Tai: I have some friends that have some dance clubs here in Austin, and they asked me which Bitcoin merchant account provider should they use, and I recommended to them Coinbase. One of the concerns of the business owners have was that if he accepts Bitcoin, he doesn’t want to deal with the volatility, could you guys talk about how you guys absorb or deal with the volatility for businesses
Charlie: Companies like Overstock use this, if they don’t want to hold any Bitcoin that they receive, we do the instant exchange transfer for them. So what happens is, someone buys something for 20 dollars and pays them with Bitcoin, Coinbase gets the number of Bitcoin.
Then at the end of the day, we deposit 20 dollars to your bank account, they don’t hold any Bitcoin volatility risk if they don’t want to, they have the option to hold the Bitcoin if they want to, they have the option to hold it in a percentage.
But if they don’t want to, they can offload all the risk, so to them, it’s almost a no-brainer. They get zero fraud risk, the only risk is they have to trust us, if Coinbase goes out of business, they might lose one day of sales. If we lost all the money and we went bankrupt for example, but we’re not.
Tai: You guys seem to be growing because I looked into all those charts, the number of users is increasing
Charlie: We recently hit 1 million user accounts, we recently got 25 million dollars of funding from VC.
Tai: I think I looked on your career page or something like that, you guys are constantly hiring new developers.
Charlie: Yeah, anyone wants to join one of the coolest Bitcoin companies, we’re hiring like crazy.
James: We talked about this earlier, but I was just wondering, as an insider, is Coinbase considering at any point, trying to do instead of putting Bitcoin outside the stores, maybe we accept Coinbase, so that you walk in and your transaction with the store owner, I have a Coinbase wallet, I have Android, I walk in, I get instant transfer, no fee, are you guys looking into doing that sort of brick and mortar.
Charlie: So kind of like what Paypal is doing.
James: But Paypal is not free in between the transactions.
Charlie: Yea, it’s not. We kind of want to push Bitcoin for it, there’s really no reason to say only accept Coinbase. I mean Coinbase merchants accept Bitcoin from anywhere, if you use a Coinbase account to send Bitcoin, it’s really easy, you’re already signed in to Coinbase, so it’s just 1 click or 2 clicks, click “Pay” and then click “Confirm” and then you send the coins.
But we also send Bitcoin, so if you want to use your own wallet to send Bitcoin, it’s just as easy. But so to answer your question, we have a plan right now to do that, the benefit is pretty small because the fee for Bitcoin is still pretty low compared to other payments, it’s next to nothing anyway, so there’s very little reason to say zero, absolute zero.