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Topic: Why the Bitcoin Markets Didn’t Rally on the Microsoft News - page 2. (Read 2357 times)

Q7
sr. member
Activity: 448
Merit: 250
Not everyone has fiat at exchanges to buy coins at the drop of a hat when news like this hits. It will take time for people who have never bought before to learn through this new medium and actually set up an account and buy coins.

True. But as long as people are forced to buy bitcoins in order to spend bitcoins the system will remain broken.

We need to reduce the need for this type of exchange. And the payroll side of the equation offers the solution.

Unless there is a store that specifically sells certain product that can only be bought with bitcoin, it won't matter much in the end. People are not going to pay using btc when they can do the same with fiat. Also price rally could be shortlived because microsoft have already stated their approach is more towards testing the water.
hero member
Activity: 854
Merit: 503
Legendary trader
OP logic is flawed since the bitcoins that are sold need to be bought first.

What will happen:
More people get to learn about bitcoin and possibly an increase in volume and market cap, which is something good!

Also, people can no longer see bitcoin as a scam these days since the most legitimate businesses in the world are starting to support the bitcoin technology.

This is all good.

From speculative purposes all I can say is people on here seem to make the worst decisions. Better quit trading and investing if you have no idea what you are doing.
sr. member
Activity: 378
Merit: 250
Pretty sure Microsoft will sink a substantial amount of funds promoting btc and educating the public.
legendary
Activity: 1372
Merit: 1000
--------------->¿?
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.

Microsoft will start playing with bitcoin one way or the other. It's just a question of time.
legendary
Activity: 2506
Merit: 1030
Twitter @realmicroguy
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.
legendary
Activity: 4410
Merit: 4788
.. 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?
hero member
Activity: 490
Merit: 500
the next halving cannot come soon enough for me....
legendary
Activity: 2506
Merit: 1030
Twitter @realmicroguy
.. 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.
legendary
Activity: 4410
Merit: 4788
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)
hero member
Activity: 728
Merit: 500
I think that there might be something more fundamental at play here.  The market learns very quickly and the Paypal announcement a few months ago, which many were expecting/hoping for months prior, resulted in a very short rise that was quickly sold into.  The excitement lasted for a day.

I think the disappointment in the activity resulting from the Paypal announcement carried over into the Microsoft so nobody really cared.  Or maybe that is only part of it...suffice to say, I didn't care save for the fact that I viewed it as another stone on the pathway...
legendary
Activity: 2506
Merit: 1030
Twitter @realmicroguy
Not everyone has fiat at exchanges to buy coins at the drop of a hat when news like this hits. It will take time for people who have never bought before to learn through this new medium and actually set up an account and buy coins.

True. But as long as people are forced to buy bitcoins in order to spend bitcoins the system will remain broken.

We need to reduce the need for this type of exchange. And the payroll side of the equation offers the solution.
hero member
Activity: 784
Merit: 1000
Not everyone has fiat at exchanges to buy coins at the drop of a hat when news like this hits. It will take time for people who have never bought before to learn through this new medium and actually set up an account and buy coins.
legendary
Activity: 2506
Merit: 1030
Twitter @realmicroguy


There’s a perfectly good reason why the markets didn’t “take off” this week when Microsoft revealed that it would begin allowing customers to fund their accounts using bitcoin. The massive tech giant’s integration is sure to bring new and substantial selling pressure to the digital currency.

Seasoned bitcoin traders treated the news like a frozen Windows machine displaying a giant blue screen of death. In the moments following the announcement, traders went into buying mode, but it didn’t take long for the experienced speculators to understand the enormous auto-selling that the integration would bring.



Microsoft has no intention of speculating on bitcoin’s long-term value. Instead, they will be using Bitpay to systematically exchange their bitcoin revenue for US Dollars. This means an increasing number of bitcoins will be dumped onto the markets in the coming weeks, creating a downward selling pressure spiral.

And Microsoft’s new bitcoin customers are unlikely to turn around and buy more bitcoins to replace those spent on digital purchases. After all, it make no sense to run out and buy more bitcoins to facilitate purchases that can be made with traditional fiat. There is little reason to take the additional, and often awkward step, other than perhaps for novelty or speculation.

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. Better yet, anytime a company adds bitcoin as a payment option, why not offer employees the same option for compensation. This would allow the company to funnel some of their new bitcoin revenue back into payroll, rather than auto selling for US Dollars.
Call to Action

We need more focus now on the wage side of integration. Otherwise, this current one-way trend will become impracticable and unsustainable. And it won’t be long before these types of major announcements become a reason to short the market, rather than a reason to celebrate.

Full Story: http://altcoinpress.com/2014/12/why-the-bitcoin-markets-didnt-rally-on-the-microsoft-news/
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