Small/medium scale Businesses confidence in accepting Bitcoin

[Fivestar4everMVP]

Hello everyone. My question might come as been stupid or childish so constructive criticism would be appreciated.
I have come across a lot of users that plans on accepting Bitcoin in their business and I'm curious on how they tackle fraudulent problems.

• If for example a user of a custodial wallet sends Bitcoin to buy some goods and the seller voluntary chooses not to meet their end of the bargain, who are they going to complain to?

For a person to person trade, Escrows exist for a reason, if you choose to trust your trade partner to first send your bitcoins to them directly without making use of escrow, that is the risk you choose to take and if the partner abscond with the bitcoin without keeping their own part of the deal, that's your loss, you have no one to blame except yourself.

• In countries where crypto are considered illegal isn't it risky to accept Bitcoin as a medium of exchange? Then why are some people still accepting it?

Will you go announcing to the government that you just accepted bitcoin as a means of payment for your goods or service? who does that? bitcoin transactions might be declared illegal by the government but they still do not have access to your bitcoin wallet or address, so you are still very free to spend your bitcoin, and also receive bitcoin from other parties without any government knowledge or interference, except you decide to report yourself to them, or maybe your trade partner decides to report you, which also means him or her also reporting him or her self.

• In a trade does the buyer send their Bitcoin first or the seller send their goods/service?

The normal standard of trade requires that you pay first, then the seller of the goods, or service will release whatever you have paid for to you, but like i said earlier, if the trade as to do with direct person to person, use a trusted escrow if you do not know or trust your trade partner, there is no need trying to be a hero by sending your bitcoin or goods, service first, use escrow, it only cost a very small fee which both of you can agree to split to make trade mutual.

• Lightning network has been praised for its speed in transactions thus used by many individuals. Does transactions only involve those you trust? Or there's a basis for the confidence of not been scammed?

I am still a student learning how bitcoin lightning network truly works, so i cant comment on this at the moment until i have a better understanding of how the technology works.

• I'm well aware of the dangers that centralized exchange poses, but doesn't their access to customers data make it feel safer to run a business? (Not to be confused for safekeeping of coins, just a means to run the trade)

Even the centralized exchanges cant be trusted because they also are scamming many of their users, and besides, a business partner who want to scam you will not make use of a centralized exchange, except if the central exchange is also run by scammers as well and they happen to be in partnership with your supposed business partner, so centralized exchanges play little to no role at all in safeguarding the bitcoin ecosystem in terms of fraud and scams, you as an individual is basically your own security, and the moment you begin to realize this, the sooner you start learning how to keep your bitcoins, and other crypto assets safe from scammers, hackers and fraudsters.

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[Strongkored]

• In countries where crypto are considered illegal isn't it risky to accept Bitcoin as a medium of exchange? Then why are some people still accepting it?

It's really very risky, especially if the country is led by a person who is quite a dictator where all citizens will be fully supervised, including how they transact and use what currency in the transaction, if there are countries that prohibit Bitcoin but their citizens use it as a transaction, it must be done confidentially or only in personal-to-personal transactions, so that no one is involved other than the transacting party

• In a trade does the buyer send their Bitcoin first or the seller send their goods/service?

On average, currently, online transactions will be carried out if the buyer makes a payment first after that the seller sends the goods, and usually local e-commerce can be used as a third person so that the buyer can trust that the seller will send the goods because the funds will only be received by the seller when the buyer has confirmed getting the goods.

[Crypt0Gore]

Hello everyone. My question might come as been stupid or childish so constructive criticism would be appreciated.
I have come across a lot of users that plans on accepting Bitcoin in their business and I'm curious on how they tackle fraudulent problems.

• If for example a user of a custodial wallet sends Bitcoin to buy some goods and the seller voluntary chooses not to meet their end of the bargain, who are they going to complain to?

• In countries where crypto are considered illegal isn't it risky to accept Bitcoin as a medium of exchange? Then why are some people still accepting it?

