The more merchants accepting - BTC declines in price

fendlestick

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Quote from: Gianluca95 on June 12, 2014, 12:43:19 PM

Quote from: TaunSew on June 12, 2014, 10:41:56 AM

Merchants dump their BTC for $Fiat, at the lowest prices, to pay their overhead, taxes, employees, et al.

Unfortunately is a condition that entrepreneur must be accept to not have any fiscal problem..

Not for me Grin

I take coins for adult stuff, my supplier takes coins to supply me. Not all models require fiat, most do, but not all.

Gianluca95

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Reputation first.

Quote from: TaunSew on June 12, 2014, 10:41:56 AM

Merchants dump their BTC for $Fiat, at the lowest prices, to pay their overhead, taxes, employees, et al.

Unfortunately is a condition that entrepreneur must be accept to not have any fiscal problem..

franky1

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Quote from: justusranvier on June 12, 2014, 12:27:00 PM

Quote from: franky1 on June 12, 2014, 12:02:12 PM

this is why bitpay is getting investors to give bitpay large reserves ($32mill example) so that bitpay does not eat up the buy-wall of exchanges., and investors do not eat up the buy wall of exchanges for them to get their bitcoins either.

that way the investor well away from an exchange, gives bitpay FIAT, and bitpay gives the investor bitcoin.

I expect payment processors to eventually turn in to the primary price discovery mechanism.

Sooner or later, some investors are going to get impatient with this arrangement so they'll ask the payment processors to start offering higher exchange rates in order to attract more BTC sellers.

when you look at how fast overstock done $1m in trades, and then look at the fact that over 30k merchants use bitpay.. it does not take long for bitpay to soak through $32mill reserve

justusranvier

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Quote from: franky1 on June 12, 2014, 12:02:12 PM

this is why bitpay is getting investors to give bitpay large reserves ($32mill example) so that bitpay does not eat up the buy-wall of exchanges., and investors do not eat up the buy wall of exchanges for them to get their bitcoins either.

that way the investor well away from an exchange, gives bitpay FIAT, and bitpay gives the investor bitcoin.

I expect payment processors to eventually turn in to the primary price discovery mechanism.

Sooner or later, some investors are going to get impatient with this arrangement so they'll ask the payment processors to start offering higher exchange rates in order to attract more BTC sellers.

Ashbite

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I dont think every merchant just insta sells their bitcoins. If people dont NEED the money they really should wait.
bitcoin wont die, bitcoin will rise.

franky1

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Quote from: TaunSew on June 12, 2014, 10:41:56 AM

Merchants dump their BTC for $Fiat, at the lowest prices, to pay their overhead, taxes, employees, et al.

this is why bitpay is getting investors to give bitpay large reserves ($32mill example) so that bitpay does not eat up the buy-wall of exchanges., and investors do not eat up the buy wall of exchanges for them to get their bitcoins either.

that way the investor well away from an exchange, gives bitpay FIAT, and bitpay gives the investor bitcoin.

and guess what, the price moved from $450-$600

keithers

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Quote from: Malin Keshar on June 12, 2014, 11:22:59 AM

this is an old discussion, I think(search for it if you are interested).

for me, while more and more people enter the market, chances are the buy pressure still will be higuer than the sell pressure of the vendors. It depends of wether adoption's tax is higuer than merchant's adoption, and wether bitcoin gets popular as a mean of payment(that is, how many bitcoin the holders spend).

BTC is also a value storage asset, like gold and silver, so there are people that will just hold, and incentive to vendors, in the future, hold their bitcoins, instead to sell them at transaction's time

Yes, I think a lot of the major players will be holding on to a portion of the BTC that they receive in sales. Like the overstock CEO for instance...

Lethn

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Not all merchants will dump their Bitcoins and of course, some of them might just be saying that so the people who are obsessed with paper money won't be hysterical, you also have to take into account that there has been a substantial increase in trade volume which will also affect the price, I think if the currency does rise, it will possibly be steadier this time than before.

Malin Keshar

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this is an old discussion, I think(search for it if you are interested).

for me, while more and more people enter the market, chances are the buy pressure still will be higuer than the sell pressure of the vendors. It depends of wether adoption's tax is higuer than merchant's adoption, and wether bitcoin gets popular as a mean of payment(that is, how many bitcoin the holders spend).

BTC is also a value storage asset, like gold and silver, so there are people that will just hold, and incentive to vendors, in the future, hold their bitcoins, instead to sell them at transaction's time

Rampton

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I've given up looking for the price to rise on the back of more merchants accepting it. Just seems to go up by itself, but down on the back of any bad news.

TaunSew

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Merchants dump their BTC for $Fiat, at the lowest prices, to pay their overhead, taxes, employees, et al.

Topic: The more merchants accepting - BTC declines in price (Read 904 times)