I don't know if this is old news to you lot but you might still be interested, I think this is already happening, at least for the startups and such, there is a startup miner recently that popped up onto Bitcoinfunder.
https://bitfunder.com/asset/Kenilworth
Topic: The snowball effect of bitcoin-only sale - page 2. (Read 3254 times)
If you want to buy gasoline in Bitcoin, you need to get Coal mining companies to accept it. Gasoline is refined using Coal. If the base resource of anything accepts Bitcoin, mass-adoption is bound to happen.
http://www.sciencedaily.com/releases/2011/07/110725190044.htm
As you can see here, an idea expands like wildfire once 10% of any population agrees with you. So, if we get 10% of online business to accept Bitcoin, the cycle begins on its own. If we get 10% of "base" companies like Coal mining companies or other resource companies (Iron refineries, metal mines, etc.), then the businesses above are bound to start accepting Bitcoin as well. It's all about the "target audience".
http://www.sciencedaily.com/releases/2011/07/110725190044.htm
As you can see here, an idea expands like wildfire once 10% of any population agrees with you. So, if we get 10% of online business to accept Bitcoin, the cycle begins on its own. If we get 10% of "base" companies like Coal mining companies or other resource companies (Iron refineries, metal mines, etc.), then the businesses above are bound to start accepting Bitcoin as well. It's all about the "target audience".
+1
If you want to buy gasoline in Bitcoin, you need to get Coal mining companies to accept it. Gasoline is refined using Coal. If the base resource of anything accepts Bitcoin, mass-adoption is bound to happen.
http://www.sciencedaily.com/releases/2011/07/110725190044.htm
As you can see here, an idea expands like wildfire once 10% of any population agrees with you. So, if we get 10% of online business to accept Bitcoin, the cycle begins on its own. If we get 10% of "base" companies like Coal mining companies or other resource companies (Iron refineries, metal mines, etc.), then the businesses above are bound to start accepting Bitcoin as well. It's all about the "target audience".
http://www.sciencedaily.com/releases/2011/07/110725190044.htm
As you can see here, an idea expands like wildfire once 10% of any population agrees with you. So, if we get 10% of online business to accept Bitcoin, the cycle begins on its own. If we get 10% of "base" companies like Coal mining companies or other resource companies (Iron refineries, metal mines, etc.), then the businesses above are bound to start accepting Bitcoin as well. It's all about the "target audience".
I agree with everyone's point in this thread, I think our main goal would be to get fully BTC funded businesses. The higher the demand the higher the price will go. It would be genius for a large company to only sale a product in bitcoin only, it will be the smartest move they could ever do. My idea is that if anyone ever does it it will be something in the technology space since it will have easier adopters.
If they have the money to put into a successful product there is no reason they would limit themselves to bitcoin commerce solely unless they were selling a product market towards bitcoin such as asics.
The main obstacle here is that fiat money has already occupied the position of transaction medium, people have little motivation to use another transaction medium if the seller does not accept bitcoin exclusively
You are buying something from an europe online merchant, they only accept Euro, you pay with your credit card, and the credit card company do the conversion: Buy euro at foreign currency exchange and pay the seller. So if more US people are buying europe products, then Euro's exchange rate will rise
It's the same for bitcoin economy, if more people are buying goods/services that only payable in bitcoin, then bitcoin's value will rise. On the contrary, if more people use bitcoins to buy products payable with fiat money, bitcoin's value will drop. For example the recent price drop is related to that kncminer was converting lots of coins to fiat money to pay their chip manufacturer who only accept US dollar
If they have the money to put into a successful product there is no reason they would limit themselves to bitcoin commerce solely unless they were selling a product market towards bitcoin such as asics.
Actually, I am working on a side project at one of my businesses that will be 100% BTC funded.
What we're doing is offering to buy used but in good condition white cotton (bedsheets or old shirts, whatever), launder them by hand (no fiat), cut them down by hand (no fiat), re-sew them into new shirts, print on them and have them ready for pickup.
I'll pay my labor guy in BTC (he already approved), and we'll only buy the cotton with BTC from locals via word of mouth and craigslist.
I think I can keep the entire chain in BTC, especially since we're working on our own ink manufacturing, too.
Of course there are fiat-bought tools that are in the mix, but these were puchased for cash long before BTC arrived on the scene.
What we're doing is offering to buy used but in good condition white cotton (bedsheets or old shirts, whatever), launder them by hand (no fiat), cut them down by hand (no fiat), re-sew them into new shirts, print on them and have them ready for pickup.
I'll pay my labor guy in BTC (he already approved), and we'll only buy the cotton with BTC from locals via word of mouth and craigslist.
I think I can keep the entire chain in BTC, especially since we're working on our own ink manufacturing, too.
Of course there are fiat-bought tools that are in the mix, but these were puchased for cash long before BTC arrived on the scene.
I like this idea and may borrow and mold it to fit my needs if that's OK? It is genius on so many levels. Good luck with your endeavor.
I accept bitcoin-only sales.
I am the owner of http://www.knives4bitcoin.com
The reason I only accept bitcoin is the exact points you bring up. I want to make bitcoin flourish and succeed separate from other currencies.