• In a trade does the buyer send their Bitcoin first or the seller send their goods/service?

• Lightning network has been praised for its speed in transactions thus used by many individuals. Does transactions only involve those you trust? Or there's a basis for the confidence of not been scammed?

• I'm well aware of the dangers that centralized exchange poses, but doesn't their access to customers data make it feel safer to run a business? (Not to be confused for safekeeping of coins, just a means to run the trade)

I have been contemplating this for sometime now so assistance would be appreciated. Thank you.

Is there anyone we complain to if we pay in fiat and the deal is no more a good one? There is a time lapse between when you buy a goods and decide to return for refund, and if Bitcoin you sent the seller is 10$ they can refund you 10$ in Bitcoin back, how is this bad? Either the sat have increased or decreased, what the buyer needs back is 10$ worth of Bitcoin, and case closed, also This won't happen every time.

There is no way anyone can accept Bitcoin as means of payment in a country where Bitcoin and crypto is banned, it's not possible, the fear is present and one have to take it seriously, either the seller or the buyer, I am not talking about private sales like drugs or weapons where you can always do the deal behind closes doors.

You as the buyer will have to take the step first, send your fiat or crypto to popular crypto exchange first and then swap or trade for other coins or tokens of your choice, this is why using a reputable crypto exchange is the best move.

Just because it's a lightning network doesn't make it scam free, you can still be scammed, it's the same thing with other crypto blockchain out there, once you made the transaction into someone else's address there is no turning back, it's gone, so don't be too confidence when making transactions either through lightning or not, verify who you are sending to very well.

Do not be too confident with centralized exchanges, most times I look at them like Banks, they have access to customers funds and they can do anything they want with your money behind your back, you trust them enough is why you leave your assets with them, they are humans like you, always withdraw your assets from any centralized exchanges after you are done trading on the platform.

[Essential10]

• In countries where crypto are considered illegal isn't it risky to accept Bitcoin as a medium of exchange? Then why are some people still accepting it?

Countries where buying, selling or holding Bitcoin or any other cryptocurrency is illegal. Basically, since the legitimate authorities of that country do not issue virtual currency, there is no recognition of any monetary claim against it. It also warns that virtual transactions may violate various terrorist activities and money laundering laws. Such bans are generally enforced in countries whose economic and legal systems are vulnerable. Why people are so interested in Bitcoin is because it is the currency that we use for our daily work exchange which can be dollar, taka or rupee. The money we use is a currency. Bitcoin is a currency in the same way. Bitcoin is transacted by sender and receiver directly online. Although it is called a currency, it does not exist in reality, it exists only in the virtual world as we all know. Neither is it a coin, nor is it a note. It is a curiosity and this demand is mainly why people are interested in making this investment. In normal banking management, if a customer has excess funds in their account, it will certainly be called upon, but there is no such obligation for depositing bitcoins.

[yazher]

• I'm well aware of the dangers that centralized exchange poses, but doesn't their access to customers data make it feel safer to run a business? (Not to be confused for safekeeping of coins, just a means to run the trade)

I think merchants are getting partnered with 3rd party centralized payment methods when they wanted to accept bitcoins or any other crypto payment in their stores or services because of its convenience. Nowadays you don't need to worry about the way on how to add bitcoins as a mean of payment for your stores because there are lots of tutorials out there that could easily teach you and automatically you are ready to accept directly to your wallet with the help of such 3rd party services. But in terms of storing your bitcoins, then it's a different story and you need to consider choosing security over convenience.

[MarjorieZimmermanGinger]

• If for example a user of a custodial wallet sends Bitcoin to buy some goods and the seller voluntary chooses not to meet their end of the bargain, who are they going to complain to?

You can transact directly when people buy something in your store and never believe it when they haven't sent it with some proof of delivery.

• In countries where crypto are considered illegal isn't it risky to accept Bitcoin as a medium of exchange? Then why are some people still accepting it?

