this post was submitted on 30 Jul 2024
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Monero
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While transacting in monero is laudable and doing the world a service, when you sell a product in one currency, but purchase that product in another currency, you're setting yourself up for foreign exchange arbitrage. That is not a fun experience from the service provider perspective.
Scenario a: your prices are above the Fiat price and people don't buy it from you
Scenario b: your prices are below the Fiat price, and people buy a lot of it from you.
You end up holding the bag, or having no transactional volume at all.
Xmrbazaar Even does auto currency conversion on the website, shows you the price and your local Fiat.
Well, people can either buy it, or they can not buy it, and I can use an exchange instead. I would rather not use an exchange, but I am able to do so. I think a lot of it depends very much on how much the Monero circular economy means to people. Is it just talk or are they willing to put their Monero where their mouth is?
Edit: I did take the foreign exchange arbitrage into account and have decided to air on the higher side by using the 365 day simple moving average. I also have a threshold at which if it drops too far below the 365 day moving average, I will simply remove all of my products from the marketplace until such time as it returns.