|
Title: Aftermath of Merchant Acceptance? Post by: BTCIndia on July 24, 2014, 02:05:54 PM Bitpay like company which process merchant payments, locks invoice at particular price with some time window to compensate volatility. So, whenever Bitpay successfully process payments means there is someone liquidating Bitcoin. If merchants acceptance is drastically increased then how will it effect price on exchange?
Will it move towards higher end or lower end? If cycle is perfect then, with every sell on exchange from payment process there is buyer out there. And price will remain constant. What if this is not true? Various scenarios? Title: Re: Aftermath of Merchant Acceptance? Post by: rohnearner on July 24, 2014, 03:13:44 PM According to me your observation is quite logical to some extent and this little fall from 625$ to 600$ that might sink further low in upcoming days is enough to substantiate it , only logical explanation behind this I think is caused by selling pressure caused after some major retailers acceptance and than dumping it for fiat .
Although I believe that its just temporary and major retailer's acceptance can't be bad for bitcoin in longterm this is what bitcoin is here for. Title: Re: Aftermath of Merchant Acceptance? Post by: polynesia on July 24, 2014, 03:28:32 PM Bitpay like company which process merchant payments, locks invoice at particular price with some time window to compensate volatility. So, whenever Bitpay successfully process payments means there is someone liquidating Bitcoin. If merchants acceptance is drastically increased then how will it effect price on exchange? Will it move towards higher end or lower end? If cycle is perfect then, with every sell on exchange from payment process there is buyer out there. And price will remain constant. What if this is not true? Various scenarios? Some processors like coinbase allow users to 'buy back' bitcoin, after spending it on a transaction. If people don't want to miss out on increasing bitcoin prices, they might do this. This would nullify the impact of merchants liquidating bitcoin. Title: Re: Aftermath of Merchant Acceptance? Post by: Fernandez on July 25, 2014, 09:44:59 AM Correct me if I am wrong, but don't they look into the market depth? Based on history and probably some complicated model, they know on an average how much room they should have to prevent a loss on their part.
Price on the exchanges are already affected, they get lower and lower now. Initially merchant adoption was publicity, but that phase is over. Title: Re: Aftermath of Merchant Acceptance? Post by: BTCIndia on August 28, 2014, 08:06:08 AM Citi notes miners, merchants keeping bitcoin prices low.
:D http://www.coinbuzz.com/2014/08/27/citi-notes-miners-merchants-keeping-bitcoin-prices-low/ |