How do they managed ?

[Jawhead999]

As long as the company is serving to every country this world, paying in cryptocurrency is actually the best choice since it's cheaper and faster than banks or international payment processor. If people are scared with volatility, they can use stablecoin to overcome that.

If the country isn't accepting Bitcoin as legal tender, it means they will convert the coins to fiat using third party.

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[stompix]

If you read my thread, you will understand the strategy that I use that doesn't cause me any trouble with price volatility. Other users might have their own strategy, which might be quite different from my own, but I think that the best strategy for accepting Bitcoin payments is to convert from Bitcoin to Fiat after you have received the payment.

Large companies with a ton of payments can't afford to sit and wait, a 5% drop when you're taking 0.5% margin would mean you need to basically pay for all the infrastructure and wages and everything for 10 days just to cover that drop, imagine Walmart doing this on a few billions a day!

But in short there are basically two large types of merchants:
Little business with small BTC payments that have a few clients a day and threat the BTC investment as they would have bought it at the exact time with their own cash
Companies with higher turn-overs that simply add a payment processor that accepts Bitcoin which usually has multiple accounts on exchanges, filled up with coins so the moment your payment goes through the exact same amount is being sold on an exchange for $, so  previously
- you had some coins, the processing company had some coins on an exchange the merchant had the goods
- now you have the goods, the payment gateway got your coins, the coins on the exchange are being sold and the fiat is handed to the merchant
And all this happens in seconds, the volatility is so little it's of no concern!

Of course there are more variances but the biggest chunk act like this!

And I think they make money profit than the normal business owners that accept only fiat because when they sell something when Bitcoin is low, the person would pay it with higher units to balance the price and if that Bitcoin is there until the bull market then they will make more profit both from the product and from the Bitcoin. Therefore accepting Bitcoin is a very good business.

So why are there no real large chain selling goods for bitcoin and the largest companies that do so accept to a gateway that converts it to fiat instantly?
Maybe because it can bankrupt you when it goes the other way around?

As long as the company is serving to every country this world, paying in cryptocurrency is actually the best choice since it's cheaper and faster than banks or international payment processor.

You're telling me Bitcoin payments are cheaper and faster than Visa?  Common! Let's be serious!
We're talking on this forum about the huge the fees for signatures payments and you come with this?

[Awaklara]

Some of the major business which accept bitcoin and other volatile cryptocurrencies as means of payment for the goods are big business who are not moved by those little price drop and they don’t use all they make out from the business at the end of the month to pay all salary and replace refill the store most of the sales are also going into their reserve account and the payment which are receive with bitcoin and other currency can serve as that reverse for the company which I believe they have already put such into consideration before starting to accept bitcoin.

That means business people use other money first to carry out their business operations. and leave the Bitcoin or other crypto assets they receive. That also makes sense, because business suppliers do not necessarily accept Bitcoin. and business people must prepare reserve funds to run their businesses when Bitcoin and other accepted crypto assets can be converted to stable assets or even fiat if the price allows it.

but for large business people, I am sure they are already planning to use Bitcoin and other crypto assets as a means of payment. Of course, they will also ask the supplier to accept Bitcoin or certain crypto assets to make their business relationships easier.

[Webetcoins]

I see many business companies in the world are currently accepting Bitcoin or cryptocurrency as payment. We all know that cryptocurrency is associated with high volatilities, now I have a curious mind, how do they cover up by accepting these high volatility coins?
Do they all use the gateway to exchange those for stable coins or do they hold that?

It depends on the business owner/individual that is accepting cryptocurrencies as payment against their products or services whether they want to keep the coins or get them exchanged for a stablecoin right after they are received. Most businesses and individuals, running small businesses and offering the facility to their customers to be able to pay with cryptocurrencies, use payment gateways or services that allow them to convert the received coins and tokens to either stablecoins or fiat currency.

If a store owner or an individual service provider decides to keep the coins and tokens for themselves instead of swapping them immediately, they take responsibility for the loss that might incur in case the coin or token they are receiving loses value while those who swap them immediately remove the risk of losing value on their asset.

[bayu7adi]

I consider the OP as one of the major points that has dampened the massive adoption of blockchain as a payment solution.

The volatility in price is really a challenge for small scale businesses. Not all of them are aware of usdt, they only hear about Bitcoin and their confidence is built around it but they dare not integrate Bitcoin into their businesses as they consider the volatility a possible disadvantage to the businesses they run. Who covers for the negative values that might be lost in the event of a drop in Bitcoin paid, most times, these negative values are significant in the net profit calculations.

Couldn't they make instant trade by exchanging cryptocurrency that sellers accept as payment using a payment gateway like Coingate? I think another barrier that might be a major issue is that very few people accept Bitcoin payments in their stores due to the small number of Bitcoin users worldwide.

We have to admit that there aren't many Bitcoin users yet (when compared with the most common medium of exchange, FIAT) , although it's progressing. But right now, not all businesses find it effective to use Bitcoin as a payment tool. I'm not downplaying Bitcoin, but I'm just confident that paper money will phase out in the next few years, replaced by digital currency, and Bitcoin might find its place during that transition period.

