Bitcoin Forum

A little on the impact big business acceptance will have on bitcoin price

http://bitcoinbulls.com/big-brands-bitcoin-price/

Our tech writer is speaking with some Apple folks tomorrow about what the App Store review guideline changes really mean for bitcoin.  Big things coming. 

Yep. Could be good for miners trying to squeeze out that last bit of profitability. 

Each block currently only carries 0.1btc transaction fees, often less than that. That is only 0.4% of block reward. Miners are not going to care even if it fee doubles.

Big businesses accepting bitcoin will eventually take prices back to $1000 level. Hope it comes before end of the year.

Making huge assumption on price.

If price direction can be predicted so easily, everyone here will be as wealthy as bill gates.

Dish is expecting to start taking payments in Q3 of this year.  I would bet a number of huge brands will be watching closely to see what kind of revenue they generate and how smoothly transaction processing goes. 

With the yearly increasing adoption among big companies, bitcoin future can't be brighter,
it's just a matter of a couple of months before it will take off (another time).

increased merchant usage will easily increase bitcoin transactions

dish is one more large merchant

I think it's logical that the more businesses and people start accepting it the demand and therefore price goes up.

Of course it's not easy, and because there is so much uncertainty big businesses aren't in yet.
But IF they get in... 1000 and beyond for sure!

 Yes. Continuous Client and Network development is vital for the massive growth phase now already suddenly arriving without warning (hint).

 That and everything else about this topic has already been hashed to near death.

 It's all up to the developers, they know the needs.

The value of transaction fees will have to increase to keep the preservation of the network profitable. I expect the block size will have to increase. Bitcoin is still in beta. We've got lots of time to resolve these issues.

In a mainstream scenario.
 We would need at least x10 more available volume in the transaction file.. but now we are ok with the current numbers

Does that also mean the transactions will go slower?
I also understand that if you make your transaction costs higher that your transactions goes through faster.
So maybe you have to pay a little more to move your transaction faster, because that would be not so good.
Or would more nodes solve that problem, so transactions can go through faster?

The rise in value will offset some of the costs obviously and make the transaction rewards organically bigger in value.

It is not an unreasonable expectation. We've been above $1000 before, and we will be back there again. Prices are back to $650 with no good news, imagine what will happen if a record company started accepting bitcoin for music download or a celebraty clothing line offers bitcoin as payment.

Well it certainly true that having bitcoin merchants accepting transactions and a mobile phone would increase overall daily transaction volumes.
So waiting for official apps to come back to the apple ecosystem will have some effect on the price.

As the article sais, since the supply is exponentially decreasing, even with a linear increasing demand the price would increase exponentially.

However, acceptance is more likely to be exponential in itself, as is the way things grow naturally. For example 100 people talk about bitcoin to their friends, each of them brings 10 friends to accept bitcoin. Now 1100 people accept bitcoin. Each of them brings 9 friends, now 11000 people accept bitcoin. Etc.....

Price would grow super exponentially. (Exponential on a log scale). Which we can already see sometimes during "bubbles" or rallies.

In general when more businesses accept a certain currency the higher the price/value the currency will be.

This is why central banks of major currencies can use QE while central banks of currencies like the Mexican Peso cannot.

The super exponential thesis has also been proposed for the big picture sometimes.
Do you think we could still go super exponential in the big chart?