Topic: Why Small Scale Businesses should accept Cryptocurrencies as a medium of payment - page 4. (Read 548 times)

Using lightening network could help reduce the fees paid a lot and make it profitable for a business to operate.

This poses a major problem for such small businesses. Quite a few of them do not have the cash flow that a company like microstrategy has to hold some of their revenue in bitcoins. They have the option of using a payment processor to convert the bitcoins to fiat immediately, which presents them with exchange fees for each transaction.

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.   

Small scale business will not be able to use only crypto because we are in a fiat world. I also believe that big companies that accept cryptocurrency deal majorly on fiat currency. A small scale can accept crypto and fiat at the same time,this will help the business grow since some fiatless customers will be able to pay in Bitcoin if they bought much items from the shop or store.

Accepting only cryptocurrency in a small scale business will not work because so many countries are yet to adopt it and some don't want it at all,since it does not give the government full control over its citizens financial status.Some persons don't have the knowledge of bitcoin especially the aged people,how will you make business transactions with them,they will not even come close to your store.

It is good start but unfortunately bitcoin still has to prove itself with it's strong grounds. Why I am saying this? The very factor that everyone understands and knows about the bitcoin: Volatility. As far as small business owners are considered it would unrealistic for them to rely on the currency which is highly unstable and they may end up loosing their so called "small" profits over the time and could go bankrupt. Well we dont want that kind of first impression to the small business owners. As far giant business players they can hold up that much investment for very long terms and hence they are adopting it at faster rate as compared to the smaller one's. We might have solution in the future but for now "comparative" supply is huge and with increased difficulty it would be even slowly minted. Hope so soon, if may be government interfered but keeping it decentralized?

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.

You are very right.
I failed to add that this was for businesses that are in countries where they are allowed to used bitcoin. Also it has to be business that are online because small scale businesses that are not online or do not offer services online will find it very hard to venture into crypto because most of their target audience do not use crypto.

Small scale can't work for true crypto because, they have very small profit margins, in my understanding anyway.

If you make 50 cents from a sale (as opposed to big businesses which make $50 a sale let's say) then you're paying off miner fees, consolidation fees, not to mention exchange fees.

Unless you want to only keep revenue in crypto and use fiat for continued capital, but then you're not really a small scale business that needs profit in this case

Looking at global bitcoin regulation I believe it's spot trading user statistics. It can't be concluded at this time that the purchase of goods and services with bitcoins has already accounted for at least half of that figure.
Another issue, I'm afraid that as the bitcoin price increases it will shift the goal of just being an absolute investment asset even though regulations allow it.

If you look at the visionary Bitcoin, it looks like it will become a new currency. This can be seen from its development, more and more large companies trust and use as a payment medium. But behind that you also need to know that not all countries today recognize bitcoin or crypto as legal tender.

Like my country the principal payment option is my country's currency. If the payment is used via Crypto it is considered unlawful, and can get criminal penalties. So far it does offer a good solution, but we are hindered by regulations. Moreover not yet understanding crypto or bitcoin will make people more confident in fiat money recognized by the world.

As we know, small-scale businesses have limited capital funds, which is different from large-scale businesses, so if business owners want to use crypto, they must really enter the target market for crypto itself, they can't just use crypto, the reasons you give make sense, but we return to geographical conditions, the standing business environment cannot just use crypto in every business

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.

We all know the history of fiat money, how it was first the merchant receipt of deposits in large commercial transactions.
Paper money was first introduced in the 7th century during the ‘Tang dynasty’ in China but it did not appear till the 11th century during the ‘Song dynasty’. It was not introduced in Europe till the 13th century by European explorers like Marco Polo. in the early 1800s, Napoleon issued Paper notes.

The essence of the history lesson is to illuminate the similarities between the introduction of paper money and the introduction of cryptocurrencies. If you also look at the introduction of credit/debit cards you'll see a whole lot of similarities. The point is, these mediums of exchange/payment don't just get accepted overnight. Just as it took paper money centuries to be accepted globally, so did it take credit/debit cards, electronic bank transfers, to be accepted globally. We can see cryptocurrencies following in these exact steps but better, more transparent and easier to understand. Governments, businesses, individuals around the world saw the benefit of accepting paper money and keyed into it. Centuries later, they saw the benefits of adopting credit/debit cards and they did.

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?

If you still need more reasons a small scale business should adopt bitcoin, these are a few;

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

2.  High Security and reduced transaction Fraud:
     Every transaction is stored in the decentralized blocks, once the transaction is made, it cannot be reversed or canceled.
     Since no central authority oversees the operation, customer confidentiality is maintained.

3.  New Customer acquisition:
     There are hundreds of millions of people all over the world who trade in bitcoin and other cryptocurrencies. In fact
     according to Zippia, there are about 36.5 million American crypto user and 300 million global users as at 2021. So if you
     accept crypto as payment for your business, you will have more people who prefer to transact in crypto and you have the
     opportunity to expand.

4.  Access to world market:
     Unlike the stock market that has an opening and closing hours (working hours), crypto markets don't have specified
     working hours. It operates 24/7. You can take advantage of this and work around the clock if you want to without any
      limitations.


https://en.wikipedia.org/wiki/Banknote#:~:text=The%20first%20known%20banknote%20was,coinage%20in%20large%20commercial%20transactions

https://yourstory.com/mystory/impact-bitcoin-cryptocurrency-small-scale-business