This has been talked about a lot and a lot of people worry about it but the reality is that small business owners do not really depend on bitcoin all that much. They are doing something that is a bit more personally maybe big enough for them but financially small as the name suggests.
This is why I believe that they can still use paypal or any other method, or just use an altcoin that has low transaction fee, or just not use crypto at all and just use fiat. I am not saying that they shouldn't, but transaction fee shouldn't be a worry, if it is a worry then I believe that it is not really a big deal for anyone, it is just not going to end up being all that important. I think it is quite important to just ignore it and continue if you could do that.
Topic: Bitcoin high transaction fees is a disadvantage to small business owners (Read 522 times)
June 27, 2023, 11:29:30 AM
June 26, 2023, 06:28:06 PM
I agree with the problem as a real determination in success for BTC. Ironically the smallest things do count like convenience in the usage of any product. The immediate idea I had is a monthly tab system to clear BTC spending so not every single transaction is handled by immediate clearance with people waiting around but with known amounts and on a scheduled date. Some might say thats a work around but it might be more fitting for an ideal of lowest costs possible in % comparison to fiat currency and allows the offering of both types of payment. That would only work with people who can be given any credit allowance to clear. I know this system is already operated with gold, credit cards can be paid off vs a gold balance but its cleared monthly.
June 26, 2023, 06:20:43 PM
The real disadvantage that I see is the lack of knowledge from the user side. Alot of people still struggles with online transactions because of the digital payment system, some don't even know how to operate online banking app let alone pay with digital currency.
High transaction is one part of the problem, knowing to to operate digital payments is the biggest challenge.
Well, it makes sense but we are talking about general challenge. Knowledge with how this technology is being used and how it works would indeed be challenge to some users but if it is with group of people, perhaps small and big businesses, then factors such as transaction fees would be also given attention. And I agree with it. Bitcoin has an advantage over fiat when it comes to taxation but since transaction fees are becoming higher as well, then many people are not seeing this blockchain as a better alternative. Which is why Bitcoin is more being used as an investment than currency.High transaction is one part of the problem, knowing to to operate digital payments is the biggest challenge.
I always make an effort to withhold my opinion regarding the use of Bitcoin transactions for goods and services when the market is rumored to be heading towards a bull phase. It's crucial to time your utilization of Bitcoin for transactions appropriately, but it's also important to note that you shouldn't engage in trading soon, as the primary objective is to accumulate.
The things is when there's a lot of transaction in bull or any day, it would be a hassle for the Bitcoin to use as transactions due to traffic of the process. It would be a good to use Bitcoin as an alternative mode of payment or transaction but there's also cons like that. And true if you're in a business you should plan to not engage in the market as you use Bitcoin for your business. It will just makes thing complicated and inconvenient.
For now it need some improvement to settle up the fees so that this coin can be use on business sector as alternative mode of payment since its really bad if we experience high fees condition since we can't do anything since it will just hurt there business if they decide to continue and just pay those huge fees since it take huge part on their profits. I guess they should add alternative alts if they plan to add crypto so that costumers may have different options if network clogged and high fees exist.
June 26, 2023, 04:53:36 PM
I always make an effort to withhold my opinion regarding the use of Bitcoin transactions for goods and services when the market is rumored to be heading towards a bull phase. It's crucial to time your utilization of Bitcoin for transactions appropriately, but it's also important to note that you shouldn't engage in trading soon, as the primary objective is to accumulate.
The things is when there's a lot of transaction in bull or any day, it would be a hassle for the Bitcoin to use as transactions due to traffic of the process. It would be a good to use Bitcoin as an alternative mode of payment or transaction but there's also cons like that. And true if you're in a business you should plan to not engage in the market as you use Bitcoin for your business. It will just makes thing complicated and inconvenient.
For now it need some improvement to settle up the fees so that this coin can be use on business sector as alternative mode of payment since its really bad if we experience high fees condition since we can't do anything since it will just hurt there business if they decide to continue and just pay those huge fees since it take huge part on their profits. I guess they should add alternative alts if they plan to add crypto so that costumers may have different options if network clogged and high fees exist.
June 26, 2023, 12:32:33 PM
The real disadvantage that I see is the lack of knowledge from the user side. Alot of people still struggles with online transactions because of the digital payment system, some don't even know how to operate online banking app let alone pay with digital currency.
