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Pricing in BTC
2241 sats \ 9 comments \ @Fiat_Revelation 3h bitcoin
I suppose taking payment in Bitcoin would require frequent price adjustments, so I was wondering what the thought process is for merchants out there accepting BTC.
Do most people just set price based on Fiat market value of product/service then convert to BTC? Is this a floating price?
If it were me, I I'd offer a pretty hefty discount to take payment in sats.
What are merchants experience with this?
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239 sats \ 1 reply \ @Jon_Hodl 2h
I have only seen merchants accept it at the current market rate but I have spoken with some that were considering using various moving averages to set a price floor to protect them from the price falling out.
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179 sats \ 0 replies \ @Fiat_Revelation OP 2h
My question is more about the price fluctuation, not the risk of a fall out. Assuming most businesses still pay most their bills in Fiat, they would need to adjust prices based on the local conversion to be profitable.
If Bitcoin priced in Fiat jumps 50% in one month, then doesn't it make sense to decrease the BTC price of your product accordingly? Or leave it where it is and take profit? I'm wondering how it works in places like Bitcoin Beach or Madeira where Bitcoin more commonplace.
In places where BTC has a foothoold in a local economy, there may be a market value of, say, a coffee priced in BTC that a business has to match to stay competitive.
In a place where btc is less common, there's no market adjustment and a merchant would have more choice.
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148 sats \ 2 replies \ @kristapsk 1h
Merchants as legal entities need to price everything in fiat, as that what are accounting requirements from the government, also taxes need to be paid in fiat.
When doing person to person trades, I often look at the BTC/EUR exchange rate, set price in sats and don't look at volatility for a next few days.
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33 sats \ 1 reply \ @sancristrader 1h
The transaction will be considered as payment in property, which is perfectly legal. When doing taxes the merchant will have to report the income based on fair market value of Bitcoin in fiat at the time of the payment.
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0 sats \ 0 replies \ @Fiat_Revelation OP 35m
Interesring. Maybe a good best practice then to keep a spreadsheet of the purchases with their $/btc value at time of purchase then. Unless there are apps that automate this.
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51 sats \ 1 reply \ @siggy47 1h
I think there is a multi family real estate owner on SN who gives tenants a 10% discount for paying in bitcoin. Of course rents don't fluctuate as much as other prices may.
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43 sats \ 0 replies \ @Fiat_Revelation OP 22m
Nice. Saylors bear-case forecast is like 20% apr in fiat shitcoins over the next 21 years, so I guess a 10% discount would still be "profotable," as long as he hangs onto it.
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17 sats \ 0 replies \ @denlillaapan 1h
Some people are more UoA maximalists and pick a bitcoin price (e.g., 10m sats) and stick with it. Probably not sustainable since it makes their products more and more expensive in USD terms over time.
What's worse, I've found, is what happens when the transaction isn't spot: say I do some work for a client beginning on Jan 1, when BTC/USD = 100k. Then I finish the work and ask for payment on Jan 30, when BTC/USD = 120k. At which rate (USD or sats) does the dude pay me?
Worse still: I did a job for a guy a few years ago where he'd pay me half by finish and half by end of year. When he paid me first, BTC was ~40k. When he paid me second it was like 20k or something.
These sort of merchant-customer, client-employer relations get weird.
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49 sats \ 0 replies \ @Scoresby 1h
I sell my posters for bitcoin at a set price in bitcoin.
Usually I adjust the prices every quarter to keep my margin about the same.
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