How do they managed ? | Bitcointalksearch.org

Asiska02

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Quote from: ~speedx~ on January 20, 2024, 02:55:04 PM

I see many business companies in the world are currently accepting Bitcoin or cryptocurrency as payment. We all know that cryptocurrency is associated with high volatilities, now I have a curious mind, how do they cover up by accepting these high volatility coins?
Do they all use the gateway to exchange those for stable coins or do they hold that?

Any company accepting bitcoin as a means of payment must have thought about it, the volatility nature of the market and how it will affect their business if the price of bitcoin keeps depreciating. Big companies that have large inflow of money in and out won’t be affected by the little volatilities we see in the market as it will not have enough impact on their total funds saved in bitcoin.

I am sure they have different strategy on how to still get their profits at the end of the business after collecting payment in bitcoin. This is something that needs an expert to know how to play around with the market and also the crypto market to arrive at a good profit at the end of the day. Collecting bitcoin through exchanges, converting to stable coins and other methods can all be used in their own advantage if they know how to manage it well.

Zoomic

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I believe any company or organisation who decides to accept Bitcoin as a means of payment already knows what is at stake and how to go about it. If Bitcoin payments was giving them issues, they would have scrapped the idea out immediately. It will be very difficult for small businesses to succeed with Bitcoin as a means of payment, considering the price volatility of Bitcoin, except the business owner just wants to gather Bitcoins temporary for holding while running his day to day business with Fiat.

For big organisations, they can actually do this without feeling the impact. It's either they hold Bitcoins in their reserves or convert to Fiat immediately since the value the customers will be paying in Bitcoin will be same in Fiat.

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Quote from: ~speedx~ on January 20, 2024, 02:55:04 PM

I see many business companies in the world are currently accepting Bitcoin or cryptocurrency as payment. We all know that cryptocurrency is associated with high volatilities, now I have a curious mind, how do they cover up by accepting these high volatility coins?
Do they all use the gateway to exchange those for stable coins or do they hold that?

There are indeed a lot of strategies here. I think the most common option I've seen is using a payment system that instantly converts the payment back to fiat. This way, a customer can pay in Bitcoin, but the business gets fiat and keeps everything in fiat. Some, of course, allow themselves a little diversification, keeping some funds in Bitcoin and considering it an investment. That can also work quite well, considering that Bitcoin tends to eventually recover from the bear markets. I've also seen some companies keeping their budget in Bitcoin, but those were small businesses, and I do think that's too risky.

Hyphen(-)

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Quote from: Peanutswar on January 23, 2024, 08:49:35 AM

Companies or organizations accepting bitcoin knows already the possible chance of loss due to market volatility, seems like they are exchanging immediately those assets into fiat or stable coins to make sure to their net income is still good while supporting BTC as a payment method, and still, people have the option to accept another form of payment but still people need to consider the markets activity imagine you make a transaction with the BTC to buy items and still there's no confirmation at least but you already sent the funds it takes a lot of time consumes possible to get the item you bought and to get paid in the counter due to market congested.

If they will convert the Bitcoin to fiat or stable coin like USDT then why are they accepting the BTC payment method? and why not just accept fiat if they will convert it to fiat immediately?

We cannot completely say that this is why most companies accept BTC payments, but we can predict based on our points of view.
Bitcoin price is volatile and everybody knows, these companies accepting BTC payments are probably into bitcoin investment so that they will use that method to accumulate their desire for Bitcoin instead of going through p2p or going to centralized exchanges to expose their privacy. They will have extra money for their business to replace all the payments that are been made through the Bitcoin payment method to hold the BTC they accumulated.

Small-scale businesses without big capital may not survive this BTC payment method especially due to network congestion, market volatility, and price instability.If such businesses accept the BTC payment method, they will end up selling the bitcoin immediately to keep the business moving, and doing so might affect their business because the Bitcoin price might drop down before they sell.

tygeade

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Quote from: Outhue on January 22, 2024, 09:26:07 AM

It depends on those who are accepting Bitcoin, I suspect that most of them will change the Bitcoin back to stable coin instantly right after the transaction is successful while some will want to hold, this is something I use to do before the high transaction fee made me stop, right now I prefer accepting Fiat and use that to buy some Bitcoin on Binance until I am ready to move the Bitcoin back into my hardware wallet.

