Topic: Am just curious, how would I go about this - page 2. (Read 1192 times)

Bitcoin price changes all the time, so what kind of investment an investor can make depends on his plan.  And there are several strategies in investment including long term holding, short term holding, and trading that a person can invest based on his income and strategy. There are many investors who buy bitcoins long term and hold them for a long time, there are many who buy bitcoins and hold them for a long time rather than keeping money in the bank. So it usually depends on the plan who will invest how the biggest desire.

The volatile exchange rate is something that can definitely make it difficult when having to buy supplies for your business that are priced in fiat. When you are selling a product, ideally, you want to have good margins. If your margins are too slim that you would lose money when the price goes down, I would consider swapping some of the BTC you received into stablecoins or fiat. Keep a small amount of BTC for savings and use the fiat to pay your expenses.

This can be a cause of concern as businessman will have to re-import their products when their service ends. It will also affect those who are small traders or businessman. It would be beneficial for a trader if he can make bitcoin transactions at regular intervals without having to use bitcoin regularly. Or if he sells 10-15% of his business through Bitcoin he can retain that money which will also help his Bitcoin investment. He will be able to make more profit than his business through that investment. But after keeping 10-15% in Bitcoin he must consider whether the amount he is profiting is causing any problems in running his business. Because there are many businessmen who are not able to run the business without a certain amount.

First of all the Dollar itself already losses its value for decade now, and Bitcoin payment is not new Country like El-Salvador using bitcoin as legal tender but the other gov seems don't like it, there is news that tell The IMF has been asking El Salvador for changes regarding bitcoin since 2021, when the Central American country established it as a legal tender. https://finance.yahoo.com/news/imf-urges-el-salvador-again-215246529.html

And as for now there are bunch of processing payment like the well known bitpay or coinbase commerce that basically can turn your bitcoin into fiat directly after the transaction so you don't really care about the up and down

Using Bitcoin as a digital asset is what is trending and not using Bitcoin as a mode of payment. There was a time when everybody wanted to accept Bitcoin as a mode of payment and company usually announce this decision but something changed and they began to pull back. The congestion became a problem and the delay in transaction too. Other mode of payment are looking more better than Bitcoin presently and we shouldn't expect business to leave those options and go for Bitcoin that can make them to lose the values of the profits that they have made when they hodl Bitcoin. They can also make more but people prefer to look at how much they're going to lose.

What we have seen companies do is to sell their bitcoin immediately as they receive it, so there is no large difference between the price at which they got that bitcoin and the price at which they sold it, this allows them to avoid the volatility as much as possible while they retain the fiat value of the bitcoin they got this way, which I think it is a fair compromise, as even if I believe in bitcoin and what it represents, that does not mean that businesses have to hold the same opinion I have.

It's for holding for those that have enough money to hold and not for small business starters that might just want to start accepting bitcoin for their business for such kind of people they need to sell sometimes in order for them to restock their shop. 
 
But if it's for those businesses that use bitcoin as a point of reserve, then they will only consider selling when they have made enough profit and not thinking about how the price of bitcoin is moving.

I believe very few people use Bitcoins as a mode of payment. Bitcoins are very rare and fixed in number. So people know that if the demand increases, the price will increase. Hence, people treat Bitcoins as only a digital asset to make money. I know that some businesses accept Bitcoins as a mode of payment, but you also need to understand that these are big brands. For the stock shortage, they have hard cash/fiat to fill up the shortage. They have just added Bitcoins as a source of payment to increase their sales and revenue.

Actually, bitcoin was never created for investment purposes. You correctly noted that the initial idea put into bitcoin was a means for payments for goods and services.

Reality doesn't necessarily have to match expectations.

For any business that accepts bitcoin as a means of payment, volatility is a headache. I believe that all income received in bitcoin should be classified as investments (for several years ahead, at least) and excluded (temporarily) from the business turnover. Because when the price falls, it will be unprofitable to "cash" these bitcoin and, in a sense, the income received in bitcoin is temporarily "frozen", because it cannot (unprofitably) be "extracted" into profit or directed to support and development of the business.

It is better not to allow such a situation, for which it is necessary to have reserves, and income in bitcoin should be “temporarily excluded” from the company’s cash flow.

Being a business man, you ought to understand that in business, you either loss or make profit. It’s just how it is when it comes to money.

What’s there to also know is that, if your accepting Bitcoin for a means of payment for goods and services as a merchant, you ain’t taking just the currency but actually reinvested in a digital asset which in this case is Bitcoin.
Variety in means of payment is mostly due to customer and merchant convince but, Bitcoin payment extends to an investment.

