This isn't really an issue for merchants, since most of them use payment processors like Bitpay. When they do, the merchant receives the fiat equivalent of the going rate for bitcoin at the time of the transaction. Volatility therefore doesn't affect the merchant.
The larger issue is volatility in the potential purchaser's wallet, and that should be obvious to anyone who's ever owned bitcoin. Bitcoin's value can jump dramatically overnight, as op pointed out and when that happens people don't want to spend it on anything. That's an undeniable issue with any crypto, and unless and until bitcoin's volatility calms down it won't be spent for goods and services.
Then again, if there was no volatility bitcoin would be no better than a stable coin, and I don't think anyone wants that.
Topic: Bitcoin's acceptance in the World - page 4. (Read 720 times)
At some point in the future - perhaps another 1 or 2 orders of magnitude in fiat price - bitcoin will stabilize and it will become much more prudent to use in commerce. Personally, if someone wants to pay me in bitcoin today, I am fine with holding it and using it. Never transferring to to fiat is the goal.
The people using it as a store of value today will in all likelihood be well rewarded while we get to the point of stability in fiat terms. Or it will implode and be worthless, however, that likelihood decreases by the day.
The people using it as a store of value today will in all likelihood be well rewarded while we get to the point of stability in fiat terms. Or it will implode and be worthless, however, that likelihood decreases by the day.
I also seem to be interested in your statement because so far we see that bitcoin has never lost its value because bitcoin is the only coin asset worth keeping in the short and long term, and now we see that bitcoin has declined slightly but I don't want exchange it for usd because in my opinion it can harm me if I exchange my bitcoin with usd when the price of bitcoin drops.
It's based on the entities on how are they going to handle their profit. They could just convert it as soon they receive the payment to avoid losing profit.
Bitcoin can be accepted globally but it still depends on the entity, especially those bigger company if they're going to adopt bitcoin as payment method when crypto is not even in the nature of their business. It may be a big risk for every entity but bitcoin can be their other investment for them to gain more profit.
Bitcoin can be accepted globally but it still depends on the entity, especially those bigger company if they're going to adopt bitcoin as payment method when crypto is not even in the nature of their business. It may be a big risk for every entity but bitcoin can be their other investment for them to gain more profit.
There is a major issue which is becoming resistance in the way of Bitcoin to be accepted globally and it is its "Volatility".
In the near past we have seen Bitcoin dropping more than 15% in a matter of 3-4 hours. And there are a number of cases in the past like this.
This property is too much dangerous for any entity which is holding Bitcoin. If a company sells products/services of 10000$ and receive payment in Bitcoin, and bitcoin loses 10% in one day then basically company has lost 10% worth of their products.
Scenarios where gross profit margins of the companies are less, this property makes nearly impossible to accept payments in Bitcoin. If volatility of bitcoin is decreased in the future, it would be a major step ahead.
In the near past we have seen Bitcoin dropping more than 15% in a matter of 3-4 hours. And there are a number of cases in the past like this.
This property is too much dangerous for any entity which is holding Bitcoin. If a company sells products/services of 10000$ and receive payment in Bitcoin, and bitcoin loses 10% in one day then basically company has lost 10% worth of their products.
Scenarios where gross profit margins of the companies are less, this property makes nearly impossible to accept payments in Bitcoin. If volatility of bitcoin is decreased in the future, it would be a major step ahead.
In as much that Bitcoin has volatility issues, it will barely affect the use of it as a payment method in shops. This is because, the price of the item in bitcoin will be adjusted anytime there is a change in the market value of Bitcoin. And personally, I don't really think the volatility of bitcoin will be a problem when it is accepted worldwide. When this is achieved, the rate at which the market price of bitcoin changes might not be huge as before. It might have some level of stability once it is widely used around every part of the world.
There are ways to do so that even if you accept bitcoin you wont end up losing. The strategy is to use a wallet wherein there is bitcoin to dollar conversion, possibly an app. An app which shows both buy and sell value. Here in the Philippines we usually use coins.ph and when merchants accepts bitcoin payments those bitcoin will be converted to peso once it entered coins.ph. It is very user friendly but its just that people are more on using fiat currency and that is why though this app has a good feature for merchants only a handful of merchants are using it.
That doesn't change the fact that they are going to lose their thier profits in Bitcoin, I got your point but my point here is, if someone buys a product on a company that cost 10 BTC (let's just say), then it is going to take some time before the company could receive it, and bitcoin's price could either go up or go down in that time where confirming transactions to receive that 10 BTC, lucky for that company if it goes up, but what if its goes down, it is not the problem if they are going to hold it (I wish they would)
But companies will not do that because they need funds on making their products, and they can't risk it on using bitcoin as a payment as of now, maybe later (when the Government implemented it nationwide).
