Better technology than a year ago | Bitcointalksearch.org

Bitcoin_Silver_Supply

sr. member

Activity: 258

Merit: 250

Quote from: MaxSan on October 18, 2011, 02:32:46 PM

Scenario A

Merchant: "Bitcoins eh? New fangled payment system that cost next to nothing to implement? Overseas payments n all? Sounds amazing. What are these bitcoins worth? 20 Dollars each?! Wow thats amazing.. They went up how much in value in how little time?

Scenario B

Merchant "Bitcoins eh? New fangled payment system that cost next to nothing to implement? Overseas payments n all? Sounds amazing. What are these bitcoins worth? 2 Dollars each! And these can be changed relatively easy into dollars?

If a new merchant is taking a risk on accepting payments the psychological impact of only getting 1BTC instead of 10BTC for an item costing 20USD is immense. This is why I think its better poised for adoption by merchants now more than ever.

Scenario B fails to include the fact that the first thing your average merchant will do when seeking to set up a new business would be to pull up news stories on the currency and immediately see "Bitcoin loses 90% of its value in 3 months." This likely won't be followed by any positive stories unless the price shoots up in a short time frame again. That doesn't make for an attractive payment platform for new merchants.

I do agree with one point in the other comments though - Bitcoin's value runs much deeper than its day-to-day price. The issue is that the fluctuations are deterring average merchants from jumping on board right now.

Erratic

newbie

Activity: 12

Merit: 0

Quote from: evoorhees on October 18, 2011, 02:44:55 PM

Quote from: Elwar on October 18, 2011, 02:26:36 PM

Bitcoin is more robust and has more applications and technology associated with it than a year ago. That is all that matters.

This is why it's silly when people confuse the "value" of bitcoin with the "price." The value of Bitcoin as a monetary system is undoubtedly higher than a year ago, and higher than 3 months ago, and higher than last week. The "price" on the other hand, has fallen.

Those who see a price fall and equate it with a fall in Bitcoin's fundamental value will always be missing the boat.

I agree with you.

evoorhees

legendary

Activity: 1008

Merit: 1023

Democracy is the original 51% attack

Quote from: Elwar on October 18, 2011, 02:26:36 PM

Bitcoin is more robust and has more applications and technology associated with it than a year ago. That is all that matters.

This is why it's silly when people confuse the "value" of bitcoin with the "price." The value of Bitcoin as a monetary system is undoubtedly higher than a year ago, and higher than 3 months ago, and higher than last week. The "price" on the other hand, has fallen.

Those who see a price fall and equate it with a fall in Bitcoin's fundamental value will always be missing the boat.

A wise investor figures out how to measure and perceive value, then looks at the price, and if there is a discrepancy he goes long or short. I'm long on Bitcoin. We'll see if I'm a wise investor =)

MaxSan

sr. member

Activity: 369

Merit: 250

Scenario A

Merchant: "Bitcoins eh? New fangled payment system that cost next to nothing to implement? Overseas payments n all? Sounds amazing. What are these bitcoins worth? 20 Dollars each?! Wow thats amazing.. They went up how much in value in how little time?

Scenario B

Merchant "Bitcoins eh? New fangled payment system that cost next to nothing to implement? Overseas payments n all? Sounds amazing. What are these bitcoins worth? 2 Dollars each! And these can be changed relatively easy into dollars?

If a new merchant is taking a risk on accepting payments the psychological impact of only getting 1BTC instead of 10BTC for an item costing 20USD is immense. This is why I think its better poised for adoption by merchants now more than ever.

Elwar

legendary

Activity: 3598

Merit: 2386

Viva Ut Vivas

Bitcoin is more robust and has more applications and technology associated with it than a year ago. That is all that matters.

The price can be wherever it needs to be, but it all comes down to how much easier it is to use as a means of exchange. And as far as that goes...it has come quite a long way.

The technology is sound. The blockchain has held on. Bitcoin will continue on for decades to come.

Topic: Better technology than a year ago (Read 976 times)