High transaction is one part of the problem, knowing to to operate digital payments is the biggest challenge.
High transaction is one part of the problem, knowing to to operate digital payments is the biggest challenge.
June 26, 2023, 10:53:49 AM
This is sad truth of Bitcoin transactions for years. Its still unresolved issue. Fees are too high for Bitcoin to be treated as currency. Sometimes fees increase a lot in busy times but we nearly never see fees getting as cheap as Blockchains like binance smart chain. I wish Bitcoin developers were able to solve. They made issue less annoying with later updates but its still there and it must be solved to increase adoption.
June 26, 2023, 10:44:52 AM
I always make an effort to withhold my opinion regarding the use of Bitcoin transactions for goods and services when the market is rumored to be heading towards a bull phase. It's crucial to time your utilization of Bitcoin for transactions appropriately, but it's also important to note that you shouldn't engage in trading soon, as the primary objective is to accumulate.
The things is when there's a lot of transaction in bull or any day, it would be a hassle for the Bitcoin to use as transactions due to traffic of the process. It would be a good to use Bitcoin as an alternative mode of payment or transaction but there's also cons like that. And true if you're in a business you should plan to not engage in the market as you use Bitcoin for your business. It will just makes thing complicated and inconvenient.
June 26, 2023, 09:49:07 AM
I run a small business and I receive payments for my goods in fiat currency. So joining this bitcointalk forum has really enlightened me about the advantages and gains of trading and investing with bitcoin. So going a step further, I decided that I want to place adverts that customers can have the option of making payments when they buy goods in my shop with bitcoin. But I decided to first seek the opinions of experienced people who are into bitcoin, they encouraged me to go ahead, also to be cautious of bitcoin high transaction fees. I did a little research on it and found out the inevitability of the high fees. https://www.makeuseof.com/what-are-bitcoin-transaction-fees/
You have done well to incorporate Bitcoin into your business payment systems. This could be a medium to attract more customers to your business and on the other hand increase bitcoin awareness in your area. There might be network issues using bank transactions but Bitcoin is more reliable. The privacy and unrestricted transaction limit is also an advantage of using it in your business. If Bitcoin transaction fees were deducted based on the transaction, then maybe no one would bother to trade Bitcoin. The fee for transferring $50 is the same as for transferring $1,000, which has become a major barrier for small traders in Bitcoin transactions. When Bitcoin transaction fees were normal, no one complained about these transaction fees, but suddenly, when the transaction fees increased abnormally, it became very difficult for small traders. Small traders will find more incentive to invest in Bitcoin if transaction fees return to normal.
Small business owners shouldn't consider using Bitcoin for receiving payments for petty goods. The transaction cost will be too much that a fiat transaction would be preferable. Most of these small business owners are not aware of the lightning network, while others feel it is a bit complicated to use. Using Bitcoin for transactions will favour big businesses. The transaction fee is indeed a major impediment to the use of Bitcoin as a legal tender. For now, using it as an investment is the best option for people like me. legendary
Activity: 2576
Merit: 1043
Need a Marketing Manager? |Telegram ID- @LT_Mouse
June 26, 2023, 09:30:43 AM
Lightning Network is the solution for this one.
Unfortunately, not many are using it for various reasons thus, business owners like the OP who are accepting Bitcoin as an alternative way of payment might be selling at a loss because they're the ones that will shoulder the fees, and that affects the total revenue of the business. Of course it differs when the price of Bitcoin goes up because you might get those fees that you've paid thru capital appreciation.
Right now, Bitcoin as an alternative way of payment is only applicable to huge business that have large transaction like maybe a corporation, or maybe if some real estate agents who are selling homes are accepting Bitcoin then we can add it on the list as well. Overall, it isn't worth it for small business owners to accept Bitcoin as another way of payment, but there are other altcoins out there who has a lower transaction fee, and lower transaction speed. You can use that altcoins as well aside from Bitcoin if you really want to integrate cryptocurrency in your business.
Overall, this is one reason why I don't believe Bitcoin will be accepted as a currency globally. Compare to fiat, more people will just use fiat when they are paying just because of lower to no fees at all.