If you’re concerned about volatility, your best option would be to sell the coins you received or perhaps swap it for a stablecoin and hold till you’re ready to restock. Otherwise, you’ll just be well grounded on how the Bitcoin price works and be open to its outcome when you’re ready to restock. It’s always going to be a profit or loss outcome.

Bitcoin is good for a business owner or runners too, you just have to understand what you are getting yourself into.

1. Make sure your customers are ready to pay you in BTC.
2. Make up your mind on what to do after every successful transactions, exchange to USDT or move into your cold storage for long term.

I am a fashion designer and I still accept Bitcoin as means of payment, but since the last high congestion on Bitcoin network accepting BTC have reduced a lot, here is what I always do with my Bitcoin.

Once a customer paid into my BTC address I store the profit in a hardware wallet and swap the rest to USDT, I have to, this is the only way to use the money to restock some goods back in store, and patiently pray for another customer.

In this matter, it is better to still use fiat than moves into Bitcoin because there are an unstable fees that happen to Bitcoin. We may not know when that will appear but that can happen anytime. Yes, it is better to hold Bitcoin for a long term than receive as a means of payment. If you still want to do that, make sure Bitcoin is legal in your country but I see in @OP's country, Bitcoin is illegal so that will not good for him to accept Bitcoin as a mean of payment no matter if his customer asking for that. And with the volatility of Bitcoin price, that will not make someone happy to pay a high fee of transaction so he will choose to hold his Bitcoin than to use it as a mean of payment.

He should also understand the extent to which customers are willing to accept bitcoin payments because forcing bitcoin payments should not make his business worse. Not all places people choose to pay for things with bitcoin and it would be very dangerous if he forced people to use bitcoin and should have offered the option as a convenience measure for his customers. Many people prefer bitcoin as an investment asset rather than using it as a means of transaction like fiat in general.

The reason is because of the habit of everyday use which makes people a little worried about this method. This is different if this is the case in El Salvador because it does not have an official currency like most countries so implementing bitcoin as a means of purchasing would be much more easily accepted.

I think it would already become a mistake if a stock trader who accepts bitcoin for payments stores their funds bitcoin Instead of converting it to stable coins like USDT once received the payment.
It's only advised to let your funds be on bitcoin if you're ready to be a hodler which means you're alternatively diversifying your source of income to bitcoin and then you can always take your profits to promote your stocks.
Aside this hedging I don't think of any possible strategy to recover the lost unless you're ready to shutdown your stocks shop and focuses to hold on bitcoin investment and hodl untill you regain your losses.

Bitcoin is a digital currency and indeed many people now use BTC for investment assets, but there are also those who use BTC as a means of payment. Yes, the process of adopting BTC definitely takes time and up to now of course there are still people who don't know about BTC. but of course over time I think the number of people adopting BTC is increasing and of course this is good progress.

Indeed, a businessman will certainly think twice about using BTC as a means of payment because yes, the reason as you mentioned is because of the fluctuations in the price of BTC, which of course means that people who receive payments in BTC will have the potential to make a profit or potentially lose because of course the BTC price is the same. always up and down.

In my opinion, if a company or shop accepts payments in BTC, it will certainly have the potential for bigger profits, but of course for people who can sell BTC prices when the price rises. And of course, it is also possible for a company or shop to receive payments in BTC, which will potentially suffer losses if it sells BTC when the price of BTC is falling, for example receiving BTC payments when the price of BTC is $60k but the BTC is sold when the price is $58k. In my opinion, if a company or shop wants to accept payments using BTC, of ​​course it needs very large capital and the capital must be really large with the aim that when we fill our empty merchandise we don't sell BTC if for example the price of BTC is falling. So of course, only sell BTC when there is a profit, so in my opinion, in this case, large capital is what is really needed for companies that are interested in accepting payments using BTC.

As the merchant, it is your customers that have to worry more about tx fees, because they cover the fees when they are spending in your store and you only have to cover fees when you want to liquidate your BTC for fiat.

The question you should ask yourself is how many % of your customers pay with BTC, if the number is not much, you can then liquidate BTC only on a mothly basis, that way you'll be lucky enough to carry out your tx when the mempool is free and you will have enough fiat to take care of your business without being in a hurry to sell off your BTC. Now if most of your clients pay with BTC, which is unlikely, use a payment processor.

We use Bitcoin as an investment asset because it has gained so much attention around the world and it has a limited supply so it tends to go up in value over time when the demand increases further, but you are wrong when you say it was created majorly for investment purposes because that isn't true.


I just showed you the proof above that Bitcoin wasn't created to become an investment asset.

Yeah, there should be a supply of stables or fiat to cover that up, just like you said.
Otherwise, the volatility of the BTC would ruin the business of a person.

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.