I don't have a recommendation - I just want to make you aware of a major issue other stores have...
> We do not intend to convert to traditional currency unless needed.
This is a big risk due to cash flows. Most stores operate on a margin on merchandise that is under 10%, with a turnover on goods averaging months.
If a currency fluctuates in value more than ~10% over several months, this can easily drive an otherwise healthy business into cash flow driven bankruptcy.
Selling 100% of your goods, and then not being able to replenish that stock because the crypto you held has dropped more than 10% over a 6 month period is a disaster waiting to happen.
I imagine whatever cryptocurrency payment system they end up implementing will still be used by a minority of customers, so most of their existing stockpiles will still most likely be held in their domestic currency.
This is also a problem when you're operating with inflationary currencies, and that's why bitcoin might be better, despite its high volatility.
Bitcoin is volatile in short-term, but long-term deflationary. Fiat currencies are stable in short-term, but long-term inflationary. It's a trade-off, and it depends on your circumstances which allocation works for you.
True but he’s not talking about performance, he’s talking about availability, and since Bitcoin is set to a certain limit the scarcity of it will rise as people lose access to their private keys.
Okay, what's their operating margin? Since there are a lot of these stores, Amazon (or whatever marketplace) takes a cut, there are fixed costs, fraud, scams, refunds, other stochastic losses.
Sure from time to time someone finds manages to make a decent income with such an operation, but it's not because the unit economics are so great.
They are at least a power below the markup, I know this for certain because I investigated this option when I noticed. There are a few things that require manual intervention, that's all.
There’s this crazy new stablecoin called the US Dollar. Nobody can trade oil without it, and you can do ACH transfers that settle in a day for a quarter.
> We do not intend to convert to traditional currency unless needed.
This is a big risk due to cash flows. Most stores operate on a margin on merchandise that is under 10%, with a turnover on goods averaging months.
If a currency fluctuates in value more than ~10% over several months, this can easily drive an otherwise healthy business into cash flow driven bankruptcy.
Selling 100% of your goods, and then not being able to replenish that stock because the crypto you held has dropped more than 10% over a 6 month period is a disaster waiting to happen.