reddit and other places, I think we can do that, but it could be very early. We could easy get into situation of not having enough to sell / buy, so my idea is to keep it low at the time and make it work, then go out and publish it everywhere.

Sweet, I will definitely try it when it becomes available!

You only mentioned being able to buy in your original post, but in this comment you mention selling. Will you be able to sell as well?

Well, in order to buy, someone needs to sell, right?
I will start with some of mine initial coins, then the strategy is:

  • Person X buys coins on
  • I sell them from my wallet
  • I use that money to buy more GRC on exchangers to buy more GRC.

Result: Increased trades on exchangers, increased number of Fiat->GRC = deflation.

The cost is going to be a bit higher then the GRC value due to conversion costs, but definitely lower then 'VirWox' approach, as I am not going to generate profit.

In the later stages, other crypto -> grc will be also enabled, allowing to completely close the circle and allow trading in both directions.

The reasons why not doing it now, is not having enough fiat / crypto cash flow, and the demand for selling is probably more then for buying, which will directly cause an inflation. (not only with GRC but with any crypto allowed to convert to fiat directly assuming there are more crypto-> fiat then opposite direction).

In short, conversion in both direction is going to be allowed in later stages, but it would never be allowed that grc->fiat, exceeds fiat->grc.

We will need to play a bit dirty here :) But in principle, the is very similar to steem economy.

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