Someday we will enter a time where small shops will consciously adopt digital currency, and cryptocurrency will become stronger because it is digital too.

[NNRR]

Since various big institutions or traders have cryptocurrency payment gateways, they have made this effort with Ricks because they know how volatility works in the market, whenever the market fluctuates, they have done it knowingly, they have assumed that they may sell their holdings at a higher price.

[0t3p0t]

Many are using payment processors that allows them to automatically convert bitcoin to fiat.

Indeed and I am one of those who use this kind of payment method way back 2017 wherein weekly Bitcoin rewards from signature campaigns were automatically be converted to my local currency and that is for me the best way to dodge the risk of volatility. And since our local Bitcoin wallet does not support bech32 I stop using it for now as signature campaigns requires a bech32 address.

[AVE5]

Every organisations that its goal is to be financially be profited which accepts Bitcoin is assumed that they understands the potential values of Bitcoin that it is not only an alternative source for transactions but also for source of investments that proffers incomes with the volatility reverse biased and forward biased of the Coins.
Hence who accepts Bitcoin is usually in for investment because you would tend to recover or make profits in the space at when you know the markets system is unstable else there could be depreciative lost of funds at the falling of the marketing.
So, possibly they could accumulate, hodl to creating an alternative impactive sources to make incomes while accepting crytop all along.

[Wexnident]

They probably either A, overprice the products, or B, just keep the Bitcoin as is and not convert it to fiat immediately. The margin for overpricing would probably depend on the average movement of the price and if they have a bit of knowhow, make the price adjustments automatically based on the past 24H changes which change with every 1H interval. Pretty doable if you know a bit and if not, can hire some hands to help with it.

For the latter, well, it's like what it sounds. They probably just consider whatever amount that goes into their Bitcoin wallet as a funnel for their investment from their store sales or something since not all sales are done with crypto most likely in the first place.

[Outhue]

It depends on those who are accepting Bitcoin, I suspect that most of them will change the Bitcoin back to stable coin instantly right after the transaction is successful while some will want to hold, this is something I use to do before the high transaction fee made me stop, right now I prefer accepting Fiat and use that to buy some Bitcoin on Binance until I am ready to move the Bitcoin back into my hardware wallet.

Right now, my customers who are used to paying me with Bitcoin have changed their minds since the high transaction fee on Bitcoin Network, it's pretty hard to accept Bitcoin as means of payment now because many customers wont be ready to pay you using Bitcoin, they would rather use other means and hold their Bitcoin.

Bitcoin as a payment option only makes sense if the product they want to buy is very high in value, like in thousand of dollars then using $10 per transaction will be good or even more, but trying to buy anything in the hundred of dollars makes no sense to many and I don't blame them.

[legendbtc]

As long as the company is serving to every country this world, paying in cryptocurrency is actually the best choice since it's cheaper and faster than banks or international payment processor. If people are scared with volatility, they can use stablecoin to overcome that.

If the country isn't accepting Bitcoin as legal tender, it means they will convert the coins to fiat using third party.

I don't think bitcoin's transaction fees are cheaper and faster than bank payments and not even comparable to cash. You won't even incur any additional transaction fees if you use cash to pay at stores near your area. For example, I will not incur additional transaction fees when buying chicken feet and coke at KFC with a bank card or cash, and I will quickly complete the transaction without having to wait. Bitcoin is indeed superior to fiat money and banks, but it is not comprehensive in every way, we accept that fact.

[BITCOIN4X]

I see many business companies in the world are currently accepting Bitcoin or cryptocurrency as payment. We all know that cryptocurrency is associated with high volatilities, now I have a curious mind, how do they cover up by accepting these high volatility coins?
Do they all use the gateway to exchange those for stable coins or do they hold that?

No one tells us how they do it, it all depends on what the adopter's goals are.
If it were me, maybe I would hold it and not sell it until a certain time limit or at least when I make a profit instead of immediately converting it into fiat. This is a double opportunity to earn profits in addition to profits from the goods I sell. It's just that you still have to have a reserve budget to cover your business needs so that it continues to run according to plan.

There are risks to consider regardless of what decision the adopter makes, so it's up to them to do it as long as it's good for their business. Selling immediately or holding bitcoin long term is fine as long as they believe it is best to keep their business running.

[Abu-Naim]

I see many business companies in the world are currently accepting Bitcoin or cryptocurrency as payment. We all know that cryptocurrency is associated with high volatilities, now I have a curious mind, how do they cover up by accepting these high volatility coins?
Do they all use the gateway to exchange those for stable coins or do they hold that?

Some of these business owners are bitcoin investors who are willing to hold more bitcoin in their wallets, which is why they are unconcerned about volatility because most of them have a target to meet, most likely through their DCA method of buying, and once they meet their target, they either stop for a period of time; or they make bitcoin payment optional and use their money to run the business while still holding bitcoin. Some people simply follow trends without understanding the risks involved, which is why some fail along their way.
Some of them use their personal bitcoin wallets to receive the funds and keep running their business.

