If retail do not adopt BTC then what the hell are you gonna spend your satoshi's on? Nothing, because they would not be accepted by anyone.
As for price correlation, this is simple supply and demand with more BTC spending going on then the new adopters whomm see retailers using the product will need to convert fiat to BTC. I believe the expanding demand would outstrip the already circulating, actually linited, BTC hence the medium to long term would push BTC prices up.
Topic: Retail adoption hurts bitcoin price it doesn't help it and here's why - page 3. (Read 5655 times)
August 10, 2014, 07:06:38 AM
August 10, 2014, 07:02:26 AM
Will the stores always sell the bitcoin they receive right away?
How do customers get bitcoin they use to give to the store?
How do customers get bitcoin they use to give to the store?
3 % per purchase vs 0.1%
1)Discount bitcoiners v credit card 2)Pay staff bonuses in Bitcoin (sales commission) 3)Pay suppliers in Bitcoin
August 10, 2014, 05:46:24 AM
All the retailers selling their coins doesn't hurt the bitcoin price. Someone else is buying them back, perhaps even for a higher price, there's enough volume and growth to keep it up as long the price is not too much a bubble.
August 10, 2014, 05:45:47 AM
Only when this circle of transactions gets solved will bitcoin possibly reach it's consumer potential. We are years away from it but getting there.
August 10, 2014, 05:39:32 AM
In a nutshell we need a wallet that my 5 year old could use and show my gran why it's great. When this is done, we need a way for people to easily purchase bitcoin anywhere in the world. This is also dreadful at the moment, even some of my city it friends are put off by it... Entering card details on an unheard of website, uploading your passport , etc...
August 10, 2014, 05:33:08 AM
That said the most important thing now is to make wallets easy to use, they're all horrible at the moment with qr codes, transaction ids, confirmation times and addresses shown along with all that sort of programmer crap all over it. None of this info should be relevant eventually but we are all still excited by the protocol that the underlyings are exposed to people who don't want to know about how it works.
August 10, 2014, 05:29:51 AM
When a big company or even a little shop starts to accept bitcoin people start to get excited and think this adoption will result in the bitcoin price shooting up. Well I'm here to tell you the exact opposite is what actually happens. If a store or big company accepts bitcoin that's all fine and great but they're not holding on to it they're immediately dumping it in most cases and this will just result in the price getting lower. Places that keep the Bitcoin they get are keeping the price higher but they are a minority most just instantly dump upon receival of the bitcoin. We don't need to just get stores to accept bitcoin we need to show them the true value of it and why they should even themselves use it as a currency and not just dump it as some worthless commodity which some believe it to be. If we do this we will see a real increase in price.
You have to figure in #1 people will start to accept BTC as BTC and even if not #2 The BTC market cap still has to grow if ever business starts to accept BTC because of liquidity needing to expand from all the BTC to USD transactions.
August 10, 2014, 05:26:49 AM
You're right that it lowers price and we should be encouraging the 'buy back bitcoin' to users to keep the price stable otherwise adoption will slow as people see what may appear to look like a death trend to 0 (obviously this won't happen unless there is a fundamental protocol flaw yet to be discovered)
August 09, 2014, 05:07:34 PM
overstock do a $1mill a month in bitcoin.. and guess what, they only value the bitcoin in dollar. but never actually convert it to dollar. they are hoarding.
Overstock converts 90% to dollars, and holds about 10% as Bitcoins. Read their 10-Q.
August 09, 2014, 12:50:35 PM
When a big company or even a little shop starts to accept bitcoin people start to get excited and think this adoption will result in the bitcoin price shooting up. Well I'm here to tell you the exact opposite is what actually happens. If a store or big company accepts bitcoin that's all fine and great but they're not holding on to it they're immediately dumping it in most cases and this will just result in the price getting lower. Places that keep the Bitcoin they get are keeping the price higher but they are a minority most just instantly dump upon receival of the bitcoin. We don't need to just get stores to accept bitcoin we need to show them the true value of it and why they should even themselves use it as a currency and not just dump it as some worthless commodity which some believe it to be. If we do this we will see a real increase in price.
Yeah, it may happen in the short term, Okay. But in the long term it is a very good thing for Bitcoin and much needed to gain more traction and it basically is more PR for it. Also, I think BitPay, etc. sell their BTC to some people based on contracts. Those people tend to hold large amounts of BTC
August 09, 2014, 12:29:54 PM
overstock do a $1mill a month in bitcoin.. and guess what, they only value the bitcoin in dollar. but never actually convert it to dollar. they are hoarding.
Overstock converts 90% to dollars, and holds about 10% as Bitcoins. Read their 10-Q. August 09, 2014, 12:26:13 PM
When a big company or even a little shop starts to accept bitcoin people start to get excited and think this adoption will result in the bitcoin price shooting up. Well I'm here to tell you the exact opposite is what actually happens. If a store or big company accepts bitcoin that's all fine and great but they're not holding on to it they're immediately dumping it in most cases and this will just result in the price getting lower. Places that keep the Bitcoin they get are keeping the price higher but they are a minority most just instantly dump upon receival of the bitcoin. We don't need to just get stores to accept bitcoin we need to show them the true value of it and why they should even themselves use it as a currency and not just dump it as some worthless commodity which some believe it to be. If we do this we will see a real increase in price.