Well, if bitcoin volatility will decrease I think investors will also decrease because most of the bitcoin enthusiasts really want the volatility of bitcoin price in order for them to be able to have profit on trading short term or long term, and it and be able to get rich as well and that's the only way they can be able to achieve it because when the price drop down they will invest more and sell when the price double or triple it's value. Sometimes I am thinking about the whale who can able to manipulate the market.
This is risky if a certain company is not good in minimizing the risk, they have to understand that bitcoin is a high volatile asset and they should have all the measures needed to continue their business. However, I still think that having a 3rd party who are really good or specialize in crypto would help them if they plan to accept bitcoin as a payment, in the long run, more continue will also be offering that service as I believe that's the only solution since bitcoin will always remain volatile, regardless of how big the adoption is already.
with fix supply and market is full of speculation, high volatility will always be the result.
with fix supply and market is full of speculation, high volatility will always be the result.
If a company sells products/services of 10000$ and receive payment in Bitcoin, and bitcoin loses 10% in one day then basically company has lost 10% worth of their products.
Scenarios where gross profit margins of the companies are less, this property makes nearly impossible to accept payments in Bitcoin. If volatility of bitcoin is decreased in the future, it would be a major step ahead.
Scenarios where gross profit margins of the companies are less, this property makes nearly impossible to accept payments in Bitcoin. If volatility of bitcoin is decreased in the future, it would be a major step ahead.
There are 2 solutions to this.
The first is to not hold the Bitcoins long enough for the volatility to have a large effect. If you sell any bitcoin that you receive within a second or two of receiving them, then the risk of a significant market movement between receipt and sale is pretty small.
The second solution is to use the futures market.
A corn farmer uses the futures market to lock in a price for his corn so that he can weather volitile price changes due to outside forces.
If you run a company and you estimate that you will receive 1 BTC per month in revenue, then you can sell 1 BTC of futures at the beginning of the month for a set price. You can then accept BTC throughout the month knowing for certain that at the end of the month you will get the agreed price for the 1 Bitcoin regardless of what the current exchange rate is.
There is a major issue which is becoming resistance in the way of Bitcoin to be accepted globally and it is its "Volatility".
In the near past we have seen Bitcoin dropping more than 15% in a matter of 3-4 hours. And there are a number of cases in the past like this.
This property is too much dangerous for any entity which is holding Bitcoin. If a company sells products/services of 10000$ and receive payment in Bitcoin, and bitcoin loses 10% in one day then basically company has lost 10% worth of their products.
Scenarios where gross profit margins of the companies are less, this property makes nearly impossible to accept payments in Bitcoin. If volatility of bitcoin is decreased in the future, it would be a major step ahead.
In the near past we have seen Bitcoin dropping more than 15% in a matter of 3-4 hours. And there are a number of cases in the past like this.
This property is too much dangerous for any entity which is holding Bitcoin. If a company sells products/services of 10000$ and receive payment in Bitcoin, and bitcoin loses 10% in one day then basically company has lost 10% worth of their products.
Scenarios where gross profit margins of the companies are less, this property makes nearly impossible to accept payments in Bitcoin. If volatility of bitcoin is decreased in the future, it would be a major step ahead.
That is possibly one of the major concern why those certain companies still avoids the use of bitcoins. The mere fact that volatility imposed a threat to their profit is already a great concern in the future. Unless this factor was taken to be dealt with, we can't expect every companies to follow the same path.
This property is too much dangerous for any entity which is holding Bitcoin. If a company sells products/services of 10000$ and receive payment in Bitcoin, and bitcoin loses 10% in one day then basically company has lost 10% worth of their products.
And what if the scenario is the opposite, then the company profited 10%. The high volatility of Bitcoin had been known for years. And this is not a huge problem for business establishment because they can auto convert the Bitcoin payment to cash if they are too afraid to loss some percentage value. And from this, several third party platform thrives. So basically, this volatility serves as an opportunity to other company to take profit of the booming market of Bitcoin while protecting merchants from Bitcoin's insane price fluctuation.
They could easily convert every BTC payment into Fiat so that they wouldn't get affected when the price fluctuate .
A company that would accept BTC or crypto as payment would be well aware of what they are doing so I think that those company are accepting BTC for a much more easier transaction and they have a system or app that automatically converts crypto into Fiat ,
Or if not then they are using the fluctuation as a way to gain more profit.
