yup, you're 100% right. merchant adoption kills the price because they dump it on the open market ..
You are joking, right? You think that more merchant using bitcoin = bitcoin price decrease? Well think again. It is the other way around. We need to build
bitcoin infrastructure, invest in bitcoin projects, shops look new opportunities. That is why accepting bitcoin by more and more merchants is - yes, it is called development. And it is good for everyone.
Yeah I'm getting tired of reading this ignorant crap. If you seriously believe this then bitcoin is doomed because the more people that use it to buy things the more the price is going to drop so you may as well get out why you can. Bitcoin absolutely needs more adoption for it to grow not the other way around.
It's a complex subject but there is truth to the idea of merchant adoption causing a downward price trend. (Evidence: 2014. If adoption was strongly correlated with price increases, how would you explain 2014?)
The problem with merchant acceptance is that it tends to move bitcoin from being a store of value (like a gold ingot sitting in a vault somewhere) to a transactional currency that rapidly changes hands. This increases the velocity of bitcoin, which anyone with an Econ 101 class should be able to recognize as a downward force on the price.
So is merchant adoption good or bad for the price? For the price to rise bitcoin has to be valued by more and more people, and that kinda requires more and more people knowing about bitcoin and holding it. So I think the short-medium term impact is negative, but in the long run it forms a positive base for growth.
Here's one simple test I'd propose - do measurements of the velocity of bitcoin shown a significant increase in 2014 compared to prior years? Someone probably has that data. If they did, and if it could be established that it was due to increased merchant use at a significant level, it would provide an explanation for the price downtrend.