Unfortunately, not many are using it for various reasons thus, business owners like the OP who are accepting Bitcoin as an alternative way of payment might be selling at a loss because they're the ones that will shoulder the fees, and that affects the total revenue of the business. Of course it differs when the price of Bitcoin goes up because you might get those fees that you've paid thru capital appreciation.
Right now, Bitcoin as an alternative way of payment is only applicable to huge business that have large transaction like maybe a corporation, or maybe if some real estate agents who are selling homes are accepting Bitcoin then we can add it on the list as well. Overall, it isn't worth it for small business owners to accept Bitcoin as another way of payment, but there are other altcoins out there who has a lower transaction fee, and lower transaction speed. You can use that altcoins as well aside from Bitcoin if you really want to integrate cryptocurrency in your business.
Overall, this is one reason why I don't believe Bitcoin will be accepted as a currency globally. Compare to fiat, more people will just use fiat when they are paying just because of lower to no fees at all.
June 26, 2023, 06:12:28 AM
Even bitcoin's low transaction fees are not a better solution for small businesses or consumers. I don't know about other countries, but in my country, when using cash or e-wallet services are almost free, everything is completely free and very fast. So using bitcoin for payment is also not a better option. But for international payments, bitcoin will outperform fiat.
To be honest, I still think bitcoin would be more suitable as an investment than a payment method, as we will still be converting bitcoins before and after the payment into fiat.
To be honest, I still think bitcoin would be more suitable as an investment than a payment method, as we will still be converting bitcoins before and after the payment into fiat.
June 26, 2023, 05:03:36 AM
I can't deny what the OP wrote about. Because for small businesses that accept payments, of course, in small amounts. then of course transaction costs will be an issue that needs to be considered enough. So what I can suggest is that your business should set a minimum amount that you can accept in bitcoin payments. This minimum amount must be what allows you to cover transaction costs and still benefit from your business.
So set a minimum transaction in your business for the bitcoin payment option. if it's too small an amount that can lose profits due to transaction costs then avoid it. and set a higher minimum amount that can still cover the transaction costs of the profits you get.
So set a minimum transaction in your business for the bitcoin payment option. if it's too small an amount that can lose profits due to transaction costs then avoid it. and set a higher minimum amount that can still cover the transaction costs of the profits you get.
June 26, 2023, 04:35:41 AM
I don't know who told you that bitcoin transaction fees are high, but it's best to avoid relying on sources like makeuseof.
I've never run a store before, but I've bought several digital products for an average of $30 to $600 and it's cost me less than a dollar on average for most transactions. Currency volatility may be a more convincing reason, although you must understand the risks associated with this industry, which must be thought of as part of the future development of these currencies. Imagine as if you bought Apple shares in the early 2000s.
I've never run a store before, but I've bought several digital products for an average of $30 to $600 and it's cost me less than a dollar on average for most transactions. Currency volatility may be a more convincing reason, although you must understand the risks associated with this industry, which must be thought of as part of the future development of these currencies. Imagine as if you bought Apple shares in the early 2000s.
Being quite new in bitcoin, I normally seek for opinions from more knowledgeable people in cryptocurrency matters, so I don't make avoidable mistakes. I however agree that one should not totally rely on opinions and information given, but can receive them as a guide, in making informed decisions.
The exchange rate of my country's fiat currency is approximately 650 naira to 1 USD, so if a seller adds one dollar equivalent to the market price, the buyer will most likely walk away, because due to the harsh economy, nobody is ready to add a cent more for payments So the most viable option for me now is to explore the lightening networks, hopefully if my small business can bear the very low transaction fees, then I'm on my way to advertising the option of making payments with bitcoin, in my business.
In my country, if you use cash or a bank, even a $300 or $500 transaction won't be charged extra. Of course, 1 dollar is nothing compared to 500 dollars, but 1 dollar will also buy a meal, so there is no reason to waste it.
I agree with OP, transaction fees are an issue for bitcoin when using it as a payment method. Not to mention daily necessities, I wouldn't waste my money unreasonably when buying 1 cup of coffee worth $0.50 but paying an extra $1 in transaction fees if using bitcoin. Fiat prevails over bitcoin in this respect, and we shouldn't deny that.
