Bitcoin high transaction fees is a disadvantage to small business owners

[LogitechMouse]

Lightning Network is the solution for this one.

Unfortunately, not many are using it for various reasons thus, business owners like the OP who are accepting Bitcoin as an alternative way of payment might be selling at a loss because they're the ones that will shoulder the fees, and that affects the total revenue of the business. Of course it differs when the price of Bitcoin goes up because you might get those fees that you've paid thru capital appreciation.

Right now, Bitcoin as an alternative way of payment is only applicable to huge business that have large transaction like maybe a corporation, or maybe if some real estate agents who are selling homes are accepting Bitcoin then we can add it on the list as well. Overall, it isn't worth it for small business owners to accept Bitcoin as another way of payment, but there are other altcoins out there who has a lower transaction fee, and lower transaction speed. You can use that altcoins as well aside from Bitcoin if you really want to integrate cryptocurrency in your business.

Overall, this is one reason why I don't believe Bitcoin will be accepted as a currency globally. Compare to fiat, more people will just use fiat when they are paying just because of lower to no fees at all.

[1715343288]

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[1715343288]

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[Fiatless]

I run a small business and I receive payments for my goods in fiat currency. So joining this bitcointalk forum has really enlightened me about the advantages and gains of trading and investing with bitcoin. So going a step further, I decided that I want to place adverts that customers can have the option of making payments when they buy goods in my shop with bitcoin. But I decided to first seek the opinions of experienced people who are into bitcoin, they encouraged me to go ahead, also to be cautious of bitcoin high transaction fees. I did a little research on it and found out the inevitability of the high fees. https://www.makeuseof.com/what-are-bitcoin-transaction-fees/ 

You have done well to incorporate Bitcoin into your business payment systems. This could be a medium to attract more customers to your business and on the other hand increase bitcoin awareness in your area. There might be network issues using bank transactions but Bitcoin is more reliable. The privacy and unrestricted transaction limit is also an advantage of using it in your business. 

If Bitcoin transaction fees were deducted based on the transaction, then maybe no one would bother to trade Bitcoin. The fee for transferring $50 is the same as for transferring $1,000, which has become a major barrier for small traders in Bitcoin transactions. When Bitcoin transaction fees were normal, no one complained about these transaction fees, but suddenly, when the transaction fees increased abnormally, it became very difficult for small traders. Small traders will find more incentive to invest in Bitcoin if transaction fees return to normal.

Small business owners shouldn't consider using Bitcoin for receiving payments for petty goods. The transaction cost will be too much that a fiat transaction would be preferable. Most of these small business owners are not aware of the lightning network, while others feel it is a bit complicated to use. Using Bitcoin for transactions will favour big businesses. The transaction fee is indeed a major impediment to the use of Bitcoin as a legal tender. For now, using it as an investment is the best option for people like me.

[Lorence.xD]

I always make an effort to withhold my opinion regarding the use of Bitcoin transactions for goods and services when the market is rumored to be heading towards a bull phase. It's crucial to time your utilization of Bitcoin for transactions appropriately, but it's also important to note that you shouldn't engage in trading soon, as the primary objective is to accumulate.

The things is when there's a lot of transaction in bull or any day, it would be a hassle for the Bitcoin to use as transactions due to traffic of the process. It would be a good to use Bitcoin as an alternative mode of payment or transaction but there's also cons like that. And true if you're in a business you should plan to not engage in the market as you use Bitcoin for your business. It will just makes thing complicated and inconvenient.

[Pierre 2]

This is sad truth of Bitcoin transactions for years. Its still unresolved issue. Fees are too high for Bitcoin to be treated as currency. Sometimes fees increase a lot in busy times but we nearly never see fees getting as cheap as Blockchains like binance smart chain. I wish Bitcoin developers were able to solve. They made issue less annoying with later updates but its still there and it must be solved to increase adoption.

[Bitstar_coin]

The real disadvantage that I see is the lack of knowledge from the user side. Alot of people still struggles with online transactions because of the digital payment system, some don't even know how to operate online banking app let alone pay with digital currency.
High transaction is one part of the problem, knowing to to operate digital payments is the biggest challenge.

