Bitcoin and Jewelry Stores: A Golden Opportunity

I came across a couple of jewelry shops that are cool with taking BTC and other crypto as payment. There are tons of jewelry places that keep their gold prices pretty low when they sell, so sellers often miss out on getting a fair deal. If jewelry stores and sellers started using Bitcoin for selling gold, it could really help fix this issue. Imagine if all jewelry shops adopted Bitcoin as their pricing standard. When we look at the current market, we see: 👉 Bitcoin is sitting at $62,000 🧈 Gold is priced at $4,110 for a troy ounce. 👉 That means one Bitcoin equals about 15.023 ounces of gold. And one ounce of gold is 6,500,000 satoshis, which comes to about 0.065 BTC ($4,110). It would be awesome if this kind of system could roll out everywhere. If jewelry stores could create gold cubes worth $100, $500, or even $1000 to draw in customers, I think a lot of people would be down for that!

I understand what you are trying to portray here, but let's expect that we see bitcoin adoption as a payment currency first by some of these merchants before we could go further in weighing their value in respect to bitcoin instead of USD, I think it is a step at a time and bitcoin adoption is going more wider than expected in being used as a payment currency mostly preferred, we should also consider the fact that gold is centralized and could generally be influenced by any authorizing institution, unlike Bitcoin that is decentralized.

I got your point, OP. This is the power of Bitcoin being decentralized. If they accept Bitcoin as payment and they have a rate for Bitcoin - Gold, that is much better because you will not have to convert your Bitcoin to fiat anymore if they do that like that (but I believe this is rare). Because most of the calculations here are also based on current fiat prices of Bitcoin and Gold, and I believe there could be some huge spreads here. This is still possible - expressing gold prices in Bitcoin, this is just like how other fiat currencies have their quotation or rate per Bitcoin prices.

I don't get it, I don't think buying gold with bitcoin would  actually  change  anything  if they alway keep their  selling  price relatively  low since  you can alway convert  and know it's equivalent  selling  price hence buying  with bitcoin  my not make any difference. Maybe I probably  didn't get what exactly  you're trying  to put out but I don't see the need and how it would  solve any problem. As gold it self is an asset that has strong value  and paying  for it with bitcoin  will not make any difference  from paying  with Fiat or any stable  currency.

Its always great to see businesses accept Bitcoin. This increases Bitcoin awareness and adoption. Have you really checked the measurement of gold before proposing that the shop should come up with gold cubes that are worth $100, $500 and so on? You cannot get a real gold cube for $100. This amount would get only roughly 0.96 grams, and this cannot make a cube.

What you compare and measure gold with Bitcoin is written, but the facts on the ground are different, previously in my area there were several gold shops that accepted Bitcoin payments, it didn't last long, currently they no longer accept Bitcoin payments, the reason is not because it is illegal, but because the main risk is in the high volatility of exchange rate changes that occur suddenly during the transaction process. In short, gold shops can experience big losses, when prices slip between Bitcoin and gold, when confirming transactions for payments in Bitcoin the value of Bitcoin changes drastically, which is what makes many gold shops no longer accept Bitcoin payments. that is a real risk, you can imagine 15,023 ounces of gold at a price of $62,k in Bitcoin, but when you receive Bitcoin it is only $58k, as far as I know gold trading is not done in the long term, but in terms of minutes/seconds, that's the reason for the risk of loss that not many gold shops accept Bitcoin as payment.

Gold and Bitcoin belong to different asset classes from their existence form, total supply to technology and non-technology applications and utilities in the world. People will never stop comparing gold and Bitcoin because between two good assets for investment, they mostly feel of need to compare these assets with each other. It can be explained and understandable but Bitcoin itself is just Bitcoin and simply looking at ROIs of gold and Bitcoin in many latest years, Bitcoin is a better one. Bitcoin and Gold ROIs.

Gold can be pegged to Bitcoin based on their current market values and that will make trading them easy and faster. However, I doubt it could assume the global adoption that OP is projecting. Some jewelry stores may just copy the store that was referenced in the post and they will surely get some Bitcoin enthusiasts visit those stores to make purchase in Bitcoin which will be cool. Then again, there is the privacy and security concern since the stores are not ran online where people can purchase things from the comfort of their homes.

Are you referring to those who adopt bitcoin payments? Jewelry stores generally use high price spreads not only to limit the effects of volatility, but they also implement a kind of house edge. The reality in your environment is quite strange to me. Come on, that's impossible. If bitcoin were to become the new standard, all their operational costs would have to be based on bitcoin's base rate, including paying their employees.

I'm all for more jewelry stores accepting Bitcoin. Using BTC as the actual pricing unit might be difficult because of price volatility, but as a payment option it makes perfect sense. The more places that accept Bitcoin, the better.

