Trying to wrap my head around npub1s05p3ha7en49dv8429tkk07nnfa9pcwczkf5x5qrdraqshxdje9sq6eyhes (npub1s05…yhes) message that Bitcoin needs to be used as a medium of exchange. Taking the premise at face value that this is necessary to avoid future centralization risks, how does one participate practically?
I run two businesses. One sells raw materials to manufactures in the US (wholesale), the other sells paint products to consumers in the US online (retail). The single biggest issue I have as a business with accepting Bitcoin as payment is taxes. Since I have to track and report capital gains it would be a freaking nightmare unless I just held the Bitcoin indefinitely but then I am effectively a Hodler and not really contributing meaningfully to MOE. I need to both accept Bitcoin and pay my vendors in Bitcoin.
It also creates an accounting nightmare because there is no scenario in which 100% of our revenue and expenses can move over to Bitcoin so I have the challenge of trying to balance books with two different currencies. As a small business with limited resources there’s no way I could wrap my head around this. Bigger businesses will have a hard time getting all stake holders to sign off.
The third issue I see is the value of Bitcoin moves quickly relative to the goods I sell. If I were to make a gallon of Tung Oil today for 50,000 and today I can sell it for 70,000 sats that’s works but what happens if the value of Bitcoin suddenly falls 70% and the cost to produce more is above the sales price? This is solved in aggregate when everything is priced in Bitcoin, but realistically my costs are still in dollars.
Until Saudi Arabia demands settlement for oil contracts in sats I don’t see how the world can move entirely over to a Bitcoin MOE and in the meantime I don’t see how I can straddle both worlds. Isn’t it better to just convert my profits into Bitcoin and Hodl for now?
I am genuinely open to making such a move but I can’t quite wrap my head around it. One idea is to make and sell products just to Bitcoiners (buy green coffee from a farm in sats, roast coffee and sell it for sats), but that’s such a niche market and it doesn’t do anything to move the demand for something larger that I sell (like potassium silicate 40% used in making car wash compounds) over to a Bitcoin standard. Eventually we need to move it all over and I’d like to be a leader in doing so, I’m just having trouble seeing how.
bitcoin4all / TallBrian
npub1yf…q3tu8
2024-12-28 05:29:57
Author Public Key
npub1yfy0upgc5s802gqn40vcvq4lkugs6h65f4pl2ml92ghxyu6c9ldsxq3tu8Published at
2024-12-28 05:29:57Event JSON
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"content": "Trying to wrap my head around nostr:npub1s05p3ha7en49dv8429tkk07nnfa9pcwczkf5x5qrdraqshxdje9sq6eyhes message that Bitcoin needs to be used as a medium of exchange. Taking the premise at face value that this is necessary to avoid future centralization risks, how does one participate practically?\n\nI run two businesses. One sells raw materials to manufactures in the US (wholesale), the other sells paint products to consumers in the US online (retail). The single biggest issue I have as a business with accepting Bitcoin as payment is taxes. Since I have to track and report capital gains it would be a freaking nightmare unless I just held the Bitcoin indefinitely but then I am effectively a Hodler and not really contributing meaningfully to MOE. I need to both accept Bitcoin and pay my vendors in Bitcoin. \n\nIt also creates an accounting nightmare because there is no scenario in which 100% of our revenue and expenses can move over to Bitcoin so I have the challenge of trying to balance books with two different currencies. As a small business with limited resources there’s no way I could wrap my head around this. Bigger businesses will have a hard time getting all stake holders to sign off. \n\nThe third issue I see is the value of Bitcoin moves quickly relative to the goods I sell. If I were to make a gallon of Tung Oil today for 50,000 and today I can sell it for 70,000 sats that’s works but what happens if the value of Bitcoin suddenly falls 70% and the cost to produce more is above the sales price? This is solved in aggregate when everything is priced in Bitcoin, but realistically my costs are still in dollars. \n\nUntil Saudi Arabia demands settlement for oil contracts in sats I don’t see how the world can move entirely over to a Bitcoin MOE and in the meantime I don’t see how I can straddle both worlds. Isn’t it better to just convert my profits into Bitcoin and Hodl for now?\n\nI am genuinely open to making such a move but I can’t quite wrap my head around it. One idea is to make and sell products just to Bitcoiners (buy green coffee from a farm in sats, roast coffee and sell it for sats), but that’s such a niche market and it doesn’t do anything to move the demand for something larger that I sell (like potassium silicate 40% used in making car wash compounds) over to a Bitcoin standard. Eventually we need to move it all over and I’d like to be a leader in doing so, I’m just having trouble seeing how. ",
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