Right now, my customers who are used to paying me with Bitcoin have changed their minds since the high transaction fee on Bitcoin Network, it's pretty hard to accept Bitcoin as means of payment now because many customers wont be ready to pay you using Bitcoin, they would rather use other means and hold their Bitcoin.

Bitcoin as a payment option only makes sense if the product they want to buy is very high in value, like in thousand of dollars then using $10 per transaction will be good or even more, but trying to buy anything in the hundred of dollars makes no sense to many and I don't blame them.

You could very well accept bitcoin directly into your exchange account, which means that you would be able to actually make any type of situation that would be just trading fee. If you get bitcoin to your binance account for example, you can trade between btc to usdt right away, and pay a very very few tiny amount for trading fee, insignificant amount to you, and you will be fine. I am not saying they all do that, I am just saying that this is one of the possibilities and shouldn't really be a trouble.

I believe that the best thing we could do at this moment would be just realizing that we are going to end up with a greater return one way or another, and should keep it going as much as we possibly could go for as long as possible.

Shamm

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Quote from: pawanjain on January 24, 2024, 11:22:44 AM

Quote from: ~speedx~ on January 20, 2024, 02:55:04 PM

I see many business companies in the world are currently accepting Bitcoin or cryptocurrency as payment. We all know that cryptocurrency is associated with high volatilities, now I have a curious mind, how do they cover up by accepting these high volatility coins?
Do they all use the gateway to exchange those for stable coins or do they hold that?

There are only 2 ways to get around this.

1. Exchange crypto to fiat on regular basis so that fiat value doesn't change much.
2. Keep holding until you are in profit and then exchange to fiat.

Depending on the individual's preference they can opt for any.

Yeah and that's the reason why other businessman and businesswoman are too successful cause they are accepting bitcoins for the mood of payment which is pretty good enough cause they can hold the Bitcoin until the price will go up higher and then the merchant get another income for the prices going up. But for me it's hard to do it cause we all know that Bitcoin is for long term so there's a chance that you can not hold all your Bitcoins from the buyers cause you need to roll out your capital in order to grow your business.

yazher

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We might not know but it looks like they have lots of extra income to cover their loss also they already calculated all of what would happen if the result failed and the conclusions would still be best for them to accept bitcoins as mean payments in their companies. Nevertheless, all they have already predicted is profit while doing it and they also want to be one of the major holders of bitcoin while accumulating it from their sales throughout the years. Since others are already doing it, the short explanations as to why and how they able to manage it, because they don't want to be left behind especially if it's come to earning more money.

pawanjain

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Quote from: ~speedx~ on January 20, 2024, 02:55:04 PM

I see many business companies in the world are currently accepting Bitcoin or cryptocurrency as payment. We all know that cryptocurrency is associated with high volatilities, now I have a curious mind, how do they cover up by accepting these high volatility coins?
Do they all use the gateway to exchange those for stable coins or do they hold that?

There are only 2 ways to get around this.

1. Exchange crypto to fiat on regular basis so that fiat value doesn't change much.
2. Keep holding until you are in profit and then exchange to fiat.

Depending on the individual's preference they can opt for any.

Onyeeze

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Quote from: ~speedx~ on January 20, 2024, 02:55:04 PM

I see many business companies in the world are currently accepting Bitcoin or cryptocurrency as payment. We all know that cryptocurrency is associated with high volatilities, now I have a curious mind, how do they cover up by accepting these high volatility coins?
Do they all use the gateway to exchange those for stable coins or do they hold that?

we are even predicting that in future bitcoin will be generally been acceptable because it is something that I have a very big Legacy so many companies would like to embrace Bitcoin and also ensure that a Bitcoin will help them to survive or to rise whenever they have a downfall because of what bitcoin is all about,so therefore companies will accept bitcoin and that will make the adoption of bitcoin to change from what it's now to another.

Miles2006

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Since you used business as a reference, I believe those business cannot hold each bitcoin sent or rather they'll sell cause demand never seems to end and just imagine you keep holding bitcoin what will you use to buy the goods, note you're dealing with business not personal use, I believe each time they get paid with bitcoin they convert the bitcoin to fiat to be able to rebuy those goods.
Hardly I see small shops accepting bitcoin and mostly supermarket that accept bitcoin as a means of payment so you don't have to worry seeing a mall or supermarket accepting bitcoin, in any situation where you see a little shop accepting bitcoin then the person is a bitcoin enthusiast and they also have some strategy of handling such.

