Why the Bitcoin Markets Didn’t Rally on the Microsoft News

turvarya

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And again just a lot of people, who ramble stuff, they don't know anything about:
1. Bitpay does not mean, that ALL the bitcoin get converted into fiat instantly.
2. Putting some millions into Bitcoin is nothing for Microsoft: NOTHING. Like every big company they had R&D-projects, over years, that failed in the end and burned some Millions.
3. Just because, they are just accepting Bitcoin from the US and for a small group of products, doesn't mean it will stay that way FOREVER.

Quote from: MicroGuy on December 14, 2014, 11:27:22 PM

Quote from: franky1 on December 14, 2014, 11:22:33 PM

overstock use coinbase......................................

yet overstock hoards coins..........

need i say more?

If Microsoft decides to begin hoarding Bitcoin, I will post a picture of myself here, in the buff, with your username painted across my chest.

I am bookmarking your statement. As soon as we learn which percentage of Bitcoin they are keeping(I am pretty sure, it is the question of "how much?" not "if") I expect that picture.

TugrikBuyer

newbie

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Quote from: BayAreaCoins on December 15, 2014, 09:56:11 PM

No one that I know bought Bitcoin to spend them at fucking Microsoft. Tongue

Plus it isn't new news that Microsoft liked Bitcoin.

Just another Bitpay customer *wooo hoo* (It is a good thing obviously and great job Bitpay!)

Absolutely agree with this opinion.
Too much expectations from this "sensational" news - another (big though) company will get payments by third party vendor (that uses BTC) and get $$ ...

Soros Shorts

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Quote from: ArticMine on December 15, 2014, 08:08:22 PM

I have seen a person in Canada spend 50 CAD on a prepaid credit card in order to purchase a 25 CAD service online. Why because one cannot use cash online. This is the real market for crypto currency including XBT. It is not the person with an 800 FICO score collecting free travel by using her credit card.

Exactly. If enough of the world's unbanked start paying for MSFT services in bitcoins the small amount of unspent change that one person may hold at any one time would, collectively taken as a whole, have the same effect as hoarding.

BayAreaCoins

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No one that I know bought Bitcoin to spend them at fucking Microsoft. Tongue

Plus it isn't new news that Microsoft liked Bitcoin.

Just another Bitpay customer *wooo hoo* (It is a good thing obviously and great job Bitpay!)

deluxeCITY

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Quote from: RodeoX on December 15, 2014, 11:52:13 AM

I wonder if the speculators have just determined a fair price of about $350? Speculation is trying to guess future value and generally it rallies past the best price then crashes down to a sensible valuation. Maybe $350 is about right for the scale and use cases that are part of the present BTC economy.
As far as MS not hoarding their coins, well I hope not. They would be exposing MS investors to the volatility of the naked BTC market and would be acting in a financially irresponsible way. Bitcoin is the best currency and payment network, but a very risky speculative instrument. MS did not get rich placing casino bets, they got rich cashing your checks and BTC is just another extension of that model.

Microsoft is using bitpay to process transactions which means they are converting their bitcoin to fiat immediately. There is no real reason for microsoft (or any other company) to hoard bitcoin until we start to see businesses that deal with other business start to accept bitcoin (eg see B2B transactions)

ArticMine

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Monero Core Team

This OP completely ignores the reason why a company that sells digital products and services online would use Bitcoin. It simply expands the market to those who do not have credit cards, debit cards, bank accounts etc. This is the vast majority of the world's population. Microsoft being a US company would start accepting Bitcoin in its home market, but rest assured the real opportunity here is in the international markets. As for the impact on the price it is simple. A customer wishing to purchase a Microsoft product or service needs to first purchase XBT hold XBT for some time (even if it is only an hour or so) before purchasing the product or service from Microsoft. Only then will Microsoft have a chance to sell the XBT. Given the size of Microsoft if even a small fraction of its customers use XBT for purchases, this small time the XBT are held alone will cause the XBT/USD rate to skyrocket. There no need for the customer or Microsoft to hoard any XBT.

I have seen a person in Canada spend 50 CAD on a prepaid credit card in order to purchase a 25 CAD service online. Why because one cannot use cash online. This is the real market for crypto currency including XBT. It is not the person with an 800 FICO score collecting free travel by using her credit card.

keithers

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This is the land of wolves now & you're not a wolf

Quote from: franky1 on December 14, 2014, 10:33:23 PM

microsoft receive millions of dollars a week, if you were above average intelligence you would realise that microsoft does actually invest some of its funds in different things. and as such i think microsoft's small percentage of current bitcoin transactions, they wold be more likely to hoard the coins for investments. after all microsoft points costs nothing to make and so there are no costs to recover to truly require exchanging bitcoin into dollar.

if i was receiving $10mill a week in dollar purchases of microsoft points, and then maybe $20k in bitcoin.. id hold onto that $20k a week in bitcoin and treat it as a 0.2% cashflow loss and a 0.2% investment gain.

as for the market hype.. well that was just a spasm reaction to news (speculation). untill we start to see microsoft advertise it, where by non-bitcoin fanboys are then intreged by bitcoin and jump on the bitcoin band wagon (which takes weeks) we wont see true movements that are based on market reactions to demand, as oppose to sheeple emotions (which last only about an hour)

I second this, but you do have to notice that prices have been shifting less and less upon the release of good news that would have probably moved the market a good 3-5% at least (maybe more) last year...

