Topic: I Love Buying From Bitcoin-Accepting Merchants, But... (Read 1260 times)

International companies keep the majority of their cash in their home country's currency as well.

They'll keep an amount of foreign currency that's sufficient to do business (to pay expenses, etc), but will usually convert the rest into their home currency.

So basically they're treating btc as a highly volatile foreign currency that they accept for payment, but have no use for when it comes to paying expenses, so the only thing that makes sense is to exchange it for USD in a short amount of time.

Holding BTC is GAMBLING. It could go up/down 10 - 20% (or more) in a day.

It would entirely depend on the employees themselves on whether this could work or not because the problem with paying employees, in the current tax system it would be pretty difficult because governments want to be paid in their respective currencies rather than Bitcoin, so in effect employees would become self-employed as their governments won't recognise the income they receive from employers.

For this to work long term, employees would have to learn about Bitcoin and their tax obligations and I can already see it coming that a lot of people just wouldn't be willing to do this.

You dont really have to worry about volatility if you close fiat out of the loop

What if.... the government started accepting bitcoin... would that ever happen? For things such as paying taxes or buying postage.

Although I would prefer to pay merchants in BTC and them keep it as such, just generally moving money through the system is only benefiicial.

Also I dont spend my savings, if I buy something with BTC Ill generally buy it back instantly from an exchange thus not adding to the sell side at all.

I think you're missing the point though. BTC is supposed to be a currency not a speculative investment. Is Apple "speculating" on the dollar by keeping billions of USD on hand? If businesses were using BTC for more than just accepting purchases, it would be a little different. Think about if they could actually use the BTC they collect from sales to purchase more goods, pay staff, pay rent for offices, pay their web hosting costs, etc...

Sounds nice. As more merchants start accepting btc some older ones would trust d network enough to use btc for other things

Well there is a big chance that merchants will accept bitcoins in full term, when bitcoin will get more stable, noone would do that at the current bitcoin situations, maybe only those who want to risk thinking that bitcoin will go up to $1000 and more. I think so too, but really we don't know..

That will never happen.

Retailers are in the business of selling goods, NOT speculating on whether btc is going to go up or down.

That would be awesome - but I think before they would even consider it, there would have to be businesses that were conducting a large part of their operation entirely in bitcoin. Like paying staff in btc, holding btc instead of a cash or credit line reserve, etc.

with the current volatility in btc prices,  I wonder how accounting/reporting mechanisms those merchants need to employ in order to avoid the possibility of paying high tax based on fiat book value at the time of sale versus the market value when the btc price is low during financial reporting period.

The best solution imo that would benefit both and reduce volatility/loss risk on the merchant side would be if the IRS was smart enough to tax bitcoin in btc as opposed to property/fiat tax.

But that step I believe is too early as doing so will effectively legitimize btc as a currency, which is something the IRS wouldn't do anytime in the near future.

Instead of selling back to fiat we will hold it in the community fund and not fiat... pay for open source development going forward... its a smarter decision than going to fiat and hoping inflation doesn't kill the fund.

Yeah the irony is that buy buying stuff from merchants that accept BTC and process it immediately through one of those services you are actually effectively adding to sell pressure. Kinda sucks but that's the way it is until some merchants grow big enough balls to hold BTC longer term.

I will be starting my business which is probably a first of its kind.. it will be fully funded by crypto-currencies..

1) Devcoin will fund the business by purchasing inventory using shares (its possible with devcoin since 90% of coins merged-mined with bitcoin is given to people who do work, and in this case to the first business supported via Devcoin).

2) Even with 90% of coins given to developers and others doing "work" its still a safe network due to being merged-mined... has higher hashrate than any alt coin.

3) The business will procur its inventory by purchasing from vendors who offer payments from crypto-currencies only. No fiat is exchanged.

4) Feedback loop may involve no fiat aswell.. user earns devcoins by working, pays for goods using my business and receives a physical item(s) in the mail. Ofcourse bitcoin is accepted but this loop may involve fiat to buy bitcoins.

5) All profits are used to bid the Devcoin market either purchasing Devcoins with any alt coins used to pay for the service, and then the DVC put into a community fund to fund projects based on community consensus.


So anyone who wants to use 100% crypto businesses are welcome here.

www.devcoinauctions.com

I am in the process of finalizing the affiliate marketing strategy and will place info on a landing page I will create...

All penny auctions are demo's you are free to sign up and become an affiliate under the promotional deal which will give you more referral commissions and cheaper bid packages.. please browse around until the official launch which is TBA.

You can use login: demo1, pass: demo1 or login: demo2, pass: demo2 or login: demo3, pass: demo3 to play around with bidding in the auctions, these accounts have some bids.

Edit: if you have trouble connecting its not you, bluehost.com seems to be having issues.

I like it.

I love buying from Bitcoin-accepting merchants, but I would rather buy from Bitcoin-accepting merchants that pay their suppliers and employees in BTC. I know currently it is impossible for any business to operate totally in Bitcoin, but, for example, I would rather eat at a restaurant that pays each of its employees 50 dollars worth of BTC every month than one that instantly converts 100 percent of its BTC revenue to fiat. Coinmap.org is a good way to find businesses that accept BTC, but I would like to see a directory that distinguishes between businesses that convert 100 percent to fiat and those that use BTC to pay some of their costs. Making this information easily available to the Bitcoin community will provide an incentive for businesses to not convert 100 percent in order to attract more customers than their competitors that do.