What should we focus on more? Demand or Supply? - page 6.

Zooplus

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Quote from: laracastvue on August 31, 2018, 09:33:23 AM

Quote from: cuprice on August 31, 2018, 07:47:58 AM

I think we need to focus on increasing the demand as we need mass adoption to increase the flowing of transactions. The more the flow this can attract more people to use Bitcoin as for digital payments.

Yes you are right, the price will only increase if the demand in the market increase so people should invest even more in order for the volume in the market to drop.

Agreed.If the demand for crypto increases,the price will definitely increase even reaching to a new heights instead.Hopefully,mass adoption will soon to take place since digital currencies are already making it popularity wider thus leaving marks to the people.

adzino

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Holding is not like cutting off the supplies. It is more like limiting the supplies. Even if we hold off the coins, new coins are generated every day. The holding increases the value of the coins, and as usual more people are attracted towards investment as they see the price increase. So eventually the price will start increasing more, that is more demand and the supply won't be reduced since fractions of the coins will carry more value than before which people will be buying (what I mean is that people will then focus on investing on fractions of coin rather than one whole coin). The more we dump, the lesser the value will be.

Astra2127

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We should focus on both supply and demand because those 2 components are important in our economy. It should be balance. Remember that supply and demand works together and connected.

Escf4

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In this cryptocurrency world wherein there are many new introduction and launching of coins in the ICO projects ,which add the supply of tokens to the market, so we must be focusing on the demand of this coins ,because we can not deny that supplies os coins now are flooding in the market, so we will promote on the demand in the market place.

jak3

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just imagine everyone starts to have demand on bitcoin then who is really gonna supply them. And if no ones do supply any bitcoins they the price is not gonna rise instead it will drop down even further. To Increase the Bitcoin price we have to increase the demand and decrease the supply just enough to make everyone keep using it. you can not ask 10000$ for 0.1btc that will not work.

Mjadon15

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Very important to drop this too. We need to understnad that the value of something is not the same as its price; value is what people perceive a product is worth, while price is what they pay for it. Even so, value and price go hand in hand: the price of something is directly related to its value and vice versa.

The market value of Bitcoin; that is, the money that people are willing to pay for it, follows the same old basic demand and supply rule: a high demand increases its price and a low demand decreases it.

According to an article in the Economist, the increasing trend in the price of Bitcoin is what drives people to invest in it.
People are investing because they believe that, following the trend so far, they would be able to sell their Bitcoins for a much higher price in the future, which the article argues is a perfect example of the greater-fool theory.

You can read more in the Economist article.

Mjadon15

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Unfortunately, people ignorantly push the supply of Bitcoin into the market by selling and dumping. Unknowing to them this won't help the price of Bitcoin. These coins needs to be valued. They need to be wanted. It's good Cryptocurrency has handed onto us Bitcoin and other Crypto-coins to manage by ourselves, that doesn't mean we should abuse these coins by transacting anyhow with them. Probably, there should be some formal education or seminar on how to handle Bitcoin. Also, if there could be some regulations guiding selling and buying, maybe this will further help BITCOIN's price.

Mjadon15

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Quote from: Kakmakr on August 30, 2018, 03:38:04 AM

I see a lot of people that are hoarding 100% of their bitcoins, because they believe cutting off the supply, would be enough to increase the price.

Would it not be better, if we increased the demand by increasing Bitcoin awareness and convincing more merchants to offer Bitcoin payments?

A 100% hoarding strategy is more harmful, because it cancels all the good work that was done to get merchants to accept Bitcoin as a payment option. A merchant will stop accepting Bitcoin, if their is no demand or transactions being generated for their business from the Bitcoin payment side.

We should actively encourage local merchants to start accepting bitcoins and then we should start supporting them.

Just buy back the bitcoins that you spend and you will be fine or use money that you would not have hoarded and buy the goods or service with bitcoins.

Adopt a 80% hoarding and 20% spending strategy and we will see a massive increase in Bitcoin adoption Cool

The game has to be played wisely. Economics has to be applied at full potential. Bitcoin is at the fore front of the new generational currencies know as cryptocurrency, not yet fully accepted generally, but the acceptance rate is still massively encouraging. Demand and Supply, as it applies to Fiat currencies like Dollars and Pounds, so also is it with Crypto - Currencies. Just that the whole world is already used to the FIAT currencies and they are generally accepted.