This is a big problem when you try to force payment using bitcoins, whereas your country considers bitcoins illegal to use. The question is why people still accept it because some people are too pushy, they don't think about the risks it will involve and there are too many wishes that are not adjusted, when it's better to make bitcoin anonymous in a country like that and people don't have to go through something difficult just because bitcoin can be profitable.

• In a trade does the buyer send their Bitcoin first or the seller send their goods/service?

Depends on the agreement between the buyer and the seller. If in nature you do not trust the buyer, order to send payment first.

I have been contemplating this for sometime now so assistance would be appreciated. Thank you.

You have to look at the opportunities and regulations in the country where you live to enforce payments using bitcoins and also have to see how your business can impact well if you accept payments using bitcoins. When business opportunities can be developed through payments using bitcoins it is not a problem, but when your buyers do not really understand the payment system using bitcoins, then the worst result that will happen is that your business will be abandoned by customers who switch to other stores.

[komisariatku]

I have read through the answers y'all given and its appreciated.My country Nigeria banned crypto but its not really illegal but no enforcement would try to protect you in the advent of a Scam. I have gotten some insights but am still confuse, Doesn't it mean that for Bitcoin to be safely used in a business an organized body should exist to protect customers or sellers alike. Would this affect the decentralization of Bitcoin?

Is bitcoin illegal in nigeria for currency or as an asset? in my country bitcoin is illegal if used as currency but legal if used as asset. So we may own bitcoins but may not buy and sell real goods with bitcoins. We will get into legal trouble if we trade real goods with bitcoins as a means of payment but not if we trade crypto on exchanges

I think that even if there is an institution that regulates bitcoin, it will not protect you from losing bitcoin in your own wallet. It's like you put fiat money in your pocket and you lose it. Maybe if you report it to the police they will look for it but don't expect much. Maybe if your bitcoins are lost on a centralized exchange they can replace your lost bitcoins, but that is no guarantee

[summonerrk]

• I'm well aware of the dangers that centralized exchange poses, but doesn't their access to customers data make it feel safer to run a business? (Not to be confused for safekeeping of coins, just a means to run the trade)

I have been contemplating this for sometime now so assistance would be appreciated. Thank you.

You asked a great question. On the forum, I rarely see topics that affect bitcoin as a means of payment. Everyone mainly discusses holding and trading, as well as as a means of transferring funds to relatives abroad - anonymous and without commissions. Returning to the topic of the question, I will say that unfortunately the world is poorly ready to accept cryptocurrencies as means of payment. Yes, there are Japan, Ukraine and other countries where everything is legalized, and in court you are likely to win a controversial issue. But in other countries where cryptocurrencies are not legal, no one will listen to you by going to court. We need the full acceptance of bitcoin by the whole world and the availability of legally prepared laws.

[Lorence.xD]

• In countries where crypto are considered illegal isn't it risky to accept Bitcoin as a medium of exchange? Then why are some people still accepting it?

Since you've mentioned that crypto or Bitcoin is not allowed in the country maybe because it has a negative impact to the economy of the country or any other reason because crypto is decentralized which the government couldn't control so most likely these kind of transactions that still uses crypto might be used to an illegal activity. In crypto you can be anonymously send assets so it would be a good thing for a criminal act to do. If there's no illegal act maybe the owner is just a crypto user that would love to open for crypto transactions of course with risk.

• In a trade does the buyer send their Bitcoin first or the seller send their goods/service?

If it's an legal business where they used crypto as transactions and the buyer would buy a good physically not digital. Of course the buyer would send the money first once the seller received the payment they are good to go. There's already existing digital payment here in my country which is called Gcash, so if one day my country adapt using crypto as payment it would not be a new thing.

