**Updated** Overstock-nears-a-total-of-1m-in-Bitcoin-purchases

[Pentax]

http://coincrunch.com/Overstock-nears-a-total-of-1m-in-Bitcoin-purchases


Overstock nears a total of $1m in Bitcoin purchases
" Overstock began accepting bitcoin on 9th January – garnering $130,000 in total first-day spending. " CoinDesk

It will announce a rewards program to save 1% on Bitcoin purchases

Nice.  This sort of rebate/rewards/discount program will help drive it.

Nice Job Overstock!

[Melbustus]

Love the rewards program. I'll use Overstock more because of it. Merchants *should* kick back a percent or two to bitcoin users, since they're saving 3% on CC fees. That'll be a great driver as more businesses accept bitcoin, and provide such incentive for consumers to use it.

But I think some of the best things recently have been the news that Overstock is holding a little of their bitcoin, wants to ultimately offer their employees the option to receive some of their paycheck in bitcoin, and is having Coinbase present at their annual suppliers' conference to try and get some suppliers to accept bitcoin. All of that is a great effort at closing the loop.

BitPay's payroll API is another example of closing the payments loop... http://www.businesswire.com/news/home/20140113006504/en/BitPay-Announces-Bitcoin-Payroll-API#.Uv0q0R_ztTM

This stuff takes time, but it's happening.

[Philj]

When they can get to paying employees and suppliers, then that will be when there is a real economy in BTC.

[Pentax]

the numbers won't last.

why wouldn't they?

if they offer an incentive it's a win-win and is what people have been saying all along would benefit users, which drives use.

it's basic economics.

but seriously, I'm interested to know why you don't think this will work out with Overstock....

[crypto2k]

people are spending horded coins.

no one is buying btc to buy shit online.

+1

[Pentax]

people are spending horded coins.

no one is buying btc to buy shit online.

where do they go when Overstock moves them through Coinbase?  Overstock does not hold most of them, so they end up dumped back into the marketplace.

A portion go to speculators, that's well documented.  How much is that and how much of that ends up being spent.  I know I've spent coins I originally bought through coinbase intending to hold them and then used them when price leveled out for a while.

just applying basic economic principles.  If it's a cost savings for people, people will use it, if it isn't they won't.

What I do like about this with Overstock is that they're applying that nudge of some sort of incentive.  we'll see if it impacts anything, I suppose.

[howardb]

people are spending horded coins.

no one is buying btc to buy shit online.

Personal assumption? or is there some measurable stat to back that statement up?
Kick in the teeth for ZipZaps cashcoin business model if you're right.

[knight22]

people are spending horded coins.

no one is buying btc to buy shit online.

I do

[keithers]

people are spending horded coins.

no one is buying btc to buy shit online.

I do

I think a lot more people buy btc to buy things online than you would expect.   That recent MIT study showed that the largest percentage of bitcoins purchased nowadays, are spent within the first 24 hours.

In regards to overstock.com, those numbers are pretty good, but they have dropped steeply from the larger numbers they were putting out in the first few days...

[2tights]

people are spending horded coins.

no one is buying btc to buy shit online.

I do

I think a lot more people buy btc to buy things online than you would expect.   That recent MIT study showed that the largest percentage of bitcoins purchased nowadays, are spent within the first 24 hours.

In regards to overstock.com, those numbers are pretty good, but they have dropped steeply from the larger numbers they were putting out in the first few days...

agree, its convenient for me to keep some bitcoin on my chrome addin wallet, makes shopping super fast and easy

[Pentax]

http://www.coindesk.com/mit-report-bitcoin-more-likely-spent-hoarded/


Newly released research from the MIT Technology Review, a faculty-run university magazine, suggests that new bitcoins are increasingly being spent, not hoarded, by users after purchase.

The data illustrates that the number of unspent, new bitcoins has declined drastically from 2009, when nearly half of all new bitcoins were held for the entire first year of ownership. Today, the vast majority of new bitcoins are spent within 24 hours, the findings suggest.

[keithers]

To be a healthy ecosystem, we need a lot of holders just as we need a lot of spenders.   Ultimately we want the number of bitcoin transactions per day increasing, and we want more people to need more bitcoins so that the demand easily outweighs the supply

[exstasie]

I don't think there is anywhere for sales to go but up!  Keep up the good work Overstock!

[Baitty]

I didn't know they accepted Bitcoin as a payment just because of that I will go and buy some things from them.

[realmrealm]

people are spending horded coins.

no one is buying btc to buy shit online.

+1

I bought btc just to buy newegg products when they announced. I hold, but I specifically bought more just to do a transaction through newegg. I think that as we go forward more things will step in to make moving fiat into btc to purchase goods and services using btc a seamless process that will not require so many steps and time.

[Baitty]

Overstock is going to be one of my main places to spend money now because they have a wide variety.

[keithers]

Didn't overstock come flying out of the gates with almost a couple hundred thousand in sales in the first day?   They have slowed down dramatically in regards to payments from bitcoin then right?

[DieHardCore]

Setting the stage for many things great to come. The ceo should reward himself with a pat on the back for this one. They've brought in many new customers, I being one.

[Pentax]

Didn't overstock come flying out of the gates with almost a couple hundred thousand in sales in the first day?   They have slowed down dramatically in regards to payments from bitcoin then right?

I don't think anyone expected them to sell 130k/day in bitcoin, which I think was their day 1 total.

1M in a month is pretty decent, considering the market penetration of bitcoin itself.

even if it falls further, which it probably will, they're turning an increased profit due to savings on processing fees.  considering they operate on 1% margin, anything that knocks that up would be considered a good thing, I would think.

[Ix]

even if it falls further, which it probably will, they're turning an increased profit due to savings on processing fees.

Source? Fees to convert bitcoin to USD which is what Overstock is certainly doing are not less than merchant fees for large retailers the last time I looked.