Topic: Am just curious, how would I go about this - page 2. (Read 868 times)

You have actually pointed out another major obstacle that I think is definitely going to be a problem in using it for your day to day running of your business, which is his transaction fee, just as you rightfully pointed out, business needs cash that is floating, and the volatility of it can really be unpredictable, though it might go in your favor, but when the dip comes, the dip will be too heavy for you to carry, mostly when it's not what you planned.

Then as for the transaction fee, it's actually another problem when doing business with it, especially when it has gone high, because you will be asking yourself how much you want to gain that you will be paying such a huge amount as transaction fee when it transaction fee has gone high, so in essence of what am trying to say is that it's really not ideal to use in running a business daily, because the way Bitcoin is structured, it's more favourable to long term holder than those that are trading it daily.

Like you, I don't like the idea of ​​using bitcoin as a means of payment for businesses. As far as I know, not many people like to use bitcoin for payment, most of them just want to keep bitcoin as an investment to earn profit, they are very reluctant to spend their bitcoin. While some people will use a converter and convert bitcoin to fiat immediately after receiving payment, why don't we just use fiat to avoid the hassle?

Also, if they really want to invest in bitcoin, it would be wiser for them to proactively buy bitcoin instead of accepting bitcoin as a means of payment and turning it into an investment. Because in my opinion, if we actively buy bitcoin, we will have the opportunity to buy at a cheaper price.

this is one factor you have to consider while trying to use Bitcoin as a medium of payment in your business because it must certainly play out since Bitcoin is a volatile asset. I would rather have Bitcoin as one of my payment option and not the only payment option due to it volatility and the fact that transaction fee can possibly go high at the point I might be in need of the funds for possible restocking. Two scenarios can possibly happen. It's iether the volatility goes in my favour or goes against my favour.

Can we say that as it stands now, Bitcoin can be used as a payment option for the short term? I doubt it will work well. Though with the expectation that Bitcoin will surge up comes to need to accept as much as one can get but that's only best if you're accepting it for the long term. Business need cash that's floating so when you're in need of cash immediately, you wouldn't sell in loss just because you're in a DIP at the time. My conclusion is that bitcon might not necessarily be the best option to be considered when you're intention is to do regular buys and sells since it's possibly it can DIP at any time.

What I can tell you is a way to prevent ending up in this situation. Once you get the payment in bitcoin, you can exchange at least a percentage of that bitcoin to stablecoin or fiat whichever you want to serve as a back up plan. Don’t hold everything in bitcoin as we all know the value is indeed volatile and while using it as a payment method we can’t deny that it still has its risks.

You would also need to come up with strategic purchasing of supplies. Depending on the nature of your business if you can buy as much when bitcoin’s price is still high then by all means do that so you wouldn’t experience shortages.

Adoption isn't fast? I don't think so, we've got a lot of these huge financial companies that have started to adopt it. Understanding the topic from the perspective of the businessman receiving payments in Bitcoin and due to its volatility is one risk being a recipient of it. This is where it should that everyone who deals with this kind of transaction should have spare funds for supporting the business in anyway whether it's with buying stocks. I think it's on point and many don't see this risk before deciding to just receive payments through Bitcoin. In that means, one way is to just go with a third-party and have it converted in real time into stable currency, USD, etc.

Bitcoin isn't the first cryptocurrency created, there has been some previous which failed,  bitcoin got to be a success opening the floodgate which today many say it's the first cryptocurrency to be made. Whether it was created for investment or as a means of payment it doesn't really matter, what matters now is what you choose to use it as to meet your financial challenges in the backdrop of fiat failure. As businessman receiving payment with bitcoin on order to prevent losses when price falls due to the volatility of bitcoin, am instant conversion to stablecoin is a seamless way to save losses in as much as you don't planned on hodling the coins.