• I'm well aware of the dangers that centralized exchange poses, but doesn't their access to customers data make it feel safer to run a business? (Not to be confused for safekeeping of coins, just a means to run the trade)

If they might do something about those data and those customers report those issue of course they wouldn't benefit for that wrong doing. Imagine thousands of users using that exchanges with those fee in a long run you wouldn't even need to work from it. So they wouldn't do about it, its like a case with Mark Zuckerberg with Facebook. He was in court due to they access to any data of the users of Facebook but of course he told the safe and security of it.

[Wimex]

In the case of fraudulent transactions or breaches, resolution can be complicated, especially with Bitcoin due to its decentralized nature… If the parties involved cannot reach an agreement, the complaint can be filed with the competent authorities, depending on local regulations… Well, not in all countries it is legal to use Bitcoin, in addition to the fact that transactions are difficult to trace, which increases the use of tests and makes it even easier for a scam... On the other hand, although centralized exchanges can provide some level of security and ease of use, they can also be vulnerable to hacking and technical failures. Having access to customer data can be beneficial to running a business, but it also comes with a greater responsibility to protect the privacy and security of customers personal data.

I would say that before accepting Bitcoin in a business, it is essential to do extensive research, understand the risks and benefits associated with its use, and be familiar with local regulations... Well, although I would like the idea of using Bitcoin in business, currently it would not be recommended due to all the risks involved.

[Agbe]

• If for example a user of a custodial wallet sends Bitcoin to buy some goods and the seller voluntary chooses not to meet their end of the bargain, who are they going to complain to?

If the seller is also using a custodial wallet then the buyer should report the issue to the seller's exchange platform and give them all the necessary documents but still yet the issue is complicated. The buyer coins will lost because they are not from the same Platform.

• In countries where crypto are considered illegal isn't it risky to accept Bitcoin as a medium of exchange? Then why are some people still accepting it?

Even though the country take bitcoin as an illegal asset, you can still accept bitcoin in the non custodial wallet where the authority can not see. You can accept it and store or sell it back in the exchange platform to get your money back to the business.

• In a trade does the buyer send their Bitcoin first or the seller send their goods/service?

The person that is buying the bitcoins should first send the money and when the seller received the money then he would release the bitcoin to the buyer.

[sokani]

If for example a user of a custodial wallet sends Bitcoin to buy some goods and the seller voluntary chooses not to meet their end of the bargain, who are they going to complain to?

If Bitcoin is legal in your country, then you complain to the authorities with proofs of payment and they will definitely look into it and see that you get your goods or a refund. Now, this is if the person has a physical store or a business that's registered but if it's just some random fellow you met online then, the authorities might not be able to help you.

In countries where crypto are considered illegal isn't it risky to accept Bitcoin as a medium of exchange? Then why are some people still accepting it?

It depends on the nature of the ban. If the country says Bitcoin is illegal then you stay clear to avoid getting yourself into trouble but if it's a partial ban like the case of Nigeria then you have nothing to worry about.

In a trade does the buyer send their Bitcoin first or the seller send their goods/service?

I think any person can initiate a trade, the most important thing is know who you're dealing with. If the goods is been sold online, in most cases the buyer is required to pay first and his goods is shipped down to him.

[serjent05]

• In countries where crypto are considered illegal isn't it risky to accept Bitcoin as a medium of exchange? Then why are some people still accepting it?

Even though the country take bitcoin as an illegal asset, you can still accept bitcoin in the non custodial wallet where the authority can not see. You can accept it and store or sell it back in the exchange platform to get your money back to the business.

Yeah @OP can do that but I would suggest that @OP will follow his country's regulation.  If it is banned in his country, he either move to the country where Bitcoin is legal to continue is Bitcoin transactions or stop his Bitcoin activities just to make sure that he won't get in trouble in the future.  It is better to be safe than sorry.

• In a trade does the buyer send their Bitcoin first or the seller send their goods/service?

The person that is buying the bitcoins should first send the money and when the seller received the money then he would release the bitcoin to the buyer.

It should be because the bank transfer can be reverted if the Bitcoin seller failed to send the Bitcoin to the buyer but it is still dependent on the agreement of the two parties. 

