Whose got all this Bitcoin to dump? Three simple answers

[brooklynite]

BTC is falling. Who has all this BTc to sell? Three Simple Answers, you guys tell me the others:

• Tigerdirect
• Overstock
• Gyft

They are not Bitcoin believers, they are corporations, they just use BTC to sell more goods. Those BTC miners who would normally not bother to sell their BTC on Bitstamp and Coinbase, now have an easy way of getting an XBOX or a TV with it on Tigerdirect or Overstock.com so they go for it.

In fact Overstock must sell $1,000,000 worth of Bitcoins for the first month alone so it is all getting dumped on major exchanges:

http://www.techspot.com/news/55763-overstock-does-nearly-1-million-in-bitcoin-sales-in-first-month.html

No actual dollar amounts on TIGERDIRECT yet as they just started accepting it. One TD gets added to the million dollar BTC sellers, it will get worse.

And this trend will not end any time soon but will actually accelerate. Overstock will continue to sell BTC as miners go there to cash out for goods. More BTCs get mined daily and Overstock and TD will have to continue to sell more on the exchanges. They will not hold on to them because they still dont value BTC as a currency but some form of GOODs that has value and needs to be sold to pay rent and employees, well, unless they accepted BTC? huh? A currency needs a full cycle. BTC doesnt have that yet.

I sure hope no other retailer accepts BTC any time soon and in fact I hope TD and Overstock stop.

[wici]

I sure hope no other retailer accepts BTC any time soon and in fact I hope TD and Overstock stop.

Stops? do you realy think like this? then who will buy bitcoins in the first place if they can't use them in shops? 

[5thStreetResearch]

Coinbase is processing their transactions.  Coinbase is selling far more than $1m worth of Bitcoin's per month, Bitcoin falling has absolutely nothing to do with Overstock.

[brooklynite]

Coinbase is processing their transactions.  Coinbase is selling far more than $1m worth of Bitcoin's per month, Bitcoin falling has absolutely nothing to do with Overstock.

Bitcoin moved 30% today alone. This morning it was over $600 and tonight its just over $400. Are you saying additional $1M in BTC sales cant affect the price of BTC? while being the strongest crypto it is still very fragile to get burnt by real B&M type of business. It needs a lot more support than that.

[aluman]

if you whant to buy with bitcoins you need to buy them first...

[Abdussamad]

if you whant to buy with bitcoins you need to buy them first...

The general idea behind what the op is saying is correct. It's just that he doesn't understand the details. This is my opinion:

- No new users are buying bitcoins to spend on these merchants. It is too hard and costs too much to do that. CCs and paypal are much more convenient.

- Instead it is long time bitcoin holders that are bringing coins out of cold storage and spending them. Previously they had no outlet to spend their coins. Now they do.

- This increases the supply of bitcoins in circulation pushing down the price.

Also as far as the details goes it is bitpay and coinbase that are selling these coins not the merchants themselves. The merchants only take USD.

[seriouscoin]

I'm a piece of shit. I'm asking for BTC donations in my sig while spreading FUD about BTC being doomed. I wish my mom had aborted me.

We all know that OP. Now you can do everyone in this world a favor and stop wasting oxygen, just end yourself.

[Axio]

BTC is falling. Who has all this BTc to sell? Three Simple Answers, you guys tell me the others:

• Tigerdirect
• Overstock
• Gyft

They are not Bitcoin believers, they are corporations, they just use BTC to sell more goods. Those BTC miners who would normally not bother to sell their BTC on Bitstamp and Coinbase, now have an easy way of getting an XBOX or a TV with it on Tigerdirect or Overstock.com so they go for it.

In fact Overstock must sell $1,000,000 worth of Bitcoins for the first month alone so it is all getting dumped on major exchanges:

That 1 mil does not even make a dent in the daily trading of bitcoin on the major exchanges. Not even to mention per month.
Those 2k bitcoins is not even 1 % of what is traded each day.

[waldox]

Massive Bitcoin sellers probally include Silk Road 2 hackers <-- most likey the owners pretending they got hacked

[Sheldor333]

Those bitcoins are sold automatically, those are not large btc transactions. It's not like they are collecting btc and when they get a few thousands they dump it. Then it would be a problem, now it is not. Now it is a good thing, because it stimulates bitcoin economy.

[justusranvier]

The general idea behind what the op is saying is correct. It's just that he doesn't understand the details. This is my opinion:

- No new users are buying bitcoins to spend on these merchants. It is too hard and costs too much to do that. CCs and paypal are much more convenient.

