Making payments with Bitcoins

[Antona]

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.

Exactly its about separating your stack. Main hodl wallet vs a spending balance maybe on a Lightning app. Treating all Bitcoin as a spendable checking account is risky businesses that accept it directly are either instantly converting (no volatility) or choosing to speculate with their revenue. Buyers obligation ends at payment

[impulse709]

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.

You've made great points. Most people consider Bitcoin as an investment, and they are reluctant to use it in case its value will increase. The second method is to use two separate portfolios: investment portfolio and spending portfolio, which will allow growth as well as transactions. The risk of volatility should not be left to the buyers, and it is the business that should deal with it. This may be a challenge to small businesses, medium, and large businesses can cope with it, applying Bitcoin as a payment tool and as a strategic investment.

[snowpega]

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 what every newbie needs to understand, especially those who have insufficient information about the crypto space. Look, volatility is the behaviour of the crypto market, meaning that the market sometimes goes up and sometimes goes down. And if one (buyer) is buying any goods for their daily basis, they just have to pay only according to the market price of that trading asset. That's not a big deal or headache for the buyer for what will happen after or once the purchase phase or transaction phase is completed.

Because after all that, it's up to the shopkeeper whether the market moves in the upper direction or goes in the down direction. and in case market goes up, then this is so obvious the shopkeeper will be in profit or if it goes down, then shopkeeper will be at a loss. That's why it's up to the shopkeeper if he is comfortable taking item payment in Bitcoin or not, because both loss and profit will be in his pocket once the transaction is made.

[vanesha]

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 depends on the system or the agreed price. For example, if the price of the clothing purchased is $10, then the amount of Bitcoin paid is equal to $10 based on the Bitcoin exchange rate at that time. If the Bitcoin price is high, the clothing seller receives less Bitcoin compared to when the Bitcoin price is low. In the end, the party that benefits the most is the buyer. They can buy goods when the Bitcoin price drops, making it cheaper—even without any official discount label.

[lizarder]

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.

No buyer wants to overpay when using Bitcoin as a means of transaction, and this is not at all the customer's responsibility, but rather the seller's risk of accepting Bitcoin as a means of transaction. For business owners, there are several ways to balance this. When a Bitcoin transaction occurs, they can hold the Bitcoin as savings through assets. The problem lies in repurchasing the products they sell, because when capital is small, this is not feasible because they need capital to repurchase goods for their business.

Because it's impossible to charge customers more when they use Bitcoin as a means of transaction, and if this were implemented, there's a concern that our businesses would experience problems because customers would feel burdened by unnecessary additional costs. Therefore, when deciding to accept Bitcoin as a means of transaction in a business, a solution must be found beforehand to avoid future problems.

[cutecui]

The buyer is not responsible for the seller's financial management after the sale... If the seller did not convert the Bitcoin in time and the market fell, it is an operating loss that the business should absorb...

[Hamza2424]

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.

Everything has an agreement, it was a deal made between the seller and buyer, he asked for 0.001 btc for the goods you bought and you paid that amount mean you were agreed and the seller was agreed, now it does not matter if the price of btc increases or decreases, it should not concern you, and you should not worry about him as well.

Because the deal is completed, now if you want to think that what if I would have not paid in btc and market pumped I would be making profit then bro stop paying in btc, or start ignoring these thoughts, because these are not good, and if you think he will be making lose as prices has dropped then bro market moves both way, sometimes he is losing money but sometimes he is making money too. It goes both way and same for you.

[asriloni]

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.

The volatility has been the thing that complicated Bitcoin adoption by merchant. Nevertheless, a solution already created to create a payment system that let you to convert the bitcoin received by store to the USD, and vice versa. However, mostly of platform that offer this service like square charges 1% for the conversion fees, which make merchant not comfortable enough to use it due to the high fees.

There is also a complicated verification that must be going through. So it's often consumed very long time for our tx needs to be processed. It makes paying using Bitcoin in merchant still very inconvenient and rarely used.

[Cookdata]

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 depends on the system or the agreed price. For example, if the price of the clothing purchased is $10, then the amount of Bitcoin paid is equal to $10 based on the Bitcoin exchange rate at that time. If the Bitcoin price is high, the clothing seller receives less Bitcoin compared to when the Bitcoin price is low. In the end, the party that benefits the most is the buyer. They can buy goods when the Bitcoin price drops, making it cheaper—even without any official discount label.

One thing I know, if there is profits in using Bitcoin as payment, it's going to be a trend and not a speculation, people don't think twice before they flood into anything that gives them money. These math's are good until the seller want to restock goods to continue the business. From your analysis, the buyer make a sell and then the seller decided to keep the coin, eventually the seller has makes more money, he can sell to restock when necessary but you know where the problem comes, when the buyer sell at high price and the Bitcoin dump, he is left with no choice to either sell at loss to restock or hold until the market recover. However, if the seller made sell when Bitcoin price is worse, he is at advantage more than when he made sell at high price and Bitcoin dump.

The benefits of Bitcoin for making payments is if you don't sell. This is good if you have another stream to inject money into your business without touching the Bitcoin, you can probably sell when the price is high or continue to hold for as long as you like, if you do short term hold with Bitcoin, you are going to run to short business without liquidity to restock your business.

