Making payments with Bitcoins

[Russlenat]

That is the sole responsibility of those who accept bitcoin as a payment, the reason why they should not decide to cater bitcoin if they don't know yet the risk of losing, if they don't know yet the volatile nature of bitcoin.

Making payments with bitcoin may make Satoshi felt happy, but that is not the case here. The real challenge is on how to accept the loss once bitcoin drops its value, that is why if you think you're not ready for that, its better not to accept bitcoin as a payment, just focus bitcoin as an investment tool.

[iBaba]

That is the sole responsibility of those who accept bitcoin as a payment, the reason why they should not decide to cater bitcoin if they don't know yet the risk of losing, if they don't know yet the volatile nature of bitcoin.

Making payments with bitcoin may make Satoshi felt happy, but that is not the case here. The real challenge is on how to accept the loss once bitcoin drops its value, that is why if you think you're not ready for that, its better not to accept bitcoin as a payment, just focus bitcoin as an investment tool.

The people who are accepting bitcoin as payment must know the risk as well knowing fully well that bitcoin price can go up and down in the fastest way you can imagine which is what they call volatility. If a shop take bitcoin for something worth like 90$ today, tomorrow if the price should drop they will definitely lose money and I don't think every business person doesn't want to such surprise loss. So if you are not ready to handle such losses, then it is better for you not to accept bitcoin as payment. It is better you should just hold bitcoin as investment and grow it to your target.

[suhadi88]

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.

Quite an interesting analogy, relating the conditions to the situation. A transaction occurs when there is an agreement, and an agreement is made; payment occurs when both parties have agreed on what will be received and paid.

Regarding fluctuations, I don't think there's a problem at all, and both the seller and the buyer are already consciously aware of the risks involved. The important thing is not to let this situation become untenable when the BTC price rises. If the seller and buyer both understand, it's easy, unless one of them is in doubt, the sale and purchase agreement will definitely be cancelled or they can take the middle route by using fiat or USDT to pay.

[ancafe]

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.

It's highly unlikely that any purchase will exceed the price of the item, even if using Bitcoin, and almost no one wants to do that. This is a consequence faced by Bitcoin payment service providers because Bitcoin's price is naturally volatile. If Bitcoin payment recipients lack capital, it can impact their business operations because they must purchase goods weekly and cannot sell Bitcoin at a lower price.

Lack of capital can impact their business operations because accepting Bitcoin payments poses a risk when fulfilling new purchases to replenish their store inventory. Therefore, before deciding to accept Bitcoin payments, they must prepare for all eventualities to avoid being impacted by a drop in Bitcoin's selling price.

[AprilioMP]

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.

When faced with a situation where a merchant accepts Bitcoin payments from buyers for their goods, the transaction will be based on the Bitcoin price on the day and time it is made. If the total price of all goods purchased at that time is calculated using the Bitcoin price at that time, say 0.007 for prices above $60, then that is the amount the merchant will receive.

When the merchant returns to purchase goods for resale and the Bitcoin price has fallen, if they pay using Bitcoin, the price will be adjusted to the Bitcoin price at that time. The buyer is not responsible for any profit or loss incurred by the merchant selling the goods.

[capokmerah]

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.

Even if a transaction like the one you describe occurs, we shouldn't view it from a single perspective. What you're saying is that if the Bitcoin price falls, the seller loses and the Bitcoin price rises? The seller can maximize their profit. Given the volatility of Bitcoin prices, such transactions are mutually beneficial. Therefore, the buyer doesn't have to incur additional costs to prevent the seller from incurring losses when the Bitcoin price falls.
And once the transaction has occurred, both parties have agreed to it, so there's no need for further debate.

[Agbe]

Snip

Op you have to understand something about bitcoin. Bitcoin itself never drop in Price but the exchange rate with dollar is the one dropping. Example. If I have 0.05 bitcoin when the price with dollar exchange rate was $110,000 and now the exchange rate is $88,257. The 0.05 bitcoin will still be there and you will not lose any value or figure from the amount and the only thing you will loss is the dollar exchange rate. So if you keep your bitcoins till another bull market when the exchange rate has increased, you make profit and gain back your money.

Traders who accept bitcoin should have extra funds for market things so in case the price of dollar dropped, they will use the backup funds to buys things at the main time until the price regain itself.

[leonair]

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.

For these reasons, no one wants to add a Bitcoin payment gateway to their business. The price of Bitcoin is not fixed, so its price can go down or up at any time. In this case, when someone adds Bitcoin payments to their business, it can become a big problem because they cannot sell the Bitcoins at the right time. On the other hand, those who want to hold Bitcoin will not be encouraged to buy any product through Bitcoin. Because they know that if they can hold their Bitcoins for a long time, they will be able to gain a lot of profit. But a businessman will never think about that because after selling those Bitcoins, he will have to stock up on products for sale again. Basically, because of this flaw in Bitcoin, the connection of Bitcoin with business is not commonly seen yet.

