On merchants not willing to accept crypto

[deisik]

The prevailing opinion on the forum seems to be that Bitcoin's adoption is limited by merchants' reluctance to accept it as a means of payment. In my eyes this view represents a typical cause-and-effect dilemma, which is colloquially known as putting the cart before the horse (i.e. confusing cause and effect). In this topic I will try to explain why such an opinion is in fact incorrect

To prove that it is not merchants' fault or reluctance to accept Bitcoin but rather unwillingness of the consumers to pay with it, we should think about the use cases where Bitcoin holders may in fact be willing to spend their coins. And if I'm right (which I am), then we should see merchants actually accepting crypto in these areas. This approach can easily prove whether people are really putting the cart before the horse here

Big-time holders don't seem to be very interested in speculating with Bitcoin because they already have enough to live like pigs in clover for the rest of their life. But when you have so much wealth, you would evidently want to spend some of it on things which you dreamed of your whole life, like sports cars, penthouses, jewelries for your girlfriend, traveling around the world and living in 5-star hotels like a king

And this is where we see Bitcoin being willingly accepted by providers of these services and suppliers of such goods. You can easily buy elite real estate, pay for the most exclusive sports cars, seduce your passion with most exquisite jewelries, and you can do all these things with bitcoins - provided you have enough of them, of course. In simple terms, when money talks bullshit walks. And Bitcoin is that money



So it is not about merchants at all

[1715270459]

1715270459

[o_e_l_e_o]

You are absolutely right.

If you are willing to spend money in exchange for a good or service, be it fiat or bitcoin, there is someone out there who will accept it. Now, while millionaires can buy anything they like in bitcoin by throwing enough money at it, the average person here isn't going to be able to convince some big supermarket or chain to start accepting bitcoin, but they could certainly have success in smaller independent retailers or tradespeople. After me asking every week for a month or so, one of the sellers at my local farmers' market started to accept bitcoin, and now he isn't the only one accepting it and I'm not the only one spending it.

Stop waiting for retailers to accept crypto and start asking them to accept crypto. Holding won't get us anywhere if no one is spending.

[mutrang23]

Try not to accept it as a strange way of dealing with merchants. But some reasons come from governments that forbid it to cause traders to worry about breaking the law. You see they always want to seek profits, but they fear the government controls them and their jobs will threaten.

[figa]

I totally agree. The biggest fear is just adapting crypto. If people would trust it more, they would use it more so there would be no problem in using it in everyday life.

[Slow death]

[...]

bitcoin is very volatile, such high volatility becomes a major barrier for merchants to accept bitcoin as a means of payments.

Imagine that in December 2017, some merchant accepted bitcoin as a means of payment, the merchant would be selling a car for $100,000, if in December 2017 someone had bought this car that costs $100,000, that person would have paid with 5 BTC and if that  car salesman  Hold the 5 BTCs, how much losses should he have these days?

Current bitcoin price:

1 BTC = $ 3560

5 BTC = $ 17,800

merchants will be afraid of this volatility

Bitcoin has not been legalized in many countries, so it would be difficult to have many merchants accepting bitcoin as a means of payment

[xWolfx]

[...]

bitcoin is very volatile, such high volatility becomes a major barrier for merchants to accept bitcoin as a means of payments.

Imagine that in December 2017, some merchant accepted bitcoin as a means of payment, the merchant would be selling a car for $100,000, if in December 2017 someone had bought this car that costs $100,000, that person would have paid with 5 BTC and if that  car salesman  Hold the 5 BTCs, how much losses should he have these days?

Current bitcoin price:

1 BTC = $ 3560

5 BTC = $ 17,800

merchants will be afraid of this volatility

Bitcoin has not been legalized in many countries, so it would be difficult to have many merchants accepting bitcoin as a means of payment

This is a major misconception, because merchants don't have to hold Bitcoins to accept them.

Why? Because services exists this times that handle the payment/exchange process from Bitcoin to the fiat currency of the merchant's preference and availability inside the service itself right away. Extremely easy.

Example: https://bitpay.com/retail

[bellamente]

Now the main problem is bans from the governments of many countries. I think if this is legal tender, then many stores will accept cryptocurrency. However, Bitcoin still confirms transactions for a very long time.

[romero121]

What's said is right in one way, but government have the approach from the opposite side. This lets the people not get into bitcoin as well cryptocurrencies similar to that of fiat. Whenever there is an information from governments about cryptocurrency, surely it'll be against. Very few country governments have known better about bitcoin and supportive. When this happens throughout we can experience the change that's mentioned in the Op.

[deisik]

[...]

bitcoin is very volatile, such high volatility becomes a major barrier for merchants to accept bitcoin as a means of payments

I don't particularly disagree with your points

However, if you are a big merchant with thousands of clients paying or willing to pay with Bitcoin, you can either mass-hedge directly against price volatility (this will cost you around 1% yearly at max) or use third party services that specifically deal with this issue. Besides, we should keep in mind that with expansion of Bitcoin adoption volatility is set to taper off eventually as real value, which comes through such use, takes away from volatility just like speculative value adds to it

[Upgrade00]

The idea of suggesting payments in bitcoins to retailers is practical if you are involved in direct trades and business, or an entrepreneur and both parties are involved in negotiations.
Regular individuals would have to approach management of organizations to accept cryptocurrency. This is difficult in countries with limited exposure to bitcoins and issues of legality.

