 Show Posts
|
|
Pages: [1]
|
|
Does any one have experience of incorporating in El Salvador? Any good references appreciated. I want to incorporate my bitcoin business in El Salvador. Please help.
|
|
|
|
|
I think we have shot at disrupting Fiat medium of exchange with lightning network. Having medium of exchange will put floor under Bitcoin price and significantly reduce volatility.
|
|
|
|
|
I think we have shot at disrupting Fiat medium of exchange with lightning network. Having medium of exchange will put floor under Bitcoin price and significantly reduce volatility.
|
|
|
|
I think public opinion and support and the best levers for implementing positive social change. With positive social change being a slow moving trend that can take hundreds or thousands of years to become a reality.
They say that it took 10 years for sailors to accept the explanation of citrus fruits being legitimate treatments for scurvy. Even when the answer to life's biggest problems lies right in front of us, it can still take decades before we are willing to accept it.
Imagine walking the streets and asking people how to break the "fiat monopoly". What responses would we receive? It could naturally take time for the public to become educated on these topics. In some cases, it took thousands of years before practices like slavery were illegalized and abolished. And, it could take thousands of years more before the general public understands the necessity of things that many of us today take for granted.
Its been said that tectonic plates which compose the earth's crust move only a few inches every year. And so it is with positive social change.
I wish I lived that long. I want to see my kids live in bitcoinized world. I don't want them to burn through Fiat rat race. |
|
|
|
|
Based on the results of my survey of 200 merchants, it appears that the primary motivators for integrating new payment methods are customer demand and transaction cost savings. A large number of merchants (132) cited customer demand as their primary motivator, while a significant number (62) cited both customer demand and cost as factors in their decision. A small number of merchants (6) cited transaction cost savings as their primary motivator. No merchants indicated that they wanted to earn and save in Bitcoin.
One issue with the 6 merchants who are only cost-focused is that they may not realize cost savings if their buyers are not using a BTC lightning wallet to pay. A large portion of merchants are payment method agnostic and will integrate whatever payment method their customers prefer, unless it increases their already-factored-in cost for payment methods in their business model.
Given these findings, my proposal is to charge merchants at the same rate as fiat charges, but reward buyers with hefty kickbacks. This way, merchants will not be deterred by additional costs, and buyers will have an incentive to use the new payment method.
|
|
|
|
How to break into Fiat medium of payment monopoly? The only answer to this is - user convenience! Unless and until a payment system is able to provide user convenience and less fees structure than the market, it's impossible to break into fiat monopoly! I will encourage everyone to read about the IMPS payment system designed and introduced in India. It has now been adopted by six other countries. https://www.thehindubusinessline.com/money-and-banking/imps-rated-worlds-best-in-real-time-payment-service/article29459995.eceNow, I don't need to carry a wallet. I just need a phone with a simple camera. regardless of what I am buying and what's the cost of it, I can just scan a QR code and enter a PIN code to complete the payment. It has been adopted by big brands as well as street vendors because it just needs a simple QR code. The money gets deducted immediately from my bank account and reaches the seller's account without fees. It's free! Unless cryptocurrency can provide a similar kind of user experience and convenience, it's impossible to break into fiat monopoly! Otherwise it will remain as an investment! I did deep dive on both PayTm and BharatPe business model. Both depended heavily on cashback and rewards to make customer switch their payment preference. Yes, UPI then after made it really easy for Merchants, but buyers still get good amount as cashback and rewards mostly funded by VC rounds. |
|
|
|
|
How to break into Fiat medium of payment monopoly?
In any commerce transaction, the buyer typically has more power than the seller. If a seller is unable to offer the payment method that the buyer prefers, they may lose the sale, especially if they are selling a commodity product or service. To prevent this from happening, sellers often offer a range of payment options, including traditional methods such as ACH, credit card, debit card, and wire transfer.
Credit card payment is considered to be one of the most successful financial products in history. It has established a business model that is acceptable to both buyers and sellers. Sellers have factored in the cost of processing credit card payments, including interchange fees and the cost of chargebacks, as part of their overall cost structure. Buyers, meanwhile, have become accustomed to the rewards points and chargeback capabilities of credit cards.
Over the past 50 years, the credit card payment system has become so well-established that it is difficult for new payment methods to compete with it. For a payment system like the Bitcoin lightning network to successfully compete with credit cards, it would need to offer an even better business model for both buyers and sellers.
One possible business model for the Bitcoin lightning network could involve merchant service providers charging sellers the same interchange fees as traditional credit card systems (around 2.8% of the transaction value). These providers could then share a portion of these fees (for example 230 basis points) with Bitcoin lightning wallets. The wallets could offer buyers a 2% cashback on their purchases, funded by the fees collected from merchants. The wallets could keep a small commission (30 basis points) for themselves, and use the remaining 200 basis points to fund the cashback for buyers.
This cashback incentive could be an attractive reason for buyers to switch to the Bitcoin lightning network for their payment needs. The wallets could use their commission fees to support customer acquisition and manage chargebacks.
The merchant service providers, meanwhile, could keep a small portion of the interchange fees (50 basis points) to cover their costs related to integrating POS endpoints and acquiring training and supporting merchants.
To make this business model work effectively, merchant service providers and wallet providers would need to work closely together. They could potentially form a non-profit organization to help develop, implement, and manage operational processes and best practices for the Bitcoin lightning network.
Please provide feedback on the above. It is practical, does it make sense?
|
|
|
|
|