[ultrloa]

I always make an effort to withhold my opinion regarding the use of Bitcoin transactions for goods and services when the market is rumored to be heading towards a bull phase. It's crucial to time your utilization of Bitcoin for transactions appropriately, but it's also important to note that you shouldn't engage in trading soon, as the primary objective is to accumulate.

The things is when there's a lot of transaction in bull or any day, it would be a hassle for the Bitcoin to use as transactions due to traffic of the process. It would be a good to use Bitcoin as an alternative mode of payment or transaction but there's also cons like that. And true if you're in a business you should plan to not engage in the market as you use Bitcoin for your business. It will just makes thing complicated and inconvenient.

For now it need some improvement to settle up the fees so that this coin can be use on business sector as alternative mode of payment since its really bad if we experience high fees condition since we can't do anything since it will just hurt there business if they decide to continue and just pay those huge fees since it take huge part on their profits. I guess they should add alternative alts if they plan to add crypto so that costumers may have different options if network clogged and high fees exist.

[Yatsan]

The real disadvantage that I see is the lack of knowledge from the user side. Alot of people still struggles with online transactions because of the digital payment system, some don't even know how to operate online banking app let alone pay with digital currency.
High transaction is one part of the problem, knowing to to operate digital payments is the biggest challenge.

Well, it makes sense but we are talking about general challenge. Knowledge with how this technology is being used and how it works would indeed be  challenge to some users but if it is with group of people, perhaps small and big businesses, then factors such as transaction fees would be also given attention. And I agree with it. Bitcoin has an advantage over fiat when it comes to taxation but since transaction fees are becoming higher as well, then many people are not seeing this blockchain as a better alternative. Which is why Bitcoin is more being used as an investment than currency.

I always make an effort to withhold my opinion regarding the use of Bitcoin transactions for goods and services when the market is rumored to be heading towards a bull phase. It's crucial to time your utilization of Bitcoin for transactions appropriately, but it's also important to note that you shouldn't engage in trading soon, as the primary objective is to accumulate.

The things is when there's a lot of transaction in bull or any day, it would be a hassle for the Bitcoin to use as transactions due to traffic of the process. It would be a good to use Bitcoin as an alternative mode of payment or transaction but there's also cons like that. And true if you're in a business you should plan to not engage in the market as you use Bitcoin for your business. It will just makes thing complicated and inconvenient.

For now it need some improvement to settle up the fees so that this coin can be use on business sector as alternative mode of payment since its really bad if we experience high fees condition since we can't do anything since it will just hurt there business if they decide to continue and just pay those huge fees since it take huge part on their profits. I guess they should add alternative alts if they plan to add crypto so that costumers may have different options if network clogged and high fees exist.

Huge fees are also dependent with the exchanger you are using. Third party or centralized exchangers would obviously cost you more than what's supposed to. Aside from TX fees, another challenge I guess is volatility especially for businesses,needing to sustain their daily stocks especially if the market price is falling 'coz it would result to loss on their end.

[STT]

I agree with the problem as a real determination in success for BTC.  Ironically the smallest things do count like convenience in the usage of any product.   The immediate idea I had is a monthly tab system to clear BTC spending so not every single transaction is handled by immediate clearance with people waiting around but with known amounts and on a scheduled date.    Some might say thats a work around but it might be more fitting for an ideal of lowest costs possible in % comparison to fiat currency and allows the offering of both types of payment.   That would only work with people who can be given any credit allowance to clear.   I know this system is already operated with gold, credit cards can be paid off vs a gold balance but its cleared monthly.

[el kaka22]

This has been talked about a lot and a lot of people worry about it but the reality is that small business owners do not really depend on bitcoin all that much. They are doing something that is a bit more personally maybe big enough for them but financially small as the name suggests.

This is why I believe that they can still use paypal or any other method, or just use an altcoin that has low transaction fee, or just not use crypto at all and just use fiat. I am not saying that they shouldn't, but transaction fee shouldn't be a worry, if it is a worry then I believe that it is not really a big deal for anyone, it is just not going to end up being all that important. I think it is quite important to just ignore it and continue if you could do that.