Am just curious, how would I go about this - page 5.

Marvell1

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Quote from: Mate2237 on September 28, 2024, 08:30:59 AM

Even fiats in these days are not stable and they are volatile. And I am using my country currency as an example to others. Last week, it was $1 = N1600 but in this week it is $1 = to N1700 and we don't know what will be the next move of the price. And if the price of Bitcoin was high when the seller bought the first set of goods and now that he wants to buy again, I believed the price of things would also reduce because products or goods also follow the movement of the currency.

Even the real life the prices of good and services follow the prices of the exchange rate and the transportation so if the price of Bitcoin is volatile then the goods and services will also follow suit.

Currency values will depend on that country's economy and just because your country's currency fluctuates wildly doesn't mean other currencies will too. Not to mention, even if they are volatile, they are not more volatile than bitcoin, can your national currency lose 5-10% in 1 day? But with bitcoin it is very normal and regular.
Bitcoin's volatility is huge and it would be a big risk if we don't plan well when using it as a company budget. Don't deny it because this is a real problem and that's why OP created this thread.

Do you own a business and have you ever used bitcoins as a payment method for your business as well as used them as a company budget? How can you be sure that there will be no problems using bitcoin as a means of payment?

EL MOHA

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Quote from: Mate2237 on September 28, 2024, 08:30:59 AM

Even fiats in these days are not stable and they are volatile. And I am using my country currency as an example to others. Last week, it was $1 = N1600 but in this week it is $1 = to N1700 and we don't know what will be the next move of the price. And if the price of Bitcoin was high when the seller bought the first set of goods and now that he wants to buy again, I believed the price of things would also reduce because products or goods also follow the movement of the currency.

Even the real life the prices of good and services follow the prices of the exchange rate and the transportation so if the price of Bitcoin is volatile then the goods and services will also follow suit.

The thing is your pegging the goods with your currency and not bitcoin, what you stated is the price of Naira depreciating or appreciating against US dollar while the goods follow the usd currency whereas that’s not the volatility with bitcoin. The price of a commodity can be stagnant but bitcoin price will increase or decrease in respect to the usdt price. Imagine buy or selling one loaf of bread for x amount in usdt but the price was paid in bitcoin when it was around $65k, then when the bitcoin price reduces to like $64k the list of bread would still be x amount but you might have lost due to the volatility of bitcoin and I think that’s the worry of bitcoin.

My advice to OP is just convert you needed funds in short term to fiat after maybe daily or weekly sales because bitcoin isn’t even that too volatile that it will raise or reduce excessively during this period. Then if you’re looking for a very long term holding position then stay in bitcoin

mirakal

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The volatility of this is one of the reasons why its development in terms of adaptation is weak. In fact, there are many merchants and companies that have tried this, but they see that consumers prefer fiat money over bitcoin. That's why we don't feel this kind of change in our community because most people still prefer using fiat money over bitcoin. And even though we encourage people to use this, it seems that they still perceive it primarily as an investment, not as a currency that can be used anywhere.

Of course, we are looking forward to the expected changes, but I think it will take longer before it materializes as an alternative currency.

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Quote from: Barikui1 on September 28, 2024, 02:16:49 AM

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 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?

Yeah, it was created as a means of payment, but due to its scarcity and how it is mined, people found it much more suitable using it as a store of value than using it as a regular currency. Bitcoin is also accepted in most places where cryptos are accepted but there are other coins that are much better when it comes to making payments due to fees and confirmation time. To answer your question, yes bitcoin is volatile and it is not a good idea for merchants to hold bitcoins. That is why most payment gateways that processes bitcoin transaction allows the merchants to instantly covert bitcoin to other fiat currency or at least to a stable coin. The merchants also has a choice to keep a % of the money received in bitcoin. A smart merchant would keep most of their 'profits' in bitcoin in order to maximize their profits in the long run.

Mate2237

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Even fiats in these days are not stable and they are volatile. And I am using my country currency as an example to others. Last week, it was $1 = N1600 but in this week it is $1 = to N1700 and we don't know what will be the next move of the price. And if the price of Bitcoin was high when the seller bought the first set of goods and now that he wants to buy again, I believed the price of things would also reduce because products or goods also follow the movement of the currency.

Even the real life the prices of good and services follow the prices of the exchange rate and the transportation so if the price of Bitcoin is volatile then the goods and services will also follow suit.

dzungmobile

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Quote from: Barikui1 on September 28, 2024, 02:16:49 AM

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

The adoption rate of Bitcoin is actually faster than expected. It's not too accurate for a comparison of adoption rates between Bitcoin and the Internet, but let's check it and see how good Bitcoin adoption curve is.
Bitcoin vs Internet adoption curves
Not Just A Fad: Bitcoin Adoption Curve Rivals The Internet
Bitcoin vs Internet adoption where does Bitcoin stand

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Quote from: Japinat on September 28, 2024, 06:18:26 AM

Bitcoin is for HODL, not meant for spending...Eventually if the price reach at the level of your goal, that will help you retire young.

If it is not meant to be spent, then what is its purpose? And if no one is selling it, who are you going to buy it from to HODL?

Bitcoin needs both sellers and buyers. That's the only way it works.

Frankolala

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I think it will be better if you are accepting bitcoin as an alternative payment method, after payment you can convert your capital to stable coin and then keep your profit in bitcoin so that when you are short of stock, you can easily buy whatever you are lacking in your business.

However, anybody accepting bitcoin will also accept fiat and I believe that majority of customers will pay with fiat and not bitcoin. What I think will be the challenge when you are accepting bitcoin for payment will be high transaction fee that do happen once in a while. In such case, you will only accept fiat currency.

Ararbermas

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Very true Op the volatility of Bitcoin is the question if it's for business purposes. Wherein how it becomes safe and not affected on the market situation ?. Cheesy

i think much better to use stable crypto rather than Bitcoin to make sure it's safe from the volatility if its all about fast transaction and privacy of costumers.

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Quote from: hugeblack on September 28, 2024, 02:29:16 AM

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.

Yes, that's right and market players are not only those who have large assets continuously holding these assets but those who are retail traders also participate if someone comes to buy in small amounts. As you said if their asset stock is already in deficit, they just deposit again to meet the demands of their customers.

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All you need to do, if you find yourself in such situations, is to apply wisdom to have some emergency money you can use to buy goods to refill your store back because if you leave your store empty, and you don't want to sell your bitcoin just because of the dip, it will make you to lose plenty customers at that moment, but if you have emergency money at that moment, it will be easy for you to make use of the emergency money to refill your store and continue holding your bitcoin till the price hit profit point. Bitcoin is created to break down transaction delay not for profit making, but since many countries has made it illegal for any kind of transaction in their country, it has pushed many youths to discovered how to invest fiat money on bitcoin and other cryptocurrencies and hold for some months or years before they can trade to earn income which is the major thing that is changing other countries minds to unbanned bitcoin to boost their economy.

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Quote from: Barikui1 on September 28, 2024, 02:16:49 AM

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 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?

With this situation you can possibly loss when you use your bitcoin when it is on dip, if you have fiat you can use it instead of btc when it is on dip because its value will go up in the future, but if you don't have a reserve money to used in the times of dip then you can possibly loss.

Japinat

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Bitcoin is for HODL, not meant for spending...Eventually if the price reach at the level of your goal, that will help you retire young.

pooya87

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It really depends on the person, their business and how much of their revenue is going to come from bitcoin payments. For example I knew someone some years ago who had a computer shop and was accepting bitcoin payments. They barely received any bitcoin payment and they saw that as an investment itself. They basically said they were going to buy bitcoin with the profit from their business anyway so why not receive it directly like this and avoid the hassle of buying bitcoin later.

asriloni

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Quote from: Barikui1 on September 28, 2024, 02:16:49 AM

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 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?

When a merchant accepts bitcoin as one of their payment. They should have the best way to settle with bitcoin's fluctuation. They can avoid this by using a scalable payment system. It will process their bitcoin transactions in seconds, then convert them to fiat. This is because the price of bitcoin can fluctuate even more than cc's processing fees.

And based on your illustrations, i'd blame the merchant. They should have converted their bitcoin to fiat in a matter of seconds instead of holding it. Cheesy

Solosanz

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Business is full of uncertainty and you only have Bitcoin instead of currency with stable price, it's like taking double risk. Similar to taking a loan to invest in business or Bitcoin, either you go big or you go home. Most sellers that accept paying in Bitcoin, they're using third party and they will receive in fiat since the third party will convert Bitcoin to fiat.

However, if you have in such situation, just sell your Bitcoin even you're sell it at loss because you have no choice and selling Bitcoin at cheaper price isn't always bad.

shield132

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Quote from: Barikui1 on September 28, 2024, 02:16:49 AM

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 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?

The adoption process is faster than it was expected. It's a brand new currency compared to gold and fiat but has a market cap that's higher than 1 trillion dollars.
There are two options for you if you are in e-commerce:
1) Integrate Coinbase Commerce on your website - When someone pays with Bitcoin on your website, then Coinbase will automatically convert crypto into USD and you won't have to worry about volatility.
2) Integrate BTCPayServer on your website - When someone pays with Bitcoin, you'll have total access to your wallet and you manually send coins from your wallet to an exchange, convert and then withdraw fiat.

If I were you, since the volume of Bitcoin transactions is low in every store, I would HODL coins that I'd receive via my website. HODL means long-term holding, for example 3-4 years.

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Quote from: Barikui1 on September 28, 2024, 02:16:49 AM

Bitcoin as the first cryptocurrency was not just created for investment purpose, it was actually created as a means of payment ...

No, if you have read the Bitcoin's White Paper, you will know that Satoshi never mentioned creating Bitcoin and using it for investment purposes. The sole purpose he created it for was to be a peer to peer currency but we turned it into an investment from day one and maintain it to this day. We have turned bitcoin into a volatile asset class, which is good for investment purposes but has inadvertently made it difficult to use as a means of payment.

That's why I don't really welcome or like the idea of using bitcoin as a means of payment for businesses. Because if we don't have a specific plan and strategy, rushing to adopt bitcoin as a payment method will cause a lot of difficulties for our business. People in the position of customers or buyers may support this idea but if they are in the position of business owners, they will realize that there are many challenges they face with the volatility caused by bitcoin.

Some people came up with the idea: as soon as we receive bitcoins, we will immediately exchange them for fiat. That way we can avoid the volatility of bitcoin, but if we do that then what is the point of using bitcoin as a means of payment?

ethereumhunter

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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.

Findingnemo

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Quote from: Barikui1 on September 28, 2024, 02:16:49 AM

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.

Topic: Am just curious, how would I go about this - page 5. (Read 1158 times)