Hey there! I was doing some thinking and I tried to Google an answer, but I had no luck. My question is how can a marketplace base their source of income on Bitcoin? The currency is too volatile to base your buisness on. I'm not saying BTC will become worthless, but for example, if BTC is worth $1000 and products are bought with BTC, and then BTC drops, the overall profit is reduced.
BTC = $1000 Product = .25 BTC Income = .25 BTC = $250 Then BTC drops to $500 Income is still .25 BTC but now it equals $125
Which means that Bitcoin can't function as a primary currency for the market as too much profit can be lost. Which means Bitcoin needs to be converted into USD, right? But how can that be done at a rate to keep up with the volume of transactions on the marketplace? Does that mean that the market needs to convert BTC into an alternative coin?
Any currency (crypto or not) gains or loses value in relation to other currencies. Also, marketplaces take their income in the form of percentages of a transaction. If a cash-out is done in relatively short order, the risk of fluctuation isn't as much. If they hang on to the BTC in perpetuity, that's a choice they make and a risk they take.