Does bitcoin price fluctuate when buying things?

Bitcoin Questions and AnswersDoes bitcoin price fluctuate when buying things?

rn asked 1 year ago

Hi, sorry I’m new to bitcoin.  So say I want to buy a $5 coffee with bitcoin.  Will the bitcoin price fluctuate according to the BTC/USD price?  Or is it a set price equivalent to $5 USD?  Thank you.

Steven Hay replied 1 year ago

Hey rn,

Just to chip in, if something is priced in USD or any other currency, then it means you will pay the equivalent amount in Bitcoin, based on the current exchange rate.

The only exception is for something priced in Bitcoin. However, this situation remains unusual and is something you’re unlikely to encounter in a regular shop, whether on or offline.

2 Answers
Zsofia Elek answered 1 year ago

Hi Rn,
If you pay the coffee in Bitcoin, you get the BTC price and pay for it in Bitcoin. The merchant runs the risk of the price volatility in this case by accepting Bitcoin as a payment method. There are several methods to overcome that exchange rate risk, similar to what those merchants apply which accepts sales in other currencies than their local currency. 

Anonymous answered 1 year ago

Thank you for your explanation.

Bitcoin Video Crash Course 

Dummy-proof explainer videos enjoyed by over 100,000 students. One email a day for 7 days, short and educational, guaranteed.

We hate spam as much as you do. You can unsubscribe with one click.