Accepting bitcoin as a merchant shouldn't pose any threat, a wallet that has either a stable-coin or fiat/bitcoin conversion wallet should be considered if one fears volatility, and the price should be locked over some time to ensure a fall in the price of bitcoin doesn't affect the merchant.
There is a major issue which is becoming resistance in the way of Bitcoin to be accepted globally and it is its "Volatility". This property is too much dangerous for any entity which is holding Bitcoin. If a company sells products/services of 10000$ and receive payment in Bitcoin, and bitcoin loses 10% in one day then basically company has lost 10% worth of their products.
We know that volatility is one of the best known hallmarks of Bitcoin and this can working good for people who are into trading and speculation, more risks more rewards they reasoned. Now, for merchants, this wild volatility can be a big headache but there are now ways this can be mitigated. There are now platforms offering merchants the service of converting the Bitcoin on-time so that the merchants can be spared of the yo-yo movement. During extreme volatility, it is actually the buyers that can be facing some problems especially if the buyer is also into speculation. The thing is that volatility can be working for us depending on which its direction is, north or south meaning up or down.
Everyone has always hinted on volatility to be the reason hindering Bitcoin's adoption on a wider scale. That's not actually a barrier per say, the volatility can too either way and you gain more. Bitcoin as a means of exchange is much feasible than as store of value. In a practical approach, one can easily handle the volatility by moving your Bitcoin to USDT or fiat, if you feel it is going to drop.
Bitcoin's acceptance in the world is not as easy as we think, there are many factors that make bitcoin unacceptable to the world.
Especially the most often a debate about the price of its volatility. With prices that tend to be volatile there must be regulations
governing this. But not all merchants or companies debate on this issue, there are several a company that does not mind the
bitcoin price related to volatility. Because the solution is possible after receiving payment via bitcoin can be directly converted to fiat.
That's the best solution in my opinion, now we look forward to whether it is true bitcoin will be accepted globally.
Especially the most often a debate about the price of its volatility. With prices that tend to be volatile there must be regulations
governing this. But not all merchants or companies debate on this issue, there are several a company that does not mind the
bitcoin price related to volatility. Because the solution is possible after receiving payment via bitcoin can be directly converted to fiat.
That's the best solution in my opinion, now we look forward to whether it is true bitcoin will be accepted globally.
There is a major issue which is becoming resistance in the way of Bitcoin to be accepted globally and it is its "Volatility".
In the near past we have seen Bitcoin dropping more than 15% in a matter of 3-4 hours. And there are a number of cases in the past like this.
This property is too much dangerous for any entity which is holding Bitcoin. If a company sells products/services of 10000$ and receive payment in Bitcoin, and bitcoin loses 10% in one day then basically company has lost 10% worth of their products.
Scenarios where gross profit margins of the companies are less, this property makes nearly impossible to accept payments in Bitcoin. If volatility of bitcoin is decreased in the future, it would be a major step ahead.
In the near past we have seen Bitcoin dropping more than 15% in a matter of 3-4 hours. And there are a number of cases in the past like this.
This property is too much dangerous for any entity which is holding Bitcoin. If a company sells products/services of 10000$ and receive payment in Bitcoin, and bitcoin loses 10% in one day then basically company has lost 10% worth of their products.
Scenarios where gross profit margins of the companies are less, this property makes nearly impossible to accept payments in Bitcoin. If volatility of bitcoin is decreased in the future, it would be a major step ahead.
This has been acknowledged countless of times already. This is perhaps the main reason why Bitcoin adoption among merchants as well as users is somehow considered stunted. It is hard to imagine for example that Laszlo Hanyecz paid 10,000BTC for just a couple of pizzas not too long ago. Today, that amount in Bitcoin could let you construct a huge mansion it will take days to roam around. That is the reason why people will not spend Bitcoin. After all, it is very possible that the Bitcoin amount you are using to buy a pair of sneakers could let you buy a car in just a year's time.
There is a major issue which is becoming resistance in the way of Bitcoin to be accepted globally and it is its "Volatility".
In the near past we have seen Bitcoin dropping more than 15% in a matter of 3-4 hours. And there are a number of cases in the past like this.
This property is too much dangerous for any entity which is holding Bitcoin. If a company sells products/services of 10000$ and receive payment in Bitcoin, and bitcoin loses 10% in one day then basically company has lost 10% worth of their products.
Scenarios where gross profit margins of the companies are less, this property makes nearly impossible to accept payments in Bitcoin. If volatility of bitcoin is decreased in the future, it would be a major step ahead.
In the near past we have seen Bitcoin dropping more than 15% in a matter of 3-4 hours. And there are a number of cases in the past like this.
