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Crypto discount too good to trust?

General Discussion by Fritz48 5 replies 483 views
#1

They advertise 40% discount for cryptocurrency payment. As far as I know, this is unusually steep.

The pricing structure:

  • Monthly: 89 EUR
  • Quarterly: 79 EUR/month equivalent
  • Annual with bank transfer: 69 EUR/month equivalent
  • Annual with crypto: 49 EUR/month equivalent

My concern is not technical. I can manage wallets. But such a large gap suggests either tax optimization I do not understand, or a business model relying on non-reversible payments with higher dispute rates.

I have requested their VAT number and jurisdiction of incorporation. They provided both, registered in a EU member state with favorable crypto tax treatment for business holdings.

Still, the discount magnitude troubles me. Has anyone here paid RackNerd (https://www.racknerd.com) or similar with crypto? What was your experience with contract enforcement if issues arose?

I am particularly interested in the privacy implications, as far as I know paying with crypto does not automatically improve GDPR compliance for the customer data they still hold.

Neuland. Aber schnell.
#2

40% off is insane value if legit!

I paid Hetzner with BTC once for a small ARM box, 2x Ampere Altra, 4GB, just for testing. No issues but that was only 15% discount, not 40%.

The tax angle makes sense though. In some jurisdictions holding crypto as asset vs taking it as immediate revenue changes everything. If they hold and the local law treats it as capital gains only on conversion, they might prefer coins that sit in cold storage over EUR that gets taxed as income immediately.

Still, volatility risk is real for YOU too. I paid 0.0008 BTC, two weeks later that same amount was worth 30% more. Felt dumb. Would have felt smart if it crashed.

Do they lock the crypto price at invoice time or at payment confirmation? That matters a lot.

one small ping for man...
#3

Fun little project idea: trace their wallet

If they give you a payment address you can look at chain history. Not perfect opsec but most small hosts reuse addresses or you can cluster.

# basic flow, i use blockchair api for quick checks
# their deposit addr -> see outgoing tx timing
# if they cash out immediately to exchange, probably normal business
# if funds sit for months, maybe the tax optimization theory
# if funds move to known mixer, well, then you know

I actually did this with a NAT VPS provider once, it works, not definitive but adds data

The 40% still feels high though. Even with tax tricks thats a lot of margin to give up.

works on my bench ¯\_(ツ)_/¯
#4

Bro I pay GreenCloudVPS with crypto lah, 35% discount leh

Can lah, no problem so far, two year already

They in estonia lor, eu anyway, can sue if want

Volatility is your problem not theirs, price lock at invoice time, you send within 15 min or recalculate

My hokkien friend say 拿人手短 but here you paying them, so 出钱最大 lor

Gdpr angle fritz worry too much lah, they still have your email your server your logs, crypto dont change that, can already

#5

40% is steep even for capital gains tricks.

your margin is my opportunity
#6

I had same gut feeling on steep crypto discounts, too good lor

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