Situation with btc and usecase lets think now - page 2.

avikz

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Quote from: Voxo2222 on December 08, 2021, 10:14:08 AM

Imagine i buy something today with btc.
With 1 btc.
Today its worthed 60k tomorrow will be 40k.
And can fall down even further so the person who i transfered btc are in loss ?
The volatility is main issue why we cant use never for paying something....or im wrong ?
Or how is the situation here ?

That's a practical issue with all cryptocurrencies that are market driven. Which makes them a bad choice for transferring value. The seller who is accepting bitcoin against a product, will be either is loss or in profit if he chose to keep that bitcoin without settling for cash.

That's exactly where services like bitpay or polispay comes handy. That enables you to offer crypto payment option to your customers and also settles the same in fiat at the timestamped value.

But this volatility makes bitcoin an investment rather than a currency.

Kakmakr

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The seller can decide to convert the $60 000 on the same date of the transaction if he/she needs the Fiat currency .... or they can hoard it and wait for the price to reach say... $65 000. So you can win and lose... depending on how you want to play it. Wink

A lot of merchants make use of Payment processors... and they can tell the payment processor to convert say 80% back t Fiat currencies and to hoard %20 until the price hit a specific price and to decide to sell then. Wink

noorman0

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Not all. There are certain items that also have volatility like bitcoin. I just think that bitcoin is very compatible with items that are similar in terms of quantity and uniqueness, eg properties, antique or limited edition items. That way, both the seller and the buyer won't care about the volatility of bitcoin during the transaction or in the future. The item will always be worth the bitcoins exchanged.

DaveF

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It also depends on how the seller is looking at it.
If I have something that cost $45000 and sell it to you for 1BTC which as of now is $51000 I can convert most of it to fiat / USD and sit on the rest as an investment.
If it goes up I make even more. If it goes down I make less. No matter what I have converted enough to cover CoGS so it's not a big deal.

It's just like taking any non local fiat for something. If between the time I sell something and take a payment in other then $ (I am US based) I can take a hit. EURO vs USD changes and I sold something to someone in Germany I could take a big hit by the time I get my money.

-Dave

NeuroticFish

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Quote from: Voxo2222 on December 08, 2021, 10:14:08 AM

And can fall down even further so the person who i transfered btc are in loss ?

It depends on what the seller chooses to do.
He can keep the bitcoin, hence taking the risk. Bitcoin may be 60k today, 40k tomorrow and 100k one week later. At this point, because of the nature of bitcoin, the seller kinda becomes investor.
But he can also simply sell the bitcoin for fiat or stable coin. And then he didn't lose (nor gained) anything (keep in mind that for Visa/Mastercard processing the seller/shop has to pay a fee, hence it may still not be unprofitable to accept bitcoin)

Also it's expected that at some point in the future the price volatility will decrease greatly (the price will be more stable).

Voxo2222

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Imagine i buy something today with btc.
With 1 btc.
Today its worthed 60k tomorrow will be 40k.
And can fall down even further so the person who i transfered btc are in loss ?
The volatility is main issue why we cant use never for paying something....or im wrong ?
Or how is the situation here ?

Topic: Situation with btc and usecase lets think now - page 2. (Read 230 times)