Topic: How do they managed ? - page 2. (Read 421 times)

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.

I don't think bitcoin's transaction fees are cheaper and faster than bank payments and not even comparable to cash. You won't even incur any additional transaction fees if you use cash to pay at stores near your area. For example, I will not incur additional transaction fees when buying chicken feet and coke at KFC with a bank card or cash, and I will quickly complete the transaction without having to wait. Bitcoin is indeed superior to fiat money and banks, but it is not comprehensive in every way, we accept that fact.

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.

They probably either A, overprice the products, or B, just keep the Bitcoin as is and not convert it to fiat immediately. The margin for overpricing would probably depend on the average movement of the price and if they have a bit of knowhow, make the price adjustments automatically based on the past 24H changes which change with every 1H interval. Pretty doable if you know a bit and if not, can hire some hands to help with it.

For the latter, well, it's like what it sounds. They probably just consider whatever amount that goes into their Bitcoin wallet as a funnel for their investment from their store sales or something since not all sales are done with crypto most likely in the first place.

Every organisations that its goal is to be financially be profited which accepts Bitcoin is assumed that they understands the potential values of Bitcoin that it is not only an alternative source for transactions but also for source of investments that proffers incomes with the volatility reverse biased and forward biased of the Coins.
Hence who accepts Bitcoin is usually in for investment because you would tend to recover or make profits in the space at when you know the markets system is unstable else there could be depreciative lost of funds at the falling of the marketing.
So, possibly they could accumulate, hodl to creating an alternative impactive sources to make incomes while accepting crytop all along.

Indeed and I am one of those who use this kind of payment method way back 2017 wherein weekly Bitcoin rewards from signature campaigns were automatically be converted to my local currency and that is for me the best way to dodge the risk of volatility. And since our local Bitcoin wallet does not support bech32 I stop using it for now as signature campaigns requires a bech32 address.

Since various big institutions or traders have cryptocurrency payment gateways, they have made this effort with Ricks because they know how volatility works in the market, whenever the market fluctuates, they have done it knowingly, they have assumed that they may sell their holdings at a higher price.

Couldn't they make instant trade by exchanging cryptocurrency that sellers accept as payment using a payment gateway like Coingate? I think another barrier that might be a major issue is that very few people accept Bitcoin payments in their stores due to the small number of Bitcoin users worldwide.

We have to admit that there aren't many Bitcoin users yet (when compared with the most common medium of exchange, FIAT) , although it's progressing. But right now, not all businesses find it effective to use Bitcoin as a payment tool. I'm not downplaying Bitcoin, but I'm just confident that paper money will phase out in the next few years, replaced by digital currency, and Bitcoin might find its place during that transition period.

Someday we will enter a time where small shops will consciously adopt digital currency, and cryptocurrency will become stronger because it is digital too.

It depends on the business owner/individual that is accepting cryptocurrencies as payment against their products or services whether they want to keep the coins or get them exchanged for a stablecoin right after they are received. Most businesses and individuals, running small businesses and offering the facility to their customers to be able to pay with cryptocurrencies, use payment gateways or services that allow them to convert the received coins and tokens to either stablecoins or fiat currency.

If a store owner or an individual service provider decides to keep the coins and tokens for themselves instead of swapping them immediately, they take responsibility for the loss that might incur in case the coin or token they are receiving loses value while those who swap them immediately remove the risk of losing value on their asset.

That means business people use other money first to carry out their business operations. and leave the Bitcoin or other crypto assets they receive. That also makes sense, because business suppliers do not necessarily accept Bitcoin. and business people must prepare reserve funds to run their businesses when Bitcoin and other accepted crypto assets can be converted to stable assets or even fiat if the price allows it.

but for large business people, I am sure they are already planning to use Bitcoin and other crypto assets as a means of payment. Of course, they will also ask the supplier to accept Bitcoin or certain crypto assets to make their business relationships easier.

Large companies with a ton of payments can't afford to sit and wait, a 5% drop when you're taking 0.5% margin would mean you need to basically pay for all the infrastructure and wages and everything for 10 days just to cover that drop, imagine Walmart doing this on a few billions a day!

But in short there are basically two large types of merchants:
Little business with small BTC payments that have a few clients a day and threat the BTC investment as they would have bought it at the exact time with their own cash
Companies with higher turn-overs that simply add a payment processor that accepts Bitcoin which usually has multiple accounts on exchanges, filled up with coins so the moment your payment goes through the exact same amount is being sold on an exchange for $, so  previously
- you had some coins, the processing company had some coins on an exchange the merchant had the goods
- now you have the goods, the payment gateway got your coins, the coins on the exchange are being sold and the fiat is handed to the merchant
And all this happens in seconds, the volatility is so little it's of no concern!

Of course there are more variances but the biggest chunk act like this!


So why are there no real large chain selling goods for bitcoin and the largest companies that do so accept to a gateway that converts it to fiat instantly?
Maybe because it can bankrupt you when it goes the other way around?


