question What's the benefit of paying in Bitcoin?

[Tarabasa Domains Ltd]

We've had an inquiry on a domain that we are brokering and we quoted the potential buyer a 6figure price which he didn't seem too fussed about, which is good. And he only he asked whether the buyer would accept Bitcoin.

What's the benefit of his company paying in Bitcoin? Is it something to be cautious over?

Best,
Vlad

 

[wwwweb]

If he pays first, you are all good.

 

[Tarabasa Domains Ltd]

If he pays first, you are all good.

Thanks, will be in touch with how it all goes!

 

[johname]

The big benefit for the buyer is if Bitcoins drop in value 5 mins after he paid you in full

 

[DPankaew]

The benefit is most likely that it's a non-taxable event. Think of it this way.

Let's say you invested $10,000 in Bitcoin at $500 each. Now they're worth $5,000 each, so your $10,000 is worth $1m. If you liquidate to cash, you instantly lose 30% to taxes.

On the other hand, if you purchase a 6-figure domain name using bitcoin and never transition to cash, you never create a taxable event. You save yourself at least $30,000.

Also, paying in Bitcoin is actually easier for a lot of people than paying in cash. Doing a 6 figure wire transfer will require going physically into a bank, signing papers, etc. BTC can be done in 2 minutes from a cell phone.

The other benefit could be anonymity, but if you already know his real name then that's likely not the main motivation.

 

[johname]

This would be at the least be bartering. And the government would want their share of a barter. And it makes it really convenient since Bitcoins have a dollar to date value.

 

[Tarabasa Domains Ltd]

The benefit is most likely that it's a non-taxable event. Think of it this way.

Let's say you invested $10,000 in Bitcoin at $500 each. Now they're worth $5,000 each, so your $10,000 is worth $1m. If you liquidate to cash, you instantly lose 30% to taxes.

On the other hand, if you purchase a 6-figure domain name using bitcoin and never transition to cash, you never create a taxable event. You save yourself at least $30,000.

Also, paying in Bitcoin is actually easier for a lot of people than paying in cash. Doing a 6 figure wire transfer will require going physically into a bank, signing papers, etc. BTC can be done in 2 minutes from a cell phone.

The other benefit could be anonymity, but if you already know his real name then that's likely not the main motivation.

Ah hey that explains a lot, thanks for the answer

 

[Kuffy]

He could be an early adopter, and those Bitcoins may have only cost him a couple of hundred dollars. If he has got a new project for your name, then it makes sense to cash in some of his Bitcoin to fund the new venture.

 

[wwwweb]

Is this domain a domain that gets many offers annually a short .com, or one word .com? category killer type, or just a one off sale like myworld.com for $1.2M?

 

[urlurl]

maybe he is getting out of bitcoin while they are hot and investing/diversifying in domain names... i would

 

[Tarabasa Domains Ltd]

Is this domain a domain that gets many offers annually a short .com, or one word .com? category killer type, or just a one off sale like myworld.com for $1.2M?

Category killer for sure

 

[nicholas]

On top of the above benefits, there is also the added advantage of buying with the Bitcoin he already has in the full amount converted from the cost of your domain, without the additional costs of conversion to regular (fiat) currency and other fees associated, such as conversion fees, exchanges, commissions or escrow.

 

[1Darko]

Interesting - keep us updated! Good luck!

 

[Furquan]

Simply he don't want to pay tax and he want to get his little investment (which now worth in thousands dollar) to be utilized in other liquidity.

 

[Irene123]

These coins are more beneficial until these liquidated.so have the digital circulations of btc.

 

[wwwweb]

Your sale would be worth 10% more today if you closed.

 

[Tarabasa Domains Ltd]

Thanks all for the feedback - so the conclusion was the seller didn't want to accept Bitcoin

 

[DomainDude42]

I think the seller missed out of a good opportunity. If s/he accepted Bitcoin for the sale, s/he'd have the upper hand here. Bitcoin transactions have no innate buyer protection, so it's usually the buyer who's hesitant to pay in Bitcoin and the seller who's the opposite -- happy to receive an "off the books" non-reversible payment, that can be optionally converted into standard accounting practices for taxes, etc.

I'm guessing your seller doesn't know much about Bitcoin and the opportunity available here.

However, perhaps the seller doesn't want to fuss with non-fiat transactions and wants to keep everything easily accounted for, etc.

 

[Reu Torah]

there is no benefit, bitcoin is worth for investing in bitcoin cloud mining.

 

[deez007]

Such a pitty, the seller certainly missed a good oppourtunity.

For future reference you can suggest that they use Epik's Domain Escrow service that also caters for Bitcoin transactions.
https://www.epik.com/services/escrow/