How to pay use cryptocurrency

juliusliu

Contributor
More and more people are curious and questionable about one of the uses of cryptocurrency, namely for payment. In general, the prices of the goods and services we purchase are constant, and the purchasing power of legal tenders remains constant for a long time, so it is accepted that the use of fixed currency to measure the value of goods.

However, the price of cryptocurrency, such as bitcoin, is very volatile. From the data of bitcoin spot price history, The lowest price of Bitcoin under the 6,000$, and the highest is nearly 20,000$. Such large price fluctuations can be achieved even if Trading, but it is also difficult to show fairness. Great changes in prices can cause great instability.

Many products now support unconditional refunds in the short term. If someone buys a $1,000 product in Bitcoin, they use a bitcoin (1btc = $1000). After two days, the price of Bitcoin suddenly double (1btc = $2,000). At this time, the customer asks the merchant to return the refund. The refund amount is a bitcoin, and the customer can sell the bitcoin, get 2000 dollars, and re-purchase the product with 1000 dollars, compared with the previous two days. The amount of funds has not changed, but Equivalent to getting the goods without spending money.
1. It is obvious that the price has risen. Everyone has seen an increase in the price of Bitcoin, including merchants. Then, will the merchants refund a bitcoin at this time?

Perhaps the merchant will forcibly withdraw $1,000 and leave that bitcoin.

2. In another case, someone bought a $1,000 product in Bitcoin and used a bitcoin (1btc = $1000). After two days, the price of Bitcoin was $500, and the price of the product was still $1,000. Then, in order to maintain the interest, the merchant raises the price of the product, and now a product needs 2 bitcoins.

If there is a problem with the product, then should the merchant refund a few bitcoins to the customer?
 

BitFit

Contributor
What if the merchant sells the bitcoin in order to pay the bills? In that case the price fluctuation won’t help or hurt the vendor and there’s no extra money to refund?

Seems a little risky to me. I think bitcoin works as a currency only if it grows and then stabilizes. Also everything from buying supplies and paying employees to selling items and services has to be all in bitcoin. From start to finish in bitcoin.

Then it can be useful.
 

CryptoTC

Crypto Fat Cat
Staff member
What if the merchant sells the bitcoin in order to pay the bills? In that case the price fluctuation won’t help or hurt the vendor and there’s no extra money to refund?

Seems a little risky to me. I think bitcoin works as a currency only if it grows and then stabilizes. Also everything from buying supplies and paying employees to selling items and services has to be all in bitcoin. From start to finish in bitcoin.

Then it can be useful.
My concern with using bitcoin as a currency for purchases is the lack of fraud protection. Bitcoin supporters like to point out that buyers can’t scam people out of money by paying someone and then reversing the charges. However, the opposite is now true. The seller can pull the scam by accepting bitcoin and then disappearing without shipping the item. Or shipping a broken item or a misrepresented item. The buyer has no recourse to settle the problems.

Bitcoin supporters like to say it is trustless. It may be technically so, but transactions still require trust.

Smart contracts will decrease the risks of scams, but they will never fall to zero. People have been scamming since the dawn of trading items or using rocks as coins. Creative new wash will pop up to scam smart contracts, regardless of what crypto supporters believe.
 
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