Topic: Bitcoin's price continues downward trend, Is this good? - page 2. (Read 1633 times)
could it caused by that most merchants exchange the BTC to country money immediately?
Bitcoin's price is still down after a week of very high transaction volume. Over the last few weeks, Bitcoin's total transaction volume has increased significantly. When more bitcoins enter circulation , the price must drop for the demand of Bitcoin to keep up with the current supply. More people are spending their bitcoins rather than hoarding them. From an investor standpoint, this is likely seen as a negative thing as it is driving prices down to a very low level. From the average consumer's standpoint, this will increase adoption.
A Currency must have three basic properties, these are: A unit of account, a store of value, and a medium of exchange. Bitcoin can be used to determine the value of something ( a unit of account). Almost all Altcoins are traded against Bitcoin, thus Bitcoin is used as a unit of account on a daily basis. Bitcoin functions as a store of value. Bitcoins hold a set value at any given time based on the laws of supply and demand and the trades that occur on a daily basis. There is a natural inflation rate due to more bitcoins constantly being mined. Bitcoin also functions as a medium of exchange. Bitcoin can be used to pay for a variety of goods and services. Bitcoin adoption has increased rapidly this year and transaction volumes are increasing.
Most countries still use 40 year old banking methods that are severely outdated. Transactions and bank deposits take 3-5 days to complete and are subject to large fees. Bitcoin transactions are very fast and cheap to send. Before the invention of user friendly wallets, Bitcoin was hard to use and very complicated. Hosted wallet services make using Bitcoin easy and more consumers are starting to realize that the technology is easy to use. I would highly recommend Using Circle for safe, and secure Bitcoin banking.
Read the full article at: http://cryptocoinchronicle.com/2014/09/bitcoin-price-continues-downward-trend/
A Currency must have three basic properties, these are: A unit of account, a store of value, and a medium of exchange. Bitcoin can be used to determine the value of something ( a unit of account). Almost all Altcoins are traded against Bitcoin, thus Bitcoin is used as a unit of account on a daily basis. Bitcoin functions as a store of value. Bitcoins hold a set value at any given time based on the laws of supply and demand and the trades that occur on a daily basis. There is a natural inflation rate due to more bitcoins constantly being mined. Bitcoin also functions as a medium of exchange. Bitcoin can be used to pay for a variety of goods and services. Bitcoin adoption has increased rapidly this year and transaction volumes are increasing.
Most countries still use 40 year old banking methods that are severely outdated. Transactions and bank deposits take 3-5 days to complete and are subject to large fees. Bitcoin transactions are very fast and cheap to send. Before the invention of user friendly wallets, Bitcoin was hard to use and very complicated. Hosted wallet services make using Bitcoin easy and more consumers are starting to realize that the technology is easy to use. I would highly recommend Using Circle for safe, and secure Bitcoin banking.
Read the full article at: http://cryptocoinchronicle.com/2014/09/bitcoin-price-continues-downward-trend/
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