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> Let's say, for example, a vendor is considering whether to begin accepting bitcoin. She will need to be able feel relatively certain that, when she leaves the
by RoboTeddy 13y ago
> Let's say, for example, a vendor is considering whether to begin accepting bitcoin. She will need to be able feel relatively certain that, when she leaves the storefront in the evening, she will have nearly the same amount of value on balance when she returns the next morning.
Fortunately, vendors don't have to take on any such risk. There are services (e.g. CoinBase, BitPay) that let sellers accept bitcoin without ever holding a bitcoin balance. These services effectively instantly convert bitcoin revenue into something less volatile (e.g. USD).
- lingben 13y agothat does not address the volatility issue at all - even if bitcoin are converted immediately to dollars or euros, because they fluctuate so wildly, no business would be able to know if the amount they receive will even cover their cost or if suddenly they are charging way way 'too much'.
- RoboTeddy 13y agoPotentially they could internally set their prices in dollars, and multiply by the exchange rate to get their current bitcoin price.