Wall Observer BTC/USD - Bitcoin price movement tracking & discussion

[gentlemand]

After Dish Network, Newegg, and now Dell, I've come to the conclusion that merchant adoption in itself should have no long term effect on price.

I don't think there's been a case of merchant adoption having an effect on the immediate price.

Long term is where it's at. Every merchant adds legitimacy. More and more of them will follow Overstock's investigations into a closed economy.

The average Joe who vaguely knew of it as drug money a couple of years ago will look a little closer with each new merchant. Perhaps there'll be an option to be paid in BTC by quite a few of these companies too.

It's a process of seepage rather than an explosion. Eventually it'll pay off enormously. Without it, it's going to whimper rather than bang.  

[aminorex]

merchant adoption in itself should have no long term effect on price.  

That would be deeply erroneous.  I hope you don't harm yourself too severely with that.

Especially when it's being instantly converted back to FIAT.

This is a valid point, but phrased as though it were a verity, when in fact it is a hypothetical.  Increasing velocity means less supply is required to maintain equilibrium.  But we know that in fact the velocity is such that the mean holding time is more than 2 months.  Whether Dell flips is irrelevant.  What matters is the mean holding time.  I don't care if the holder is a merchant, a prole, or an exchange.  It does not affect the value of the currency.

Since BTC can be split 8 decimal places, there should never be a shortage of supply when used as a transport protocol.

This is absolutely true.  You seem to draw exactly the wrong conclusion.  It means that increasing price does not reduce utility.  But increasing utility does increase price, on the other hand.  And well-understood stored utility is easier to hold longer, and in larger quantity.  Merchant acceptance increases the common understanding of utility.

[edwardspitz]

After Dish Network, Newegg, and now Dell, I've come to the conclusion that merchant adoption in itself should have no long term effect on price.

You can also add Grooveshark to the list. Grooveshark is not as big, but it might help draw attention to bitcoin from the "hip" crowd. Please vote for Spotify bitcoin payment suggestion here.

[Adrian-x]

Dell.  Gosh.  Whatever else can be said of Coinbase, they're certainly helping to push adoption. 

This is going to go nuts, every time I see Bitcoin enter bubble territory I here don’t cash out just spend, if the next bubble happened with in my lifetime, a lot of business is going to go to those companies accepting Bitcoin, and after that it’s going to explode.  

[theonewhowaskazu]

Whats going on in the orderbooks right now is actually fairly funny, if anyone cares to watch.

[Adrian-x]

Seriously, why does China seem to love positive US bitcoin news better than the US?  

It is kind of strange, its about 2am there atm so they even get out of bed to buy coins, serious dedication.

doesn't Jorge trade in China? 

[ChartBuddy]

Explanation

[keithers]

Looks like a mini surge in prices going on right now    I want to see us get back to at least around $650 by the weekend...let's go!!

[mmitech]

Dell accepting Bitcoin is bad sign for the short term price, simply with the adoption rate slowing down big purchases will exhaust and stress up the price, although if adoption will catch up then it is a good sign for the long term.

[BitChick]

Dell accepting Bitcoin is bad sign for the short term price, simply with the adoption rate slowing down big purchases will exhaust and stress up the price, although if adoption will catch up then it is a good sign for the long term.

If everyone just replenished their Bitcoin stash when they purchased things it would be a positive thing.  At least the news brings more validity to BTC though.

[edwardspitz]

Seriously, why does China seem to love positive US bitcoin news better than the US?  

It is kind of strange, its about 2am there atm so they even get out of bed to buy coins, serious dedication.

doesn't Jorge trade in China? 

I hear he has changed up and now does his coin hoarding on FBI auctions  

[bodogb]

Dell accepting Bitcoin is bad sign for the short term price

Biggest bullshit I've read in weeks. Think about it again and apologize for being an idiot.

[mmitech]

Dell accepting Bitcoin is bad sign for the short term price

Biggest bullshit I've read in weeks. Think about it again and apologize for being an idiot.

[ImI]

Dell accepting Bitcoin is bad sign for the short term price

it seems to be a non-event at the moment. the market doesnt care much about that news.

[T.Stuart]

Dell accepting Bitcoin is bad sign for the short term price

it seems to be a non-event at the moment. the market doesnt care much about that news.

Give it another moment  

[blatchcorn]

Dell accepting Bitcoin is bad sign for the short term price

it seems to be a non-event at the moment. the market doesnt care much about that news.

A $10 rise is better than nothing

[inca]

Dell accepting Bitcoin is bad sign for the short term price

Biggest bullshit I've read in weeks. Think about it again and apologize for being an idiot.

Extremely short termist viewpoints might help daytrading gamblers, exactly the people who have ridden the bitcoin bull market since 2011 and are not wealthy, but to speculators in bitcoin the dell announcement us hugely significant.

[Zangelbert Bingledack]

Dell accepting Bitcoin is bad sign for the short term price, simply with the adoption rate slowing down big purchases will exhaust and stress up the price, although if adoption will catch up then it is a good sign for the long term.

Suppose you want to maintain 80% bitcoin, 20% fiat in your portfolio. Then there are only three possible cases:

1) You're under 80% bitcoin. Why would you spend bitcoins now, unless you're going to immediately buy them back and then some to get back to 80%? Not bearish for the price.

2) You're at 80% bitcoin. You might spend, but to the extent you do you'll be more and more likely to buy them back. Not bearish.

3) You're over 80% bitcoin. You'd like to sell, but if you can easily spend since you wanted to buy some stuff anyway, you'll do that instead to the extent you can, until you're back to 80%. In other words, you would've sold those coins anyway and instead you're spending them. Not bearish.

Verdict: Not bearish.

For deeper insight into this, see the discussion of average dishoarding rates and portfolio balancing here: https://bitcointalk.org/index.php?topic=345065.0

[Erdogan]

Once it was about nowhere to use your coins. Now, with lots of merchants, it seems to be that noone has coins to use. Well, nowhere was it said that these things have to move in lockstep.

[Adrian-x]

Dell accepting Bitcoin is bad sign for the short term price

it seems to be a non-event at the moment. the market doesnt care much about that news.

A $10 rise is better than nothing

just 3 years ago a $10 rise was = to 300% now its just meh, I used to piss my self with a $5 rise.