[Joy- maker]

It is not longer a news that volatility is the reason why some businesses have refused to start accepting Bitcoin as a payment method, but the thing there is, if a business Chose to start accepting Bitcoin as a payment method, it is not necessarily they will hold their fund's in Bitcoin, they are free to convert their Bitcoin to a stable coin such as USDT, USDC and DAI, in other to protect their funds from Bitcoin price volatility, so that when Bitcoin price drop their funds will be pegged to a stable coin.
So businesses can start accepting Bitcoin as a payment and then convert it to a stable coin, because the most important thing is to accept Bitcoin as a payment method, but what ever coin you convert your Bitcoin to in other to protect your funds from Bitcoin price volatility is nobodys business.

[Botnake]

No, it's not the customer's responsibility to cover for the loss. The agreed price when the transaction took place is the final price.

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'.

I think this is the main hindrance to merchants adopting Bitcoin payments. If they do, they have to use payment processors that immediately convert Bitcoin sales to fiat, which is in a way pointless.

I have to agree, with the unpredictable price for bitcoin, merchants are discouraged to promote bitcoin used for paying goods and services because they themselves are even fearful if price suddenly drops its price, then they have to wait longer for its recovery before they can roll their sales and buy back again some stocks for their business.

Bitcoin is good and profitable, but I think bitcoin will be good as an investment for now, having it as a mode for payment may only be applicable when the real global adoption takes place. However, we can still use it for some selected merchants who are also accepting bitcoin and hold it as their investment.

[Ivystar5]

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 is more reason why most businesses running crypto and bitcoin as payment method do not keep it for a long term instead they keep it for short periods and convert to stablecoins asap in order not to run into losses, the more reasons why bitcoin is not a major currency but an alternative currency, it's not a mandate use bitcoin for all businesses, and that's why fiat will never be out ran by bitcoin.

On the other hand it's more favourable to the seller, when biticj goes up which is to say that if there is an up (advantage) there is a down too (disadvantage).

[Findingnemo]

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.

If the seller started accepting bitcoin for most of his sold iterms then it must be due to the reason that bitcoin is widely accepted as payment so by that time the goods that the wholesaler buy from someone is also will be in the fixed unit of bitcoin right so the volatility doesn't matter if the cost of the product always stay 0.00xxxBTC or whatever the amount will be.

Or the one who accepts bitcoin can use the payment processors who converts the transactions immediately into fiat so the user doesn't need to worry about the volatility anymore.

[HelliumZ]

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 definitely not suitable for the wholesale business in the long term. If awholesaler sells products during high prices and buys products during low market prices, how will he calculate his profit and loss? In this case, the wholesaler must accept payment in Bitcoin and immediately convert it to a stable coin upon receipt.

[Doll2233]

You've made great points. Most people consider Bitcoin as an investment, and they are reluctant to use it in case its value will increase. The second method is to use two separate portfolios: investment portfolio and spending portfolio, which will allow growth as well as transactions. The risk of volatility should not be left to the buyers, and it is the business that should deal with it. This may be a challenge to small businesses, medium, and large businesses can cope with it, applying Bitcoin as a payment tool and as a strategic investment.

Bitcoin transaction can be easy but they need proper knowledge and understanding of security because people are earning from different resources and they are learning how to give and get Bitcoin from other person because that is requirement of modern time because people need to learn how they will be in profit because there are million of people who are doing their business and they are parallel with society. People should learn how to make wallet and they need to get info from reliable sources like official websites or trusted educational platform so they could learn how to secure their asset. If person has asset to sell then buyer may be available but transaction should always be done through trusted exchange or verified person so that you receive safe payment in local currency.

[uneng]

Payrates are changing in real time. What matters is the price negotiated on the moment of the payment. You have to be fast when exchanging BTC into a stable currency if you want to avoid that kind of situation as a seller, or you can simply hold that money received for the long run.

I would say that if money is going to be needed soon for re-investments on the business or to purchase more goods to re-sell, it shouldn't stay in BTC currency for too long. Volatility is harsh, especially during bearish seasons that is when price keeps being pushed down.

[Powerjumboo]

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.

Shopping malls, grocery stores, restaurants, pharmacies, if the seller wants to accept Bitcoin for buying and selling any product and wants to be interested, then the seller must know about the volatility of Bitcoin. If the seller does not know about the volatility of Bitcoin, then he will not accept Bitcoin because if he does not have experience and know the strategy, he will definitely lose money if he starts buying and selling products with Bitcoin. Here, the customer will never pay the seller more if there is a loss in the market, he must accept the volatility of the market and if there is a loss, he must accept that loss himself.

[Bluedrem]

Bitcoin will not reach the consumer level so easily, meaning that buying and selling Bitcoin at the grassroots level is not possible right now. When the coin becomes more stable and it is not so volatile for the time being, then maybe people can consider Bitcoin as a payment system. Currently, we can only use Bitcoin as a hedge to store value. Even then, its storage must be long-term, meaning that after investing in Bitcoin, one has to wait at least one cycle to profit. It is said that the longer a person can hold Bitcoin, the more profit he can make.

[KataifiDream]

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 the best way is make the bitcoin or other crypto as other payment option not as the main source for everything. That's a win loss situation if they use bitcoin as payment method.

[virasisog]

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.

If the buyer is going to pay extra after the transaction has been done due to the Bitcoin price decreased, should the seller also refund some portion of their payment when the price rise up?
This is the risk that they took when they started accepting crypto as a payment and decides to hold it, AFAIK most retailer who accepts crypto are automatically converting it into stable coins like USDT to make sure that they received the exact amount for their product, even if they hold it.
Their payment are computed at the current price so it doesn't matter what happens to the Bitcoin price after the transaction has been confirmed.