In our ongoing quest to make Bitcoin available to everyone in the Bluegrass, we’ve made some hard decisions and will be rolling out a few changes starting on November 13, 2017. While we know these decisions will affect some of our customers we must look at ways of continuing to provide the best service to everyone.
Here’s is the list of upcoming changes we plan to role out:
Disabling vendor payments: Bluegrass Bitcoin will be disabling payments for our vendor partners through our terminals. With average bitcoin transaction costs now approaching $10 a transaction, it no longer makes sense for our vendors to take payments in BTC as the associated cost to move Bitcoin away is now approaching the average transaction amount. Vendors may still be accepting payment in Bitcoin or Litecoin through third party services. Please check with each location to see if you will be able to pay using crypto moving forward.
Fixed fee for Bitcoin purchases: We will begin charging a $10 fixed fee on all Bitcoin purchases. While we strive to provide a reasonable way for customers to purchase bitcoin, at the lowest rates possible, we are unable to continue covering the cost of network transaction fees for purchases. Since our inception, we have been paying network fees on behalf of our customers by including this cost in our bitcoin pricing but with the recent increase in block congestion we are unable to provide this service. This new fee will only apply to Bitcoin purchases while Litecoin will continue to be provided without any fixed fees.
Change to our dynamic fee structure: In a continued effort to align with the rising cost of the Bitcoin network fees we will be adjusting our dynamic network fee structure for how much we will pay out to miners. What this will mean for our customers is that transaction times may take longer to be included in a block and reach confirmations. Transactions will continue to be broadcast immediately but due to the congestion on the Bitcoin network transactions may not receive confirmation for some time. This change will only affect Bitcoin transactions. For anyone needing to receive crypto in a hurry we recommend using the Litecoin network as they have much less congestion on the network at this time and confirmations are provided every 2.5 minutes.
Adjustments to our Bitcoin pricing: To better align with our new fixed transaction pricing structure we will be lowering our Bitcoin pricing. When we started this company we were able to include transaction fees in our Bitcoin pricing without requiring a fixed fee. Since we will be introducing the fixed fee we will lower how we calculate the Bitcoin price. Pricing for Bitcoin and Litecoin will continue to be listed on our terminals prior to starting a transaction for our customers to review.
To fulfill our mission of helping to make Bitcoin as ubiquitous as cash in our state, we will continue to experiment with new ways to provide our services. If you have any suggestions or questions on how this may affect your purchase, please reach out to us on Facebook or Twitter, or send us a message at firstname.lastname@example.org.