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Quote from: reagansimms on January 23, 2024, 03:45:48 AM

Quote from: BITCOIN4X on January 22, 2024, 11:29:49 AM

Quote from: ~speedx~ on January 20, 2024, 02:55:04 PM

I see many business companies in the world are currently accepting Bitcoin or cryptocurrency as payment. We all know that cryptocurrency is associated with high volatilities, now I have a curious mind, how do they cover up by accepting these high volatility coins?
Do they all use the gateway to exchange those for stable coins or do they hold that?

No one tells us how they do it, it all depends on what the adopter's goals are.
If it were me, maybe I would hold it and not sell it until a certain time limit or at least when I make a profit instead of immediately converting it into fiat. This is a double opportunity to earn profits in addition to profits from the goods I sell. It's just that you still have to have a reserve budget to cover your business needs so that it continues to run according to plan.

There are risks to consider regardless of what decision the adopter makes, so it's up to them to do it as long as it's good for their business. Selling immediately or holding bitcoin long term is fine as long as they believe it is best to keep their business running.

What is clear is that the goal is to make a double profit, apart from making a profit from the goods sold, they can also make a profit when the price of Bitcoin has soared. In theory they don't need to bother buying Bitcoin, this advantage can make it easier for them to collect Bitcoin without having to go directly to the market.

In business there are always risks that need to be considered, those who accept Bitcoin as a payment medium have considered the risks involved. The percentage ratio of risk is smaller than the profit obtained based on their research on Bitcoin resistance to pressure pressing from various directions, makes them very confident in the marketing strategies used in business.

I do not agree with your thinking, I do not think that accepting bitcoin payments is for the purpose of increasing profits from bitcoin, but they want to diversify payment methods to increase the number of customers significantly. Additionally, if they really want to invest in bitcoin, investing in bitcoin directly is much better instead of accumulating bitcoin by accepting payments. There are too many problems to solve if we want to accumulate bitcoins by collecting them from businesses. Incorporating bitcoin investments into your business is no different than taking your everyday spending money to invest in bitcoin, and we always consider it a bad idea,IMO.

Let's do a small example: if you received payments when bitcoin was priced at 48k last week and now the bitcoin price is under $39k. And if bitcoin continues to drop to $25k, where will you get the money to supplement your business budget? How can you think that the risk ratio will be low using this method? By the way, do you own a business that accepts bitcoin?

Peanutswar

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Companies or organizations accepting bitcoin knows already the possible chance of loss due to market volatility, seems like they are exchanging immediately those assets into fiat or stable coins to make sure to their net income is still good while supporting BTC as a payment method, and still, people have the option to accept another form of payment but still people need to consider the markets activity imagine you make a transaction with the BTC to buy items and still there's no confirmation at least but you already sent the funds it takes a lot of time consumes possible to get the item you bought and to get paid in the counter due to market congested.

peter0425

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Quote from: ~speedx~ on January 20, 2024, 02:55:04 PM

I see many business companies in the world are currently accepting Bitcoin or cryptocurrency as payment. We all know that cryptocurrency is associated with high volatilities, now I have a curious mind, how do they cover up by accepting these high volatility coins?
Do they all use the gateway to exchange those for stable coins or do they hold that?

Some of the companies I knew that accepts crypto are offering services meaning there is no need to circulate as fiat and they can just keep holding those cryptos and cover their expenses from those customers that pays fiat , meaning they can carry much crypto in their pocket without carrying about the volatility .

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Businesses accepting crypto usually use payment processors that quickly turn the crypto into regular money, reducing the impact of price swings. While some might keep a bit in crypto, most aim to convert it to avoid dealing with market ups and downs.

Kuntus

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In my humble opinion, as we can not really tell how they do it except we own and run our own businesses. I would say that before companies decide to receive payment in bitcoin there are measure they must have put in place, given the fact that they know the volatile state of bitcoin, by this I mean they could consider converting BTC into stablecoins, or even hodl to earn more when pricing increases. The decision remains theirs to decide how it would benefit their companies.

reagansimms

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Quote from: BITCOIN4X on January 22, 2024, 11:29:49 AM

Quote from: ~speedx~ on January 20, 2024, 02:55:04 PM

I see many business companies in the world are currently accepting Bitcoin or cryptocurrency as payment. We all know that cryptocurrency is associated with high volatilities, now I have a curious mind, how do they cover up by accepting these high volatility coins?
Do they all use the gateway to exchange those for stable coins or do they hold that?