There is no evidence to prove that bitcoin was not created for investment because satoshi nakamoto programmed a bitcoin to the extent that it will serve for different option that is why currently you can use Bitcoin for both investment and also for exchange of goods and services even for purchasing of things I will say that there's nobody that knows the plan of satoshi to bring Bitcoin as a currency, for me I will say that he brought bitcoin for investment majorly and also for transaction between intercontinental countries so that it will be a fast approach of people to receive it currency from their country to another country without weekly delay or monthly delay before they will receive what has been sent to them, even investment is one of the things that made the Bitcoin to be into existence today, so there is no evidence to show my bitcoin is not meant for investment from satoshi

As a merchant that accepts BTC, if so many of your customers pay with BTC, then i believe you should use a payment processor to convert the coins you receive into fiat, except you have external funding that can keep the business running, without necessarily liquidating your BTC. I have heard from some bitcoiners that accept BTC in their business and they more or less take it as an investment, since majority of customers pay with fiat, they just hold the BTC.

I have always not been a fan of accepting Bitcoin as settlement of trade for goods and services but some people like the idea of accepting Bitcoin for settlement which I see as a choice and what you ask really matters. What I know some of the people that accept Bitcoin to for goods and service does is that they accept Bitcoin because they want to accept it and keep, they have extra cash somewhere to restocked their goods and things they sell to customers.

They keep this Bitcoin until another bull market before they sell them off since they would have made alot of return on their investment. Some of them do this things because of love for Bitcoin and not really because of the adoption because it does make sense for a business owner that want to make money everyday and rebuy the items on his shop every day to generate profits for sustenance and take of his bills.

Adaption not as fast as whom expected?

But anyway, i don't think that the end game theory of bitcoin was thought out. It makes sense as "digital gold", but given the fact that no one knows what the max marketcap for this could be, it doesn't make much sense to use in similar way as fiat money. People seem to think that fiat money is worthless because it has inflationary mechanics, but that's actually why it's useful, and why people want to spend it. If it didn't have inflation, or if it would work similar to bitcoin or gold, people would rather hoard it.

As a business man before accepting bitcoin for payment their is need to have understanding of bitcoin that it is volatile and since bitcoin is volatile in nature it is important to make plans , if you are accepting bitcoin to hodl bitcoin or if you are accepting it for payment to spend it immediately or convert it to any other currency, there must be reason why you are accepting bitcoin for payment, maybe it is the available currency a customer has for the moment to make payment and you just have to accept it and after accepting it you must have plans on what to do. If it is a business which you depend on the profits to stuck back your business and if the price drops, it can affect your business for you to put back things.

For business people who will always need money for business,  I think after accepting bitcoin from customers their is no need to hodl the bitcoin if you are not ready to invest it for longterm because if it is money you will still need at any moment and the price of the market falls it can keep you stranded.

I think that's called having a diversified portfolio or/and risk management. Having no cash is never a good idea because you'll never know when you'll see a new bargain. What happens they your favorite asset tanks in price? You sell/short it? If you do that you'll never get rich. A smart investor buys cheap and sells high. If the asset is solid fundamentally, you should buy more when it tanks.

That's exactly how you run a real business too. Let's say you own a shop that sells various stuff. When do you restock your inventory? When the prices are low or high? You do that when the prices are low and dump everything when the prices are high. The same logic applies to investing as well.

This is a great topic of discussion and one in which I have more questions that answers myself.  One thing that I would say is I like the fact that you pointed out that bitcoin, the very first virtual currency, is not just an investment, or inherently and investment but at it's core it was created to be a digital currency.

Perhaps you could start off small and accept a smaller amount of bitcoin payments until you started feeling more comfortable with the whole process.

Although simple, it may be much more difficult when practiced directly because sometimes there are limitations in understanding technological needs. Not all places are suitable for accepting payments using bitcoin because of various problems that occur and maybe the trust of people who do not fully understand bitcoin speculation. I want to give an example of something simpler and perhaps for the area where I live, using legal payments with bitcoin is prohibited and if done, it will actually have an impact on the applicable legal process.

But even if people insist on using bitcoin payments, they should have alternatives. For example, having a reserve fund to fill bitcoin and that too is saved as an effort to avoid emptiness when the price of bitcoin experiences a maximum increase.