[DanWalker]

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.

It is completely unreasonable to demand additional money after the customer has paid. Because by then the transaction has already been completed. Through real time conversion and live pricing both parties can be sure that they are paying the right price for what they are buying and the same thing will happen to the seller. Both parties will be sure that the trade is going well

However stores are now very clever and they set the prices in dollars or euros at the maximum time so that they do not have to face the problem of volatility. And when someone wants to pay with Bitcoin they take the payment in Bitcoin by looking at the real time value. And then whether the value of Bitcoin is high or low, that value goes right into the shopkeeper's pocket

BitPay or Coinbase have made this task very easy, they have made the exchange easy for both parties by locking the exchange rate at the moment of purchase. Because at that moment they convert Bitcoin into real money. As a result the buyer can pay in dollars or euros most of the time

[topbitcoin]

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.

That's not a good deal because ultimately the price of fiat value always adjusts even with bitcoin as a payment method so the pegged price is what has to be paid.
No one wants to be disadvantaged but also buyers will clearly feel annoyed when the service is like that where the burden they receive is greater just because bitcoin has decreased.

This is one of the reasons sometimes why bitcoin still cannot be used as a means of payment by some small shops because it is indeed volatility that they cannot bear but when they have begun to believe in this and are ready for all risks in the end this condition will still be run for those who are brave with the risks that exist.

[MusaPk]

For these reasons, no one wants to add a Bitcoin payment gateway to their business. The price of Bitcoin is not fixed, so its price can go down or up at any time. In this case, when someone adds Bitcoin payments to their business, it can become a big problem because they cannot sell the Bitcoins at the right time. On the other hand, those who want to hold Bitcoin will not be encouraged to buy any product through Bitcoin. Because they know that if they can hold their Bitcoins for a long time, they will be able to gain a lot of profit. But a businessman will never think about that because after selling those Bitcoins, he will have to stock up on products for sale again. Basically, because of this flaw in Bitcoin, the connection of Bitcoin with business is not commonly seen yet.

A Business is not run in isolation but is connected with other parties and for that reason business owner need stable income for timely payments to associated parties. Due to Bitcoin price volatility, it's very clear that merchants are not interested in receiving their payments in Bitcoin. Also we have seen that Bitcoin price continuous to rise with time and that's why people are not interested in using there bitcoins for day to day payments. The price volatility of Bitcoin is not a flaw but it's biggest advantage that has helped Bitcoin in touching 126000$ in short duration.   

[Ultegra134]

Op you have to understand something about bitcoin. Bitcoin itself never drop in Price but the exchange rate with dollar is the one dropping. Example. If I have 0.05 bitcoin when the price with dollar exchange rate was $110,000 and now the exchange rate is $88,257. The 0.05 bitcoin will still be there and you will not lose any value or figure from the amount and the only thing you will loss is the dollar exchange rate. So if you keep your bitcoins till another bull market when the exchange rate has increased, you make profit and gain back your money.

Traders who accept bitcoin should have extra funds for market things so in case the price of dollar dropped, they will use the backup funds to buys things at the main time until the price regain itself.

Hasn't this argument started to wear out already? Claiming that one Bitcoin will always be one Bitcoin is meaningless in such cases, the OP is discussing about retailers accepting Bitcoin payments, of course and they're going to care about the actual value of Bitcoin. Volatility is a killer for them, what seems like an opportunity for us, doesn't apply to everyone. It's a huge risk, imagine if Bitcoin's value collapses and lasts years, do you think a wholesaler can wait till it recovers? Businesses don't work that way, they need a constant cashflow and major liquidity to survive.

[Asiska02]

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.

When we think about the cons of this, we should also think about the pros of it. What if the seller accepts the bitcoin and left it and the price rose up, will he not also keep the extra income when he goes back to buy in bulk again to sell? Will he not be at the profiting end this time around. The market is most volatile and the state of the market volatile nature makes it not acceptable as a means of transactions till date.

Even countries that have adopted the use of it, some still prefer to accept payments in fiats than in bitcoin because of its volatile nature. This can most appropriately be dissolved more if no price tag is added to bitcoin quantity and the buyer and sellers in that environment also use bitcoin to spend and not convert to any fiat before spending.

