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1187 sats \ 17 replies \ @DarthCoin 19 Aug \ on: Volatility Insurance For Businesses That Accept Bitcoin? bitcoin
It's a chicken and egg problem.
Volatility is not on the Bitcoin side, but on the dollar side....
The more merchants are selling their BTC on the market to get back dollars, more volatility will create.
The less bitcoin they will sell, stronger will became.
Merchants MUST start paying also in BTC, suppliers and employees and start that bitcoin circular economy.
Otherwise the so called volatility will always exist and will NEVER go. We will be forever fiat slaves.
Every time a merchant is selling his BTC back for fiat, "saylors and "blackrocks" are happy to get them and speculate more with that volume, creating that volatility.
STOP giving them satisfaction. They have endless fiat available to play with huge numbers, numbers that a regular merchant do not have and will suffer more.
STOP dreaming to all kind of bullshit stablecoins or combinations with "payment processors" that could instant sell your BTC for more fiat. That is the MOST STUPID move ever.
Users and merchants MUST start the Bitcoin circular economy and dump fiat as fast as they can and never go back to fiat. DEMAND TO BE PAID IN BTC.
THIS IS THE ONLY WAY!
Who doesn't understand this simple economic game, will be the loser in the end.
https://m.stacker.news/46989
Volatility is not on the Bitcoin side, but on the dollar side
Actually its neither. The volatility is mostly ignorance. Fiat moves but has been around for much longer than bitcoin. You've said it many times. Bitcoin is for the brave. I would say those that do the work to understand it look at the fiat exchange volatility as a feature not a bug. We that understand bitcoin know we are stacking sats at a discount today.
The problem with this is that we are a severe minority and regardless of the stupidity of our fellow humans and the ignorance of the masses each economic actor plays a role in the market exchange rates of everything. This includes bitcoin.
1 btc = 1btc. One year of my life is one year. Scarcity is only one side. We each value everything including our very lives subjectively. Bitcoin has no objective value other than 1 btc = 1btc. Subjectively bitcoin is valued very low in purchasing power today. It should be much higher in my view and I'm sure you agree. As more people understand bitcoin they will want to obtain it. As they do the exchange of bitcoin for other goods will drastically change.
What @siggy47 is discussing here is an actual problem and recognizing doesn't have anything to do with the dollar going up or down. Its the market that hasn't learned what bitcoin is and how valuable it is... yet. They will. In the mean time this is an interesting idea. I doubt there is a large enough market for it work today.
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What siggy wants is the stablesats offered by the Valet wallet. But is a stupid idea the stablesats. It create even more volatility because of the leverage. It's a vicious circle that never ends.
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OK, I'm not up to speed on Valet. I don't think the volatility can be avoided until there is a large number of people actively using bitcoin. I think we are a LONG way from that day. Not because of anything wrong with bitcoin or the software around it. Because of what is wrong with humans. People are slow to learn and adopt new things that require some responsibility. Laziness and lack of curiosity.
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Because of what is wrong with humans
EXACTLY
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No you are entirely wrong on this topic. Volatitly is inherent property of human action and free marked. What you're missing is not about the dollar vs Bitcoin but is about Bitcoin vs commodities. And we are nowhere near even beginning on this way.
And Valet has no leverage yet on the backend. And the leverage will be 1 until we have more robust models and markets.
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Slow your roll. I never said volatility could be eliminated. At least that wasn't what I meant to communicate. Volatility is reducing over time as bitcoin becomes more widely understood and traded. I think you are saying the same things I've been saying in this post for what its worth.
I'm not criticizing Valet either. This is the first I'm hearing of it. That was Darth
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I love that movie! Cool Hand Luke
don't try to fool me. It doesn't work on me your cheap spells....
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?? I don't want stablesats!
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Volatility is not on the Bitcoin side, but on the dollar side
Purchasing power of coins will be volatile even in terms of goods this is why Bitcoin ecosystem needs futures contracts for commodities. However it is not a surprize that the first thing you remembered is dollar.
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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.
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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.
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"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.
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