You don't have to use Bitcoin as your main payment system because you still have fiat so your customer can use fiat to pay while you can holds Bitcoin until the price increase and you can sell it to take a profit. As a business man, you need to watch and adapt the current situation so you can running your shop without a problem and if you see Bitcoin price is down, you can still buy all the goods needed in your shop.
You must allocate an emergency funds to cover up for the shortage so you will not have a problem if you want to buy something for your shop. As a business man, you need to think if you are in that situation so you can solve the problem immediately and nothing happen to your shop.
Topic: Am just curious, how would I go about this - page 5. (Read 868 times)
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what is the way forward in such a situation if your emergency funds can't cover up for the shortage?
The possible solution is to use bitcoin payment processors which means even if the customers pay you in bitcoin or in any other crypto the payment processor will convert them into fiat at that time of payment and you can withdraw them as fiat in your end so by doing this customer can pay with crypto and you don't have to worry about the volatility.
Another suggestion:
If you're really a bitcoin enthusiast but also don't want to take too much risk then take the safe path of only converting your profits into bitcoin and let the remaining funds to cover the expenses, salary, and restocking so by this you don't have to worry about restocking when there's a dip and you also have your bitcoin that's coming entirely from your profit.
Let's say if your monthly revenue is $50000 and 20% is your profit
then use the payment processor to convert 80% which is $40,000 to convert into fiat
Keep the remaining 20% which is $10,000 in bitcoin itself.
I've thought about this myself, and I believe the crucial thing is to hedge your funds. If you take Bitcoin, get ready to swap some of it for a more stable currency right when you get paid. That'll help soften the blow of any price changes. Also, to my understanding most places that take Bitcoin use some form of payment processor to automate everything.
So, whether some businesses or individuals choose to invest in Bitcoin and hold it for a longer period is unrelated to whether they accept Bitcoin as a payment method for services and products.
So, whether some businesses or individuals choose to invest in Bitcoin and hold it for a longer period is unrelated to whether they accept Bitcoin as a payment method for services and products.
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In a situation whereby you accept it as a means of payment while sell off your goods, then when you are out of stock, so you decide to restock your shop, so by then price of Bitcoin has dip so much that you can't buy all the goods needed in your shop, due to the fact that your money has depreciate in value because of the dip, what is the way forward in such a situation if your emergency funds can't cover up for the shortage?
Beforehand you need to see the government regulations in the country where you live, whether bitcoin is legal for transaction processes and if not then I am sure you will have problems with the law. Doing something that is prohibited will not be profitable even though we know that bitcoin has provided many benefits and you need to review this first before deciding to accept or pay for something using bitcoin. If you are just a small investor then using bitcoin as a means of payment will not be profitable because of volatility.The simple logic is like this, when you run out of bitcoin stock to pay and the value of buying bitcoin at that time is high then when the price drops and you have to pay for purchases using bitcoin you will most likely lose. My understanding is that it would not be profitable for small investors to condone bitcoin as a means of transaction but it is much better for investment.
Maybe for ordinary Bitcoin users this feels quite difficult and can be stressful if the price of Bitcoin is falling because there is no profit from selling using Bitcoin as a means of payment, plus not preparing an emergency fund that can cover if this happens and it will definitely happen because the price of Bitcoin is not easy to predict and only fools will do this because it risks causing frustration if they don't think and make a very mature strategy and plan for the future to anticipate if this happens. If not, I think the store will not be able to buy back the item to sell, and will not convert it to fiat to be able to buy it because it will be a loss.
Only people who have a lot of money or are indeed very rich can do it and also love Bitcoin who can do it, and do it with very mature planning, have a good strategy and also have a large emergency fund if this happens. And besides that, the person took the initiative because of his love for Bitcoin, aiming for everyone to know that Bitcoin can be used as a means of payment, and know and also have a strong belief that if that happens in the end the price of Bitcoin will rise again which will provide extraordinary benefits in the end.
Only people who have a lot of money or are indeed very rich can do it and also love Bitcoin who can do it, and do it with very mature planning, have a good strategy and also have a large emergency fund if this happens. And besides that, the person took the initiative because of his love for Bitcoin, aiming for everyone to know that Bitcoin can be used as a means of payment, and know and also have a strong belief that if that happens in the end the price of Bitcoin will rise again which will provide extraordinary benefits in the end.
Just like someone who decide to invest in Bitcoin, they should only use idle money, which mean they have emergency funds.
In business is same, you also need to have emergency funds too instead of going all in and having no money to prepare with the future. If the business have no money left and all of them are in volatility assets, the business has a bad money management.
If a business has money management problem, the owner should recruit financial planner.
In business is same, you also need to have emergency funds too instead of going all in and having no money to prepare with the future. If the business have no money left and all of them are in volatility assets, the business has a bad money management.
If a business has money management problem, the owner should recruit financial planner.
It varies depending on the store and the number of daily Bitcoin transactions. Some stores rely on processors to transfer cryptocurrencies to the bank account once they are accepted, while others consider Bitcoin as an investment and since Bitcoin transactions may not exceed 10% of the total transactions, they are good as a medium or long-term investment. Some sell Bitcoin on a weekly or daily basis as the price of Bitcoin may not differ much on a daily basis.
Bitcoin as the first cryptocurrency was not just created for investment purpose, it was actually created as a means of payment and to be honest, the adoption process isn't as fast as expected, but one thing that am very curious about and I have been thinking on how to go about it as a business man while accepting it as a means of payment is it volatility, though it might be advantageous for holders, but am not that certain for a business men.
In a situation whereby you accept it as a means of payment while selling off your goods, then when you are out of stock, so you decide to restock your shop, so by then price of Bitcoin has dip so much that you can't buy all the goods needed in your shop, due to the fact that your money has depreciate in value because of the dip, what is the way forward in such a situation if your emergency funds can't cover up for the shortage?
In a situation whereby you accept it as a means of payment while selling off your goods, then when you are out of stock, so you decide to restock your shop, so by then price of Bitcoin has dip so much that you can't buy all the goods needed in your shop, due to the fact that your money has depreciate in value because of the dip, what is the way forward in such a situation if your emergency funds can't cover up for the shortage?
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