40 sats \ 3 replies \ @nullcount 2 Sep 2023 \ on: Why are there so few bitcoiner e-commerce businesses??? bitcoin
The reason few business accept BTC is because their expenses aren't able to be paid in BTC. (Chicken and egg dilemma).
A typical ecomm biz makes 15-40% margins on any sale. This means they have to take 85-60% of the money you give them just to pay off their suppliers, employees, hosting bills, shipping, etc.
Early stage ecomm is typically reinvesting profits so they don't even keep the 15-40% profit, rather it goes into the next purchase order for inventory, etc.
Even when they do decide to keep profits, they're gonna owe 15-30% corporate (or self-employment) income tax on those profits. And that tax is also not payable in BTC.
Truth is a business has almost zero need for BTC unless that business is able to pay expenses in BTC.
Actually, bitcoin is highly liquid and can easily be converted into dollars for payment. There are specialized companies all over the world that offer these services, often with fees that are a fraction of a percent! If you get paid in dollars, you then have to convert your profits into bitcoin, yet bitcoiners still accept dollars in most of their businesses.
Moreover, a non-bitcoin-product business taking bitcoin will see a tiny fraction of their revenue as bitcoin so begone with your FUD.
reply
So your pitch to businesses is:
- BTC will be a tiny fraction of your revenues
- converting to dollars incurs fees
Business people are trying to invest small to get big growth. This pitch seems to them like a big investment for tiny growth.
reply
Actually, accepting bitcoin requires an extremely small investment of time/money because of how easy it is run what is called a bitcoin "node".
You clearly have never heard the phrase Buy American or understand what that means. 😂
reply