Bitcoin now has to be handled with all principles of economics backing Demand and Supply so as to control its market volume and price. This should be so, so that the coin will be acceptable to all like Fiat Currencies and at the same time, the value of the coin will be retained.

suzanne5223

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Quote from: Kakmakr on August 31, 2018, 01:35:03 AM

Quote from: cellard on August 30, 2018, 02:41:17 PM

Quote from: Kakmakr on August 30, 2018, 03:38:04 AM

I see a lot of people that are hoarding 100% of their bitcoins, because they believe cutting off the supply, would be enough to increase the price.

Would it not be better, if we increased the demand by increasing Bitcoin awareness and convincing more merchants to offer Bitcoin payments?

A 100% hoarding strategy is more harmful, because it cancels all the good work that was done to get merchants to accept Bitcoin as a payment option. A merchant will stop accepting Bitcoin, if their is no demand or transactions being generated for their business from the Bitcoin payment side.

We should actively encourage local merchants to start accepting bitcoins and then we should start supporting them.

Just buy back the bitcoins that you spend and you will be fine or use money that you would not have hoarded and buy the goods or service with bitcoins.

Adopt a 80% hoarding and 20% spending strategy and we will see a massive increase in Bitcoin adoption Cool

There is no incentive for most people to use bitcoin to make payments that could have been made perfectly fine with fiat, without losing your bitcoin position.

Why would people want to use bitcoin, something scarce and limited in amount, to buy stuff, stuff which could be perfectly bought with fiat, so you lose the easy money (fiat) while saving up the hard money (bitcoin)?

I don't see bitcoin being integrated within economic activity anytime soon. There would need to be a catalyst for that, like the governments banning physical cash so people are forced to look for alternatives, and bitcoin would be the best one, so there we would see a rise in goods and services being sold for bitcoin under the radar.

But until then most people are simply going to keep using bitcoin as a better gold, not as a fiat replacement. You don't see people paying with gold in shops, yet gold is worth 7+ trillion. So that's a potential 7 trillion dollar market there without necessarily being used as a common way to make payments. Will the day of common BTC payments come? only the future will tell.

Merchants should create the incentive, by offering "discounts" to people who pays with bitcoins. Why? ..because the merchant does not have to deal with large amounts of cash or expensive credit card transaction fees. The savings can be used to fund these discounts. Grin

The user will obviously opt to use Bitcoin, because these discounts does not apply when you pay with any other payment method.

You're right what you said about the merchant. Despite the fact that bitcoin payment will ease the merchant stress/cost in terms of transaction I don't see the merchant giving discount to their customers unless they make use of crypto project like mozo or other loyalty offer project.

BartS

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Quote from: Kakmakr on August 30, 2018, 03:38:04 AM

I see a lot of people that are hoarding 100% of their bitcoins, because they believe cutting off the supply, would be enough to increase the price.

Would it not be better, if we increased the demand by increasing Bitcoin awareness and convincing more merchants to offer Bitcoin payments?

A 100% hoarding strategy is more harmful, because it cancels all the good work that was done to get merchants to accept Bitcoin as a payment option. A merchant will stop accepting Bitcoin, if their is no demand or transactions being generated for their business from the Bitcoin payment side.

We should actively encourage local merchants to start accepting bitcoins and then we should start supporting them.

Just buy back the bitcoins that you spend and you will be fine or use money that you would not have hoarded and buy the goods or service with bitcoins.

Adopt a 80% hoarding and 20% spending strategy and we will see a massive increase in Bitcoin adoption Cool

People focus a lot on the supply because that is something that they can control partially, if they hold their coins then even if by a little they can manipulate the price, this is even more true for those that are whales and are holding a huge amount of coins, but when it comes to the demand there is nothing to do, the demand will come to this market by itself once people realize how fake the current economic system really is, until that happens the demand for bitcoin is going to be low.

cellard

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Quote from: danherbias07 on August 30, 2018, 05:39:12 PM

Very true.

It should not just be over by hodling it.
Invite others although there is much negativity about crypto currencies. Just making them aware might give them that spark to look at it deeply.
With that, they may see the positive feature of crypto currencies specially bitcoin.

It would be lovely if it happens. But some are discouraged because they are rejected or worse they are being mocked by those traditional fial believers.

You cannot create a demand artificially, at least us a community. Maybe TPTB can create artificial demands, but there's nothing we regular people can do about other regular people not wanting to use bitcoin to buy their groceries or whatnot.

There has to be a perfect storm for that to happen. People need a genuine incentive to do so. And right now this incentive is simple not there in most cases within the 1st world. Perhaps in other countries they find bitcoin as the only way to do any commerce, but here in the developed world, people aren't looking for an alternative, it doesn't even cross their mind, they just get paid in fiat and buy in fiat, and having to buy some other currency to buy something (and paying trading fees + transaction fees) is simply nonsense for them.

