Why would sales in Bitcoins decline on Overstock?

[CoinDiver]

People hoarding bitcoins will drive the price up. Bitcoin is not value, it's a store of value. You have to produce something of value to hold that value. The whole idea of inflationary currencies driving value is idiotic. Inflationary currencies drive debt. Deflationary currencies drive savings. Debt creates bubbles, savings create stable markets. People are not going to stop wanting things just because bitcoin is going to become more valuable in time.

[painlord2k]

It is simple, basic, austrian economy.
People have schedules of wants and needs.
Food, housing, clothings, saving, more other stuff, other savings, more stuff, savings.
When the price decline, we have people savings because they prioritize saving over "other stuff".
When they have enough saving, they start buying some more.

I just discovered this service purse.io allowing to spend bitcoin over Amazon.
One person with bitcoin want something from Amazon, someone with a credit card want some bitcoin.
The guy with the credit card pay for the goods and the service transfer the bitcoins when the goods are received.

Just another service allowing to buy bitcoin and buying from Amazon.

[Mervyn_Pumpkinhead]

People hoarding bitcoins will drive the price up. Bitcoin is not value, it's a store of value. You have to produce something of value to hold that value. The whole idea of inflationary currencies driving value is idiotic. Inflationary currencies drive debt. Deflationary currencies drive savings. Debt creates bubbles, savings create stable markets. People are not going to stop wanting things just because bitcoin is going to become more valuable in time.

It would be a big mistake to take something as a store of value, that's value is almost purely built on speculation.
Don't ever go long-term on goods that's deficit is artificially created and therefor extremely fragile and unstable.

It's funny how the "bitcoin freedom fighters" are against banks earning with interest, but they see it as totally ok, if you earn with deflation. The bitcoin community has the biggest amount of hypocrites that I have ever seen.

[zimmah]

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?  

When companies first accept bitcoin, it will trigger a temporarily bitcoin rally, where many bitcoin enthusiasts buy something just for the sake of buying, even if they don't really need or want anything.

Later on, the sales stop a little, because out of all the people in the world not even close to 1% of the people owns bitcoin. So it would be unreasonable to expect more than 1% of the sales to come from bitcoin. It would be much more reasonable to expect 0.05% for now or so.

You should not accept bitcoin and expect 10% increase in sales volume right away. You should accept bitcoin because you believe in the added value of the payment system itself, and possibly in a couple of years your company sales revenue could increase by meaningful amounts.

Until then i'd advice companies to just hoard their bitcoins, since bitcoins will only make up a small amount of their total sales they could most likely easily survive without having to sell the bitcoins. And they would be worth much more in the future.

[BitcoinBobbeh]

You realize Overstock announced that it would accept Bitcoin months in advance right?

For months, people were waiting for that first day to make their purchase whether they needed the item or not - just to show support. They're excited. The Bitcoin numbers for Overstock aren't as big on a daily basis now but they are constant. Kinda reminds me of how a movie always has a big first weekend then steadily declining numbers until it is released on DVD and Cable for residual moneys.


They should receive another boost when O.co begins accepting BTC internationally. (They only take payments via the US-based Coinbase at the moment)

[okthen]

Of course there was an explosion and then things calmed down, novelty doesn't last forever.
Still, I think even around 1% is a huge amount, comparing the ratio of non-bitcoin/bitcoin buyers.

[atp1916]

Bitcoin won't shine as a currency until the algorithm taps out the last coin, the market corrects for this, and then stabilizes (way up).

Until then, it's a commodity...and very exotic investment vehicle.

[okthen]

Bitcoin won't shine as a currency until the algorithm taps out the last coin, the market corrects for this, and then stabilizes (way up).

Until then, it's a commodity...and very exotic investment vehicle.

I don't think at all that it will take so much time. Specially because coins will be produced increasingly slower.

(In fact, I have the felling that if bitcoin doesn't reach at least a partial importance as a currency in five years, I doubt it ever will.)

[atp1916]

Bitcoin won't shine as a currency until the algorithm taps out the last coin, the market corrects for this, and then stabilizes (way up).

Until then, it's a commodity...and very exotic investment vehicle.

I don't think at all that it will take so much time. Specially because coins will be produced increasingly slower.

(In fact, I have the felling that if bitcoin doesn't reach at least a partial importance as a currency in five years, I doubt it ever will.)

Bitcoin will not ever succeed because it is used solely as a currency. How many people do you see using (for example) gold to buy groceries, gas, or other goods?  I've never seen anyone pay gold to get their car fixed, house built, or a service performed.  Don't be fooled - Bitcoin at the moment is seen by your average consumer as nothing more than an exotic investment vehicle.  Once it taps out, and the value stabilizes way up..then we may will see the currency application side start shining.  Unfortunately, that won't be for another 20 years or so.

However, the silver lining in all of this is that Bitcoin will succeed even in the short run (and so much more in the long run) because of the underlying blockchain technology and its middle-man-busting applications in the associated market sectors it is capable of disrupting/revolutionizing.  Important people in high places are seeing the writing on the wall even now.  

All in all, it's a win-win to be involved in Bitcoin.

[okthen]

Bitcoin won't shine as a currency until the algorithm taps out the last coin, the market corrects for this, and then stabilizes (way up).

Until then, it's a commodity...and very exotic investment vehicle.

I don't think at all that it will take so much time. Specially because coins will be produced increasingly slower.

(In fact, I have the felling that if bitcoin doesn't reach at least a partial importance as a currency in five years, I doubt it ever will.)

Bitcoin will not ever succeed because it is used solely as a currency. How many people do you see using (for example) gold to buy groceries, gas, or other goods?  I've never seen anyone pay gold to get their car fixed, house built, or a service performed.  Don't be fooled - Bitcoin at the moment is seen (shallowly) as nothing more than an exotic investment vehicle.  Once it taps out, and the value stabilizes way up..then we will see the currency application side start shining.  Unfortunately, that won't be for another 20 years or so.

