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Trace Mayer

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  • Why Target Must Accept Bitcoin Like Zynga And Before Walmart Or Amazon [View article]
    Comment is completely irrelevant. The $100m heist was in no way a result of the Bitcoin protocol being compromised and a simple case of embezzlement.
    Jan 8 02:38 PM | 2 Likes Like |Link to Comment
  • Why Target Must Accept Bitcoin Like Zynga And Before Walmart Or Amazon [View article]
    What relevance do any of these five points have to the issue of whether Target should accept Bitcoins?

    If any point has any substance then it would be #4 but only because I was not thoroughly clear in my article about how if Bitpay is used then Target can choose to bear NO exchange rate risk.

    The degree of exchange rate volatility can be chosen by the merchant. For example, they can choose to receive 30% in BTC and 70% in USD or 100% in USD, EUR, YEN or whatever percentages. Direct deposits are done next day which is equivalent in speed to credit cards. Unlike credit cards there are no chargebacks or fraud so once the direct deposit hits Target would know it will not be reversed.

    Consequently, all five points you raise are completely irrelevant.
    Jan 8 02:34 PM | 1 Like Like |Link to Comment
  • Why Target Must Accept Bitcoin Like Zynga And Before Walmart Or Amazon [View article]
    I should have been more clear in the article about the mechanism with using Bitpay to process Bitcoin transactions. I am not familiar with the policies of Coinbase or Circle.

    Bitpay bears all security risks and exchange rate volatility.

    The degree of exchange rate volatility can be chosen by the merchant. For example, they can choose to receive 30% in BTC and 70% in USD or 100% in USD, EUR, YEN or whatever percentages. Direct deposits are done next day which is equivalent in speed to credit cards. Unlike credit cards there are no chargebacks or fraud so once the direct deposit hits Target would know it will not be reversed.

    Consequently, your arguments about either intrinsic value or where Target would spend bitcoins is irrelevant. Target can accept Bitcoin via Bitpay and never touch, let alone ever own, a single bitcoin.
    Jan 8 02:31 PM | 1 Like Like |Link to Comment
  • Zynga Accepts Bitcoin, And Savings May Be Material To Earnings [View article]
    haleiwahu, you are beginning to understand that Bitcoin is like *invisible glue* that enables the transfer of value, in any form, between two or more servers (locations, countries, companies, accounts, etc.).
    Jan 8 02:00 PM | 2 Likes Like |Link to Comment
  • Zynga Accepts Bitcoin, And Savings May Be Material To Earnings [View article]
    sos, that is a great question but I think may not understand the current payments landscape. Credit cards and Paypal are only available in about 50 countries which constitutes the majority of the population of the earth and so they are strongly incentivized to use Bitcoin since they have no other option to use as payment to Zynga.

    In other words, Zynga can now accept payments from anyone anywhere and at anytime and their competitors that only accept credit cards or Paypal cannot..
    Jan 8 01:59 PM | Likes Like |Link to Comment
  • Zynga Accepts Bitcoin, And Savings May Be Material To Earnings [View article]
    Not sure how or why this comment would be relevant to the discussion at hand because Bitpay is willing to take on 100% of any currency exchange rate risk so Zynga would not be exposed to that.
    Jan 6 01:30 PM | 1 Like Like |Link to Comment
  • Zynga Accepts Bitcoin, And Savings May Be Material To Earnings [View article]
    Bitpay's system is pretty simple when it comes to customer service issues. Someone either pays the invoice in the time period specified and the payment is verifiable in the Bitcoin blockchain or the invoice expires. It is presumed that customers know how to make Bitcoin payments and I am not sure why Zynga would provide any customer service in that area.

    As for the currency conversion fluctuations that Bitpay may have from managing its inventory is not relevant. If the merchant like Zynga chooses to receive 100% of the transaction in USD then they get precisely what they agreed to in advance. And merchants can specify to receive any percentages, like 30% Bitcoins and 70% USD, they want so long as it totals to 100%.
    Jan 6 03:44 AM | Likes Like |Link to Comment
  • Zynga Accepts Bitcoin, And Savings May Be Material To Earnings [View article]
    This is an extremely important point that I failed to mention. Credit cards and Paypal are roughly available in only 50 or so countries. Bitcoin opens up Zynga's products to everyone with an Internet connection. This could have a significant effect on changing the payment method distribution.
    Jan 5 08:28 PM | Likes Like |Link to Comment
  • Zynga Accepts Bitcoin, And Savings May Be Material To Earnings [View article]
    Are you sure you read the article? Because you make several assertions which are in blatant conflict with the facts and as already addressed in the article.

