Why would sales in Bitcoins decline on Overstock?

[Kprawn]

Everyone have been looking for big retail companies to come on board, with digital currency.

Thing is, the Bitcoin community is not supporting this.

It was reported that on the 9th January 2014, when Overstock became the first major retailer in the world to start accepting Bitcoin, they made sales worth US$126,000 in Bitcoin.

As of 13 March 2014, Overstock Bitcoin income had shrunk to under 1% of their normal daily cash intake.

Source "http://en.wikipedia.org/wiki/Overstock.com"

My question is this. Why not support these ground breaking companies?, to proof to the rest of the retailers, that bitcoin has huge potential income.

Or are we hoarding coins for potential investment returns? 

[silverfuture]

Everyone have been looking for big retail companies to come on board, with digital currency.

Thing is, the Bitcoin community is not supporting this.

It was reported that on the 9th January 2014, when Overstock became the first major retailer in the world to start accepting Bitcoin, they made sales worth US$126,000 in Bitcoin.

As of 13 March 2014, Overstock Bitcoin income had shrunk to under 1% of their normal daily cash intake.

Source "http://en.wikipedia.org/wiki/Overstock.com"

My question is this. Why not support these ground breaking companies?, to proof to the rest of the retailers, that bitcoin has huge potential income.

Or are we hoarding coins for potential investment returns? 

It's because of the bear market. Wealth effect at a higher btc/usd price will spur more retail sales in BTC. What is the difference between saving and hoarding?

[gentlemand]

Most people buying would've been long term holders of bitcoin. I guess most of them bought what they needed. There's no incentive for someone who doesn't already own some to go out and buy BTC just to pay that way.

It's also a classic case of deflation in action. People are waiting for a rise to spend more.

If and when they open up international sales they'll get another big boost.

[chakra74]

I'm not a huge holder in bitcoin.  I've been buying a bit each paycheck for about 6 months so I'm up to 7 now.  I have made a few purchases from Overstock myself and I must admit I've stopped purchasing things there because of the price drops.

Even when I did purchase things from Overstock I always repurchased the same amount of bitcoin.  I think I've stopped temporarily because instead of buying those items on Overstock I've told my wife to not shop there for now because I use that money to purchase more bitcoin at these sale prices rather than acquiring more goods.

Once the price hits the 700-800 or more range, then I'll be in a more holding pattern and I'll feel more comfortable just making purchases in bitcoin and replacing what I use.

[boraf]

Or are we hoarding coins for potential investment returns? 

People are hording bitcoin and using it mainly as a speculation instrument.

[Alley]

I buy from Amazon.  Gyft cards save 3% with bitcoin.

[CryptoKilla]

I believe most people would rather hold onto their bitcoins and just purchase goods with cash simply due to the fact that the bitcoin value can skyrocket at any time and that $1,000 tv you just purchased for 2 BTC would be $2,000 worth of BTC or more in a short period of time. Cash doesn't fluctuate in value like bitcoin does.

[lyth0s]

I think it all revolves around the current Bitcoin price. If bitcoin price was still $1000+ people would be more inclined to purchase stuff knowing that they don't have to get rid of as many coins. But with the recent decline in bitcoin price, people are waiting for the supra-1000 dollar/coin again before they continue to spend.

[redwhitenblue]

Sales were inflated when they first started accepting BTC as many BTC holders likely bought on overstock simply because they were accepting BTC, not because they needed what they were buying. Sales were also inflated because some people also likely bought with BTC on overstock because it was "the new thing" and wanted to test using BTC.

IMO the sales level on overstock are at a more normalized level and will rise and fall with depending on how much BTC is utilized by the general population.

[Ron~Popeil]

The novelty wore off. Their sales will climb with price. The coming hyperinflation with the USD will also push bit coin spending. This is just the beginning.

[RodeoX]

I still use them, but I did spend more at first because there were some things I had been waiting to buy with bitcoin.

