Making payments with Bitcoins

[Mpamaegbu]

Should the buyer that made payment with Bitcoin pay an extra charges in a situation where the Bitcoin market is not looking favourable so that the seller will not run into lost.

This day, Bitcoin transactions easily confirm within a few minutes unlike what it used to be with it taking several hours. I've had my transactions stuck twice for over 72hrs. It was messy. I think those who paid with Bitcoin during the period I'm referring to really suffered untold hardship. The few who were street wise had to swap to stablecoins before they bought anything instead of attempting to buy directly with Bitcoin. Anyway for proper context, I think anyone accepting payment in Bitcoin also should be aware that there's fluctuations in price. We shouldn't just look at when it dips during payment before it confirms. It also has the ability to spike before it confirms. It's a two way thing.

[aoluain]

Let's say that most wholesalers and retailers started receiving payment for goods bought with Bitcoin. What do you think can happen to the seller when the price of Bitcoin eventually drops and he or she is about to go to market to purchase more goods into his warehouse or stores. Should the buyer that made payment with Bitcoin pay an extra charges in a situation where the Bitcoin market is not looking favourable so that the seller will not run into lost.

So if the market drops 30% the customer cannot be expected to pay that difference.

Its my understanding that in terms of groceries a shop will likely have on average a
weeks supply of stock, most perishable goods maybe 3 days.

Regarding the Bitcoin market price its a matter of swings and roundabouts, when the
market rises do the customers get a 30% discount?

So my salary is paid in FIAT, I would much prefer to buy my weekly goods in FIAT
and buy Bitcoin to HODL. It makes sense to me that way.

So until everyone is paid in Bitcoin people will continue to buy and sell in FIAT

[Hypnotizer]

Let's say that most wholesalers and retailers started receiving payment for goods bought with Bitcoin. What do you think can happen to the seller when the price of Bitcoin eventually drops and he or she is about to go to market to purchase more goods into his warehouse or stores. Should the buyer that made payment with Bitcoin pay an extra charges in a situation where the Bitcoin market is not looking favourable so that the seller will not run into lost.

Well, some of the wholesaler and retailers that are currently accepting bitcoin usually convert the bitcoin they’ve accepted directly to fiat, so your assumption is wrong in this case. The other part of the wholesaler and retailers that don’t convert it to fiat directly might decide to Hodl the bitcoin as a reserve or something else.

The real turning point in merchant accepting bitcoin payment is when they value their product with bitcoin and put a price tag for their product in bitcoin without comparing to to any fiat. For example, if I want to sell a house in the countryside and then I value my house with bitcoin, let say I value the house to be 0.5btc then the buyer will pay me in bitcoin. And this scenario is only possible if I will spend the money I got from the trade in bitcoin without converting it to fiat.

[hugeblack]

Most retailers accept Bitcoin through Bitcoin processors. These processors accept Bitcoin and send the equivalent amount to the merchant's bank account, so I don't think they have a problem with volatility.Stores that accept Bitcoin payments directly (hold the Bitcoin) have less than 5% of their total transactions in Bitcoin and are therefore more resilient to volatility.

[krishnaverma]

Let's say that most wholesalers and retailers started receiving payment for goods bought with Bitcoin. What do you think can happen to the seller when the price of Bitcoin eventually drops and he or she is about to go to market to purchase more goods into his warehouse or stores. Should the buyer that made payment with Bitcoin pay an extra charges in a situation where the Bitcoin market is not looking favourable so that the seller will not run into lost.

This is not possible at the moment because bitcoin prices are very volatile. Like for coins like USDT, what you mentioned might be happening on large scale in case of digital services. May be in future when bitcoin is very common for all, the price will also stabilize and then it can be used for these kind of payments.

[batang_bitcoin]

Let's say that most wholesalers and retailers started receiving payment for goods bought with Bitcoin. What do you think can happen to the seller when the price of Bitcoin eventually drops and he or she is about to go to market to purchase more goods into his warehouse or stores. Should the buyer that made payment with Bitcoin pay an extra charges in a situation where the Bitcoin market is not looking favourable so that the seller will not run into lost.

They can ask for additional payments but that will make the bitcoin payors to avoid the transaction in that form. They'll revert to the usual payment method that won't cost them additional fees. So what the retailers, wholesalers and merchants will do is to use a third party payment service which allows the payments done in Bitcoin to be converted automatically into fiat or stable payment which can help them to be intact with the value during that period of payment for their goods not to be affected by volatility.

[Mallampue]

Should the buyer that made payment with Bitcoin pay an extra charges in a situation where the Bitcoin market is not looking favourable so that the seller will not run into lost.

What if the price increases, do merchants have to return some of the increased value?
When merchants decide to implement bitcoin payments, one of the main things they will tolerate is volatility. They no longer have to worry about who will bear the cost of the value reduction. After all, as mentioned above, there are many strategies to protect value.