No one tells us how they do it, it all depends on what the adopter's goals are.
If it were me, maybe I would hold it and not sell it until a certain time limit or at least when I make a profit instead of immediately converting it into fiat. This is a double opportunity to earn profits in addition to profits from the goods I sell. It's just that you still have to have a reserve budget to cover your business needs so that it continues to run according to plan.

There are risks to consider regardless of what decision the adopter makes, so it's up to them to do it as long as it's good for their business. Selling immediately or holding bitcoin long term is fine as long as they believe it is best to keep their business running.

What is clear is that the goal is to make a double profit, apart from making a profit from the goods sold, they can also make a profit when the price of Bitcoin has soared. In theory they don't need to bother buying Bitcoin, this advantage can make it easier for them to collect Bitcoin without having to go directly to the market.

In business there are always risks that need to be considered, those who accept Bitcoin as a payment medium have considered the risks involved. The percentage ratio of risk is smaller than the profit obtained based on their research on Bitcoin resistance to pressure pressing from various directions, makes them very confident in the marketing strategies used in business.

milewilda

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Quote from: ~speedx~ on January 20, 2024, 02:55:04 PM

I see many business companies in the world are currently accepting Bitcoin or cryptocurrency as payment. We all know that cryptocurrency is associated with high volatilities, now I have a curious mind, how do they cover up by accepting these high volatility coins?
Do they all use the gateway to exchange those for stable coins or do they hold that?

Yes, they would really be definitely be having those payment partners or processors on which they do accept out crypto but recieving on would really be converted it to fiat on which
this is something that we would really be knowing about on which those businesses wont really be that too confident on storing or accumulating or keeping up those in crypto form
on which considering on the volatility of this asset or coin then it would really be that understandable that they would really be that having that kind of securing out their profits
on which its not already shocking on having this way. It would really be that impossible that they wouldnt really be able on having at least wary about those things
that they would really be seeing that it could really be able to affect out in overall profitability due to volatility. Of course they would really be that assuring out
that they wont really be that affected.

umbara ardian

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It's fascinating to see the different strategies businesses employ to navigate this dynamic landscape, each seeking a balance between risk and reward. The immediate conversion to stablecoins or fiat approach prioritizes stability and predictability. For businesses reliant on consistent cash flow, minimizing exposure to price swings is crucial. By converting crypto instantly, they avoid potential losses while still capturing the benefits of attracting crypto-paying customers.

However, the dual approach of holding a portion for potential gain adds an element of speculation. This strategy acknowledges the potential appreciation of cryptocurrency and attempts to leverage its long-term growth. Companies willing to take on this risk can potentially reap significant rewards if the market takes a favorable turn.

alankasman

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Quote from: BITCOIN4X on January 22, 2024, 11:29:49 AM

No one tells us how they do it, it all depends on what the adopter's goals are.
If it were me, maybe I would hold it and not sell it until a certain time limit or at least when I make a profit instead of immediately converting it into fiat. This is a double opportunity to earn profits in addition to profits from the goods I sell. It's just that you still have to have a reserve budget to cover your business needs so that it continues to run according to plan.

My view is how they do it by playing the roles of each part as stated in the structure that covers that part. Now that I think about it, probably no company would tell us how they do it.
I also have the view that large companies that accept Bitcoin and cryptocurrency as a means of payment, they use it as an investment asset that is obtained consistently through this channel without having to buy on an exchange.

What I mean by companies that accept Bitcoin as a means of payment for investment assets are large companies that have sufficient financial reserves to cover other needs for capital. I don't mean other small businesses here, although some accept Bitcoin payments.

Abu-Naim

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Quote from: ~speedx~ on January 20, 2024, 02:55:04 PM

I see many business companies in the world are currently accepting Bitcoin or cryptocurrency as payment. We all know that cryptocurrency is associated with high volatilities, now I have a curious mind, how do they cover up by accepting these high volatility coins?
Do they all use the gateway to exchange those for stable coins or do they hold that?

Some of these business owners are bitcoin investors who are willing to hold more bitcoin in their wallets, which is why they are unconcerned about volatility because most of them have a target to meet, most likely through their DCA method of buying, and once they meet their target, they either stop for a period of time; or they make bitcoin payment optional and use their money to run the business while still holding bitcoin. Some people simply follow trends without understanding the risks involved, which is why some fail along their way.
Some of them use their personal bitcoin wallets to receive the funds and keep running their business.

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