I am the owner of http://www.knives4bitcoin.com
The reason I only accept bitcoin is the exact points you bring up. I want to make bitcoin flourish and succeed separate from other currencies.
Great site, I like some of the knives there, high quality build
- Their suppliers and employees want to be paid in FIAT. Since all of their suppliers want to be paid in FIAT.
- The market cap of Bitcoin is now high enough that one high-end product line won't move the price much.
- If successful, they will run into Bicoin scaling issues.
It's important that producer have excessive amount of cash flow so they don't worry about the fiat payment for the latest 5 years for that special part of their product line
Imagine an extreme case: Apple with their hundreds of billions of USD in cash account have one of their best high end retina screen mini tablet only payable in bitcoin, what will happen? Clearly, Apple is going to make huge amount of profit due to their sale could push bitcoin price by at least one magnitude. And all the other manufacturers will follow
For scaling part, that might be a little bit tricky. I think as usual, they will rely on some large wholesalers in each country to distribute the product, so one transaction per month is enough for them. And for the wholesalers, they could use several offline transaction hub nodes for small transactions from individual buyer
Actually, I am working on a side project at one of my businesses that will be 100% BTC funded.
What we're doing is offering to buy used but in good condition white cotton (bedsheets or old shirts, whatever), launder them by hand (no fiat), cut them down by hand (no fiat), re-sew them into new shirts, print on them and have them ready for pickup.
I'll pay my labor guy in BTC (he already approved), and we'll only buy the cotton with BTC from locals via word of mouth and craigslist.
I think I can keep the entire chain in BTC, especially since we're working on our own ink manufacturing, too.
Of course there are fiat-bought tools that are in the mix, but these were puchased for cash long before BTC arrived on the scene.
What we're doing is offering to buy used but in good condition white cotton (bedsheets or old shirts, whatever), launder them by hand (no fiat), cut them down by hand (no fiat), re-sew them into new shirts, print on them and have them ready for pickup.
I'll pay my labor guy in BTC (he already approved), and we'll only buy the cotton with BTC from locals via word of mouth and craigslist.
I think I can keep the entire chain in BTC, especially since we're working on our own ink manufacturing, too.
Of course there are fiat-bought tools that are in the mix, but these were puchased for cash long before BTC arrived on the scene.
- Their suppliers and employees want to be paid in FIAT. Since all of their suppliers want to be paid in FIAT.
- The market cap of Bitcoin is now high enough that one high-end product line won't move the price much.
- If successful, they will run into Bicoin scaling issues.
What he said.
Somewhere down the line, fiat is required.
Unless the business can convince their direct supplier to accept BTC, it will be darn near impossible to produce a product funded solely with BTC.
- Their suppliers and employees want to be paid in FIAT. Since all of their suppliers want to be paid in FIAT.
- The market cap of Bitcoin is now high enough that one high-end product line won't move the price much.
- If successful, they will run into Bicoin scaling issues.
I'm thinking about a very interesting possibility:
With people's knowledge of money increasing everyday, sooner or later some large producer with excessive amount of cash flow and big interest in bitcoin will provide bitcoin-only sale for part of their high-end product line
That will create a miracle in business history: The more he sell, the more valuable his income will become due to rising demand for bitcoin. This will result in a snowball effect, more and more merchant will join the bitcoin-only sale campaign, and it will create a self-sustainable loop, until one day most of their sales become bitcoin-only
The great thing is, in such a scenario, producers have higher and higher motivation to expand their bitcoin-only sale line since the value of their income rise continuously compared to their fiat-only sale
The size of bitcoin economy is relatively small, it is enough to have just a few large producers to start this whole process and the effect will be observable
Since the bitcoin value is rising continuously due to their bitcoin-only sale, they will not need to spend all of the coins they earned due to rising purchasing power, and the number of coins spent is always less than the number of coins earned, there will always be rising demand for bitcoin
The only negative effect is for fiat money, now there are less goods chasing fiat money, its value will drop, but since the fiat money economy is a much larger scale, at the beginning this effect is negligible
Is there any flaw in this reasoning? Critics are welcome
With people's knowledge of money increasing everyday, sooner or later some large producer with excessive amount of cash flow and big interest in bitcoin will provide bitcoin-only sale for part of their high-end product line
That will create a miracle in business history: The more he sell, the more valuable his income will become due to rising demand for bitcoin. This will result in a snowball effect, more and more merchant will join the bitcoin-only sale campaign, and it will create a self-sustainable loop, until one day most of their sales become bitcoin-only
The great thing is, in such a scenario, producers have higher and higher motivation to expand their bitcoin-only sale line since the value of their income rise continuously compared to their fiat-only sale
The size of bitcoin economy is relatively small, it is enough to have just a few large producers to start this whole process and the effect will be observable
Since the bitcoin value is rising continuously due to their bitcoin-only sale, they will not need to spend all of the coins they earned due to rising purchasing power, and the number of coins spent is always less than the number of coins earned, there will always be rising demand for bitcoin
The only negative effect is for fiat money, now there are less goods chasing fiat money, its value will drop, but since the fiat money economy is a much larger scale, at the beginning this effect is negligible
Is there any flaw in this reasoning? Critics are welcome
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