So only when this perfect storm happens (say, devaluation of fiat currencies becomes so obvious even to the average joe, end of physical cash.. etc) it will be used for daily purchases.

Until then it is a store of value that anyone smart enough to read the fundamentals will see as a crucial hold on their portfolios.

audaciousbeing

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Quote from: Kakmakr on August 30, 2018, 03:38:04 AM

I see a lot of people that are hoarding 100% of their bitcoins, because they believe cutting off the supply, would be enough to increase the price.

Would it not be better, if we increased the demand by increasing Bitcoin awareness and convincing more merchants to offer Bitcoin payments?

A 100% hoarding strategy is more harmful, because it cancels all the good work that was done to get merchants to accept Bitcoin as a payment option. A merchant will stop accepting Bitcoin, if their is no demand or transactions being generated for their business from the Bitcoin payment side.

We should actively encourage local merchants to start accepting bitcoins and then we should start supporting them.

Just buy back the bitcoins that you spend and you will be fine or use money that you would not have hoarded and buy the goods or service with bitcoins.

Adopt a 80% hoarding and 20% spending strategy and we will see a massive increase in Bitcoin adoption Cool

I would stick to the position that the focus should be on both but more should be on demand. On the issue of demand there is need for increased publicity there is still a lot of untapped grounds that have not even heard about bitcoin and there are people who have heard but have not joined the market until they are pushed. These are the avenues to be tapped by every means and by our individual efforts in bring them into the fold active participants.

However, one sided effort cannot guarantee the outcome that we all are waiting for. In the case of a little increase in price occasioned by the result of activities listed above, people tend to see it as an opportunity to let go of the hoarding they have been doing thereby forcing the price downwards since the demand is not strong enough to maintain resistance at that level. This is evident in various push and further down in price that we have seen in the past couple of months. So as we are focusing on demand we should not be ignorant of the activities of supply.

Hatuferu

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Quote from: cuprice on August 31, 2018, 07:47:58 AM

I think we need to focus on increasing the demand as we need mass adoption to increase the flowing of transactions. The more the flow this can attract more people to use Bitcoin as for digital payments.

Right.There should be an increase in demand rather than its supply because once there will be more investors and even holders of crypto,i'm sure the market price will definitely increase making a huge number of people will show interest on digital currencies.

sheyicrypto

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We should be able to demand more in other for bitcoin to supply more and when more of it is in the market so many people will want to come in to demand for more of bitcoin

laracastvue

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Quote from: cuprice on August 31, 2018, 07:47:58 AM

I think we need to focus on increasing the demand as we need mass adoption to increase the flowing of transactions. The more the flow this can attract more people to use Bitcoin as for digital payments.

Yes you are right, the price will only increase if the demand in the market increase so people should invest even more in order for the volume in the market to drop.

cuprice

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I think we need to focus on increasing the demand as we need mass adoption to increase the flowing of transactions. The more the flow this can attract more people to use Bitcoin as for digital payments.

1Referee

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Quote from: Kakmakr on August 31, 2018, 01:35:03 AM

Merchants should create the incentive, by offering "discounts" to people who pays with bitcoins. Why? ..because the merchant does not have to deal with large amounts of cash or expensive credit card transaction fees. The savings can be used to fund these discounts. Grin

The user will obviously opt to use Bitcoin, because these discounts does not apply when you pay with any other payment method.

While I agree that attracting people with discounts is a good thing in the short term, it's however not sustainable in the long term.

If Visa & Co see their market share shrink due to Bitcoin being the preferred option to conduct day to day transactions, they can just as easily lower their fees to a point at which Bitcoin can no longer compete based on merchant fees with how nearly every merchant uses a centralized payment gateway.

The only way for Bitcoin to win this 'fee war' is to have merchants cut out centralized payment gateways entirely, and this is something that will take plenty of years and also requires more price stability.

farosa

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In my opinion, it is a logical move that they have made, but the demand increases so slowly by this way. I mean, if the main goal is to increase the demand, the way you say is much better. But, governments are against it and the fear of people prevent it. Cryptocurrency just needs big forces that can be supported.

BagzMM

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In my opinion, it should be equal so that market would not be paralyzed. It has a good cycle for the economic development of the country or even to the whole world.

liliano

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Hold too much bitcoin or crypto will not be good for the market because there is a scarcity of products and prices may increase or conversely traders and buyers will leave the product so there is no market activity which causes crypto to stall and die. Market dynamics must run and when the market is filled with large sales volumes, crypto will easily develop

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