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.
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.
Please login or Register to submit your answer