Topic: Will INCREASED adoption DECREASE price per coin? (Read 2294 times)

No, increased adoption won't push the price down! Definitely no! We may see some additional selling pressure when merchants convert their BTC to FIAT, yes, but in the long term the demand will go up dramatically, and thus the price will increase!

What we are seeing is nothing, wait for ebay to accept btc, then you will see some serious shit.

the price dropped 1x% AFTER Silkroad was shut down and rose after SilkRoad 2.0 launched

The price rose from 100$ to 1000$ AFTER Silkroad was shut down

I don't think your logic is sound. If people start to lose large amounts of bitcoin then they will likely stop using it and sell what they have, as their loss (and potential future additional losses) would exceed the savings and security that bitcoin otherwise provides. This would cause the adoption rate to decrease.

I'm new, but that's what I heard happened when the silk road got big. Loads of new people started buying bitcoins to use there and the price was driven up. Maybe there were other reasons for the price rise though.

The price is rising in the long term, with an increasing adoption the value can only go up.

Bitcoin is limited, total amount is growing but total amount is also shrinking (coins that get forever lost). Within this premise + higher adoption = more demand on a limited supply = sky rocketing price.

Pretty simple facts.

It should be the case

it should be the contrary right? more adopption more value, because the amount is limited, yes you can divide it to 1/8 but the dividend will have a better value regardless

Well, I'd guess that it appears to be the case because 1) you are considering a small sample size of data, and 2) markets are constantly pricing in a variety of factors. The causes for the drops are actually related to other factors, or possibly some adoption is already priced in.

I'm a newbie at crypto-speculation and I've also noticed the same thing: If an increased adoption result to an increase in price, then why does the opposite thing happen? Is it because of the faint-hearted bagholders that tend to panic sell whenever there are some rumors or is it because there are some tricks happening that are controlled by those whales? I'm confused o.O

It's tough to make a reasonable case for increased adoption decreasing price per coin.

Remember that there is ultimately a limited supply, here.  This ain't fiat, where they just fire up the printing presses to make more.

The thought that merchants will just trade them in immediately may or may not be true.  I'd suspect it is not.  Companies like Coca Cola have teams of people who run hedging strategies for them because they do business in something like 70 currencies.  They don't immediately trade all Peruvian Nuevo Sols, as an example, for USD.  there are probably some accounts payable or payroll that they simply pay in received Nuevo Sol.  (Which may or may not eventually happen with BTC.)  They move money around when and how it is beneficial. 

But even if they do offload BTC quickly, even most of the time, this is still a money supply issue.  Replace BTC in your mind with gold bars.  If there were only, say, 1000 of these particular gold bars that were accepted by retailers, and even if they turned around and sold them for cash pretty much immediately, the fact that they are transferable and finite would give them value.  Shit, forget they are gold.  Pretend they are balsa wood or something without otherwise-assigned value.  There is no way they become less valuable when more people accept them.  Hell, just imagine the accounts are settled at the end of every business day, and you would still have tons of simple system float that would raise the value.

the real killer app for bitcoin is cross border internet orders. Here in Oz i pay about 3 -4 % over the odds in currency conversion, which when buying things like laptops is a big hit. At the moment all the businesses accepting bitcoin only accept for USA customers, which is silly. There is no reason for US customers to buy bitcoin to then buy stock,  rather than just using CC. For the rest of the world though, for example, a DELL laptop is 25 - 40% cheaper in the USA than Oz, so it is very much worth paying with BTC, avoiding the high cost of ordering from DELL Oz, and also avoiding the exchange rip off that paypal imposes. Obviously Dell wants to be able to charge more for stuff they sell here, but going forward, I can see everything being sold from one location, as BTC means you dont have to worry about all the hassles with processing overseas credit cards.

Depends on your time frame.

Short and medium, it may hurt the price, because they will most likely just dump them as soon the buy is made.

Longer time frame = more people will be interested on Bitcoin, more people will hold Bitcoin, including business, more people will put BTC in their investment portfolio.

Just be patient

I agree that adoption in terms of merchant acceptance WILL drive price down initially. New buyers/users of btc are NOT coming into the market at anywhere near the rate that new merchants are accepting btc (and mostly converting instantly to fiat). A LOT of consumer education needs to be done still to allow user adoption to grow at the pace merchant acceptance is growing. So, now I officially will not be surprised if the price tumbles slightly further, but not "crashing"

Thats what PAYPAL is aiming at.

Merchants passing some of the savings of the lower fees and nonreversibility on to consumers by providing discounts for using bitcoins.

Wrong, when a a consumer pays for something on your site with a card, then they receive the item and then call their card company to falsely claim they didn't actually get it (even though the tracking and even signature show they got it), the consumer always wins credit card online chargebacks and the money is removed from the merchant's bank account (plus a hefty chargeback fee). Huge pain the ass for online merchants.

Bitcoin has irreversable transactions and lower fees

If you own an online business you don't pay when someone use a credit card fraudulently you (usually) just pay a hefty fee on each transaction