Payment processors, as they currently operate, are responsible for bitcoin losing its value. Choke off the endless market sells payment processors are doing for retailers, service providers and miners, and demand will outstrip supply=price increase. Since there is insufficient bitcoin transaction volume to cause bankruptcies for fiat-primary businesses, payment processors could add value to their services by letting their business customers set a profit threshold, for example:
Retail customer pays $5 worth of BTC to payment processor address
Business customer sets 5% profit threshold with payment processor
Payment processor sells BTC for $5.25 as soon as a bid is found that high, credits fiat to business customer
Topic: 2015-02-03 NASDAQ - Bitcoin Price Chart Shows What's Blocking Faster Adoption (Read 1000 times)
February 04, 2015, 12:11:41 AM
February 03, 2015, 11:40:50 PM
For Bitcoin to gain mainstream adoption, this price volatility needs to be reduced. Bitcoin's tendency to lose 20% to 40% of its value in a matter of days, or even hours, discourages its use for daily transactions.
It's also why most of the merchants that accept Bitcoin immediately convert what they receive into a fiat currency like the U.S. dollar. Fiat money certainly has its issues, but major currencies like the dollar and euro are relatively stable compared to Bitcoin.
Read more: http://www.nasdaq.com/article/this-bitcoin-price-chart-shows-whats-blocking-faster-adoption-cm439925#ixzz3QkRWUbpz
It's also why most of the merchants that accept Bitcoin immediately convert what they receive into a fiat currency like the U.S. dollar. Fiat money certainly has its issues, but major currencies like the dollar and euro are relatively stable compared to Bitcoin.
Read more: http://www.nasdaq.com/article/this-bitcoin-price-chart-shows-whats-blocking-faster-adoption-cm439925#ixzz3QkRWUbpz
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