[alankasman]

No one tells us how they do it, it all depends on what the adopter's goals are.
If it were me, maybe I would hold it and not sell it until a certain time limit or at least when I make a profit instead of immediately converting it into fiat. This is a double opportunity to earn profits in addition to profits from the goods I sell. It's just that you still have to have a reserve budget to cover your business needs so that it continues to run according to plan.

My view is how they do it by playing the roles of each part as stated in the structure that covers that part. Now that I think about it, probably no company would tell us how they do it.
I also have the view that large companies that accept Bitcoin and cryptocurrency as a means of payment, they use it as an investment asset that is obtained consistently through this channel without having to buy on an exchange.

What I mean by companies that accept Bitcoin as a means of payment for investment assets are large companies that have sufficient financial reserves to cover other needs for capital. I don't mean other small businesses here, although some accept Bitcoin payments.

[umbara ardian]

It's fascinating to see the different strategies businesses employ to navigate this dynamic landscape, each seeking a balance between risk and reward. The immediate conversion to stablecoins or fiat approach prioritizes stability and predictability. For businesses reliant on consistent cash flow, minimizing exposure to price swings is crucial. By converting crypto instantly, they avoid potential losses while still capturing the benefits of attracting crypto-paying customers.

However, the dual approach of holding a portion for potential gain adds an element of speculation. This strategy acknowledges the potential appreciation of cryptocurrency and attempts to leverage its long-term growth. Companies willing to take on this risk can potentially reap significant rewards if the market takes a favorable turn.

[milewilda]

I see many business companies in the world are currently accepting Bitcoin or cryptocurrency as payment. We all know that cryptocurrency is associated with high volatilities, now I have a curious mind, how do they cover up by accepting these high volatility coins?
Do they all use the gateway to exchange those for stable coins or do they hold that?

Yes, they would really be definitely be having those payment partners or processors on which they do accept out crypto but recieving on would really be converted it to fiat on which
this is something that we would really be knowing about on which those businesses wont really be that too confident on storing or accumulating or keeping up those in crypto form
on which considering on the volatility of this asset or coin then it would really be that understandable that they would really be that having that kind of securing out their profits
on which its not already shocking on having this way. It would really be that impossible that they wouldnt really be able on having at least wary about those things
that they would really be seeing that it could really be able to affect out in overall profitability due to volatility. Of course they would really be that assuring out
that they wont really be that affected.

[reagansimms]

I see many business companies in the world are currently accepting Bitcoin or cryptocurrency as payment. We all know that cryptocurrency is associated with high volatilities, now I have a curious mind, how do they cover up by accepting these high volatility coins?
Do they all use the gateway to exchange those for stable coins or do they hold that?

No one tells us how they do it, it all depends on what the adopter's goals are.
If it were me, maybe I would hold it and not sell it until a certain time limit or at least when I make a profit instead of immediately converting it into fiat. This is a double opportunity to earn profits in addition to profits from the goods I sell. It's just that you still have to have a reserve budget to cover your business needs so that it continues to run according to plan.

There are risks to consider regardless of what decision the adopter makes, so it's up to them to do it as long as it's good for their business. Selling immediately or holding bitcoin long term is fine as long as they believe it is best to keep their business running.

What is clear is that the goal is to make a double profit, apart from making a profit from the goods sold, they can also make a profit when the price of Bitcoin has soared. In theory they don't need to bother buying Bitcoin, this advantage can make it easier for them to collect Bitcoin without having to go directly to the market.

In business there are always risks that need to be considered, those who accept Bitcoin as a payment medium have considered the risks involved. The percentage ratio of risk is smaller than the profit obtained based on their research on Bitcoin resistance to pressure pressing from various directions, makes them very confident in the marketing strategies used in business.

[Kuntus]

In my humble opinion, as we can not really tell how they do it except we own and run our own businesses.  I would say that before companies decide to receive payment in bitcoin there are measure they must have put in place, given the fact that they know the volatile state of bitcoin, by this I mean they could consider converting BTC into stablecoins, or even hodl to earn more when pricing increases. The decision remains theirs to decide how it would benefit their companies.

[Natsuu]

Businesses accepting crypto usually use payment processors that quickly turn the crypto into regular money, reducing the impact of price swings. While some might keep a bit in crypto, most aim to convert it to avoid dealing with market ups and downs.

[peter0425]

I see many business companies in the world are currently accepting Bitcoin or cryptocurrency as payment. We all know that cryptocurrency is associated with high volatilities, now I have a curious mind, how do they cover up by accepting these high volatility coins?
Do they all use the gateway to exchange those for stable coins or do they hold that?

Some of the companies I knew that accepts crypto are offering services meaning there is no need to circulate as fiat and they can just keep holding those cryptos and cover their expenses from those customers that pays fiat , meaning they can carry much crypto in their pocket without carrying about the volatility .