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    Author Topic: Spending your BTC will not make you lose money. Laszlo was correct.  (Read 687 times)
    d5000 (OP)
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    March 26, 2025, 05:14:03 PM
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     #61

    However, I wonder if the number of transactions would increase significantly even if BTC became a means of payment literally everywhere, because people have a very hard time deciding to spend something that in the future may have a much higher value than today.
    If merchants find a way to hedge their Bitcoin risk, then they should have in many cases less costs for the payment itself, compared to credit cards and electronic wallets (PayPal-style) due to fees and exposition to chargebacks. That would enable them to offer Bitcoin-specific discounts and other promotions. I think once we reach that point where also the customers benefit directly from using Bitcoin for payments there could be a surge of these transactions.

    The big elephant in the room is of course Bitcoin's high volatility as you have already written, and establishing a hedging strategy without recurring to a payment processor is still a challenge.

    Best thing is actually if the merchants can afford to hold a small part of the Bitcoins as a reserve, so if they suffer losses due to a dip or bear market, they also can re-balance by selling in a situation with a higher price. They can however also use an exchange directly, which is often cheaper than processors.

    For merchants offering digital goods and other goods with low marginal costs, or if they hold goods which are difficult to sell, a Bitcoin dip can be also a chance to increase sales volume: they can offer items for the "old" price before the dip as a kind of promotion. If they manage to increase their volume with that strategy they will have made profit in many situations.

    [...] if we keep being too persistent they might get a bad impression of bitcoin
    instead we should ask if they accept bitcoin if yes then great and if not then we should kindly recommend it to them
    I don't really get this negativity of you and @fikrett regarding being persistent to recommend Bitcoin. "Kindly recommending" is always good, but if I was a merchant I would consider "being persistent" also a as a suggestion and as free help to make my own business more attractive for customers.

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