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Author Topic: Something interesting is happening  (Read 1781 times)
johnyj
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January 31, 2013, 10:49:43 PM
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Last year, I have pointed out that if some very hot electronic product (for example iphone5) only accpet BTC purchase, then it will push the price up and act as an accelerator for the BTC economy

Now something interesting happened: Avalon ASICs second batch only accept BTC payment

This is a self generated demand, for almost 1 million dollar. This will push the price up and the effect is already shown on the mtgox price

And the question is: What will happen then? There are many variables, but will it result in a self-accelerated loop or just cool down when Avalon dump their BTC payment to buy semiconductor components?

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marcus_of_augustus
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February 01, 2013, 04:21:57 AM
 #2

What is interesting is that the units are priced in USD but you can only use BTC to pay for them .... Avalon are exposing themselves to quite some exchange risks.

http://launch.avalon-asics.com/

It is an example of the BTC monster using its own currency to acquire the resources it needs to grow though.

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February 01, 2013, 02:25:41 PM
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Let's say that there are couple of semiconductor manufactures, they accept BTC payment, then they need to use BTC to pay salary for employee and other costs, unless all that cost can be paied in BTC, some exchange is needed

But, they could have a deep saving account in local currency, so they just accumulate BTC in the process, while use the local currency saving to pay for the costs, this could be considered a benefit if the BTC price rise continuously, but then Avalon ASIC sale in BTC ensured this will happen

There are many levels of this kind of self improving feed back, as long as the price is rising

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February 01, 2013, 03:28:14 PM
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Let's say that there are couple of semiconductor manufactures, they accept BTC payment, then they need to use BTC to pay salary for employee and other costs, unless all that cost can be paied in BTC, some exchange is needed

But, they could have a deep saving account in local currency, so they just accumulate BTC in the process, while use the local currency saving to pay for the costs, this could be considered a benefit if the BTC price rise continuously, but then Avalon ASIC sale in BTC ensured this will happen

There are many levels of this kind of self improving feed back, as long as the price is rising
From recollection, although I can't find the post, I think BitSyncom was saying one of their major suppliers accepts BTC so I guess they're less vulnerable to market fluctuations than otherwise.  But if there's also no reason, given they're using a payment provider (BitWallet I think) then I guess they can select, as with BitPay, the proportion of the payment they receive in Bitcoin and the proportion exchanged immediately to local currency.

I will admit to being mildly amused by the questioning on this forum of their wisdom in using BTC for payments.  The reasons they give may be familiar to some of us:  ease and speed for international transfer and no chargebacks.

Please disregard Litecoin and Zcash badges to the left. I have just gathered they are an April fool's joke!
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February 01, 2013, 04:57:34 PM
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It is an example of the BTC monster using its own currency to acquire the resources it needs to grow though.


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February 01, 2013, 05:14:55 PM
 #6

Let's say that there are couple of semiconductor manufactures, they accept BTC payment, then ...

The thing is, there aren't any. If you think there are you are delusional.

That won't stop anybody from pumping the price up though... delusion is part of the bubble so: buy buy buy!  

First they ignore you, then they laugh at you, then they keep laughing, then they start choking on their laughter, and then they go and catch their breath. Then they start laughing even more.
notme
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February 01, 2013, 07:13:21 PM
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Let's say that there are couple of semiconductor manufactures, they accept BTC payment, then ...

The thing is, there aren't any. If you think there are you are delusional.

That won't stop anybody from pumping the price up though... delusion is part of the bubble so: buy buy buy!  

If you think you know there aren't any you are delusional.  There is no way you know every payment method every semiconductor manufacturer takes.  I'm not saying there is, but most businesses don't publicize the details of the deals they make with each other.

https://www.bitcoin.org/bitcoin.pdf
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February 01, 2013, 07:56:13 PM
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Let's say that there are couple of semiconductor manufactures, they accept BTC payment, then ...

The thing is, there aren't any. If you think there are you are delusional.

That won't stop anybody from pumping the price up though... delusion is part of the bubble so: buy buy buy!  

If you think you know there aren't any you are delusional.  There is no  way you now every payment method every semiconductor manufacturer takes.  I'm not saying there is, but most businesses don't publicize the details of the deals they make with each other.

right on! keep it up.

First they ignore you, then they laugh at you, then they keep laughing, then they start choking on their laughter, and then they go and catch their breath. Then they start laughing even more.
johnyj
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February 03, 2013, 11:03:38 PM
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Actually as a business owner, he might be very willing to take customer payment in BTC's form, so he can do whatever he want with those BTCs and they will never appear in the tax declaration  Cheesy

There are so many chinese business owner who have plenty of fiat money at hand without any good investment target

CurbsideProphet
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February 03, 2013, 11:08:21 PM
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There are so many chinese business owner who have plenty of fiat money at hand without any good investment target

That's generally because at some point the conversion process needs to get banks involved if we're talking about large sums.  This goes for any investment, even Bitcoin.  Yeah you can do some exchange via localbitcoins or some other medium but if we're talking big money, it gets a lot harder to move around without raising eyebrows.

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johnyj
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February 03, 2013, 11:20:27 PM
 #11

There are so many chinese business owner who have plenty of fiat money at hand without any good investment target

That's generally because at some point the conversion process needs to get banks involved if we're talking about large sums.  This goes for any investment, even Bitcoin.  Yeah you can do some exchange via localbitcoins or some other medium but if we're talking big money, it gets a lot harder to move around without raising eyebrows.

You set up a big ASIC factory, paid those money to buy houses, machines, hand out salaries and then get BTC back

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