I think using bitcoin as a benchmark or standard unit would be a bad idea because it’s far too volatile. Every time its price moves sharply up or down, you’d have to constantly recalculate and reprice all the items.I think a weight-based system makes much more sense. We can simply calculate how much exactly 1 gram of gold is worth, that amount may change over time, but the weight itself stays the same. And payments could still be made in any convenient form, whether in bitcoin or in dollars.

Bitcoin’s widespread adoption is growing rapidly. And there’s already a great deal of public awareness about Bitcoin. I’m not surprised that Bitcoin is making its way into more and more stores that accept it as payment. I saw on Google that there are so many jewelry stores that accept Bitcoin. Some of them accept Bitcoin directly through wallet-to-wallet transactions, where the others use a third party as an intermediary. But I personally think that jewelry shops should also offer the option to sell gold for Bitcoin. I believe this would be fair considering that such transactions are also important. On the other hand I hope that the adoption or even the use of Bitcoin as a payment method will continue to expand making it even easier to conduct such transactions.

There are two things which could be implied in the OP 1.) The OP wants to buy Gold in small quantities/denominations/values/sizes using Bitcoin. I dont frequent jewellry stores but in my country I'm sure they dont deal in "bullion". This is handled mostly inline in my country and you can already buy small weights of Gold like the Pamp bars and other Gold coins. 2.) The OP is wishing for a global retail acceptance of POS Bitcoin payments. I believe most Jewellry stores would be independently owned so it would be up to individual stores to make the decision. This also ties into the concept of diversification and whether anyone wants to buy Gold instead of using that portion of wealth for Bitcoin.

Why don't you show them to us? Maybe one of the (old) users will want to buy some gold with bitcoins. Who told you that? When you buy gold jewelry, you're paying for the piece itself, not the piece of metal, plus the added value (the seller's profit). I believe buying jewelry as an investment is a foolish idea because of the inflated price (as a product). It's better to simply buy gold as "scrap metal" in bars. But in some countries, taxes are baked into such purchases (and after the sale), making buying physical gold completely unprofitable. But another problem would have arisen. If the price bitcoin's was stable, because traditionally something stable was used as a measurement method. Why is there a third variable (dollar) in your equation? If this made sense, it would have been implemented already. Why are you mentioning the dollar again? These your cubes (or balls, sticks, or even stars) should be sold in the equivalent of satoshi, if we follow the logic of your post.

It's so much easier said than done, because it's not that simple. From what I understand, most gold shops use a system where they can profit from buying and selling, and all of that is calculated in fiat currency because it's simpler and they don't have to perform conversions that could reduce their profits. Additionally, government regulations may restrict sellers from conducting transactions using Bitcoin as a medium of exchange -- so these gold jewelry shops will continue to prioritize fiat currency as their primary medium of exchange.

Volatilities is an issue with the acceptance of Bitcoin for gold purchase because the price would always fluntuate and am sure regulators would have questions to ask if such a business is registered and operating in the region and under tax laws. This Bitcoin acceptance could also pose as a superior alternative to sellers who value buyback rates, but the fiat systems cannot be ignored in total mostly when such a gold business started off with Fiat on the balance books of which auditors and regulators can see. ​

Look, gold trading shops sell it through fiat money, but it is not as easy as you think, in reality it is much more difficult. Gold shops do not sell gold with Bitcoin so easily, but yes, some shopkeepers can. But most shopkeepers or gold traders want to make a profit by buying and selling through fiat money. And the account that gold traders create at the end of the month or at the end of the week and at the end of the year is in fiat currency. So here, if they accept payment through Bitcoin, they will not get the correct account. Maybe if the price of Bitcoin decreases, their money will decrease, so most gold traders do not like it. Because their main account is in fiat currency.

Adaptation with the cryptocurrency is just another strategy for those who wanted to pay with a bitcoin into their stores but does not mean it could change a lot in the industry of jewelries again its just a payment method now if its up to them if they would like to willing to have a trade or sell it direct but probably most of the trade value does not have an equal rate also another thing is crypto has a volatility unless their terminal will directly converted their payments. Still most of these shops prefer to have a fiat or cash to their businesses.

jewellery shop to accept bitcoin and crypto https://www.acejewelers.com/en/i/pay-with-bitcoin https://www.cwsellors.co.uk/pages/pay-with-cryptocurrency https://www.bankslyon.co.uk/buy-watches-jewellery-with-crypto/

Why would it be smootly works for bitcoin? Im curious if the price was reduced when selling with fiat or credit card but if use bitcoin would be fixed? Im really confuse with the rationale that its gonna be better if crypto. Does selling via fiat would lowered its value? While if selling via bitcoin will retain its price? When bitcoin value is relaltively volatile.