June 26, 2023, 04:19:48 AM
If Bitcoin transaction fees were deducted based on the transaction, then maybe no one would bother to trade Bitcoin. The fee for transferring $50 is the same as for transferring $1,000, which has become a major barrier for small traders in Bitcoin transactions. When Bitcoin transaction fees were normal, no one complained about these transaction fees, but suddenly, when the transaction fees increased abnormally, it became very difficult for small traders. Small traders will find more incentive to invest in Bitcoin if transaction fees return to normal.
June 26, 2023, 04:06:05 AM
Yes, Bitcoin has "inherent" problems - low speed, high commission, "primitive" functionality.
That is why it seems to me that Bitcoin's position is not a day-to-day bargaining chip for buying everyday goods, but an investment tool. Real "digital gold in bullion" - not convenient, cumbersome, but - it counts and evaluates all other cryptocurrencies.
I.e. its main audience is "cryptobanks", medium and large investors, etc. audience, but not the average person who went to buy a pack of ice cream
That is why it seems to me that Bitcoin's position is not a day-to-day bargaining chip for buying everyday goods, but an investment tool. Real "digital gold in bullion" - not convenient, cumbersome, but - it counts and evaluates all other cryptocurrencies.
I.e. its main audience is "cryptobanks", medium and large investors, etc. audience, but not the average person who went to buy a pack of ice cream
June 25, 2023, 02:55:27 AM
Yes, the high transaction fees associated with Bitcoin can be a disadvantage for small business owners. Bitcoin transaction fees are determined by the network's supply and demand and they can fluctuate greatly over time. In times of high demand, fees can be quite high which can make it difficult for small businesses to justify using Bitcoin as a payment method. Small businesses may not have the resources to absorb the cost of high transactions fees, which could eat into their profit margins. This is especially true for businesses that operate on tight margins, such as those in the retail or food service industries. That being said, there are ways for small businesses to mitigate the impact of high Bitcoin transaction fees. For example, they could consider using a payment processor that offers lower fees or using a different cryptocurrency with lower transaction fees. Some businesses may choose to pass the cost of transaction fees onto their customers by adding a surcharge of bitcoin payments. While high transaction fees associated with Bitcoin can be a disadvantage for small business owners, there are ways to work around this issue and still benefit from using cryptocurrency as a payment method.
June 24, 2023, 07:04:45 PM
The current Bitcoin fees may not be friendly for small-value transactions when compared to fiat currencies, as fiat transactions generally have lower fees.
However, from another perspective, the way banks create money can be seen as unfair and should be taken into account.
In my opinion, true fairness lies in Bitcoin. I am still eagerly awaiting the introduction of Central Bank Digital Currencies (CBDCs) in the global economic market. What the government offers through its CBDCs will greatly impact Bitcoin's position in the eyes of the public.
However, from another perspective, the way banks create money can be seen as unfair and should be taken into account.
In my opinion, true fairness lies in Bitcoin. I am still eagerly awaiting the introduction of Central Bank Digital Currencies (CBDCs) in the global economic market. What the government offers through its CBDCs will greatly impact Bitcoin's position in the eyes of the public.
June 24, 2023, 10:24:30 AM
I don't know who told you that bitcoin transaction fees are high, but it's best to avoid relying on sources like makeuseof.
I've never run a store before, but I've bought several digital products for an average of $30 to $600 and it's cost me less than a dollar on average for most transactions. Currency volatility may be a more convincing reason, although you must understand the risks associated with this industry, which must be thought of as part of the future development of these currencies. Imagine as if you bought Apple shares in the early 2000s.
I've never run a store before, but I've bought several digital products for an average of $30 to $600 and it's cost me less than a dollar on average for most transactions. Currency volatility may be a more convincing reason, although you must understand the risks associated with this industry, which must be thought of as part of the future development of these currencies. Imagine as if you bought Apple shares in the early 2000s.
Being quite new in bitcoin, I normally seek for opinions from more knowledgeable people in cryptocurrency matters, so I don't make avoidable mistakes. I however agree that one should not totally rely on opinions and information given, but can receive them as a guide, in making informed decisions.
The exchange rate of my country's fiat currency is approximately 650 naira to 1 USD, so if a seller adds one dollar equivalent to the market price, the buyer will most likely walk away, because due to the harsh economy, nobody is ready to add a cent more for payments So the most viable option for me now is to explore the lightening networks, hopefully if my small business can bear the very low transaction fees, then I'm on my way to advertising the option of making payments with bitcoin, in my business.
