Topic: Bitcoin as point-of-sale currency (Read 300 times)

I think this will be a hard part on merchants since they are risking on bitcoins fluctuating value. Probably those who think of it as an investment would go for it but if the merchant is on the savingas and profit then it would not be an option for them. Merchants who would accept it would wait until they think the value of bitcoin is enough for them to earn their targeted income. This is risky especially when we are talking about merchants whose aim is profit but in time, as bitcoin continuously been developed this POS will be accepted and stabilize the industry.

After reading over the replies to my original post, I realized that merchants might be induced to offer bitcoin-price discounts in a rising market and no bitcoin-price premiums in a falling one if they stuck to the non-reversibility of their bitcoin sales. In other words, a bitcoin sale would always be final, no exceptions. This would be perfectly reasonable. Since they were paid in bitcoin, they are not going to refund in cash. And they are not going to want to hassle verifying your own bitcoin address, nor take responsibility because you inadvertently gave them the wrong one.


Quickie Marts come to mind too. When you think of it, most of the stuff they sell -- gas (perfect for bitcoin), food, drink, magazines -- is not going to be returnable anyway, and near interstate highways most of the customers either won't be back at all or won't be back until they return from where they are going. And the knick-knacks are pretty much what-you-see-is-what-you-get. Quickie Marts are integral parts of the cash ghetto, and many customers don't even ask for a receipt -- they just grab, pay, and run. For bitcoin-sales paper receipts might not even be issued.

Pawnshops and Quickie Marts: two possible venues where bitcoin's inherent volatility could reduce prices for customers and costs for the merchant.

 

I don't think that will work. Merchants usually impose higher mark ups the higher the risk involved. It's like how when you borrow without collateral, you have to pay higher interest. But yeah, your way would be the ideal way of doing this.

You are just seeing one side of the coin that we buy a product with bitcoin today and if bitcoin price increases,then the merchant gets extra profits.Similarly,if bitcoin price decreases after we pay to a merchant,then the merchant definitely suffers with a loss.

To avoid this,if the product is valued in bitcoin itself,then there is no volatility.

Thus,after  we pay in bitcoins,either the merchant benefits when bitcoin price increases or we benefit when bitcoin price decreases.

people who spend bitcoin spend it for other reasons not just for getting a discount and they are getting a discount 100% sure if they have bought bitcoin more than a couple of months ago or most probably even if they have bought 2 days ago!
for example you could have bought bitcoin at $3000 and now spend it at $4800 (that is your discount!)

a falling market never lasts long! there are short periods where price falls a little and recovers just as fast.

in any case you are focusing too much on the price. in reality the merchants who are accepting bitcoin as payment and the people who spend bitcoin are not really complaining!
i always see others who are neither a merchant nor ever spent bitcoin complain about it though.
besides there are always options such as BitPay to accept bitcoin and receive fiat equivalent of it!

i honestly did not understand what the point of "point of sale" is here though!

I don't think Bitcoin will enable a cash ghetto. Bitcoin is too advanced of a cryptocurrency that its inherent ability to transfer value across the world makes it more advanced than any other type of money before it. I read Jack's book and it is a great one - highly recommended for everyone on this forum. I guarantee once you read it you will see Bitcoin in an even more positive light. 

I do think that Bitcoin is going to usher in a money 3.0 where we won't have to rely on our political location, but rather have a system where money is equally transparent and accessible to all.

Aren't there already stores that accept Bitcoin using QR codes? NFC would be the next best way to perform Bitcoin transaction peer-to-peer, but we will still run into problems with transaction speeds, fees, block sizes and the like.

Down the road, I could see Litecoin being used as the lightning-quick intermediary between Bitcoin and Fiat. Those who have Bitcoin, but wish to spend it will want to transfer it into Litecoin so they can freely spend it as they wish without waiting or high fees.

This topic is discussed so many time here.
With mass bitcoin adoption,the btc volatility will be reduced and it won`t be such a problem for merchants.
The more important question is: Is mass bitcoin adoption possible?
I don`t think so.With all the future forks and all the transaction issues,bitcoin will remain only a store of value.

This would be unfair bigtime. Customers and Consumers would totally convert their money into fiat for that physical transaction. This would be effective to some kind of online store with unique products that would attract bitcoiners.

Right now, the only way I see it working is with a substantial markup. They would also have to price their goods in USD or their local currency, to be converted to BTC plus something like a "volatility fee" to act as some kind of buffer to protect them from sudden price drops. Another thing to consider would be the transaction fee. They might also require you to pay more than you usually do in fees for the transaction to be processed more quickly. It's a little too complicated at the moment and it's more convenient to use fiat or credit cards. It makes me wonder, would there be anyway Bitcoin transactions could be integrated with NFC?

How will merchants handle bitcoin's inherent volatility?

In a rising bitcoin market, it seems reasonable that merchants would have to offer some kind of price discount for users of bitcoins. Otherwise, who would pay with them, knowing that they will probably be worth more tomorrow? By the same token, in a falling market, merchants would be justified in charging a bitcoin-price premium over the fiat price. But, of course, who would pay it? Only those who, for one reason or another, have no choice. It's going to be a long time before there are very many such customers in the usual kind of store, and it seems unlikely that merchants would offer bitcoin discounts on the one hand but no corresponding bitcoin premium to suit new market conditions.

Maybe the first stores to really embrace bitcoin will be those whose customers have no choice but to search for discounts and yet who often pay premiums. Pawnshop customers come to mind. A bitcoin-only pawnshop might thrive on bitcoin's volatility. Larger stores, seeing this, might begin offering bitcoin-only sections, sort of like the discount stuff you see on the way to your grocery store's bathroom, tucked away in the back.

Perhaps bitcoin as a point-of-sale currency will get its real, non-novelty start at the bottom, where generous discounts and ruthless premiums are taken for granted by users with limited options. In his 1997 book The History of Money, anthropologist Jack Weatherford wrote of a "cash ghetto." Maybe the cash ghetto will become the bitcoin ghetto.