[stadus]

I think that time when they will start accepting bitcoin payment, global adoption has already been taking place, otherwise no merchant is brave enough to accept the volatile nature of bitcoin when it comes to becoming a payment tool. However, if you accept bitcoin not for the sake of your business but for your bitcoin portfolio to increase faster, that could be a good strategy, but for now I think majority of the merchants still prefer cash rather than complicating their sales when bitcoin price starts to crash.

[Stalker22]

In my past experiences, I can say from both perspectives that any legitimate business that sells something will never wait to convert bitcoin to cash after the customer makes their purchase.  They have a service that takes care of that for them at the time of payment, and the seller always receives the same dollars required for their next shipment. Their only risk of volatility is born by the service provider, who assumes all risks involved through this type of transaction.  If an individual sells products or services and keeps the actual coin, then they are essentially investing in Bitcoin, not just using it as part of their retail operation.

You cannot require a buyer to pay "more" because of the changing value of Bitcoin.  A price is an agreement or contract.  If you send out a bill a week after the initial transaction because Bitcoin has decreased in value, you will lose the buyer for life and are likely breaking the law.

[tbct_mt2]

In my past experiences, I can say from both perspectives that any legitimate business that sells something will never wait to convert bitcoin to cash after the customer makes their purchase.  They have a service that takes care of that for them at the time of payment, and the seller always receives the same dollars required for their next shipment.

If they want smooth operation, they must use payment processor for automatic processing from transaction broadcasting to cashing out. It is time saving and also very helpful and important in eliminating mistakes when manually broadcasting transactions or cashing out.

You cannot require a buyer to pay "more" because of the changing value of Bitcoin.  A price is an agreement or contract.  If you send out a bill a week after the initial transaction because Bitcoin has decreased in value, you will lose the buyer for life and are likely breaking the law.

The deal is locked at a time of opening it and the payment will be made according to that deal term. With business deals, it makes sense to broadcast your Bitcoin transaction as a payment with good transaction fee rate in order to have good probability of confirmation in a next block. It reduces risk of price volatility but many things can happen within 10 minutes that is an average Bitcoin block time while there is probability of more than 10-minute waiting for a next block.

The receiver should never be able to charge more from the sender by Bitcoin price change after the deal was locked and the transaction was broadcasted. You can have a similar term on P2P trades on marketplaces.

Depending to a deal value, waiting time and required confirmations must be discussed and written in the business deal but it must be agreed by two sides before the trade is made.
How many Bitcoin confirmations is enough?

[Localhostspeed]

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.

I think this is the major problem why many people don't like to accept Bitcoin due to the fact that the price can change overnight. You are left stranded with how to look for money to buy more goods for your business. Whether we admit or not, Bitcoin can't be keep as means of goods exchange but can be used to settle payments instantly and then resale into fiat or any stable coin of your choice. That's the best way to handle volatility.

But if you know that you can risk it and don't care about volatility, the best time is now. You can be selling your products and be stacking up Bitcoin. By the time bull run return, you will be making plenty of profit because there is no business that can give you the profit of Bitcoin in short period of time, what a business can't give you in 4 years, Bitcoin will give you in a bill cycle.

[Emeraldo]

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.

 For a business who have decided to accept Bitcoin as a means of payment I believe that business owner should know about the bitcoin market and how it works before accepting Bitcoin as a means of payment. Let's look at it this what if the customer buys a product pays with Bitcoin and the price of Bitcoin increases tremendously before the restocking of the product what happens to the profit made on the Bitcoin will that business owner start looking for who bought the product to return the profit made of the answer is no then then to your question is still no

[Antona]

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.

Nah, a sale is a sale. If I price a laptop at 0.01 BTC and you buy it, that's the deal. If BTC moons later, that's my gain for holding and my risk for accepting it. No backsies. That's the whole point of settling instantly the transaction is final.

[DubemIfedigbo001]

If you consider Bitcoin as your investment asset, you will not want to spend it or will try to minimize your payments with bitcoin. You know that if Bitcoin will incrase in price with time and if you used your bitcoin for payments, you firstly lose it and secondly you might have to buy bitcoins at higher and more expensive price.

Bitcoin is also used for making payment, it is money and should be used for transactions too. Most investors have their main holdings which they treat as an investment portfolio and also have their spending portfolio that they use for payments. There are still people who get paid in bitcoin who do not necessarily need to buy in order to hold but apportion their earnings to respective use cases.

As for what OP asked, nobody should be victimized for bitcoin volatility, if the business owner keeps the funds as bitcoin, then he is ready to deal with the volatility, and this has no business with the buyer. But I doubt any small scale business venture may want to do that since the funds they receive is still what they use for turnover, medium scale and large scale businesses can deal with it since they obviously may have large disposal of fiat or stable coins to run their businesses while they may want to treat the bitcoin received as an investment asset.