[silverfuture]

http://nakamotoinstitute.org/mempool/im-hoarding-bitcoins-and-no-you-cant-have-any/

[LiteCoinUser84]

Interesting.... people hoard the BTC but know that if people start spending the value will actually increase... catch 22

[Mervyn_Pumpkinhead]

That is the reason why an highly unstable inflationary currency will be a gimmick and have little practical value as an currency. The majority use it for gambling, not for practical purposes, that an currency should be used.
The currency unit price should be unattractive as an investment. The support services that revolve around the currenc,y should be the only things that are attractive for investments. It messes up the stability if the unit price itself is an lucrative investment oportunity. And no point in telling that growth will bring stability. Growth will only attract new players with deeper pockets and better knowledge to manipulate the markets.

[bryant.coleman]

Patrick M. Byrne, the CEO of Overstock has never said that the Bitcoin-based sales has declined in the site.

According to him, thus is what happened.

1. On the first day, a record-breaking $126,000 worth of merchandise was sold for Bitcoin.
2. It gradually declined to about $4,000-5,000 per day after a month.
3. By mid-April, there was an upswing, and the sales increased to $8,000-10,000 per day, where they are staying right now.

So the Bitcoin sales in Overstock are gradually climbing upwards, not the opposite.

[sbrzol]

what will you do, if you have about 1000 BTC, (but not too much fiat )?    I have.

- the price is too low now, so i use fiat only
- if the price is 900-1000 again (near ATH), i will sell 10%  or/and buy goods/holidays/etc. in BTC
- if the price is 2000-2500, i will sell 10%   or/and buy goods/holidays/etc. in BTC
- if the price is 5000-6000, i will sell 10%  or/and buy goods/holidays/etc. in BTC
....
- if the price is  $100000, i will sell 10%  or/and buy goods/holidays/etc. in BTC
.....

so i always will have millions (above 2000USD/BTC) in BTC and millions in fiat or in goods

i think not i am the one who will follow the same strategy ,  holding, holding and then always selling 10% or X% BTC/buying with BTC  

[nickenburg]

Yes it's hard to spend bitcoins and then maybe knowing in a few years you payed like way to much because bitcoin has risen in price so much.
Just like the 10k bitcoin for pizza, I dont want to spend to much on something.
A few days I bought a 20 dollar steam card with bitcoins, and I couldnt help but think maybe in a few years this 20$ of bitcoins is worth 200 or 2000.
So I think people will wait for bitcoin to be really accepted as a payment where it has shown us his true value.
So we can easily spend or bitcoins without thinking the price can still rise alot.

[LiteCoinGuy]

Patrick M. Byrne, the CEO of Overstock has never said that the Bitcoin-based sales has declined in the site.

According to him, thus is what happened.

1. On the first day, a record-breaking $126,000 worth of merchandise was sold for Bitcoin.
2. It gradually declined to about $4,000-5,000 per day after a month.
3. By mid-April, there was an upswing, and the sales increased to $8,000-10,000 per day, where they are staying right now.

So the Bitcoin sales in Overstock are gradually climbing upwards, not the opposite.

correct.

and also: bitcoin is tiny, lets be realistic. a company which accepts BTC should also give a little discount.

[kerafym]

Patrick M. Byrne, the CEO of Overstock has never said that the Bitcoin-based sales has declined in the site.

According to him, thus is what happened.

1. On the first day, a record-breaking $126,000 worth of merchandise was sold for Bitcoin.
2. It gradually declined to about $4,000-5,000 per day after a month.
3. By mid-April, there was an upswing, and the sales increased to $8,000-10,000 per day, where they are staying right now.

So the Bitcoin sales in Overstock are gradually climbing upwards, not the opposite.

Is the transaction fee lower on higher using bitcoin?

[Kprawn]

Well this is not helping the currency.

If everyone just hoard Bitcoins, hoping the price for Bitcoin will rise, less retailers will enter the market for Bitcoins.

Supply and demand principle is actually distorted.

So when the BTC price reach $1000 everyone will flush Bitcoins from their paper wallets and that will push, the price down again.