Why Small Scale Businesses should accept Cryptocurrencies as a medium of payment - page 3.

Rruchi man

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Quote from: Alpha Marine on December 05, 2022, 08:14:38 AM

It is a common saying that “cryptocurrency is the future” but one can categorically say crypto is the present. Many big corporation now accept cryptocurrencies as a medium of exchange and that is how it begins.

Before crypto becomes the future, it has first fully conquer the present.

Quote from: Alpha Marine on December 05, 2022, 08:14:38 AM

Today governments, big corporations, individuals are seeing the importance and benefits of cryptocurrencies that is why they are adopting it. So why should the small scale businesses be left behind?

No matter how nice, current and standard accepting cryptocurrency can make a businesses look, Small scale business owners need to and should be able to understand their business structure to know if receiving cryptocurrency is good for their business or not. Not all businesses in my opinion will need to accept crypto for payment, the money that people pay to them for services or products are too small to make over a crypto transaction.

alexandr1115

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Because it is important for the development of cryptocurrencies in general! The point is probably that not many small business representatives are not interested in this, so they just don't need it! There are, of course, some nuances!! Cryptocurrency should have a low transfer fee, otherwise no one will want to overpay more.

Vaskiy

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Acceptance at the bottom level will make businesses develop along with the real-time growth in the cryptomarket. When the bottom level of people starts using it, automatically we'll experience the increasing demand in the global market. Whenever similar things have happened in the large scale, bitcoin have marched towards new ath.

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Quote from: Yatsan on December 07, 2022, 06:15:08 PM

Quote from: jossiel on December 07, 2022, 05:58:08 PM

It hasn't to be forced adoption and acceptance for them. I think those small businesses owners and at the same time bitcoin investors and enthusiasts have done their thing.

And that's to adopt bitcoin as a payment method for their business. We're going there and soon, most of those businesses we'll see the sign board that they're accepting bitcoin.

There are indeed small businesses accepting cryptocurrency as a mode of payment, such as in my country, but that's their initiative. It is not surprising that there's more who does not. There's even a higher tendency that bigger businesses would, simply because they have the capital to reinvest their profit from their business, inspite of risk.

Yes, it's their own initiative and passion and love for bitcoin.

There's no need to be forced just for them to accept it. I think we're more on the side that we just have to keep educating business owners and everyone just for them to realize that they're still on the early stage.

Nonetheless, whether we tell it to them or not, the adoption will naturally to happen and it's what we all know that's going to come into reality.

Ultegra134

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I don't believe that small businesses are the perfect candidates for accepting cryptocurrencies, at least not now. The market is constantly fluctuating and generally standing on a thin line, especially after FTX went bankrupt. I don't think that small businesses are capable of handling such massive variations. On top of that, I find it hard to believe that cryptocurrencies are as widely adopted as credit cards, and I doubt that the fees are actually considerably cheaper, unless we're talking about Monero or Stellar, which offer relatively low fees.

Yatsan

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Small scale businesses, from their category already, won't prefer cryptocurrency. They would only mind getting profit regardless of the mode of payment. Given that they are 'small scale', do you think they would want to invest into something which has a very volatile market value, their 'small profit' from their business? There's a higher tendency that they won't because in small businesses, money should be circulated to continue the 'run' of product-sale relationship.

Quote from: jossiel on December 07, 2022, 05:58:08 PM

It hasn't to be forced adoption and acceptance for them. I think those small businesses owners and at the same time bitcoin investors and enthusiasts have done their thing.

And that's to adopt bitcoin as a payment method for their business. We're going there and soon, most of those businesses we'll see the sign board that they're accepting bitcoin.

There are indeed small businesses accepting cryptocurrency as a mode of payment, such as in my country, but that's their initiative. It is not surprising that there's more who does not. There's even a higher tendency that bigger businesses would, simply because they have the capital to reinvest their profit from their business, inspite of risk.

jossiel

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It hasn't to be forced adoption and acceptance for them. I think those small businesses owners and at the same time bitcoin investors and enthusiasts have done their thing.

And that's to adopt bitcoin as a payment method for their business. We're going there and soon, most of those businesses we'll see the sign board that they're accepting bitcoin.

isaac_clarke22

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Quote from: Alpha Marine on December 05, 2022, 08:14:38 AM

~

It depends on some regions though. Here in my country, they use some payment processor and wallet app as well that holds their money digitally and be able to send it by means of SMS without any fees so they might not think about adopting cryptos for now unless their business were already taking off.
I would not accept it either once my clothing shop has not yet took off. If I was allowing payments back when Bitcoin was around 60k+, then I would be in a lot of loss right now probably and I would even need that money to circulate my stocks.

For #3, you can never be sure how many of those millions are distributed to each countries.

goldkingcoiner

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I think giving your customers/clients more payment options is definitely something that will help you make a sale, whether its a small scale business or a large scale business, does not really matter. You could also procure more clients by using crypto as a marketing gimmick, just to get people more interested in what you have to sell.

