If you're accepting bitcoin, you know the dangers. And it is not for everyone, as only larger and financially strong companies can risk this.
That's why bitcoin is what it is, the highs and lows make it more interesting and effective when trading.
Topic: Bitcoin's acceptance in the World - page 5. (Read 649 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.
Most people prefer Bitcoin as a store of value rather than a medium of exchange.
Now, If you're talking about the downside of Bitcoin as a mean of currency to purchase to a specific merchant because of its volatile nature, then probably you dont need to overthink about it since there were already tons of merchants who accepts Bitcoin as a mode of payment.
Merchants wont necessarily keep the currency in Bitcoin form, ofcourse they can opt to exchange It to their local fiat currency or hold inside their wallet.
Now, If you're talking about the downside of Bitcoin as a mean of currency to purchase to a specific merchant because of its volatile nature, then probably you dont need to overthink about it since there were already tons of merchants who accepts Bitcoin as a mode of payment.
Merchants wont necessarily keep the currency in Bitcoin form, ofcourse they can opt to exchange It to their local fiat currency or hold inside their wallet.
There is a major issue which is becoming resistance in the way of Bitcoin to be accepted globally and it is its "Volatility".
despite what it may feel like to you, this is not something new. as long as bitcoin existed, it has been volatile and if anything this volatility is reducing even if it doesn't look like it.for example the big drops or similarly the big rises have been bigger in early years compared to today.
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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.
it goes both ways though! if they sell and when price goes up 10% they gain 10% profit out of nowhere!we can discuss this here forever but the only thing that matters is that people continue using bitcoin as payment, companies accept it as payment,... and it is all growing while everyone is well aware of the 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.
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.
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.
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.
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