    First, as the article states we do not know the current processing costs for Zynga and your assertion of lower processing costs due to volume is already addressed in the article.

    Second, Zynga faces no risk from 'hacked wallets' as that risk is shifted onto Bitpay, Zynga does not deal with the customer's wallets or funds so there should not be any customer service costs or at least not anymore than there are already with accepting credit cards or Paypal payments and to the contrary there is less risk of customer service issues because the entire attack vector of compromising personal information is missing, the Bitpay processing fee is *inclusive* of currency conversion as mentioned in the article and any additional IT costs are minimal since it is already built into the shopping carts.

    Third, you arrive at the same figure of approximately $3m of costs savings at current volumes which is about 1.5% of the recent annual net loss. The *big unknown* to the market is what Bitcoin's growth rate will be in 2014.

    And as stated in the article Bitpay's transactional volumes are up over 6,200% year over year. Consequently, if that $3m can grow by an order of magnitude to say $30m because Bitcoin transactional volumes grow a mere 1,000% then it may become material to earnings.
    Jan 5 08:26 PM | 2 Likes Like |Link to Comment
  • 8 Predictions For 2014 - Gold, Bitcoin, 3D Printing [View article]
    Looks like Bitcoin started 2014 off with a bang with Zynga accepting it:

    http://bit.ly/1ctUkUP
    Jan 5 02:57 AM | Likes Like |Link to Comment
  • Is Bitcoin For Real? Macroeconomic Considerations For An Alternative Currency [View article]
    Using Bitcoin does not escape any potential tax liability although there are several reasonable approaches one can take, capital gains and barter being just two of those approaches. We outline the tax landscape in A Lawyer's Take On Bitcoin And Taxes (http://bit.ly/1ekdzAP) for those who want to make a good faith effort at being tax compliant until the IRS provides clearer guidance which was discussed in the recent Senate hearings.
    Nov 21 11:41 AM | Likes Like |Link to Comment
  • Is Bitcoin For Real? Macroeconomic Considerations For An Alternative Currency [View article]
    NYC Trader, a four minute interview with soundbites is not really the place for a more intellectual and in-depth discussion on this extremely complex technology. If you really want to do some more research on the topic then you can read the 11 highly in-depth articles I wrote and link to on: http://bit.ly/179PwSl
    Nov 21 11:38 AM | Likes Like |Link to Comment
  • Is Bitcoin For Real? Macroeconomic Considerations For An Alternative Currency [View article]
    The market has a way of rewarding those who make correct assessments with profits and punishing those who make incorrect assessments with losses. For those of us who understand Bitcoin, and particularly the math and computer science behind it, along with the Austrian economics that explains human action then the current price action is not that surprising.

    Is Bitcoin for real? Yes, just like I said on FOX over six months ago.

    http://bit.ly/1gKA1GC
    Nov 13 02:50 PM | 2 Likes Like |Link to Comment
  • Covered Call Options: Generating Income From Owning Gold [View article]
    Michael, you do realize that in the CNBC visit Bob Pisani held up gold bar with serial number ZJ6752. After investigation that bar was determined to be owned by ETF Securities and they had not given CNBC or anyone else permission to handle the actual bullion.

    What a surprise to see their gold bar on CNBC!

    http://bit.ly/16Ilsvs

    Of course, what is whose down there in the vault can get a little murky. Just ask people who had allocated customer segregated accounts at MF Global. So yes, GLD is a 'very practical substitute' until it is not. And when that happens physical possession is the only thing that matters.
    Jun 30 01:10 PM | Likes Like |Link to Comment
  • Bitcoin Market Not A Bubble And Still Highly Undervalued [View article]
    Yes, I am not sure why SA has such a negative bias towards Bitcoin. It seems they only publish the negative articles about it. Personally, I am interested in where the money is being made.

    Bitcoin created a new category of crypto-currency four years ago. In the next few days I am going to write an article about the Bitcoin investment grand slams. In those four years I have recommended four investment opportunities (Bitcoin, Litecoin, S.DICE and ASICMINER) that *each* returned 1,000%+ in less than 12 months and currently all of them have market caps in excess of $50m and $1m+ per day of volume.

    Consequently, this nascent crypto-currency space is generating and creating massive amounts of wealth for those playing in it. I suppose it is hard for the other investment articles on SA to compete when ROIs like that are getting thrown up on the scoreboard.
    Jun 30 01:05 PM | Likes Like |Link to Comment
COMMENTS STATS
150 Comments
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