- Instead it is long time bitcoin holders that are bringing coins out of cold storage and spending them. Previously they had no outlet to spend their coins. Now they do.

- This increases the supply of bitcoins in circulation pushing down the price.

Also as far as the details goes it is bitpay and coinbase that are selling these coins not the merchants themselves. The merchants only take USD.

Correct. The three companies listed in the OP don't sell BTC themselves. Coinbase and/or BitPay do it for them as those btc come in.

Payment processors don't always sell on exchanges though. Sometimes they get the dollars from investor/underwriters who are looking to accumulate btc, so you can't assume all the transaction volume processed by BitPay results in trading activity on the public exchanges.

[brooklynite]

The general idea behind what the op is saying is correct. It's just that he doesn't understand the details. This is my opinion:

- No new users are buying bitcoins to spend on these merchants. It is too hard and costs too much to do that. CCs and paypal are much more convenient.

- Instead it is long time bitcoin holders that are bringing coins out of cold storage and spending them. Previously they had no outlet to spend their coins. Now they do.

- This increases the supply of bitcoins in circulation pushing down the price.

Also as far as the details goes it is bitpay and coinbase that are selling these coins not the merchants themselves. The merchants only take USD.

Correct. The three companies listed in the OP don't sell BTC themselves. Coinbase and/or BitPay do it for them as those btc come in.

Payment processors don't always sell on exchanges though. Sometimes they get the dollars from investor/underwriters who are looking to accumulate btc, so you can't assume all the transaction volume processed by BitPay results in trading activity on the public exchanges.

Good point about Bitpay actually slowly cashing the coins as opposed to the three big retail outfits. If I were them I would actually keep the bitcoins for a few years or offer them as bonus to workers if they volenteered.

[brooklynite]

Those bitcoins are sold automatically, those are not large btc transactions. It's not like they are collecting btc and when they get a few thousands they dump it. Then it would be a problem, now it is not. Now it is a good thing, because it stimulates bitcoin economy.

Thanks for the note. Understood.

[brooklynite]

I'm a piece of shit. I'm asking for BTC donations in my sig while spreading FUD about BTC being doomed. I wish my mom had aborted me.

We all know that OP. Now you can do everyone in this world a favor and stop wasting oxygen, just end yourself.

You are a despicable person for modifying and falsifying a quote from me. I bet you wont dare doing that in my face and in person. Heck you wont even dare to do that within my State limits over the phone. So hide behind your computer screen you coward non-existent fly ash.

[brooklynite]

if you whant to buy with bitcoins you need to buy them first...

You mean "mine them first"?

What altcoins have tought us through their short life  terms is that most coins when they get too difficult to mine (DOGE for example lost value when blocks halfed and never recovered even when difficulty dropped) they start losing value.

I guess for most buying with Bitcoin these days means they have "mined" it first or maybe they bought it way back in history when they were worth less.

I think the $400 Bitcoin was a bargain missed by many.

[Abdussamad]

Good point about Bitpay actually slowly cashing the coins as opposed to the three big retail outfits. If I were them I would actually keep the bitcoins for a few years or offer them as bonus to workers if they volenteered.

I am sure they have a reserve of coins and USD. But, speculating on the value of bitcoin is not a good idea for them. Their specialization is processing bitcoin transactions for merchants. That is their story. It is what they tell their shareholders, employees and customers. If they start doing something else then they become something else entirely. You pick a way of making money and you stick to it.

[toxicwaltz]

I'm a piece of shit. I'm asking for BTC donations in my sig while spreading FUD about BTC being doomed. I wish my mom had aborted me.

We all know that OP. Now you can do everyone in this world a favor and stop wasting oxygen, just end yourself.

rofl.. this made my day.

[Ytterbium]

This is idiotic. Obviously if retailers accept BTC the price will drop in the short term as those retailers dump btc immediately for dollars.

Bitcoin was never supposed to make people insanely rich - it was supposed to be a medium of exchange.

What matters is the long term price. Short term price drops plus price stability is what bitcoin needs to become successful, and thus valuable in the long term.

[Sage]

I'm not one to criticize but damn... this has gotta be some of the most flawed logic I've ever seen on this board.

For anyone to purchase on Overstock or any other retailer they had to get Bitcoins first.. increasing the demand!

The more merchants taking Bitcoin the more valuable it is in the short-term, long-term, and anywhere in-between.

[Bitcoinpro]

what has this got to do with Mtgox I can see the timing of the post here clear as day