[Marbelli]

It seems to me that this is a matter of time, and after about five years, we will see that Bitcoins and other cryptocurrencies can be paid in all corners of the planet.

[Theb]

In my point of view I think that both consumers as well as business entities are both trap with the ongoing market. I saw a lot of businesses pulling out Bitcoin as a payment method when BTC starts descending Microsoft, Steam, and Stripe to name a few, its understandable that businesses like these ones are not accepting any additional risk when it comes to accepting a payment that is descending in value. Consumers on the other hand are also affect by the market as well, they will be reluctant to spend on their crypto holdings now when they know that before they could bought the same thing for a lot less of what they are holding now. With these bear market it made consumers hold their position while the businesses have pulled out on a very risky asset. So we should expect that there will be no big names announcing that they will be accepting Bitcoin as a payment method not until prices will settle in or in a upward reversal.

[coolcoinz]

I don't blame merchants. In fact, I don't spend my Bitcoins because I treat them like a long term investment and a store of value. I know that there's this prevailing thought among bitcoiners according to which we should spend to increase adoption and spread the word, but I don't agree with it. To be able to spend you first need to be earning it on a regular basis. If you have a number of coins that you're keeping just like you would be keeping silverware, jewelry, or art, and you're not getting more, why would you get rid of it?
We can't blame merchants, but it's not right to blame the holders either. The system is still immature.

[deisik]

I don't blame merchants. In fact, I don't spend my Bitcoins because I treat them like a long term investment and a store of value. I know that there's this prevailing thought among bitcoiners according to which we should spend to increase adoption and spread the word, but I don't agree with it. To be able to spend you first need to be earning it on a regular basis. If you have a number of coins that you're keeping just like you would be keeping silverware, jewelry, or art, and you're not getting more, why would you get rid of it?
We can't blame merchants, but it's not right to blame the holders either. The system is still immature.

In simple terms, you don't see the forest for the trees

Bitcoin can only have value if it is used in real life. Without the real life adoption, it is set to fail, maybe, not today, or in a year, but the end is kinda carved in stone (remember, laws carved in stone are rewritten in blood). To put it differently, without someone actually using Bitcoin, you won't have it as a store of value. So the holders should in fact be blamed for not using their bitcoins because they are shamelessly profiting from someone else's effort. Your "long-term investment" is possible only thanks to this effort

[o_e_l_e_o]

If you have a number of coins that you're keeping just like you would be keeping silverware, jewelry, or art, and you're not getting more, why would you get rid of it?

The only reason gold, silver, precious metals, gemstones, jewelry, etc, can be used as a store of wealth is because there are people buying, selling and trading these things. If suddenly no one in the world was willing to buy gold, then the price of gold effectively becomes $0. The same can be said of bitcoin, and to an extent, all money including fiat. If no one accepts it as payment for anything, then it essentially becomes worthless.

You can hold bitcoin for as long as you want, but without widespread adoption, it won't be going anywhere.

[ChangeNOW]

I've been in a lot of discussions about whether BTC serves better as a means of storing value or exchanging it. As of now, BTC works better as an SoV - TpS is low, fees are high - of course merchants are reluctant to accept it as a means of payment. Other cryptos might be better at being a means of payment.

[poptok1]

No body mentioned taxation issues and there are quite a few of those these days.
More and more governments started to recognise cryptocurrency, introduction of new means of taxation was just a matter of time.
Some country's still struggle with inefficient, complicated tax ordinance. Law getting as massive as 15000 pages... no body is able to know everting, every aspect and quirk of the law. Special help, trained accountants, advisors don't work for free.

-snip-
So it is not about merchants at all

Agreed, not at all, as in most cases problem is multidimensional.

[deisik]

No body mentioned taxation issues and there are quite a few of those these days.
More and more governments started to recognise cryptocurrency, introduction of new means of taxation was just a matter of time

Actually, I intentionally omitted this part in the OP to keep it readable

Though I didn't mean taxation in particular but rather government regulation in general. Obviously, if Bitcoin payments are frowned upon by the government officials, we can't really expect mass adoption by merchants like Amazon and their likes. On the other hand, any law reflects the social fabric objectively existing in a society (i.e. laws are secondary), and if a lot of people start using crypto without looking over their shoulder, the government won't be able to discard these developments. Otherwise they run the risk of people "discarding" the government itself (like it happens in Venezuela right now)

[poptok1]

-snip- On the other hand, any law reflects the social fabric objectively...

This would be my exact issue here. I have a first hand experience with unreal expectations from my irs.
Last year they wanted us to submit taxes for every transaction crypto -> crypto. Somebody completely detached from reality interpreted the law and requested the impossible. There was a little storm in the community, irs gave up this crazy idea.
However few subjects, like the biggest crypto-exchange had to run away of borders, because taxes would eat them whole up.
As you can see, law matters a lot.

[allthebitandbobs]

We're trying to fix that problem https://allforcrypto.org    .There many issues we have to overcome due.Cryptos user our generally all talk and very tribal.They say they what something but when you offer it to then they don't use it. People only concern is will it increase the price of their particular coin, not that actual adoption. That why we focusing our marketing to non crypto disgruntled ebay amazon sellers .