Quote:
Originally Posted by Micturition Man
Depending on transaction costs and processing time it might be correct to hold a substantial amount of crypto rather than constantly convert it back and forth.
The transaction costs of hedging to match liabilities would be minimal compared to the expected revenue from accepting the deposits.
Back in ancient times, credit card deposits cost a poker business something over 12% on the way in. On top of that credit card deposits were tied up for 6 months as "reserves" against chargebacks. Yet, somehow, the operations were able to absorb that credit card deposit processing cost and make profits.
"Processing time" in crypto blockchain transactions is a non-factor generally speaking.
