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Topic: Here's the problem - BitCoin users are too cheap and just want to hide it - page 3. (Read 4574 times)

newbie
Activity: 56
Merit: 0
like a grandmother hoarding cash under the bed.

I've noticed that many here don't really seem to be spending any. There needs to be a massive increase in buying goods and services with BTC.

I've heard of many more merchants accepting them but my guess is that the community holding them (many from mining days) just won't spend them.

Case in point, I've put up some marketplace ads recently that are an absolute steal in terms of value. Yet nobody biting so far. They seem to want the deal of the century. I sell such services elsewhere for higher and get plenty of orders.

Now the target market is different, for sure, but I get the feeling that people are just too cheap.

What do youy think to this theory?

If you care about what people do with their bitcoins and if they use them or not then create something that will entice them to use their bitcoins. They are waiting for you.
hero member
Activity: 994
Merit: 1000
To best answer your question, it would be helpful to know the reasons why people own bitcoins. The way I see it, there are maybe 3 types of people in this babyconomy:

1. Speculators for real world wealth; buying or mining and holding BTC via exchange as a commodity, to sell back and be real world rich. They have no interest in the BTC economy personally, and are unlikely to spend BTC until they are satisfied they're rich.
2. Valuers; see the value in this type of economy, and are will to gain and trade BTC for other Goods and Services as they get them.
3. Businesses; also see the value in this type of economy, and will trade their Goods and Services for BTC, and pay their suppliers in BTC, to make their business run, while relying on btc/$ conversion as little as possible.

How many are in each group? At a mostly random guess, I would say maybe 98% speculators, 1.8% Valuers, and 0.2% businesses. The number of people who are actually using BTC to trade goods is probably quite small, and thus, your market here is probably tiny.

The BTC economy can survive excessive hoarding quite well because of its infinite splitting (unless I misunderstand that it can be), and people with 100,000 coins when people are buying and selling cars for 1mBTC will be stupidly rich, but once they've bought all they're going to buy, will either die and forget to pass on the encrypted data, or pass it on and it'll make its way through the system, and life will go on in either case.

The issue you are facing right now is that you're trying to sell something to a tiny market. If there are things which can only be bought via BTC, then BTC actually has a value over other currencies. The people buying your stuff already probably wouldn't care that they were paying in USD, or GBP, or EUR, or even BTC, as long as they were all the same "price", and if there's a choice, they'll pick the cheapest if know how to find it.

For example, if a day's work for a person earned them USD$200, GBP120 or 40microBTC, and they decided that they wanted what you were selling, and that paying "half a days' wage was an acceptable price", then they will be happy to pay USD$100, GBP60, or 20mBTC, whichever currency you asked them in, since the easiest way for a person to generally rate the price of something is on how difficult it is to re-earn that same dollar/pound/btc (their time factor). If it turned out that if the BTC price was only a quarter day's wages for the same thing, then they would most certainly do that, if they knew how.

You can safely ignore they hoarders, as they are not here to build an economy. You just offering the ability to accept BTCs is what matters. If you provide a service that another business can use, and they also trade in BTC, you will profit enormously, and that is, I believe, the only way real economies can be built.

Once a real economy is built, people will slowly be attracted to BTC as an economy if prices are always cheaper. Once it's established that prices are always cheaper via BTC (less overhead?), then people will come in droves, and BTCs will explode in usage, and you'd be glad to have been an early adopter. This is the point where banks get shitty and lobby to shut it all down.
sr. member
Activity: 420
Merit: 250
Might be right. Easy way to deal with it if you're a hoarder and want to buy something.. buy more BTC in the amount of your purchase then use it  Cheesy
full member
Activity: 210
Merit: 100
like a grandmother hoarding cash under the bed.

I've noticed that many here don't really seem to be spending any. There needs to be a massive increase in buying goods and services with BTC.

I've heard of many more merchants accepting them but my guess is that the community holding them (many from mining days) just won't spend them.

Case in point, I've put up some marketplace ads recently that are an absolute steal in terms of value. Yet nobody biting so far. They seem to want the deal of the century. I sell such services elsewhere for higher and get plenty of orders.

Now the target market is different, for sure, but I get the feeling that people are just too cheap.

What do youy think to this theory?
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