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.