The best option would be if you had an online platform and an online presence with a considerable amount of loyal followers. But even if you hang up a "We accept Bitcoin here" sign on your physical store, you will be getting interested looks, either way.

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Quote from: noorman0 on December 06, 2022, 08:38:08 PM

Quote from: Alpha Marine on December 05, 2022, 08:14:38 AM

-snip-
1. Low transaction fees and Quicker transaction:
It is relatively cheaper to carry out transactions through cryptocurrencies than electronic bank transfer. It's also faster

Inconstant tx fees are the reason bitcoin doesn't get much attention.
Since marketplace sites and home businesses became popular among the younger generation in my country, instant payment wallet platforms (fiat) became the priority choice for their purchases even over cash. Applications in collaboration with local banks have been developed a lot and it is completely free of charge for depositing funds with transaction fees much cheaper than payments via the bank itself(average $0.1/tx) and relatively fast.

Cryptos are volatile so what do we expect with their fees? It won't be constant or the same every time we make a transaction but isn't it great? Because, not all times the fees are going to be high but there will be times that the fees are going to be dirt cheap and this makes us motivated to transact more. Btc is popular because it is widely accepted but people are aware that there's also altcoins which are faster and cheaper than in btc so they also use it sometimes.

Online business became popular during the pandemic times and digital payments have became a perfect companion for this. It's normal that most of them are going for those fiat based payment methods because it is more legal and more easier to use. It's also regulated so they feel safe with it but they aren't a loss to us.

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Quote from: BALIK on December 06, 2022, 10:05:43 PM

Quote from: avikz on December 05, 2022, 12:16:22 PM

My thinking is exactly opposite! A small business must not accept cryptocurrency as payment. Usually a small business rolls over the money. They always need working capital to sustain and that working capital has to be in fiat unless and until their wholeseller accepts crypto. Also the price volatility can easily eat up their profit within a very short period of time.

So my personal recommendation is not to use crypto for a small business. They can have a service where a thind party converts the crypto immediately based on the current market rate, that's when it makes sense for the small businesses to accept cryptocurrency.

I agree, small business profits are much lower than big business, and cryptocurrencies are one of the most volatile assets, so it is easy to cause unnecessary losses if they use electronic money. But that's not the main reason, as Luzin mentioned: the legitimacy of cryptocurrencies that's the biggest hurdle businesses are facing. If governments legalize it and promote the use of cryptocurrency in the country, even if it is less profitable, businesses will consider using it to compete and attract customers.

True that. The volatility is just not what they need for their business to grow. They couldn't make this to thier advantage, unlike the traders.
What may just be good for them is accepting stablecoin just to prepare for customers who are willing to pay crypto.

If I have a small business, this will be my route to go, And with it, I can easily invest BTC.

BALIK

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Quote from: avikz on December 05, 2022, 12:16:22 PM

My thinking is exactly opposite! A small business must not accept cryptocurrency as payment. Usually a small business rolls over the money. They always need working capital to sustain and that working capital has to be in fiat unless and until their wholeseller accepts crypto. Also the price volatility can easily eat up their profit within a very short period of time.

So my personal recommendation is not to use crypto for a small business. They can have a service where a thind party converts the crypto immediately based on the current market rate, that's when it makes sense for the small businesses to accept cryptocurrency.

I agree, small business profits are much lower than big business, and cryptocurrencies are one of the most volatile assets, so it is easy to cause unnecessary losses if they use electronic money. But that's not the main reason, as Luzin mentioned: the legitimacy of cryptocurrencies that's the biggest hurdle businesses are facing. If governments legalize it and promote the use of cryptocurrency in the country, even if it is less profitable, businesses will consider using it to compete and attract customers.

Mr.right85

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As much as cryptocurrency could be a boost, there is a downside to it qhen it comes to small scale business.

Now, one of the advantages of business, enterprises and there brackets accepting cryptocurrency is the fact that, you can hold and have its value rise above your selling price for a commodity but, for small scale businesses, what you sell is often reinvested as it is deep into your capital. Hence, in the event of a bear market, your small holdings which is also your capital from accumulated purchases could reduce in value and you'll be in a lose as commodity might maintain its standard price.

A side to this might be a usdt conversion to provide a hedge against devaluation but then, the crypto acceptance becomes you just providing another means for your customers and that's not bad though.

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Quote from: Alpha Marine on December 05, 2022, 08:14:38 AM

-snip-
1. Low transaction fees and Quicker transaction:
It is relatively cheaper to carry out transactions through cryptocurrencies than electronic bank transfer. It's also faster

Inconstant tx fees are the reason bitcoin doesn't get much attention.
Since marketplace sites and home businesses became popular among the younger generation in my country, instant payment wallet platforms (fiat) became the priority choice for their purchases even over cash. Applications in collaboration with local banks have been developed a lot and it is completely free of charge for depositing funds with transaction fees much cheaper than payments via the bank itself(average $0.1/tx) and relatively fast.