The problem that OP is facing comes from using 2 different systems at the same time. OP wants to use bitcoin as payment for goods, but also fiat money to get supplies.
Any problems that come from difference in prices over a period of time can be easily avoided by using 1 system. OP should simply strike deals with suppliers that accept bitcoin and are willing to allow advances, so that when OP feels like he can get more goods for bitcoin than he'd on average on that given year, he can order another shipment in advance.

For those lazy people, there are payment processors, so they can act like they accept bitcoin but transact in fiat.

Long-term Bitcoin investors have more benefits than short-term investors, and people accept Bitcoin as a medium of exchange, especially for people controlling small-scale businesses that depend on the money made to buy new goods to keep the business running.

If you don't have another means of getting money for your Business, then accepting BTC as a payment method might not favor you if the market trend is downward; but for people who have enough money outside their business money that they might be willing to use for Bitcoin investment, they can accept the BTC payment and use their money to replace the money for the business, but if you don't have enough money, it is better you use some of your profit to buy Bitcon using DCA method because if you as a small scale business person accept Bitcoin, you will lose some money due to transaction fee whenever you are withdrawing your Bitcoin and if the market is down, then it is another lost.

Bitcoin is a digital currency, it's not like Fiat so if anyone should introduce the use of bitcoin for their business then let your vendor also be a bitcoiner since you want to use bitcoin for trading so that when the price of bitcoin falls after you bought your goods at higher price, the vendor will have an understanding with you and also reduce the price when you want to make new orders. You see this is one of the challenges that people who uses bitcoin as a means of payment will face because it will take someone who understands volatility to be able to apply adequate measures when the market goes sideways.
         Another thought i have is what if after your vendor reduces the price of his markets and sell to you and the price skyrockets again which means you will also be selling your products at high price to your customers and this doesn't really make a balance equation because some times you will experience losses and sometimes you also gain. I think bitcoin stands better in the hodling aspects than trading. You shouldn't even have the thought of using your emergency funds to restock your market because the reason while emergency funds are being set aside is for unforseen situations that may occur in time coming, expenses you didn't bargain for like health issues and all that so if you tamper with it and an emergency need comes how will you be able to manage such situation?

The solution to this is very simple, businesses can convert their Bitcoin to fiat quickly from an exchange, they can use popular exchanges for this. That way, they can not only accept Bitcoin, but also overcome the problem of sudden price drops when they hold it for a long time. Because in accepting Bitcoin as payment in business there are several things to consider, since it is different from fiat, so businesses that accept Bitcoin in their business need to think of some ways to overcome the problems that may arise when they accept Bitcoin as payment in their business - and whether they accept/not Bitcoin, as a business, they need emergency funds and it is the main thing in business to prevent financial problems.

There are 2 ways to look at this.

1. When Satoshi created bitcoin, he had a vision in mind that bitcoin should be used as a P2P payment method.
So it does not depend on any other asset or any 3rd party to derive it's value. We are the one who derive the value.
If you are selling something for bitcoin then you should know how many satoshis you want to sell your product.
It doesn't necessarily has to be a USD equivalent amount but an amount in BTC directly.
For example: 0.001 BTC will always remain 0.001 but $100 worth of BTC will keep changing according to the exchange value.

2. On the other hand, bitcoin has allowed us to use it for multiple purposes and not just what it was intended to.
Bitcoin has enabled us to use it for cross border payments but with the catch that we have to exchange it to fiat regularly to get the fiat value of it. So if you are someone who has to get the fiat value then you have exchange your coins regularly.
The frequency of exchange obviously depends on your personal choice.

I've also thought about this before. But if you are actually interested to accept bitcoin, do not just see it as a means of payment but use it more as your long-term investment. Yes, it's highly volatile so you have to set a limit on the amount you will receive whether for daily or weekly basis, and still reserve some fiat funds so that you can still cover up your expenses and roll your funds to make your business stay longer and prosper more.