Topic: Closing the loop - helping retailers not to sell their coins (Read 1297 times)

As if lawyers cannot write binding contracts to not need government regulation.

I guess it all comes down to some form of limited regulation. I think this is the reason why Wall Street s not yet in. Big vendors as well.

We could even have bitcoin-denominated debt once this happens. Right now, banks have a stranglehold over companies. If well-rated companies offer bitcoin bonds, people might be willing to invest.

Not only salary, vendors and large manufacturers are the key. Once retailers can replenish their stock by paying their good in BTC, we can hope for less sell pressure and volatility.

All Bitcoin-related companies need to offer salary in bitcoin.  Put up or shut up.

This will certainly change due to Bitcoins' huge advantage:
Businesses can currently send and receive $250,000 (for example) and pay fees of only ~3 cents.
Eventually, that fact will make Bitcoin usage much more common for large business transactions.

here is the video:

http://livestream.com/accounts/9119911/events/3981295/videos/84380038

(sound is bad  )

Yes, volatility is an issue indeed. Are there any company what offering some sort of volatility derivates for hedging against this problem?

If volatility is lower for sustained period of time, slowly but steadily rising, then there is no need to do fiat conversion. But that is very unlikely to happen since the whales will always drive speculative bubbles once every few years

The full loop in the commercial activities can bring more demand for bitcoin. In fact, even with bitpay, you already reach part of the effect of a full loop: When bitcoin is on the move between exchanges and your wallet and merchant, they are disappeared from the exchange for several hours or days, while in a full closed loop, they never appear on exchange, achieving the same result: Less supply on exchanges

From demand point of view, commercial activities do not drive the major demand. Because the consumption is a one time thing: If you spend $2000 monthly, then 10 bitcoins will be everything you need for all the transaction, from vendor to end consumer, and for the rest of your life. However, if you purchase $200 worth of bitcoin each month, then over a decade it will generate 12x more demand for bitcoin. That's the long term saving part, which is the major driven power for bitcoin demand right now

So if bitcoin can enter the portfolio for pension funds and other type of long term investment funds, then its value will get sustained boost, and then all the other aspects will grow accordingly

Yeah, yet you see many companies being pretty resilient in doing so. There may also be accounting problems, problems with return policies (volatility!!!), etc.... And if you use BitPay you don't really accept BTC.

Companies can start by accepting BTC as one of the payment options. (As more and more doing.) Chicken and eggs served piping hot in one go .

This is definitely the way to go! The bootstrapping process is - like most times - the hardest part, though. Think of it as the "hen and egg problem": You need to have enough incentive to accept BTC, companies and people need to have enough places where they can spend their BTC - where do you begin?

In fact this particular picture is worth exactly 11 words.

As you said for not there is no incentive to keep bitcoin really, because you can't buy everything for it and you MUST sell it to be able to pay your bills, contractors and clients with FIAT. People are scared because of that bitcoin price is not growing constantly and they think it is because bitcoin is failing, which is not true. In couple years I know that situation will change and people will be willing to keep btc instead of selling it. Just wait.

Not so sure. Some recent research show that the speed of merchant adoption s actually decreasing. Coindesk latest report for example.

I think at the bitcoin's adoption rate is increasing, more and more merchants, individuals, vendors are adopting and using bitcoin. The bitcoin's ecosystem is forming. Ppl will find the benefit of just keeping bitcoin rather to dump to cash paying the conversion fees every time.

A closing loop could help stabilization of the price of bitcoin, but I doubt such loop can really be setup.

The problem is that there are not enough merchants, who are accepting bitcoin payment. The customers, who gained bitcoin, still are fear to keep bitcoin in hand. We need more time to spread the bitcoin concept.

why they can't simply exchange the bitcoin gained by customers with other item instead of fiat? then those item are sold again to the previous customers for other bitcoin

fiat shouldn't exist in the first place when someone is dealing with bitcoin

We need to compile a list of businesses that sell for bitcoin things useful to other businesses (office supplies, machinery, commercial kitchen equipment, wrappers/containers/cups, dishes/flatware/plates,  uniforms, safety shoes, etc) and distribute the list to all businesses that accept bitcoin.  

If they can avoid a 2% "tax" for conversion to fiat and get their purchases done anyway, they'll probably like that idea.