If that is the claim then it is indeed contradictory in this case, but on the record it must be an important choice where someone when wanting to trade and make bitcoin as a medium of exchange must understand how to secure its value to be safer, of course in trade it requires a turnover of money where we can make the bitcoin we get from selling coal to immediately move to stablecoins for example, or to fiat directly to spend again buying raw materials, this is a lot of options to maximize.
We realize that volatility is an obstacle in terms of fast trading, especially in relatively down market conditions, for example like now.

[m2017]

Let's say that most wholesalers and retailers started receiving payment for goods bought with Bitcoin. What do you think can happen to the seller when the price of Bitcoin eventually drops and he or she is about to go to market to purchase more goods into his warehouse or stores. Should the buyer that made payment with Bitcoin pay an extra charges in a situation where the Bitcoin market is not looking favourable so that the seller will not run into lost.

Let's consider the following example.

Bitcoin= $50,000. The buyer paid the equivalent of $100 in btc for the item. After one year, bitcoin = $100,000. Now, the equivalent paid in btc would be worth $200. So, in a sense, the buyer, when paying in bitcoin, always pays hidden additional fees due to the growth of bitcoin. These fees are expressed in btc, because the purchase now requires more units (sat.) of bitcoin than it would require later (in a rising market).

The next point.

I believe that when the cryptomarket and the BTC's price fluctuate, the buyer should not pay any additional fees to compensate the seller for the loss. This will increase the final price for the buyer, who will find it more profitable to buy elsewhere and with a different currency. These are the laws of the market. On the contrary, I believe that to encourage large groups to pay for purchases with bitcoin, sellers should reduce the price of goods (by a few percent) when paying with bitcoin, encouraging them to pay with btc rather than with traditional currencies.

I believe that for a seller to profit from selling with bitcoin, all btc received as payment should be considered an investment (future) and should not be sold until it becomes profitable (if received in a falling market). And to purchase new goods, it is necessary to have current working capital for these purposes. I understand that this creates financial difficulties for the business, but the buyer is certainly NOT obligated to cover the seller's expenses arising from the volatility of the bitcoin price.

[FinneysTrueVision]

Should the buyer that made payment with Bitcoin pay an extra charges in a situation where the Bitcoin market is not looking favourable so that the seller will not run into lost.

Some payment processors do have an exchange rate different from the spot price of Bitcoin on exchanges, which effectively is like an extra charge. I’m not sure of the specific reason, but it could be to account for volatility between the time the order is placed and when the transaction is confirmed and also allowing some time for conversion to fiat.

Even for stablecoin payments, you can end up paying 11 USDT for a $10 product. I assume it’s because of depeg risk or to cover some of their fees. Whatever the reason, merchants are already considering different factors when showing you the final price at checkout.

[Asuspawer09]

I've said it many times on my topics about merchants or stores accepting Bitcoin, it is going to be the same as investing in Bitcoin, if you aceept Bitcoin on your store it is just like you are buying Bitcoin and investing because your customers are just paying you Bitcoin so, its like they pay you fiat moeny and then you immediately buy Bitcoin with that money, So that just means that you are on the risk when the market price of Bitcoin drops as well you are losing money as well same as investing, Personally think that it is not something that is great as a payment method since you are risking your business as well on investing because on a business cash flow is very important, without cashout or liquidity your business is at risk, if your money liquidity is on Bitcoin it is something that you could easily just sell especially when the market price is dropping because if you sell at a lower market price you are surely losing some money.

I wouldnt going to recommend it but if you are accepting Bitcoin it could be great if you are going to hold for long term, as long as you manage your business finances well, making sure that you have cash flow and liquidity you could operate and accept Bitcoin on payments on your business.

[YOSHIE]

Let's say that most wholesalers and retailers started receiving payment for goods bought with Bitcoin.

As far as I know, wholesalers and other traders, if they want to use Bitcoin as a means of payment for their trade, it is not based on the price of Bitcoin itself, but on the exchange rate.
For example:
The price of Bitcoin is $100/piece, if you spend $500 it means you are only giving 5 Btc and if the price of Bitcoin is $86k like now, it means you are only giving the trader 0.00578btc with the current value of $500 and so on.

This means that merchants are not at a loss, they receive goods in Bitcoin based on the $ value, not the Bitcoin value.

[freedomgo]

No person will accept bitcoin as payment if he's not totally aware of its volatility. This is the reason why only few managed to accept bitcoin as a payment method because majority are still hesitant and have no clear knowledge how to maximize bitcoin's advantage. And while others have known it already, but they are not prepared to lose from bitcoin, so they prefer to accept cash rather than compromising their own money when bitcoin price fluctuates and drops so low.

However, if global adoption will take place, these entrepreneurs will never worry anymore, but this requires a longer process first before global adoption will turn to reality.