You're telling me Bitcoin payments are cheaper and faster than Visa?  Common! Let's be serious!
We're talking on this forum about the huge the fees for signatures payments and you come with this?

As long as the company is serving to every country this world, paying in cryptocurrency is actually the best choice since it's cheaper and faster than banks or international payment processor. If people are scared with volatility, they can use stablecoin to overcome that.

If the country isn't accepting Bitcoin as legal tender, it means they will convert the coins to fiat using third party.

they charge according to the live market rates. for example if they are selling a product worth $100. they charge equal amount of BTC in current price.. and to save themselves from any lose of crypto volatility, they immediately convert their crypto into fiat or into a stable coin.
I don't think any businesses accepting Bitcoin payment would hold bitcoins. maybe they HOLD profits only. but not all of them.

Large companies operating in the business sector realize that crypto assets have high volatility in prices but they have calculated the profits they will gain by accepting payments using Bitcoin and cryptocurrency.

The company has a structure that is responsible for each field. In the section in question, they will probably monitor Bitcoin and cryptocurrency price movements. Usually within 24 hours, there is always a percent increase in price, even in small amounts.
If there are always transactions every day with payments using Bitcoin and cryptocurrency, then the company can make a profit.
For companies whose focus is on making Bitcoin and cryptocurrency an investment asset, they can easily get it.

Agreed that if the price of bitcoin increases, stores that accept bitcoin will have more profit from that price increase, but what if the price of bitcoin decreases? Bitcoin is very volatile, it can increase 10%-20% or it can also decrease 20%-30% in value. So, don't always talk about price increases without talking about bitcoin price decreases. Just like when bitcoin ETFs were approved, bitcoin dropped from $48k to $42k in just a few days, if you were a business owner, how would you handle it to ensure profits for your business? 

I'm also curious about this problem and hope someone who is a business owner and accepts bitcoin can tell us what the solution is. don't guess when we don't have experience with it.

If you read my thread, you will understand the strategy that I use that doesn't cause me any trouble with price volatility. Other users might have their own strategy, which might be quite different from my own, but I think that the best strategy for accepting Bitcoin payments is to convert from Bitcoin to Fiat after you have received the payment.

Each time I receive payment in Bitcoin or in any other cryptocurrency like BNB, I usually leave my profit in Bitcoin and then convert the rest to Fiat to avoid losing some money due to volatility.

For example, if I made a total sale of $3000 in a day and all the payment was received in Bitcoin, at the end of that day, if my profit was $300, I would then convert $2700 into Fiat so that if perhaps the price of Bitcoin falls, it will not affect my capital. Sometimes too, I don't just quickly convert from Bitcoin to Fiat; I can decide to wait a day to see if the price of Bitcoin can increase to give me more profit.

For those business you will notice an increase in price well it because they need an adjustment becauss of the volatility of the market or bitcoin so they need to adjust the price plus the transaction fees when transferring one wallet to another they can either share with the fees or the customer will shoulder it all, that's why implementing the payment method of crypto currency should be planned thoroughly because they should think of the area where is going to be affected by the volatility of the coin, some business owner maybe accepts crypto currency payment beas their investments, accept the coin and they hold it until the price of the market increases so amother or extra profit for them. But from my view, I don't think that paying using my assets is a good thing because, as I said, if the coin that I pay increases in price, then they are the ones who will benefit.

All the big business organizations in the world that have launched Bitcoin or Cryptocurrency transactions have considerable experience with Bitcoin or Cryptocurrency. They introduced Bitcoin transactions to businesses knowing and accepting the volatility of the market. Their business platform is not small, they are not affected by the ups and downs of the Bitcoin market, and even if they are affected, they still have a lot of profit when the market goes up. There are also some businesses that trade bitcoins throughout the day and convert them to stablecoins at the end of the day.

Yes, it's likely that they use instant exchanges with the payments that they receive and it's possible with third party services like bitpay. Wherein, a person pays the businessman bitcoin and then the owner can easily exchange that to whichever crypto or fiat that it is being supported and favored by him. If they want to receive it directly with Bitcoin, they don't have to do anything but just accept it through their wallet unless they just want to take advantage of having another payment method.

The former is what they have to do and many businesses are enjoying doing so like having to add the privilege the logo of having "Bitcoin accepted here" is like a cypherpunk business guy, right? 

It is not requiring rocket science for them to understand on how to manage, receive and exchange payments in Bitcoin with the help of those services.

I think those who use BTC or other crypto tokens as payment methods, have enough funds to run there business for like 1 or 2 years, because if they would be so dependent on the earnings they are making monthly or weekly then if all of the funds are coming in the form of BTC and BTC if dumped the next day and remain in the same state for like 1 month, then they should have enough funds to run the store for such a period of time.

That's why I thought, they should have enough liquidity to keep the store in running state, and the store owners also make profits on the BTC orr other tokens, if they started to go up, or these store owners might convert these tokens into stable currency as soon as they received them. They would have adopted any method that suits them or there business model the best.