It depends. More transaction volume that will be ecommerce specific will cause a bigger demand of BitCoins to be available on exchanges, but there is also problem with currently not-used bitcoins. There are many BitCoin owners who don't want spend their coins in exchanges, but will be more eager to do it on ordinary shopping.
BitCoin have problems with liquidity and volatility so price behaviour can go really crazy.
Still this trend is good for BitCoin owners and BitCoin in general because "value" will stay longer in BitCoin network - thanks to that price should be more stable.
Topic: Major companies accepting BTC will ultimately drive prices down? - page 2. (Read 2592 times)
January 24, 2014, 10:45:34 PM
January 24, 2014, 08:55:10 PM
I have wondered about this too, if major companies are bringing in a lot of bitcoin transactions and immediately selling back to local currency. That seemingly would present potentially more supply than demand..
January 24, 2014, 08:27:41 PM
If enough of them accept bitcoin payments, then they will be able to pay each other directly with bitcoins, which will eliminate the need to cash out the coins on exchanges. Currently merchants have to cash out bitcoin on exchanges, but that is a temporary hassle
AFAIK companies paying each other with bitcoins would be against the law, at least in some countries.
January 24, 2014, 07:34:55 PM
If enough of them accept bitcoin payments, then they will be able to pay each other directly with bitcoins, which will eliminate the need to cash out the coins on exchanges. Currently merchants have to cash out bitcoin on exchanges, but that is a temporary hassle
January 24, 2014, 06:09:01 PM
When I raised the same issue about a month ago, the uber-bulls laughed at me. Short term this is bearish.
HODLers will only spend their bitcoins when the price is close to an ATH, but there is a clear downtrend, which is about now too.
When the price will drop further, there will be no incentive to spend bitcoins, because they'll have to buy them back with fiat.
So they'll just spend their fiat instead, unless they are altruistic and want to truly broaden the usage of bitcoin.
HODLers will only spend their bitcoins when the price is close to an ATH, but there is a clear downtrend, which is about now too.
When the price will drop further, there will be no incentive to spend bitcoins, because they'll have to buy them back with fiat.
So they'll just spend their fiat instead, unless they are altruistic and want to truly broaden the usage of bitcoin.
January 24, 2014, 05:53:42 PM
My guess is that we will continue to see cycles in the value of bitcoin up and down...but they will happen over progressively longer time cycles...that's probably a very "good" thing for the eco-system.
I mean it is kind of amusing...there were people predicting that there would be very slow adoption my merchants because no one would ever want to be spending their bitcoins because it was better to just hold onto them and see them increase in value tomorrow.
Now there is the fear/potential that there will be some dip in value because of the reasons you suggest. The net effect of that in my mind is that yes...some pent up "paper-wealth" of some early adopters will get spent because it may be in a current trend slowly to sightly lower values.
But...in the long run that will only encourage MORE merchant adoption...and thus MORE public interest as a means of payment...and bolster value.
I wouldn't sell if I were you...
I mean it is kind of amusing...there were people predicting that there would be very slow adoption my merchants because no one would ever want to be spending their bitcoins because it was better to just hold onto them and see them increase in value tomorrow.
Now there is the fear/potential that there will be some dip in value because of the reasons you suggest. The net effect of that in my mind is that yes...some pent up "paper-wealth" of some early adopters will get spent because it may be in a current trend slowly to sightly lower values.
But...in the long run that will only encourage MORE merchant adoption...and thus MORE public interest as a means of payment...and bolster value.
I wouldn't sell if I were you...
January 24, 2014, 05:41:33 PM
Just a thought if all the bitcoin hoarders can now buy their nice nerd pod equipment from tigerdirect.com and lingerie for said girlfriend or wife with bitcoins. Wont we see alot of liquidation daily from these companies which will slowly crash prices? Not sure if anyone has posted this and apologies if it has. It just now occurred me is is all I'd like to know how you all feel about it.
I wonder what the sales volume for tigerdirect.com is daily. Whos processing the payments for them and overstock.com ? Shed some light on this topic for me I'm not ready to panic sell yet!
Shit... Now saying that makes me realize forget mining btc I think i'll just start processing btc payments now.
I wonder what the sales volume for tigerdirect.com is daily. Whos processing the payments for them and overstock.com ? Shed some light on this topic for me I'm not ready to panic sell yet!
Shit... Now saying that makes me realize forget mining btc I think i'll just start processing btc payments now.
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