Darker45

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To be honest, as far as small businesses are concerned, cash is the king. No fees whatsoever. No waiting time as well. Transactions are confirmed as soon as you get the money and you give the product. Perhaps the only downside is that there could be counterfeit bills and coins that you might receive. Most often, though, you couldn't detect it easily and you will also be spending them. But if your small business accepts online transactions, then Bitcoin's Lightning Network is a good addition.

Accardo

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Learnt new stuffs from your crooked structured thread, also, I paid an attention to the history you wrote and its clear that nothing happens overnight. Soon small businesses around the globe will adopt the cryptocurrency payment method they're not yet sure or convinced. Think about it and put your leg on the merchant's shoe, considering the plethora of FUD news with proofs about cryptocurrency, would you risk a business for that? these guys need to understand cryptocurrency before venturing into it, but from their research, its difficult to change their minds towards accepting cryptocurrency. Thanks to clients that ask merchants if they accept cryptocurrency, but the answer sometimes is NO with references to familiar news on the internet that made them not to choose cryptocurrency. Only a strong hand that is familiar with cryptocurrency will accept cryptocurrency as a payment method or I presume that in future people will get hired to manage cryptocurrency payments medium for small scale businesses. It'll help with the fear of losing profits.

FanEagle

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I agree that having 300+ million customers is great, but do you really think that anyone in the world would reject dollars? I am pretty sure that dollars is even bigger, in billions, and yet we are not rich, which means that as a business you do not scale just because you accept dollars, and there are plenty of companies who do accept bitcoin and doesn't scale that big neither.

All of these mean that we are not going to really see someone do something that big at all just because they started to accept bitcoin. What could possibly happen though is that if you go into crypto related business, like an exchange or anything related to crypto, then it could make a good money.

Doan9269

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I cannot participate in advising small scale business coming up to start the acceptance of cryptocurrency because there are aloy of cryoto coins there that are not worth deserving to be called a digital currency or coin, they are just a pure version of scam in pretence, but when ot comes to talking to others about bitcoin then i can take the lead because i have got the several years of experience in dealing with bitcoin and yet i never found any bad luck with it when you invested, we must understand that crypto is wide and we must be intentional about which coin we are going for or recommending smal business start ups to engage, shitcoins could eventually bring down their whole dream about the business they do with massive discourament wjen they have scam experience with other cryptos.

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Quote from: Die_empty on December 05, 2022, 01:26:20 PM

Quote from: avikz on December 05, 2022, 12:16:22 PM

My thinking is exactly opposite! A small business must not accept cryptocurrency as payment. Usually a small business rolls over the money. They always need working capital to sustain and that working capital has to be in fiat unless and until their wholeseller accepts crypto. Also the price volatility can easily eat up their profit within a very short period of time.

So my personal recommendation is not to use crypto for a small business. They can have a service where a thind party converts the crypto immediately based on the current market rate, that's when it makes sense for the small businesses to accept cryptocurrency.

I agree with your argument to a large extent. I recently had a conversation with a business man that uses bitcoin to pay for some goods he imports from China. He chose bitcoin because of the scarcity of dollars and the high transaction fee. He was lamenting how the recent volatility of bitcoin have really affected his business negatively. It became glary that business owners would really benefit from it when the price of bitcoin becomes a little bit stable.

The level of bitcoin awareness in an area would also determine how fast small businesses would adopt bitcoin. If more customers are requesting for bitcoin as alternative source of payment, then most businesses would be forced to adopt it to please their customers. Government policies, availability of vital infrastructures as well as literacy level of the populations are other factors that would also determine the success of small businesses using bitcoin for transactions.

This is one of the problems with bitcoin, its volatility is good news for traders and investors, as they can only profit when there are huge movements in the price, but it is bad for those which want to use bitcoin as a currency, obviously those businesses could sell their coins immediately for fiat or stable coins in order to decrease the volatility they are facing but if that is the case then the usage of bitcoin as a currency can be questioned, so until bitcoin becomes more stable many businesses are going to be afraid to use it and to keep it.

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Small and medium enterprises could benefit heavily from Bitcoin adoption if the right features are put in place and one point you failed to mention is the fact that, Bitcoin fast transactions can only be achieved through the use of layer 2 network services such as lightning network. Because that is the only way small businesses can manage the cost of operation of accepting Bitcoin in their payment system since they have low capital to play around with, there is a need for adequate management of their resource by adopting the right tools to process their payment at a cheaper rate and less cost-effective.

Topic: Why Small Scale Businesses should accept Cryptocurrencies as a medium of payment - page 3. (Read 548 times)