5 ms·
I don't have a recommendation - I just want to make you aware of a major issue other stores have... > We do not intend to convert to traditional currency unles
by q1w2 5y ago
I don't have a recommendation - I just want to make you aware of a major issue other stores have...
> We do not intend to convert to traditional currency unless needed.
This is a big risk due to cash flows. Most stores operate on a margin on merchandise that is under 10%, with a turnover on goods averaging months.
If a currency fluctuates in value more than ~10% over several months, this can easily drive an otherwise healthy business into cash flow driven bankruptcy.
Selling 100% of your goods, and then not being able to replenish that stock because the crypto you held has dropped more than 10% over a 6 month period is a disaster waiting to happen.
- derangedHorse 5y agoI imagine whatever cryptocurrency payment system they end up implementing will still be used by a minority of customers, so most of their existing stockpiles will still most likely be held in their domestic currency.
- exo762 5y ago> If a currency fluctuates in value This is why you want to use stablecoins. There is plenty to choose from.
- doovd 5y agoSo just use fiat?!
- SQueeeeeL 5y agoThis just sounds like cash with extra steps
- throwawayay02 5y agoI don't know if there are any, but I can see value in a stablecoin representing a basket of different currencies.
- SQueeeeeL 5y agoThat also sounds like money, except with a lack of fluctuation in exchange rates
- rglullis 5y agoOr less steps. OP is asking for a way to collect money from customers to cover expenses that can be paid via crypto. By accepting stablecoins, OP: - Does not need to pay payment processor fees. - Does not need to wait days to have the funds available. - Does not have the risk of facing chargebacks - Does not need to take the money from the bank to pay crypto.
- Spooky23 5y agoThere’s this crazy new stablecoin called the US Dollar. Nobody can trade oil without it, and you can do ACH transfers that settle in a day for a quarter.
- krageon 5y ago> Most stores operate on a margin on merchandise that is under 10% Tell that to the literally hundreds of "shops" that dropship goods for ~50x the buying price.
- pas 5y agoOkay, what's their operating margin? Since there are a lot of these stores, Amazon (or whatever marketplace) takes a cut, there are fixed costs, fraud, scams, refunds, other stochastic losses. Sure from time to time someone finds manages to make a decent income with such an operation, but it's not because the unit economics are so great.
- krageon 5y agoThey are at least a power below the markup, I know this for certain because I investigated this option when I noticed. There are a few things that require manual intervention, that's all.
- Geee 5y agoThis is also a problem when you're operating with inflationary currencies, and that's why bitcoin might be better, despite its high volatility. Bitcoin is volatile in short-term, but long-term deflationary. Fiat currencies are stable in short-term, but long-term inflationary. It's a trade-off, and it depends on your circumstances which allocation works for you.
- defaultprimate 5y ago>but long-term deflationary Past performance is not indicative of future performance.
- IThoughtYouGNU 5y agoI mean, except that it's actually limited in the code itself.
- djangelic 5y agoTrue but he’s not talking about performance, he’s talking about availability, and since Bitcoin is set to a certain limit the scarcity of it will rise as people lose access to their private keys.
- defaultprimate 5y agoDeflation and scarcity are not the same thing
- q1w2 5y ago> This is also a problem when you're operating with inflationary currencies. Not really, because you are continuously buying and selling, and raising your prices as you go along with inflation. > Bitcoin is volatile in short-term, but long-term deflationary. Long-term is not relevant for the issue I'm describing. It is a short term fluctuation that drives you into cash-flow bankruptcy.