Closing the loop - helping retailers not to sell their coins

[ensurance982]

This is definitely the way to go! The bootstrapping process is - like most times - the hardest part, though. Think of it as the "hen and egg problem": You need to have enough incentive to accept BTC, companies and people need to have enough places where they can spend their BTC - where do you begin?

Companies can start by accepting BTC as one of the payment options. (As more and more doing.) Chicken and eggs served piping hot in one go .

Yeah, yet you see many companies being pretty resilient in doing so. There may also be accounting problems, problems with return policies (volatility!!!), etc.... And if you use BitPay you don't really accept BTC.

[johnyj]

If volatility is lower for sustained period of time, slowly but steadily rising, then there is no need to do fiat conversion. But that is very unlikely to happen since the whales will always drive speculative bubbles once every few years

The full loop in the commercial activities can bring more demand for bitcoin. In fact, even with bitpay, you already reach part of the effect of a full loop: When bitcoin is on the move between exchanges and your wallet and merchant, they are disappeared from the exchange for several hours or days, while in a full closed loop, they never appear on exchange, achieving the same result: Less supply on exchanges

From demand point of view, commercial activities do not drive the major demand. Because the consumption is a one time thing: If you spend $2000 monthly, then 10 bitcoins will be everything you need for all the transaction, from vendor to end consumer, and for the rest of your life. However, if you purchase $200 worth of bitcoin each month, then over a decade it will generate 12x more demand for bitcoin. That's the long term saving part, which is the major driven power for bitcoin demand right now

So if bitcoin can enter the portfolio for pension funds and other type of long term investment funds, then its value will get sustained boost, and then all the other aspects will grow accordingly

[Snail2]

Yeah, yet you see many companies being pretty resilient in doing so. There may also be accounting problems, problems with return policies (volatility!!!), etc.... And if you use BitPay you don't really accept BTC.

Yes, volatility is an issue indeed. Are there any company what offering some sort of volatility derivates for hedging against this problem?

[LiteCoinGuy]

here is the video:

http://livestream.com/accounts/9119911/events/3981295/videos/84380038

(sound is bad  )

[Bit_Happy]

The problem is that without selling them the retailers are assuming risk that the exchange price will fall - meaning their value falls. Not to mention they don't currently have a means of using the coins they earn, a majority wouldn't accept BTC as an alternative to fiat for their pay packet, mainly because they don't know what it is or don't have an easy means of spending them in comparison to fiat (let's be honest here - nearly everyone accepts fiat, very few accept BTC).

This will certainly change due to Bitcoins' huge advantage:
Businesses can currently send and receive $250,000 (for example) and pay fees of only ~3 cents.
Eventually, that fact will make Bitcoin usage much more common for large business transactions.

[runpaint]

All Bitcoin-related companies need to offer salary in bitcoin.  Put up or shut up.

[crazyivan]

All Bitcoin-related companies need to offer salary in bitcoin.  Put up or shut up.

Not only salary, vendors and large manufacturers are the key. Once retailers can replenish their stock by paying their good in BTC, we can hope for less sell pressure and volatility.

[jjacob]

All Bitcoin-related companies need to offer salary in bitcoin.  Put up or shut up.

Not only salary, vendors and large manufacturers are the key. Once retailers can replenish their stock by paying their good in BTC, we can hope for less sell pressure and volatility.

We could even have bitcoin-denominated debt once this happens. Right now, banks have a stranglehold over companies. If well-rated companies offer bitcoin bonds, people might be willing to invest.

[crazyivan]

All Bitcoin-related companies need to offer salary in bitcoin.  Put up or shut up.

Not only salary, vendors and large manufacturers are the key. Once retailers can replenish their stock by paying their good in BTC, we can hope for less sell pressure and volatility.

We could even have bitcoin-denominated debt once this happens. Right now, banks have a stranglehold over companies. If well-rated companies offer bitcoin bonds, people might be willing to invest.

I guess it all comes down to some form of limited regulation. I think this is the reason why Wall Street s not yet in. Big vendors as well.

[TheButterZone]

As if lawyers cannot write binding contracts to not need government regulation.