[Antonas1]

The question should be more specific about what goods or services you want because the answers will be different. As a simple illustration, if you buy a glass of coffee from Crypto Coffee in Australia, paying is secure and simple. Try reading A beginners guide to spending your BTC - Cointelegraph for your reference.

Meanwhile, legal issues depend on the government in your country. Just be aware of the risks involved in breaking the law and avoid doing so.

[Jawhead999]

As always, a thread talking about business accepting Bitcoin as a payment when the most important thing in business is how to survive, how to reach break even point, and how to maintain it, not about accepting an alternative payment. How many people are use Bitcoin as a currency? I bet it's far far less than people who use Bitcoin for trading and investment. If people aren't use Bitcoin as a currency, which mean the demand is low, how it's can be important to accept Bitcoin?

[Fiatless]

I have read through the answers y'all given and its appreciated.My country Nigeria banned crypto but its not really illegal but no enforcement would try to protect you in the advent of a Scam. I have gotten some insights but am still confuse, Doesn't it mean that for Bitcoin to be safely used in a business an organized body should exist to protect customers or sellers alike. Would this affect the decentralization of Bitcoin?

Bitcoin and other cryptocurrencies are not banned in Nigeria. Citizens are free to use crypto as a form of payment and no enforcement agency will sanction you for using them. The only issue is that banks are not allowed to engage in crypto transactions. This was not the case before until the Central Bank of Nigeria gave commercial banks directives not to allow their customers to use accounts for crypto transactions. Apart from these bank restrictions, you can use crypto for any form of payment and it is recognized as a currency in the country.

Some laws guide crypto operations in Nigeria and one of them is the Investments and Securities Act 2007 (Amendment). There are also existing laws and agencies that protect crypto users in Nigeria which include the Securities and Exchange Commission (SEC), Nigerian Cyber Crime (Prohibition, Prevention) Act 2015, and the Consumer Protection Framework of the Central Bank of Nigeria (CBN). So you can sue or be sued for any faulty crypto transaction in a law court in Nigeria.

[tjtonmoy]

• If for example a user of a custodial wallet sends Bitcoin to buy some goods and the seller voluntary chooses not to meet their end of the bargain, who are they going to complain to?

No one. Because you cannot get back sent bitcoins as it is irreversible. That's why you need to confirm first before paying and make sure both parties agree on the deal. Never send Bitcoins before verifying.

• In countries where crypto are considered illegal isn't it risky to accept Bitcoin as a medium of exchange? Then why are some people still accepting it?

I was one of them who accepted Bitcoin while it is illegal here. At that time, it was in a gray area. Neither legal nor illegal. After some events that took place in our country, some were put to jail just because they owned crypto. So after that, for my own safety, I choose not to accept it anymore. It is wise to not accept Bitcoin where it is illegal.

• In a trade does the buyer send their Bitcoin first or the seller send their goods/service?

Depends on what you are looking for. Also, depends on the service provider and their terms and conditions. Some will ask for the payment beforehand and some will ask for it after they have provided their services. So can't tell for sure which one is available and where.

[Blitzboy]

Concerning fraudulent transactions, it is true that there is no central authority to complain to in the event of a dispute. Nonetheless, this highlights the significance of trust and reputation systems in the Bitcoin ecosystem. Accepting Bitcoin as payment might be risky business in nations where such transactions are outlawed. The advantages, though, like as lower transaction fees and worldwide reach, make it appealing to some. They think the benefits will exceed the dangers.

It is customary for the parties to negotiate who will send the Bitcoin first: the buyer or the supplier of an item or service. For maximum security, the exchange should happen entirely at once. Even though trust is crucial, it is not the sole reason why the Lightning Network is so much quicker. Smart contracts protect payment channels, guaranteeing the safety of online financial dealings.

It's important to keep in mind that data breaches are rather prevalent, and centralized exchanges do have access to consumer data. And therefore, even if it appears "safer," there are still dangers lurking beneath the surface.