.@gendal And most of it goes away once it's commoditized on the blockchain. The only profit there is scale.
My new blog post: A simple explanation of fees in the payment card industry… who makes all the money?!http://gendal.wordpress.com/2014/08/09/a-simple-explanation-of-fees-in-the-payment-card-industry/ …
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@bmcusick@gendal why would that volume ever go on a#blockchain? which blockchain could possibly, profitably support that today? -
@ofnumbers@gendal Today? Who's talking about today? I'm watching the trends. BitPay is already free. Volume will come. -
@bmcusick@gendal@l_m_goodman#bitpay has unsustainable biz model.#blockchains uncompetitive for that purpose:http://gendal.wordpress.com/2014/07/05/why-the-payment-card-system-works-the-way-it-does-and-why-bitcoin-isnt-going-to-replace-it-any-time-soon/ … -
@ofnumbers@gendal@l_m_goodman So what's your official prediction (+ or -) for when Bitpay goes out of business? -
@bmcusick@gendal@l_m_goodman 5/5 there is no "free" in#bitcoin, especially in retail - inaccurate marketing hype. -
@ofnumbers@gendal@l_m_goodman 1| Agree 100%. The question is what the marginal costs are and how close marginal prices will get to that. -
@ofnumbers@gendal@l_m_goodman 2| VISA owns its network, so it can keep prices above costs - good profits. BitCoin changes that by ... - 2 more replies
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@gendal Revenue ≠ profit VISA's high margins http://finance.yahoo.com/q/ks?s=v come from network effects, which can be strong yet potentially brittle. -
@trengriffin agree 100%. Costs mostly fixed, massive network = huge profit engine. UNTIL process goes into reverse, as you suggest.
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@gendal: My new blog post: A simple explanation of fees in the payment card industry… who makes all the money?! http://gendal.wordpress.com/2014/08/09/a-simple-explanation-of-fees-in-the-payment-card-industry/ …”Thanks. Twitter will use this to make your timeline better. Undo -
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@gendal: blog post: A simple explanation of fees in the payment card industry… who makes all the money?! http://gendal.wordpress.com/2014/08/09/a-simple-explanation-of-fees-in-the-payment-card-industry/ …" good oneThanks. Twitter will use this to make your timeline better. Undo -
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@gendal: My new blog post: A simple explanation of fees in the payment card industry… who makes all the money?! http://gendal.wordpress.com/2014/08/09/a-simple-explanation-of-fees-in-the-payment-card-industry/ …”Thanks. Twitter will use this to make your timeline better. Undo -
@gendal where does the ACH (for US transactions) come into play?Thanks. Twitter will use this to make your timeline better. Undo
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