Topic: How do they managed ? - page 3. (Read 481 times)

They overprice the products. You try buy a computer with BTC lately? You get old garbage at 25-300% extra price. The infinite shelf-life products nice. Trezor wallet and vpn's excepted.

It really depends on merchants how they will handle their payment gateway. As far as I know, major merchants use exchanges to secure Bitcoin's volatility to avoid losses. Some others, who are really interested in holding Bitcoin, accept it directly. Especially big companies don't want to risk their funds by accepting direct cryptocurrency, so they integrate exchange APIs to convert Bitcoin to stable coins. There are a lot of options when using a crypto payment gateway. It's up to companies which options fit for them. Nothing serious here.

We can only speculate because we don't know how some of these businesses run their finance. But from the information I got from a friend who accepts Bitcoin as payment, he converts the coin to stablecoins like USDT. Converting the coin to USD helps him beat the volatility of Bitcoin. I also suspect that some business that has backup funds to run the business could also decide to hodl the Bitcoin they receive as payments. However, this might not be advisable for firms that depend solely on sales to run the business.       


These businesses that accept Bitcoin will indeed make a profit if the price of the coin appreciates. But the question now is what happens if the price of Bitcoin depreciates? These businesses will definitely lose money and might not even have enough funds to restock what they have sold. The bottom line is that receiving Bitcoin payments is innovative but small businesses might not afford to bear the consequences.     

Accepting Bitcoin is in their business is one of the core mandates of Bitcoin creation I think someone has Said this before. When Businesses accept Bitcoin they also follow the trend and the news around it. And the price of their goods and services are also follow the volatility. If Bitcoin price is high they also adjust the price to suit the product and when the price comes down they do the same to suit the product and services so they are always on the track. And I think they make more profit than the normal business owners that accept only fiat because when they sell something when Bitcoin is low, the person would pay it with higher units to balance the price and if that Bitcoin is there until the bull market then they will make more profit both from the product and from the Bitcoin. Therefore accepting Bitcoin is a very good business.

Companies that accept Bitcoin or other cryptocurrencies as payment frequently put these digital assets' inherent volatility into account by implementing various strategies. Using payment processors or gateways that quickly convert acquired cryptocurrencies into stable coins or conventional fiat money is one popular strategy. This conversion happens practically instantly, protecting the company from possible losses brought on by abrupt changes in pricing. On the other hand, some businesses decide to hold onto some of the cryptocurrency they get in order to capitalize on their possible growth.

On the other hand, some businesses decide to hold onto some of the cryptocurrency they get in order to capitalize on their possible growth. Stability and speculative possibility are balanced by this dual technique of keeping a percentage for prospective gains and converting immediately to reduce risk. To further protect their earnings, some businesses may also use financial instruments like futures or options contracts as a hedge against price fluctuations. In the end, the precise methods differ, and companies customize their approaches to accepting cryptocurrencies according to their risk appetite, the state of the market, and their long-term goals for digital assets.

prices dont usually move 10% in an hour, so businesses convert product $$ price to btc price +5%
thus buffering the risk for the time they might need to get the coin then convert back to $$

most businesses though are not asking for btc just to convert back to $$ to cover $$ cost of goods
they are instead willing to buy goods wholesale to then get btc and keep btc

EG imagine milk farmer pasteurises milk for $0.80(0.00001921) a litre, but retails for $1.10(0.00002630)

if they price milk at 0.00002630+5% to cover any 1 hour wiggles before they convert back to fiat
they are pricing at 0.00002762 meaning they can make upto 35cents per litre after converting(1.15-0.80)

or they can just get 0.00002630($1.10) and keep it as bitcoin knowing it only cost them $0.80 to get 1.10 worth of btc

Business companies in this world that have accepted Bitcoin and cryptocurrency as payment are also quite aware of the high volatility contained in Bitcoin. So this has really been considered beforehand when company owners want to make payments in Bitcoin or cryptocurrency within their company. You should also think that the company owners who are willing to accept Bitcoin as payment are not people who have no knowledge of Bitcoin.

But they are all people who already have more knowledge about cryptocurrencies and are no longer afraid of the high volatility that exists in Bitcoin. Apart from that, companies can also get more profits when an increasing price trend begins to occur in Bitcoin, while when the market trend is worsening, companies can also make temporary exchanges with stablecoins so as not to experience a depreciation in the value of the assets they have acquired.

I consider the OP as one of the major points that has dampened the massive adoption of blockchain as a payment solution.

The volatility in price is really a challenge for small scale businesses. Not all of them are aware of usdt, they only hear about Bitcoin and their confidence is built around it but they dare not integrate Bitcoin into their businesses as they consider the volatility a possible disadvantage to the businesses they run. Who covers for the negative values that might be lost in the event of a drop in Bitcoin paid, most times, these negative values are significant in the net profit calculations.

Many are using payment processors that allows them to automatically convert bitcoin to fiat. Of couse, I imagine some merchants may also keep their bitcoins for a while as they see fit especially those using self hosted ones but they're probably the minority.

If you're interested in these payment processors, list here: https://github.com/alexk111/awesome-bitcoin-payment-processors

Many of these companies accept prepaid gift cards, which is probably the safest way for them to transact in bitcoin. A  gift card means immediate inflow of money for the company, since many people buy but don't register them in online stores until they actually need to make a purchase, so a company can get the money instantly, but the actual transaction might take place a year later. It's like getting a 0% loan.
They also use payment processors that convert your bitcoin to USD using popular exchanges like Binance. Nowadays there's almost 0 risk involved in accepting bitcoin.

Some of the major business which accept bitcoin and other volatile cryptocurrencies as means of payment for the goods are big business who are not moved by those little price drop and they don’t use all they make out from the business at the end of the month to pay all salary and replace refill the store most of the sales are also going into their reserve account and the payment which are receive with bitcoin and other currency can serve as that reverse for the company which I believe they have already put such into consideration before starting to accept bitcoin.

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?