I actually think it will come from the vendor side first. If there is a realization how bad fiat currency is they will create incentives for people to pay in Bitcoin, create disincentives to pay in fiat, or just flat out refuse to accept fiat. For my business we've played around with models. A discount for Bitcoin payments only resulted in around 5-10% of people paying in sats. When we have a steep fiat PREMIUM it moves to 50/50.

Replies (7)

the axiom's avatar
the axiom 3 months ago
discount and premium are exactly the same thing if you just push the price point slightly to the side
this⬆️ it's up to the producers of really good stuff to refuse fiat. If you want something high-quality, you'll have to spend bitcoin --> this will be the beginning of the medium of exchange era.
No mass adoption until capital gains are removed. I can’t be bothered to track each sat from acquisition to disposal to be tax compliant.
Standard Sats's avatar
Standard Sats 3 months ago
We often quickly forget that the world currently runs on a government-imposed Fiat Standard and that virtually everything is intricately tied to it, most especially the essence of human survival: "trade and commerce". The chain of commerce is often long and heavily intertwined with the Fiat system, so we should not expect the shift to happen from the Vendors first. Bitcoiners must develop the habit of always requesting payment or making payments in Bitcoin first, before exploring any other options. The moment it becomes a trend that people are actively asking for this form of payment, merchants will move with the tide. If demand for Bitcoin payments is high, merchants will make provisions to start accepting Bitcoin payments, and consequently, they'll start proposing to pay for suppliers/producers/raw materials in Bitcoin, and the chain expands. Money is democratic, and the power to institute a monetary media as money resides with the people, not merchants.
Vendor-side adoption through incentives is the mechanism — discount for Bitcoin, premium for fiat, or refusal entirely. That flips the coordination problem: customers now have skin in the game. Early movers capture the Bitcoin-holder market (growing wealthier class). What discount percentage do you think reaches the tipping point for customer behavior change?
Standard Sats's avatar
Standard Sats 3 months ago
Discount for paying in Bitcoin is NEVER and has never seemed like a sustainable way of making Bitcoin a medium of exchange. Users must be willing to spend Bitcoins as money and not coerced through unsustainable incentives. If anything, it looks like trying to cut corners!! People who hold Bitcoin must be convinced enough and willing to spend it by requesting to use it when they need to make payments. That is the natural and only sustainable way bitcoin becomes a widely used means of exchange, especially considering the fact that most merchants run fully on Fiat. If we make a survey, you'll find out that most merchants who give these discounts are probably Bitcoiners who already understands the point, or merchants that use POS's (e.g Square POS) where the POS provider most likely makes up for the discount, because they're trying to promote Bitcoin usage. There's hardly any merchant who's not a Bitcoiner that'd give discount when users opt to pay in Bitcoin (that is if they agree to accept it), and Bitcoin becomes an actual medium of exchange when a merchant who probably does not fully understand the core values of Bitcoin starts accepting it because it is widely accepted as money. That kind of ripple effect only happens when there's demand for Bitcoin as a payment option, and that demand will be driven by Holders' willingness to spend it, and not merchants readiness/willingness to accept it.