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Author Topic: Do businesses/vendors that accept crypto HODL or SELL?  (Read 202 times)
Kakmakr
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July 04, 2018, 05:36:20 AM
 #21

Your merchants that are Bitcoin enthusiasts, will probably hoard some coins, depending on their liquidity and profit margins. They have to pay their expenses first and then decide what percentage of their Net income must be hoarded in Bitcoin.

Some of the Payment processors give you the flexibility to indicate what percentage of your coins must be converted to fiat and what percentage of the coins you receive must be kept in Bitcoin. 

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July 04, 2018, 06:08:27 AM
 #22

What do you think vendors who accept cryptocurrency as payment (for non crypto services - just your everyday coffee shops & retailers) do with the digital assets - HODL VS SELL? Its easy for traders and independent investors to hodl and stay put during the volatile times. But businesses have monthly expenses to upkeep id imagine it is very hard for them to stay operationally stable if their main source of revenue came from a highly volatile asset; 10 cups of coffee are worth 50$; the coffee is paid for in BTC, two days later the same BTC is only worth 30$ and they just lost 20$ on the sale, i could see this being very problematic in the efforts to increase the mainstream adoption of cryptocurrency.
Are you really new in the forum?  The term HODL you  are using is taken as joke in the initial stages but you took it seriously so I just asked it.
So whether the traders which are accepting crypto in exchange to their transactions are just HODLING or selling their crypto stocks?  A businessman can never retain the money with him in liquid form because he has to repurchase the goods and other services for business.  If he just holds the money received how he will buy the raw materials to trade.
But it may be possible that certain percentage of their sales which are profits and surplus after meeting their expenditure they may be HODLING as investment to gain in the case of price rise.
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July 04, 2018, 07:08:47 AM
 #23

it is obviously that like people who buy bitcoin not every business/vendor/merchant does the same thing. they  have different views, different risk managements plans and different goals, they also have different number of payments (for example someone may get 1 BTC payment among 1000 fiat and someone may get 100% bitcoin payments only and no fiat).

as an example imagine someone who wants to invest in bitcoin and has a shop. he can simply add a "Bitcoin is accepted here" sign and receive bitcoin payments instead of receiving fiat and then using that fiat to buy bitcoin. so the payment he receives won't be sold.
this is somewhat like what most of us do. we earn bitcoin and hold that earned money instead of converting it back to fiat. so that is kind of the direct investment without the hassle of going through exchanges.

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July 10, 2018, 07:55:52 AM
 #24

To be honest, if we just put ourself on the feet of a vendor, we probably hodl the bitcoin we've received as a payment and wait for the market to pump. Businessman and/or vendors are smart enough to choose bitcoin because it may flactuates and may take that opportunity to atleast get a profit out of it.
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July 10, 2018, 08:00:17 AM
 #25

To be honest, price volatility is the biggest obstacle to the growth of Bitcoin especially among the merchants because they won't get the same amount at the end of the week and it will affect the cash flow. However, there are some exchanges in my country and they tried the new experiment of assisting merchants in accepting Bitcoin as a payment system and the immediately cashed out the accepted payments and sent it to those merchants. This might not be the ideal situation expected by Satoshi but it was definitely a good start towards that vision.
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July 10, 2018, 08:26:30 AM
 #26

What do you think vendors who accept cryptocurrency as payment (for non crypto services - just your everyday coffee shops & retailers) do with the digital assets - HODL VS SELL? Its easy for traders and independent investors to hodl and stay put during the volatile times. But businesses have monthly expenses to upkeep id imagine it is very hard for them to stay operationally stable if their main source of revenue came from a highly volatile asset; 10 cups of coffee are worth 50$; the coffee is paid for in BTC, two days later the same BTC is only worth 30$ and they just lost 20$ on the sale, i could see this being very problematic in the efforts to increase the mainstream adoption of cryptocurrency.

  I think those businesses that accept bitcoin as payment are already aware that it might happen to them. So,i believe they are highly risk taker before they put up this kind of business. They already know that crypto market are so volatile,the price may drop at any time or it may increase. So, I think they have an alternative plan when time like this comes on their way.

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July 10, 2018, 08:35:04 AM
 #27

I think it depends on the business, but generally businesses need to liquidate such holdings to cover continuous expenses such as labor, rent, maintenance, etc. Whether the bitcoin is held long term is up to the individual owner, but most businesses need the cash right away.
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August 08, 2018, 09:05:56 AM
 #28

However, there are some exchanges in my country and they tried the new experiment of assisting merchants in accepting Bitcoin as a payment system and the immediately cashed out the accepted payments and sent it to those merchants.
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