This only makes sense if you made the incorrect assumption that the BTC spent came from long term holders who would otherwise have sat on them.
August 09, 2014, 12:20:25 PM
When a big company or even a little shop starts to accept bitcoin people start to get excited and think this adoption will result in the bitcoin price shooting up. Well I'm here to tell you the exact opposite is what actually happens. If a store or big company accepts bitcoin that's all fine and great but they're not holding on to it they're immediately dumping it in most cases and this will just result in the price getting lower. Places that keep the Bitcoin they get are keeping the price higher but they are a minority most just instantly dump upon receival of the bitcoin. We don't need to just get stores to accept bitcoin we need to show them the true value of it and why they should even themselves use it as a currency and not just dump it as some worthless commodity which some believe it to be. If we do this we will see a real increase in price.
This only makes sense if you made the incorrect assumption that the BTC spent came from long term holders who would otherwise have sat on them. August 09, 2014, 12:14:22 PM
When a big company or even a little shop starts to accept bitcoin people start to get excited and think this adoption will result in the bitcoin price shooting up. Well I'm here to tell you the exact opposite is what actually happens. If a store or big company accepts bitcoin that's all fine and great but they're not holding on to it they're immediately dumping it in most cases and this will just result in the price getting lower. Places that keep the Bitcoin they get are keeping the price higher but they are a minority most just instantly dump upon receival of the bitcoin. We don't need to just get stores to accept bitcoin we need to show them the true value of it and why they should even themselves use it as a currency and not just dump it as some worthless commodity which some believe it to be. If we do this we will see a real increase in price.
Utter rubbish. So when Dell and others announce they are no longer accepting BTC then that will be a good thing ?
August 09, 2014, 12:07:36 PM
Funny how most people only see the price of BTC as if it was the most interesting part of it. Most of you guys will hold when it reaches highs, hoping for it to go even higher and later you panic sell it for 350$. Don't waste your time...
August 09, 2014, 11:36:58 AM
Exactly, it is saving reduce the coin supply on market and cause price to rise. The reason for saving using bitcoin comes from the fact that it can be spent at any place, with a long term rising purchasing power. If it becomes more widely accepted, more people will start to save using bitcoin. If you have a good saving and spending plan, you will accumulate bitcoin reserve, have a good life, while still helping it to appreciate
The idea with my equation is that no one is saving anything, it is just 1 million people that have (on average) one bitcoin to spend, that is a ridiculously small number in the scheme of things.
If you added savings (say 1 million people want to save, on average, 1 bitcoin each, still a tiny number) that is 2,000,000 taken out of the available pool!
Numbers start to get crazy very quickly, especially if take into account that in the last rough guess there is something like 8,000,000,000 people in the world all contending for their share of the 21 million coins that will ever exist.
Neil
[/quote]
People need to stop throwing around this 21 million coins 8 billion people nonsense. It doesn't matter unless there is a reason to use the coins. You can reduce the supply all you want, but if there is zero demand, the price is zero. Bitcoins will not have value unless there is a reason to use them, like retail adoption.
to end this 8 billion people nonsense, there are only 20 Phildo in 5th grade baseball cards in existence and 8 billion people. How much are they worth?
August 09, 2014, 11:33:59 AM
The point it that Bitcoin is being adopted by big players, I think anyway. I think people are thinking in the short term price of Bitcoin too much. What matters is Bitcion gains trust of the average person and if they see big companies testing the waters it's worth dips in the price. They say all press is good press and I think that is a suitable way of looking at the retail adoption at this time.
This is right on. When large companies start to accept bitcoin, it will give bitcoin a better image and will start to be associated with bad things like illegal activity less. As more people see bitcoin in a positive light and that there are many ways you can use bitcoin, more people will use it and the price will rise over time. August 09, 2014, 09:56:37 AM
You're forgetting that with retail adoption, global awareness and adoption comes along. Bitcoin is still limited to a small number of people, that's the issue here. Not all merchants are going to dump directly, partially or at all. Some will hoard these coins.
I'm sorry OP but you have actually got it wrong.
I'm sorry OP but you have actually got it wrong.
Here is one very good example.
http://www.coindesk.com/malaysian-online-retailer-accepts-bitcoin-wont-convert-fiat-currency/
Overclockers said that they would keep the coins as well, did they not?
Overstock is even planning to give bonuses to its employees in bitcoins.
August 09, 2014, 08:07:11 AM
You're forgetting that with retail adoption, global awareness and adoption comes along. Bitcoin is still limited to a small number of people, that's the issue here. Not all merchants are going to dump directly, partially or at all. Some will hoard these coins.
I'm sorry OP but you have actually got it wrong.
I'm sorry OP but you have actually got it wrong.
Here is one very good example.
http://www.coindesk.com/malaysian-online-retailer-accepts-bitcoin-wont-convert-fiat-currency/
Overclockers said that they would keep the coins as well, did they not?
August 09, 2014, 07:07:30 AM
You can't see the wood for the trees. Merchant adoption is good for bitcoin adoption and in the long term bitcoin adoption drives price.
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