Nostr Web Client

I don't get why people like these companies that sell you gift cards and similar stuff for Bitcoin and make you pay more than you would pay if using fiat. Is the goal to make Bitcoin look inferior?

Neo ⚡️ 2y ago

Bitrefill does not overcharge, you pay 1:1. But you're right some other companies do.

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fiatjaf 2y ago

Did you do the math?

Neo ⚡️ 2y ago

Yes. I also spoke to Sergej (Ceo/Founder) of Bitrefill at a conference. He explained me how they earn money with this model. They do not have to charge more.

₿itcoin 2y ago

Explain to us :)

Neo ⚡️ 2y ago

Nothing spectacular, same way other resellers make money with them. Buying huge quantities upfront -> So they get a discount. And with prepaid creidt cards resellers get a cut from the fees, the merchants have to pay when they charge these cards etc.

idsera 2y ago

Are you sure? I tested in the past and the spread was higher.

Neo ⚡️ 2y ago

Checked before my post, didn't find a spread.

idsera 2y ago

I will test again so. Thanks.

idsera 2y ago

I tested now and the spread is 9%.

fiatjaf 2y ago

I think nostr:npub1lyqkzmcq5cl5l8rcs82gwxsrmu75emnjj84067kuhm48e9w93cns2hhj2g is being tricked because he is believing the Bitcoin price Bitrefill is showing him. The cards may have no markup, but the intrinsic Bitcoin price they use to do the conversion is fraudulent. I don't know if this is the explanation, but could be. That's how many of these loved "Bitcoin-only" companies trick people.

idsera 2y ago

Or maybe the spread is different for different giftcards and countries.

fiatjaf 2y ago

Or maybe they only show you the real spread on your second purchase.

Neo ⚡️ 2y ago

I use them on a daily basis, so this can't be the case.

Neo ⚡️ 2y ago

Nope, $50 Apple Gift card costs right now 0.00183717 BTC at Bitrefill = $49,96

idsera 2y ago

Ok, so probably the overprice is only for developing countries.