This property is too much dangerous for any entity which is holding Bitcoin. If a company sells products/services of 10000$ and receive payment in Bitcoin, and bitcoin loses 10% in one day then basically company has lost 10% worth of their products.
Scenarios where gross profit margins of the companies are less, this property makes nearly impossible to accept payments in Bitcoin. If volatility of bitcoin is decreased in the future, it would be a major step ahead.
The rewards are much higher than the risk, there is a risk that it could go that way going down 10% of the value of the product or services, but there is also a possibility that rewards could go higher and it could be much higher the last week than the previous lost, it's something that every merchant should understand, and so far the drop in the price for the past months are not going 10%, merchants should accept the volatility of the market, because the rewards outweigh the risk.
This property is too much dangerous for any entity which is holding Bitcoin. If a company sells products/services of 10000$ and receive payment in Bitcoin, and bitcoin loses 10% in one day then basically company has lost 10% worth of their products.
And what if the scenario is the opposite, then the company profited 10%. The high volatility of Bitcoin had been known for years. And this is not a huge problem for business establishment because they can auto convert the Bitcoin payment to cash if they are too afraid to loss some percentage value. And from this, several third party platform thrives. So basically, this volatility serves as an opportunity to other company to take profit of the booming market of Bitcoin while protecting merchants from Bitcoin's insane price fluctuation.
It’s actually a win win situation, yes it is true that if the company who accepted bitcoin as a payment will lose 10% worth of products if the value decreases but it is the same when the price rises and if they got lucky they can profit more than 10% depending on the price of bitcoin. Based on my observation the acceptance of bitcoin is relatively increasing which only means people are now starting to fully understand the system of bitcoin and that they are now realizing the possibility of having financial freedom through bitcoin.
There is a major issue which is becoming resistance in the way of Bitcoin to be accepted globally and it is its "Volatility".
In the near past we have seen Bitcoin dropping more than 15% in a matter of 3-4 hours. And there are a number of cases in the past like this.
This property is too much dangerous for any entity which is holding Bitcoin. If a company sells products/services of 10000$ and receive payment in Bitcoin, and bitcoin loses 10% in one day then basically company has lost 10% worth of their products.
Scenarios where gross profit margins of the companies are less, this property makes nearly impossible to accept payments in Bitcoin. If volatility of bitcoin is decreased in the future, it would be a major step ahead.
In the near past we have seen Bitcoin dropping more than 15% in a matter of 3-4 hours. And there are a number of cases in the past like this.
This property is too much dangerous for any entity which is holding Bitcoin. If a company sells products/services of 10000$ and receive payment in Bitcoin, and bitcoin loses 10% in one day then basically company has lost 10% worth of their products.
Scenarios where gross profit margins of the companies are less, this property makes nearly impossible to accept payments in Bitcoin. If volatility of bitcoin is decreased in the future, it would be a major step ahead.
I agree with you on the volatility issue of Bitcoin. I think that is one of the important factors that is like a hindrance on the adoption of Bitcoin by governments. If the volatility will be decreased somehow, there will be some consequences of it. Maybe we will never see Bitcoin on a bull run and it will turn into a coin like stable coin.
At some point in the future - perhaps another 1 or 2 orders of magnitude in fiat price - bitcoin will stabilize and it will become much more prudent to use in commerce. Personally, if someone wants to pay me in bitcoin today, I am fine with holding it and using it. Never transferring to to fiat is the goal.
The people using it as a store of value today will in all likelihood be well rewarded while we get to the point of stability in fiat terms. Or it will implode and be worthless, however, that likelihood decreases by the day.
The people using it as a store of value today will in all likelihood be well rewarded while we get to the point of stability in fiat terms. Or it will implode and be worthless, however, that likelihood decreases by the day.
I would not say it decreases by the day it depends on your view of the up and coming issues that we will have to face. Hard forks have caused instability and months of recovery on Bitcoin price and unfortunately as Bitcoin adoption increases the bigger of an issue hard forks become. If we were to have mass adoption before the quantum computing changes that will be required in a couple of years it could have an effect on future adoption by convincing those that have already adopted that its not a stable currency and to exit out of cryptocurrency. Ideally we need to go through the process of dealing with the looming issues in the coming years and then start having the mass adoption.
Until Bitcoin becomes a more stable currency I think the best solution for companies is to use a payment processor that instantly exchanges the Bitcoin they receive for the products or services they provide. As Bitcoin raises in value and become more stable and the adoption raises companies could start doing all their day-to-day transactions denominated in BTC just as they do now with fiat. It has been proven that higher liquidity in the market correlates with lower volatility. To achieve that we need more institutional investors in the market and I am confident that slowly we will acquire that.
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