Major companies accepting BTC will ultimately drive prices down?

[An amorous cow-herder]

[...]Kinda weird, Overstock and now Tiger-Direct and still basicly nobody seems to actually use BTC to buy stuff ...

Why would you when bitcoin is going to the moon next week/month/year?  

That kind of reasoning isnt sound. You are basicly saying there is no sense for merchants to accept bitcoin, because there will a negligible amount of trade anyway.
In that case BTC isnt backed by an economy that requires the value to be high, unlike e.g. USD or EU, which is basicly backed by a large economy.
But the current speculative value of BTC is based on the fact that it one day it will have a large economy using it.
But if you think the price will rise even though it wont be actually used, hmm, thats basicly the definition of a pyramid scheme. And those burst sooner or later anyway.

So basicly assuming the economy grows the price will drop short to mid term.
If you assume its a pyramid scheme it will crash sooner or later.

And yes, i spend my coins.

[hulk]

Just a thought if all the bitcoin hoarders can now buy their nice nerd pod equipment from tigerdirect.com and lingerie for said girlfriend or wife with bitcoins. Wont we see alot of liquidation daily from these companies which will slowly crash prices? Not sure if anyone has posted this and apologies if it has. It just now occurred me is is all I'd like to know how you all feel about it.

I wonder what the sales volume for tigerdirect.com is daily. Whos processing the payments for them and overstock.com ? Shed some light on this topic for me I'm not ready to panic sell yet!

Shit... Now saying that makes me realize forget mining btc I think i'll just start processing btc payments now.

I believe its a yes for short run, but in long run it is going up cause more people get to know bitcoin and start buying them..

[pening]

[...]Kinda weird, Overstock and now Tiger-Direct and still basicly nobody seems to actually use BTC to buy stuff ...

Why would you when bitcoin is going to the moon next week/month/year?  

That kind of reasoning isn't sound. You are basically saying there is no sense for merchants to accept bitcoin, because there will a negligible amount of trade anyway.

No, no, i'm saying there's no sense for holders of bitcoin to use them as they will appreciate dramatically in value.  At least, this is a wide spread position of many holders of bitcoin.  I'm not saying its right or wrong, just saying it is.
Overstock and Tiger Direct are looking to exploit a market niche, those with large bitcoin holding that may already be sitting on large gains.  Those willing to support bitcoin by spending a couple of 1/10th a bitcoin to buy some consumer goods.  I don't see they are the same as those buying at $500, $800 or buying $3k miners.   The positive is the perception that bitcoin is going mainstream, the negative is they (Overstock etc) aren't building up an economy as they don't hold themselves and facilitate a selling pressure.

[An amorous cow-herder]

Why would you when bitcoin is going to the moon next week/month/year?  

That kind of reasoning isn't sound. You are basically saying there is no sense for merchants to accept bitcoin, because there will a negligible amount of trade anyway.

No, no, i'm saying there's no sense for holders of bitcoin to use them as they will appreciate dramatically in value.  At least, this is a wide spread position of many holders of bitcoin.  I'm not saying its right or wrong, just saying it is.

But if people dont spend the coins there is no reason to accept then anyway. Might as well remove the currency aspect then and just have a couple of exchanges selling "invisible farts" that are sure to be worth more in the future.

The positive is the perception that bitcoin is going mainstream, the negative is they (Overstock etc) aren't building up an economy as they don't hold themselves and facilitate a selling pressure.

Yes, thats the impression i have as well. Its just perception, not a real economy (yet). But if its just the perception thats driving the price instead of an actual economy, then the price is obviously bubbling up.
So the price is based on the assumption that one day BTC will be a mayor currency, but actually moving in that direction would drive the price down in the near to mid term.
Or in other words, the price can only go up if people believe that BTC will be a real currency, but actually isnt used for anything other than speculation.

[odolvlobo]

[...]Kinda weird, Overstock and now Tiger-Direct and still basicly nobody seems to actually use BTC to buy stuff ...

Why would you when bitcoin is going to the moon next week/month/year?  

That kind of reasoning isn't sound. You are basically saying there is no sense for merchants to accept bitcoin, because there will a negligible amount of trade anyway.

No, no, i'm saying there's no sense for holders of bitcoin to use them as they will appreciate dramatically in value.  At least, this is a wide spread position of many holders of bitcoin.  I'm not saying its right or wrong, just saying it is.

Unfortunately, that way of thinking is very common and I think it is one of the things that could kill Bitcoin. If everyone thinks that way, then Bitcoin is just a modern version of the tulip bubble. Bitcoins only have value if people are willing to spend them.

Anyway, there is no reason why someone couldn't buy bitcoins and spend them and then buy more. Currently, the only advantage to paying with bitcoin is that it avoids the small risk incurred by using a credit card. Merchants, on the other hand, might be motivated to give discounts to bitcoin users because their risk is much higher, and hopefully the discounts would be enough motivate more people to pay with bitcoins.

[keithers]

From what I am reading from various reports, it seems like the BTC orders are flowing in right upon the launch of accepting BTC, but then slowing down drastically thereafter.   I'm sure it will slowly pick up though over time..

[gortonc]

I don't know about price, but it will certainly drive the GINI coefficient down. This is a very good thing!