97 sats \ 2 replies \ @siggy47 OP 19 Aug \ parent \ on: Volatility Insurance For Businesses That Accept Bitcoin? bitcoin
It is chicken and egg. The need for the service I imagine will disappear. Most merchants who accept bitcoin run to change it to fiat. It does increase volatility, as you say. Volatility will end as adoption increases. It's getting from point A to B is the problem. I picture a small business with a few employees. If bitcoin exchange rate goes up, everyone is happy. The employee might even save some bitcoin at the end of the month. If it dips, the guy can't feed his family. This risk causes the employee to switch to fiat to be safe. If his employer could say "don't worry, if bitcoin goes down this month, you will get the difference payable in bitcoin." It takes away the incentive to switch back to fiat.
It's also about how big balls that small merchant have.
In all these 12 years I onboarded many merchants. Not all had big balls to keep their BTC.
But I always advise them this:
- do not make too much noise about your "acceptance", small steps.
- your BTC volume will be really low in the beginning and slowly will increase in time. So will not affect your cash flow used for maintaining the business, will be more like a small contribution to your own private pension fund.
- BTC is cash ! Stop freaking out that you must pay "gain taxes" on the price appreciation of BTC and force upon yourself to sell to get that fiat cash quickly. That is the most stupid thing you will do. So in your accounting, count your BTC income as pure cash. No more no less.
- Once you see that the BTC volume is increasing and is getting bigger than 50% of all your income, then start paying your suppliers and employees in BTC. Or start offering incentives with BTC. Make them demanding your sats.
Indeed not all merchants understand this game, many are cowards and only look for quick gains, thinking that Bitcoin is kind of "chicken with golden eggs". They are wrong. Bitcoin is only "fuck you money".
Long time preference. People forgot how is to think in long terms. Patience is key.
That's why I always said: Bitcoin is not for the weak, only for the brave.
reply
"Bitcoin is not for the weak, only for the brave" is an absolute truth. And the reason is that they have numbed the brains of ordinary people so much that people still don't understand that the game is not to use Bitcoin to get more shitty dollars, but instead, to use the dollars you have and can get to get as many SATS as you can. But the system knows how to dominate the game, they brainwash you with the face value of the currency, and nobody explains to you how the method of accumulating wealth and energy really works, which ends up leaving you at the mercy of your local currency and those a little better understood take shelter in dollars. And above all, they deceive you with the supposed stability of the currency which only works on its face value, a 100 bill will always be 100! but it will not always have the power to buy 100. This last detail is the key, and ordinary people accustomed to seeing "stable" numbers go into total panic when they see the price of Bitcoin fluctuate. and price is the most important psychological factor when you first encounter Bitcoin and don't understand it yet.
reply