Volatility of Bitcoin | Bitcointalksearch.org

CryptoBry

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Quote from: R.Belmont on December 02, 2017, 10:06:38 PM

If the owner of a store decide received only Bitcoin how payment of his products, how him can define the prices without forget of volatility of Bitcoin?

I think there are now some applications that can immediately convert the Bitcoin into fiat money as soon as the fund arrives. This way, the merchant can be protected by sudden retreat in value though if there would be a surge he could be very much happy to receive the increase in value. I also heard that more and more applications along this line so that we can encourage more and more merchants to accept Bitcoin and make it truly mainstream.

Sahyadri

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Live prices is the only way the merchant could solve this problem through. A software that shows the live price of BTC and the barcode and btc address could do the magic for the merchant. But then there will be other issues such as transaction fees which needs to be solved because smaller transactions will have comparatively higher transaction fees. This is why most ICOs create their own tokens/ coins so that the volatility and fees doesn't create a problem for them in the future.

jseverson

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If I were the owner, I would update the prices of my products on a semi-regular basis. It sucks, but the items must still be based on USD prices. Accepting Bitcoin is a fine novelty as is and will likely attract a few customers, but would you really buy a product with Bitcoin if you could get it much cheaper in USD? I would price it fairly though, and not implement some kind of "volatility padding". I would expect to take some losses on dips, but I'm assuming the business would be able to absorb that thanks to Bitcoin's fast appreciation.

Overall, though, it would be a huge challenge and that may be the reason why few stores accept Bitcoins. Most businesses rapidly cycle money, and with Bitcoin's volatility, some losses should be expected every now and then. You just have to hope that the times when volatility works in your favor are able to offset that.

Herbert2020

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there are two ways that shops do this, and there is no right or wrong in my opinion.

- you can do what most of them do and accept bitcoin and forget about its volatility. it is a small risk compare to the potential that bitcoin has, and that potential means a lot more profit than you normally make.
and your shop is not going to get that much bitcoin income anyways so it won't affect your business. for example i have heard about a food truck that started accepting bitcoin in addition to cash. it increased his sales by a considerable amount but it still wasn't his main source of income, people still mostly paid him in cash.

- you use a third party payment processor service such as bitpay to ask for bitcoin but receive fiat. they convert it to fiat for you immediately and give you the value that you want. you may have to pay additional fees because you are using their service but if you increase your sales then that is justifiable. also you will miss out on the potential of bitcoin and its rise.

Dudeperfect

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Agree, that's why we have automated invoicing systems for it. I have not used Bitpay as a merchant but I think one can put the price in fiat currency on the back end (say $100). On the front end, the real-time amount in Bitcoin equivalent to the amount entered on the back end in fiat currency will appear automatically so in any case merchant will get $100 irrespective of the volatility in the market. I do think it's like Paypal for the Bitcoin without controversial concepts like buyer protection policy.

deddod

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Quote from: R.Belmont on December 02, 2017, 10:06:38 PM

If the owner of a store decide received only Bitcoin how payment of his products, how him can define the prices without forget of volatility of Bitcoin?

for this I am also confused. because the price of Bitcoin is unstable and fluctuating.
maybe someone can find a solution.

pcgm

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There are some applications like bitpay that it helps merchants receive payments with bitcoin and thus avoid the problem of volatility.

WhichIsGood

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Young, Dumb & Broke

If a store owner only accepts bitcoin as payment for his products and wants to be vigilant on the volatility of bitcoin, he simply needs to convert his bitcoin to fiat when he feels that there might be some significant dips in price. But then again, its very hard to predict bitcoin price. So the ideal thing to do is just hold them for long term gains.

senin

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No problems with education when buying goods for bitkoyn in the store, I do not see. Each time a transaction is made, the bitcoat to local currency ratio is displayed and based on the amount to be paid in local currency, the amount to be paid in bitokoyne will be selected. Therefore, I see no problems in this regard.

whoisyourking

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Quote from: R.Belmont on December 02, 2017, 10:06:38 PM

If the owner of a store decide received only Bitcoin how payment of his products, how him can define the prices without forget of volatility of Bitcoin?

As long as you are relying on the fiat price of the products, bitcoin will automatically converted it to equal value. There is no problem if bitcoin fluctuate its value.

junoreactor

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Quote from: R.Belmont on December 02, 2017, 10:06:38 PM

If the owner of a store decide received only Bitcoin how payment of his products, how him can define the prices without forget of volatility of Bitcoin?

My boss accepts Bitcoin and convert them immediately to Euros, problem solved, even if as stated above, holding for a while is not a bad idea lately.

cpfreeplz

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You can have it converted to fiat instantly, but it's a crappy idea if you actually believe in bitcoin. Look at that 5 year, 1 year chart. You want to sell that for fiat? Why? Look at the 100 year chart on buying power of your fiat. Shitty right? Stick with real money, not that bullshit your government will always just make more of.

Isaacck1

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Quote from: R.Belmont on December 02, 2017, 10:06:38 PM

If the owner of a store decide received only Bitcoin how payment of his products, how him can define the prices without forget of volatility of Bitcoin?

I think this is pretty easy. In reality there are stores that opened their hearts to bitcoin and have their own way of solving this problem. For me, a way to solve the problem of showing the price, is to regularly change it as the price of bitcoin fluctuates. They can also have automated pricing screens to show the current price of the product so the owners would not need to change it themselves. But it's just my own opinion, I have a little less idea of how they really do it.

R.Belmont

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If the owner of a store decide received only Bitcoin how payment of his products, how him can define the prices without forget of volatility of Bitcoin?

Topic: Volatility of Bitcoin (Read 298 times)