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Topic: Getting Merchants to KEEP Their Bitcoin - page 2. (Read 1980 times)

sr. member
Activity: 245
Merit: 250
January 18, 2014, 06:11:54 PM
#10
Bitcoin cannot move up a gear until major retailers accept the actual Bitcoin directly.  Right now, Bitpay is just another payment processor facilitating a foreign currency.  A cynic might say those companies using it are looking for publicity and easy money from a demographic that have a lot of spare currency they cant spend elsewhere.  
hero member
Activity: 765
Merit: 503
January 18, 2014, 06:01:15 PM
#9
It'll happen, they will start to offer staff part of their wages in BTC...
legendary
Activity: 1386
Merit: 1004
January 18, 2014, 04:50:05 PM
#8
Part of the problem for an overstock.com type retailer is that they have to settle out their books for tax purposes on a quarterly (maybe monthly?) basis. As an example, sales taxes are submitted monthly. They need to convert the BTC to stick it to a number if the value is rising, since they'd rather submit sales taxes on $100 than $150. I imagine their book keeping staff are having a great time with the sort-of rapid flux in the BTC value.

Not a problem for a retailer if they work in USD (or other local currency) even if they keep Bitcoin on the backend.  They pay the taxes the customer paid.  If they have a gain/loss after they may have to deal with that separately. 
member
Activity: 122
Merit: 20
January 18, 2014, 04:42:51 PM
#7
Part of the problem for an overstock.com type retailer is that they have to settle out their books for tax purposes on a quarterly (maybe monthly?) basis. As an example, sales taxes are submitted monthly. They need to convert the BTC to stick it to a number if the value is rising, since they'd rather submit sales taxes on $100 than $150. I imagine their book keeping staff are having a great time with the sort-of rapid flux in the BTC value.
newbie
Activity: 21
Merit: 0
January 18, 2014, 04:41:08 PM
#6
Most retailers won't be able to take the gamble on the price fluctuations

nail on the head imo
sr. member
Activity: 280
Merit: 250
January 18, 2014, 04:35:55 PM
#5
As a merchant, I know that I am keeping all my sales in Bitcoin since I am a true believer in the cryptocurrency and don't have any investors expectations to meet, but for most business it is too much of a risk to stay invested in a highly volatile currency that can swing 20% or more in a single day. However, I do believe there will be more merchants that will at least start keep a small percentage of the Bitcoin as it becomes less mysterious.
full member
Activity: 155
Merit: 100
January 18, 2014, 04:27:29 PM
#4
Get their creditors and employees to accept Bitcoin as payment for their goods/services. Other than that, why would Overstock hold onto Bitcoin if they as a company can't use it to pay their bills or employees? They won't.

Maybe they would if they looked at the chart and saw a more steady, less volatile rise in value? Companies do hold assets like real estate and bonds that they don't necessarily use to pay their employees, so why not hold some Bitcoin?
full member
Activity: 129
Merit: 100
January 18, 2014, 04:23:37 PM
#3
Get their creditors and employees to accept Bitcoin as payment for their goods/services. Other than that, why would Overstock hold onto Bitcoin if they as a company can't use it to pay their bills or employees? They won't.
global moderator
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January 18, 2014, 04:18:27 PM
#2
So now we have more merchants, like Overstock, accepting Bitcoin.

However, most of them use either Coinbase or Bitpay to immediately convert their Bitcoin stash to fiat.

For Bitcoin to grow, I would think that instead of just being a convenient means of transfer, it needs to become accepted as a legitimate store of value. How can we achieve that if merchants immediately trade it for fiat? Is there a way we can incentivize merchants to keep some of their reserves in Bitcoin? Right now I am sure Patrick Byrne, the ceo of Overstock, owns some bitcoin. However, Overstock doesn't. How do we develop more bitcoin--->bitcoin trade, instead of fiat--->bitcoin-->fiat?

Maybe some will, but we need to get more other merchants and services to accept it first so it's a vicious circle really. Most retailers won't be able to take the gamble on the price fluctuations, but accepting Bitcoin is better than nothing even if they do turn it straight to fiat. If retailers could pay their employees and suppliers and bills in Bitcoin, then they might hold on to it. Some smaller businesses may keep some as an investment, but I guess that's up to them and their circumstances.
full member
Activity: 155
Merit: 100
January 18, 2014, 04:07:26 PM
#1
So now we have more merchants, like Overstock, accepting Bitcoin.

However, most of them use either Coinbase or Bitpay to immediately convert their Bitcoin stash to fiat.

For Bitcoin to grow, I would think that instead of just being a convenient means of transfer, it needs to become accepted as a legitimate store of value. How can we achieve that if merchants immediately trade it for fiat? Is there a way we can incentivize merchants to keep some of their reserves in Bitcoin? Right now I am sure Patrick Byrne, the ceo of Overstock, owns some bitcoin. However, Overstock doesn't. How do we develop more bitcoin--->bitcoin trade, instead of fiat--->bitcoin-->fiat?


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