June 24, 2023, 09:02:29 AM
My problem with these high transaction fees, is that customers naturally wants to minimize expenses, so if they choose to make payments with bitcoin, then they will want to exchange it at the exact rate of USD. So the seller bears the cost of the high fees alone, which may lead to selling at a loss. Although I'm guessing that the high fees might not affect big business owners, who receive payments in bitcoin, because they sell with higher profits, and when they minus the cost of the high transaction fees, it still won't affect their overall profits.
I feel that this is a big edge that fiat currencies have over bitcoin, because you don't have to pay extra to buy goods or services, even when you make fiat payments through banks, they only charge a token as transfer fees. So this high fees is a disadvantage to small business owners like me who has the intention of receiving payments in bitcoin.
Although Bitcoin offers extremely fast and unlimited transaction possibilities, Bitcoin's high transaction fees cause significant inconvenience to small business owners. And for small business, frequent small transactions are often burdened by high fees that make it financially impossible to accept Bitcoin as a payment option. Since we first use an exchange site or wallet to get bitcoins, I think we should use any exchange or wallet that has free internal transaction fees. I feel that this is a big edge that fiat currencies have over bitcoin, because you don't have to pay extra to buy goods or services, even when you make fiat payments through banks, they only charge a token as transfer fees. So this high fees is a disadvantage to small business owners like me who has the intention of receiving payments in bitcoin.
June 23, 2023, 06:18:09 PM
I run a small business and I receive payments for my goods in fiat currency. So joining this bitcointalk forum has really enlightened me about the advantages and gains of trading and investing with bitcoin. So going a step further, I decided that I want to place adverts that customers can have the option of making payments when they buy goods in my shop with bitcoin. But I decided to first seek the opinions of experienced people who are into bitcoin, they encouraged me to go ahead, also to be cautious of bitcoin high transaction fees. I did a little research on it and found out the inevitability of the high fees. https://www.makeuseof.com/what-are-bitcoin-transaction-fees/
My problem with these high transaction fees, is that customers naturally wants to minimize expenses, so if they choose to make payments with bitcoin, then they will want to exchange it at the exact rate of USD. So the seller bears the cost of the high fees alone, which may lead to selling at a loss. Although I'm guessing that the high fees might not affect big business owners, who receive payments in bitcoin, because they sell with higher profits, and when they minus the cost of the high transaction fees, it still won't affect their overall profits.
I feel that this is a big edge that fiat currencies have over bitcoin, because you don't have to pay extra to buy goods or services, even when you make fiat payments through banks, they only charge a token as transfer fees. So this high fees is a disadvantage to small business owners like me who has the intention of receiving payments in bitcoin.
My problem with these high transaction fees, is that customers naturally wants to minimize expenses, so if they choose to make payments with bitcoin, then they will want to exchange it at the exact rate of USD. So the seller bears the cost of the high fees alone, which may lead to selling at a loss. Although I'm guessing that the high fees might not affect big business owners, who receive payments in bitcoin, because they sell with higher profits, and when they minus the cost of the high transaction fees, it still won't affect their overall profits.
I feel that this is a big edge that fiat currencies have over bitcoin, because you don't have to pay extra to buy goods or services, even when you make fiat payments through banks, they only charge a token as transfer fees. So this high fees is a disadvantage to small business owners like me who has the intention of receiving payments in bitcoin.
People buy BTC from the exchange or an app. So basically if they are using the same exchange as you or apps, internal transfers are free. So the issue of high transactions is solved by simply using the same application or exchange and just doing internal transfers. You can still use Binance (even though SEC sue it) or other exchanges that enable internal transfers. In times like this small business owners need to be creative in adapting into the situation.
June 23, 2023, 05:30:07 PM
Now that the network fee is down, I hope many of those small business will keep running transactions because everyone now can afford the fee which is very normal now. Bitcoin is the only coin that many investors have a concrete trust on and then that the fee was high, many investors decided to go for other coins for transactions to reduce expenses. Bitcoin adoption was halted when the network fee increases making some newbies to quickly switch to other coins mostly stable coins and run there trdaes.
Jump to: