Citi report on bitcoin - page 2. | Bitcointalksearch.org

alexeft

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Quote from: tabnloz on August 26, 2014, 02:10:21 PM

Just read the coindesk article re: citi report on bitcoin saying the effect of mining & increased retail adoption is depressing the price.

My possibly naive takeaway from this is that on the retail adoption side this is a necessary evil. upon acceptance a company may initially sell straight away into the market be ause they are basically testing the waters, but as their btc sales stabilise they will (lseeing the successful example of overstock) begin to hold a percentage in btc. this will equal less supply and will encourage b2b usage in the medium term even though it has a price dampening impact initially.

its part of the reason for the stagnating price but will also be part of the reason that it eventually takes off again.

id guess its a 12 month lag between accepting, holding and then paying suppliers in btc.

http://www.coindesk.com/citi-miners-merchants-keeping-bitcoin-prices-check/

Geez!!!! Did they also find that wheels are round??? Cheesy

Jamacn

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Bitcoin into life, all discussion will disappear.

Melbustus

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Steven Englander has been myopic on bitcoin for a while now; he's basically on my internet-wide ignore list.

fonzie

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Quote from: inca on August 26, 2014, 02:43:53 PM

Big banks with active trading desks often produce documents helping members of the general public to know which direction the price of a commodity is moving in the future. Trebles all round!

inca

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Big banks with active trading desks often produce documents helping members of the general public to know which direction the price of a commodity is moving in the future. Trebles all round!

cypherdoc

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Quote from: Habeler876 on August 26, 2014, 02:35:28 PM

Quote from: cypherdoc on August 26, 2014, 02:19:52 PM

we've also arguably completed a natural down cycle as a result of the run up late last year.

What sort of basis are you using to conclude that this cycle has now completed? This would only be clearly visible in hindsight, so I am curious what metrics you are looking at.

we've broken the downtrend lines. we've also broken the uptrend lines. but time is also important, as i am a cycle trader. this pullback interval has been longer than normal, despite lots of good news, but we are still above last April's low. so i think it is "time" and the fundamentals have, imo, improved. plus, other factors.

johny08

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"Bitcoin’s price is poised for “acute instability” due to an oversupply of coins from miners and large merchants, along with a weak growth in demand, according to a new research note from financial giant Citi."

the miners having a big impact on the price, because they giving new supply of bitcoins. even there are just 3600 BTC mined a day compared to already 13.000.000 on the market, a part of them have to find new buyers.

Habeler876

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Quote from: cypherdoc on August 26, 2014, 02:19:52 PM

we've also arguably completed a natural down cycle as a result of the run up late last year.

What sort of basis are you using to conclude that this cycle has now completed? This would only be clearly visible in hindsight, so I am curious what metrics you are looking at.

tabnloz

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Quote from: cypherdoc on August 26, 2014, 02:19:52 PM

that theory still bugs the heck outta me. i understand the gist of it but the increased monetary velocity will in the long run greatly improve the price dynamic as more consumers adopt and as more merchants hold back BTC. the secondary supplier function should start getting more widespread as well.

we've also arguably completed a natural down cycle as a result of the run up late last year. there will come a time when the price starts to rise along with increasing merchant adoption and all this talk will disappear.

yes, a little bit of anxiety now for much bigger benefits later.

i think it is great that btc has someone like Patrick Byrne on its side pushing the barrow. I dont know how these things work, but I'd say Overstock have gone from implementing to holding a % quite quickly. And then Newegg (smartly) begins offering % discounts for btc usage and this little niche economy grows and grows.

cypherdoc

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that theory still bugs the heck outta me. i understand the gist of it but the increased monetary velocity will in the long run greatly improve the price dynamic as more consumers adopt and as more merchants hold back BTC. the secondary supplier function should start getting more widespread as well.

we've also arguably completed a natural down cycle as a result of the run up late last year. there will come a time when the price starts to rise along with increasing merchant adoption and all this talk will disappear.

tabnloz

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Just read the coindesk article re: citi report on bitcoin saying the effect of mining & increased retail adoption is depressing the price.

My possibly naive takeaway from this is that on the retail adoption side this is a necessary evil. upon acceptance a company may initially sell straight away into the market be ause they are basically testing the waters, but as their btc sales stabilise they will (lseeing the successful example of overstock) begin to hold a percentage in btc. this will equal less supply and will encourage b2b usage in the medium term even though it has a price dampening impact initially.

its part of the reason for the stagnating price but will also be part of the reason that it eventually takes off again.

id guess its a 12 month lag between accepting, holding and then paying suppliers in btc.

http://www.coindesk.com/citi-miners-merchants-keeping-bitcoin-prices-check/

Topic: Citi report on bitcoin - page 2. (Read 2507 times)