The same thing goes for bad news as well though... The market has been pretty flat regardless of the type of news...

biodieselchris

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CoinQuacker

Quote from: Lauda on December 15, 2014, 04:44:50 PM

There was no indication that it would rally whatsoever. Useless thread.

speculation and use are mutually exclusive. Bitcoin might rally to 4000 on no news whatsoever. And those threads trying to explain that move will be as useless as this one trying to describe the lack of a move...

bitcoinmining

sr. member

Activity: 381

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Quote

What the community must realize is that for every Microsoft adding bitcoin as a payment option, they need an Exxon or a General Electric announcing that their employees will now have the option of receiving wages in bitcoin.

Well said, I wish I could have that opportunity to give my employee's salaries as BTC. If somebody in this forum has that chance, he/she should try it to make some awareness about usableness of BTC Wink

Lauda

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Terminated.

There was no indication that it would rally whatsoever. Useless thread.

GonnaGrinditout

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Bitcoin is only accepted in the Windows Store, and only for American customers. It's not going to bring bitcoin to the masses...
I've setted up a Google News alert on "candy crush accepts bitcoin" Cheesy

gjgjg

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This type of price 'stability' is inevitable for the reasons we all know and are posted here.

At this stage we need a new territory to catch the fever and start buying to counter our countries march's selling - rather than further integrating into territories that are already becoming BTC friendly and aware (USA and EU).

Dont get me wrong, I'm all for BTC getting more companies like MS on board even if they just dump them via Bitpay (it will lead to more buyers in USA and EU anyway), but id rather see some kind of discussion or plan or effort towards getting new countries like Argentina or Saudi Arabia to start getting into things. Places which would create more buy than sell pressure.

Its a good time to do it, as we have big companies on board now giving it more legitimacy so the new territories should be easier to get on board. If we wait too long for them to start buying, then the amount of marchants dumping will have increased again and the buy and sell pressure will be equal again...

I confused myself a little i think Tongue

sublime5447

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Quote from: franky1 on December 14, 2014, 11:22:33 PM

Quote from: MicroGuy on December 14, 2014, 11:16:26 PM

Quote from: franky1 on December 14, 2014, 10:33:23 PM

.. if you were above average intelligence you would realise that microsoft does actually invest some of its funds in different things. and as such i think microsoft's small percentage of current bitcoin transactions, they wold be more likely to hoard the coins for investments.

If Microsoft intended to keep the bitcoins, they would have no need for Bitpay.

Bitpay is the mechanism by which they (and the vast majority of its other customers) dump their freshly received BTC.

overstock use coinbase......................................

yet overstock hoards coins..........

need i say more?

Probably not this says it all... Roll Eyes

apples and oranges

ChuckBuck

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Activity: 1372

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better everyday ♥

This is only the first step, acceptance by Microsoft. This isn't the end of their dealings with Bitcoin.

Once they roll out internationally, I'm sure they'll figure out other uses besides the inexpensive app or game in their marketplace.

From Sonny Singh of Bitpay:

Quote

"Microsoft has a long-term vision for bitcoin, BitPay and the blockchain. Starting with digital goods in the US is the logical first step, however, they want to expand to Europe and globally and add support for other products as part of that rollout."

Phase 1 will not include hoarding obviously.

Once we get global, and have Bitcoin as a payment option for other MS goods or services(enterprises? server and OS licenses? integrated into Skype or Office365?), you can expect them to hoard like a muThF3ker!

RodeoX

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The revolution will be monetized!

I wonder if the speculators have just determined a fair price of about $350? Speculation is trying to guess future value and generally it rallies past the best price then crashes down to a sensible valuation. Maybe $350 is about right for the scale and use cases that are part of the present BTC economy.
As far as MS not hoarding their coins, well I hope not. They would be exposing MS investors to the volatility of the naked BTC market and would be acting in a financially irresponsible way. Bitcoin is the best currency and payment network, but a very risky speculative instrument. MS did not get rich placing casino bets, they got rich cashing your checks and BTC is just another extension of that model.

aztecminer

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Quote from: mercistheman on December 15, 2014, 12:06:48 AM

Pretty sure Microsoft will sink a substantial amount of funds promoting btc and educating the public.

maybe they are thinking and intending to implement bitcoin into some future apps in their os.
it seems unlikey they did this just to have another way of accepting fiat.
my thinking is there is something else that is not readily apparent to their sudden adoption of bitcoin.

BitCoinNutJob

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More people are likely to get into bitcoin as a result, the trend searches show bitcoin up 40% in last week on google. Eventually companies could consider removing payment processors like bitpay and buy or pay wages to suppliers/employees direct.

Bitpay/Coinbase are going to want to keep the USD exchange rate as high as possible to keep the miners providing a secure network. If the USD price drops their business is over.

cyberpinoy

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Way to go Bitcoin we attracted another dumper, and I had expected so much more from Microsoft too.

So what is it going to take to get the Bitcoin developers to step in and do something more productive then the unbroken protocol. Theres nothing like sitting back and watching your dream die because you cant get past your stubbornness and pride long enough to create a real demand for your coin. Nothing like cutting your nose and all of our noses off to spite your face.

SirChiko

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Hah nice explaination on the picture, OP.
But well it wasn't caused by that and it's really weird that we didn't skyrocket, maybe all the traders dump on news and newbies bought so it came out as almost no rise.

Willisius

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I'm really quite sane!

Quote from: mercistheman on December 15, 2014, 12:06:48 AM

Pretty sure Microsoft will sink a substantial amount of funds promoting btc and educating the public.

They probably will not do this. People that have bitcoin that wish to spend it on MSFT games likely follow bitcoin related news and know that MSFT accepts bitcoin.

IMO this is really just a way for Microsoft to increase their overall revenue

Topic: Why the Bitcoin Markets Didn’t Rally on the Microsoft News (Read 2357 times)