If you have a product or service based online business ,accept fixed bitcoin prices with a refund.
For example,a customer buys your service or product for 50 USD worth of btc.The bitcoin price doubles after one week and he actually paid you $100.This would be really frustrating to him so you offer him to refund 50 USD.You kinda lose money,but you get a loyal customer,who is paying with btc.
Anyway,the bear market won't stop just because a bunch of people started accepting bitcoin payments.
And what happens if after the same period of time Bitcoin loses 50% of its value, do you call the customer back to pay for the 50% loss?
That's exactly what I wanted to address in the last post. Obviously, that call won't happen
To be more clear: This refund model can only work in two circumstances:
1) The product is a digital good with no marginal cost for the merchant. In this case, the offer can be unlimited - there's no risk for the merchant if he stores the BTC until the deadline; however, his revenue may be cut by 50% if Bitcoin really crashes for that extent until the deadline.
2) The offer is a "special sale offer" with limited stock - in this case, it's like if you give a discount - the goal is to acquire new clients, not really to take massive profit from these sales.
In the end, it becomes an exercise in probability/risk calculation. For example, it's likely that the danger for a 10% crash in a week is under 5%. The danger for a 50% crash in a week should be well under 1% (that happens approximately once per year, or less). So it becomes, to a certain extent, part of your entrepreneurial risk.
If you think the probability for a crash is increasing (e.g. in a situation like in December 2017 where the price sometimes grew 20% per week or more), then you could end these "refund special offers" until the crash happens.
