Bitcoin Forum

His analysis makes sense


http://www.reddit.com/r/BitcoinMarkets/comments/2gr4v8/adoption_is_killing_bitcoin/

Read the rest of the thread. 

This is all good news, par for the course, and growing pains towards what will eventually come. 

You seem to have left all that out.

-B-

Bitcoin is not ready for prime time yet. Is that a surprise for you?

I'm sorry, I just have to wonder why such a large decline on Bitcoin

No doubt, I also look forward to a better tomorrow

Bitcoin is still very young and it will take some time to catch on, this will change the world of finance and something that big just can't happen overnight.

change is a thing that the majority can't handle.

This age old argument makes no sense. Buy bitcoins in equal number every time you spend them, and this puts you at a net lot less in fiat, just as if you'd spent fiat on that item. It still, however, demonstrates demand and builds the Bitcoin economy.

People hold fiat because their salaries are in fiat and most things they buy are priced in fiat. Merchants sell bitcoin to pay bills in fiat. This will never change. Bitcoin is not to compete with fiat, but to compliment it.

Currencies come and go all the time, actually.  Not only has this changed a thousand times in the past, but there's no reason for it not to continue to change.

Bitcoin ecosystm is not building up overnight. The merchants are lacking tipping points to keep bitcoin payment. They have to pay bills with fiat. The big mining farms have to cash out some portion of bitcoin to pay electricity, rent, upgrading cost etc. Even the price drops down a lot, they have to dump their holding. When the time comes, every individuals will be happy to keep bitcoin and pay bitcoin for all the expenses. I hope it will be soon.

Yes, it's true.
I really hope that ''big'' merchants and online companies will soon accept Bitcoin as payment option.
This will raise confidence again to the Bitcoin, price will raise again and many more people will start buying Bitcoin instead of selling.

It still stays at early stage. The price is too volatile and at the moment the selling presure is much higher than buying. The price movement will turn around soon.

Facts:
1) People is dumb and dont understand what Bitcoin really means
2) They will want that child once their other child starts dying (fiat devaluation in the next decades) as BTC becomes an alpha 6'4'' male, good looking and inteligent.

Why bitcoin, you look wonderful today.  Have you lost weight?  You look 10 years younger!   :D

It is true that bitpay makes the price lower because of the insta-dump on platform exchange but this is just the 1st step.

This allow people to trust and use more bitcoin, and the more people trust bitcoin, the more they want to hold it.

Then merchant will understand better the bitcoin and start to accept bitcoin when they will be able to pay their bill in bitcoin.

The next step will be the salaries paid in bitcoin.

If all the wealth of the world is in bitcoin 1 bitcoin would worth 10 millions actual $.

For a bitcoin at 500$ it would be a X20.000, I know there is not 50% of odds that bitcoin is mainstream but do you really think with everyything happening in the world the odds are only 1/20.000? So only 0.005% chances it is happening?

I think it is closer somewhere around 1%, just in my opinion.

So if you gamble I would advise you to gamble with 1 bitcoin on a cold wallet ;)

bitcoin network is ready, mining process too ... so what ?
the exchange.

that why localbitcoins exist, too ...

its normal, people fear to lose their hard earned money because buying btc is the only way to own btc.

The fact that bitcoin is being used points to the value of Bitcoin as a payment system, even if bitcoins are converted to fiat by merchants. The success of bitcoin is measured by its adoption, not by its exchange rate. I would agree with the statement, "adoption is killing bitcoin's exchange rate", but that is a completely different statement than "adoption is killing bitcoin".

This is a great point, and dont forget that for people to spend bitcoins, they have to buy or earn them first. Very very few people have 100+ coins, and those that do will likely hold longterm and spend slowly.

but when they need their fiat to be transferred, they select BTC :P :P

I would not even agree with the point that "adoption is killing bitcoin's exchange rate", sure it is putting short term pressure on the exchange rate, however I would think that over longer periods, higher adoption will help the bitcoin exchange rate.

I also agree with your statement that adoption is helping bitcoin. The long term success of bitcoin ultimately depends on people using bitcoin as higher adoption of bitcion means that more TX fees for the miners which they will ultimately rely on as the block subsidies decrease

In fact, coinbase/bitpay can secretly build their bitcoin reserve to absorb the merchant coins, and sell at a later time

Unfortunately most of the exchanges don't know how a central bank intervene the forex market, but sooner or later some large exchanges will become the central bank of bitcoin (They could create coins/fiat money out of thin air and affect the market price, the recent crash might be caused by chinese exchanges creating virtual bitcoins and dump them on the market to profit from a price fall)

Almost all of the exchanges are not regulated, they could do whatever they want to affect the price. They don't need any physical fiat money/bitcoin at hand, they just need to creat an account with millions of bitcoins in their database and start to short the market

It is essential to switch to distributed exchange so that all trades are real coins and fiat money, not some numbers in a database. People must get rid of the habbit of believing exchange rate from a centralized exchange