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April 20, 2015, 12:38:18 PM |
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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
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