Topic: Why many small businesses don't accept Bitcoin (Read 157 times)

If you are considering to spending bitcoin in a small scale business or shop then that wouldn't be possible because of these two factors; bitcoin withdrawal fee and price fluctuations and other factors. Most customers can't afford to pay for bitcoin fee while purchasing an item, the price fluctuations too can cause discouragement in customers to proceed purchasing an item also especially if the price decreases.

I can only buy and consider the idea of using a stable coin for business purposes, like USDT, USDC, and others. The fees are less and less or little price fluctuations also.

I have the same line of thoughts as you on the use of Bitcoin as a currency for buy and selling commodities. Due to its volatility, it cannot be a currency worth the use for now. Maybe in the future when bitcoin becomes more stable, it may make sense to use it for such trades. Yet that's not enough because of the transaction fee which has become higher in the mempool space.

However, Stablecoins like USDT can be maintained for buying and selling trades which will equate to using of dollars but in a more simplified and electronic platform like the online exchanges. The advantage Stablecoins like USDT have over the physical currency is its boundless and seamless nature to survive the market demands at oftentimes  urgent human needs.

Volatility Dey among the reason why people no really Dey accept bitcoin as payment method, people dey fear make e no dump after dem use am pay finish, and also most of those business people lack knowledge about bitcoin. Another reason wey i Dey reason wey make people no really Dey care to accept bitcoin na because dem Dey fear, we all have been seeing problem wey CBN Dey can, dem Dey request from banks make dem ban all accounts that has been linked with crypto transactions, everyone Dey fear now, Dey no want make their accounts Dey compromised, because even if Dey accept bitcoin, if they wan go restore their shops back, they will have to convert some bitcoin to naira, because some places Dey wey be say Dey no fit every accept bitcoin, all those villages wey u go need go get ur raw materials from.

The main purpose of creating bitcoin was to buy goods and  pay for services digitally which is the real p2p come.to.play but because of the store of value of bitcoin the core creation of Bitcoin was bypass and buy and hodle part of the the project became popular. And if bitcoin is used to buy things and small business owners accept it and the transaction fee is very minimal that nobody would complain then National Currency would be forgotten.

And why business are still afraid to accept Bitcoin as a payment method na because of di government policies and di way government dey fight with di exchanges. Early this year I noticed that there are some business dat were accepting bitcoin but later when I went there dem don remove am because of weti dey happen. And another thing again di transaction fee.

In Nigeria, yes. But around the world, it's not correct to say that Bitcoin hasn't gotten to the level in which small and medium sized businesses can use it for their trading yet it is okay to say that it's an emerging or growing technology that a lot of people around the world are exploring right now. In Nigeria, the awareness level have been not really grown up enough to gain that traction of being used within markets. I am aware that alot of technological advancements in countries and Nigeria are usually gradual and step by step.

In Nigeria, plenty of our people have started using the barcoding systems to scan and make payments for their transactions and transfers. A case of this have been seen in different gadget shops and Plaza in states like Lagos and Kano among others. This is how people go about getting used to the use of QR codes as well as other technologies introduced to them.

OP I think you're using your immediate environment to conclude on this, in some countries they use bitcoin to buy and sell, even online some vendors accept bitcoin for payment og goods and services. The matter for Nigeria be say not many small businesses and big ones can really use it to trade for exchange of goods. The awareness has not gotten to that level in Nigeria,  here if tell market woman that you will pay with bitcoin she will call the police for you sef, because  she don't know what bitcoin is talk more of changing it with goods. Bitcoin has come to stay, with time every one will be aware of it.

I take it that bitcoin with it's current level of adoption has not matured enough to get to that ground of everyone using it for buying and selling from all big and small businesses. I do think that moment will come gradually when that function of bitcoin will be widely utilized just as the hodling of it as a valuable asset for long term purposes is been generally done by almost all of it's adoptors.

There was a time many never wanted to hodl but today they (individuals, institution's) are hodling for long, so it's optimistic there will come a time when the expansive use of BTC for buying and sell by all both medium and small scale businesses without minding it's phenomenon of volatility.

One characteristic that helps people to choose a particular payment medium primarily is the Ease of usage and its availability to the average man on the street. Do you know there was a time when rumor was going around that the CBN was set to produce 5000 naira notes? Do you know part of the reason why we've not seen it yet is because if it eventually comes into the market people wouldn't want to release it easily but will prefer to HODL it?

Small businesses like shops and kiosks even prefer physical cash so it will enable them to give balance to other buyers and buyers on the other hand who would at times want to buy a small item that's at the range of 500 to 1000 naira would prefer fiat to Bitcoin since transaction fee for such an amount is quite much.

The limitation of the fiat in the area of spending mostly applies to international boundaries where you want to transact with another country that is using a currency that's not the same as your country's currency. With that you can easily pay with Bitcoin and wouldn't have to bore yourself with all the transactions at the bureau d change, that's even if they can convert from the Nigerian NAIRA to most of the African currency. Bitcoin is not a replacement for the fiat but it is already relevant just like fiat also has its applications.

 For regular buying and selling of goods and services in a local environment, fiat is what's necessary to be used but when you're considering a digital asset that has a profit potential and that you can bank on any day and anytime to help solve the currency conversion issue, Bitcoin is the big deal.

It's still a good means of payment in some part of the world. But here on our side, in Nigeria majority use BTC as an investment not a means of transaction.speaking of volatility, you should know that not just BTC is volatile but all cryptocurrency and Bitcoins volatility is lower compared to others out there. There are some other reasons why small scale business don't accept btc as a means of payment which is fee. Though currently the fee is moderate but what happens when it increases like we saw some months ago. That's why Bitcoin should serve as an alternative payments method in any business. For me, if I'm introducing any cryptocurrency into my business for instance, I'll prefer using stable coins so as to be Able to retain the value of my goods after sales.

I have often wondered why buying and selling with Bitcoin is not popular despite it's growing popularity and adoption. From my research I found out that Satoshi Nakamoto, primarily created Bitcoin for p2p decentralized transactions between two parties. Despite the growing adoption of Bitcoin it is still not popular for buying and selling and I realized that it is because it's a volatile asset. The diminishing price of Bitcoin during dip is why I think that it is not popular for payments of goods, many small businesses that makes turnover on the short term can not accept Bitcoin.

As Bitcoin is volatile and is more profitable to hodl on the long term, that is why many people prefer not to spend it on the short term. It has become more of a valuable asset to hodl than a digital cash for buying and selling.

Most small businesses are not willing to accept Bitcoin because it is volatile, especially during price dip. Most hodlers are not willing to sale or spend their Bitcoin until bull run. I don't see the growth of Bitcoin as a digital cash for buying and selling in the near future, I only see it's growing adoption as an investment asset. What is your take on it?