[Gost ms]

It seems to me that this is very simple. Because you will see that when we buy something from the market, the price of that thing is set on it. If the price of Bitcoin decreases, then you will pay the amount that is written on the product.

Again, if the price of Bitcoin increases a lot, then you will immediately convert your Bitcoin into dollars or wait for some time, then you can also make transactions in this way if you want. However, the volatility of Bitcoin will remain, which is a very big problem in the case of transactions. If Bitcoin did not have such volatility, then perhaps Bitcoin payments would have been launched in many shops. Although it has been launched in many places now.

[macson]

It is not the buyer's responsibility to understand this, but it is the seller's responsibility to understand the risks of accepting bitcoin in their business because it is volatile from the start.

But sellers can avoid this situation by partnering with payment gateways that can convert their bitcoin directly to fiat. This way, sellers avoid the risk of direct volatility because transactions are immediately converted to fiat currencies like dollars or euros when the buyer pays.

[simonova]

Let's say that most wholesalers and retailers started receiving payment for goods bought with Bitcoin. What do you think can happen to the seller when the price of Bitcoin eventually drops and he or she is about to go to market to purchase more goods into his warehouse or stores. Should the buyer that made payment with Bitcoin pay an extra charges in a situation where the Bitcoin market is not looking favourable so that the seller will not run into lost.

They are not using it for bulk payments only because of volatility in price of bitcoin.

The situation you are imagining is not possible in near future because bitcoin prices will remain volatile for next few years as well.

[Zigabel]

Let's say that most wholesalers and retailers started receiving payment for goods bought with Bitcoin. What do you think can happen to the seller when the price of Bitcoin eventually drops and he or she is about to go to market to purchase more goods into his warehouse or stores. Should the buyer that made payment with Bitcoin pay an extra charges in a situation where the Bitcoin market is not looking favorable so that the seller will not run into lost.

It will not be fair for such a buy to pay extra because if the Price of Bitcoin were going up, it will not mean that the other will then pay les, in such transactions, the quantity of the Bitcoin is not what i think is considered first but the worth of the goods and the Bitcoin that is to be sent as a purchase means for such so whatever amount that has been sent already before the fall of the market should be retained and both parties accept it in good faith.

[Obim34]

Let's say that most wholesalers and retailers started receiving payment for goods bought with Bitcoin. What do you think can happen to the seller when the price of Bitcoin eventually drops and he or she is about to go to market to purchase more goods into his warehouse or stores. Should the buyer that made payment with Bitcoin pay an extra charges in a situation where the Bitcoin market is not looking favourable so that the seller will not run into lost.

Receiving Bitcoin as a payment option is different from holding it after sales. There are gateway providers that automatically convert every received BTC deposit, perhaps any form of cryptocurrency, into a stable currency or any local currency.

A business owner who accepts crypto payment has to consider the possibility of running into loss due to price volatility, whereas should integrate a payment processor in order not to run into loss.

The amount of Bitcoin in pay is equivalent to a stable price, you don't pay extra to cover owners risks.

[Pauldesaints]

There is no need asking the buyer for extra charges before accepting Bitcoin as a means of transactions for goods and services,it's volatile nature should be considered first,so you have to bear it during the time of price declines as you will smile and never returned the extra value addition to the buyer during the time of price increase.

[CryptoHeadlineNews]

Let's say that most wholesalers and retailers started receiving payment for goods bought with Bitcoin. What do you think can happen to the seller when the price of Bitcoin eventually drops and he or she is about to go to market to purchase more goods into his warehouse or stores. Should the buyer that made payment with Bitcoin pay an extra charges in a situation where the Bitcoin market is not looking favourable so that the seller will not run into lost.

So what if the buyer pays with Bitcoin and then few days later the price of Bitcoin skyrocketed, will you refund the buyer who paid with Bitcoin? I'm pretty sure you won't, right? Because just the same way you won't like to refund when it's value skyrocket, then that's the same way you shouldn't expect a refund from anyone. Because the kind of payments that it's always advisable to receive with Bitcoin is a payment made for services rendered, and not that of goods, due to it's volatile nature, as you might lose your profits and unable to go to the market to buy more goods again.

[Rruchi man]

As for the business, it's either the operator liquidate the coins right away or risk keeping it for a while to make additional profit. It's for him/her to decide. Whatever happens, it's his/her full responsibility, not the customers'.

When a business owner chooses to accept payment in bitcoin, it becomes a choice for them to make either to have that payment turned into an investment in bitcoins or not to.

If the intention is to turn it into an investment in bitcoin, then the business owner may choose to leave the payment in bitcoins and continue to accumulate more through clients' payments.

Not all business owners will be capable of turning all payment received in bitcoins into direct investment in bitcoins; it is only business owners who have a huge reserve of fiat that can do so, that way they need not be changing their crypto investment to fiat to restock business supplies and essentials.