However, the silver lining in all of this is that Bitcoin will succeed even in the short run (and so much more in the long run) because of the underlying blockchain technology and its middle-man-busting applications in the associated market sectors it is capable of disrupting/revolutionizing.  Important people in high places are seeing the writing on the wall even now.  

All in all, it's a win-win to be involved in Bitcoin.

Don't you think it's possible that bitcoin becomes something between fiat and gold? Because fiat isn't useful as a store of value because it's value depends on third-party decisions. And gold isn't useful as a currency because it is unpractical. Maybe bitcoin has the necessary characteristics to become both.

[atp1916]

Bitcoin won't shine as a currency until the algorithm taps out the last coin, the market corrects for this, and then stabilizes (way up).

Until then, it's a commodity...and very exotic investment vehicle.

I don't think at all that it will take so much time. Specially because coins will be produced increasingly slower.

(In fact, I have the felling that if bitcoin doesn't reach at least a partial importance as a currency in five years, I doubt it ever will.)

Bitcoin will not ever succeed because it is used solely as a currency. How many people do you see using (for example) gold to buy groceries, gas, or other goods?  I've never seen anyone pay gold to get their car fixed, house built, or a service performed.  Don't be fooled - Bitcoin at the moment is seen (shallowly) as nothing more than an exotic investment vehicle.  Once it taps out, and the value stabilizes way up..then we will see the currency application side start shining.  Unfortunately, that won't be for another 20 years or so.

However, the silver lining in all of this is that Bitcoin will succeed even in the short run (and so much more in the long run) because of the underlying blockchain technology and its middle-man-busting applications in the associated market sectors it is capable of disrupting/revolutionizing.  Important people in high places are seeing the writing on the wall even now.  

All in all, it's a win-win to be involved in Bitcoin.

Don't you think it's possible that bitcoin becomes something between fiat and gold? Because fiat isn't useful as a store of value because it's value depends on third-party decisions. And gold isn't useful as a currency because it is unpractical. Maybe bitcoin has the necessary characteristics to become both.

I am not entirely sure that this type of vehicle would even work in the mode as a "daily driver" currency due to the populance's fears over price instability.  The mere fact that the Fiat / bitcoin ratio could change may be enough to scare away mass market adoption as a daily-use currency.  In my mind, bitcoins' price history has already (unfortunately) sealed its fate as a currency.  

That being said and regarding what you described, bitcoins as the ultimate exotic commodity/investment vehicle all wrapped into one?  

[Undone]

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.

This. This is the real, sensible answer.

Add to the fact that the coins are typicially just immediately dumped, and it's a no-brainer.

[okthen]

Bitcoin won't shine as a currency until the algorithm taps out the last coin, the market corrects for this, and then stabilizes (way up).

Until then, it's a commodity...and very exotic investment vehicle.

I don't think at all that it will take so much time. Specially because coins will be produced increasingly slower.

(In fact, I have the felling that if bitcoin doesn't reach at least a partial importance as a currency in five years, I doubt it ever will.)

Bitcoin will not ever succeed because it is used solely as a currency. How many people do you see using (for example) gold to buy groceries, gas, or other goods?  I've never seen anyone pay gold to get their car fixed, house built, or a service performed.  Don't be fooled - Bitcoin at the moment is seen (shallowly) as nothing more than an exotic investment vehicle.  Once it taps out, and the value stabilizes way up..then we will see the currency application side start shining.  Unfortunately, that won't be for another 20 years or so.

However, the silver lining in all of this is that Bitcoin will succeed even in the short run (and so much more in the long run) because of the underlying blockchain technology and its middle-man-busting applications in the associated market sectors it is capable of disrupting/revolutionizing.  Important people in high places are seeing the writing on the wall even now.  

All in all, it's a win-win to be involved in Bitcoin.

Don't you think it's possible that bitcoin becomes something between fiat and gold? Because fiat isn't useful as a store of value because it's value depends on third-party decisions. And gold isn't useful as a currency because it is unpractical. Maybe bitcoin has the necessary characteristics to become both.

I am not entirely sure that this type of vehicle would even work in the mode as a "daily driver" currency due to the populance's fears over price instability.  The mere fact that the Fiat / bitcoin ratio could change may be enough to scare away mass market adoption as a daily-use currency.  In my mind, bitcoins' price history has already (unfortunately) sealed its fate as a currency.  

That being said and regarding what you described, bitcoins as the ultimate exotic commodity/investment vehicle all wrapped into one?  

It would be awesome if it becomes an all-in-one kind of thing
Actually, just a few centuries ago you had gold and silver coins, which had value on their own. Guess they could be considered a mixed  hybrid too
(Without the exotic part )

[CoinDiver]

Just buy your bitcoins with that cash, then buy your goods on wherever.

[Ron~Popeil]

Price stability will bring more spending. Right now everyone is holding their breath for the big run up and feel like whatever they spend will be worth more if they hold. 

[Swordsoffreedom]

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.

Thanks for clarifying that point I was starting to get curious as well
That said I think the market is growing and the daily transaction volume as well, that said it will still take some time for the sales to increase significantly but raking in 10,000 dollars a day is not bad. But its more like 20-30 K Bryant so was wondering where your newer numbers came from

According to Overstock.com CEO Patrick Byrne, Bitcoin has settled in the “$20k to $30k” range, and is “gradually increasing from there.”

The article said it is growing though
http://techcrunch.com/2014/03/12/overstocks-bitcoin-purchases-account-for-less-than-1-of-revenue-but-its-growing/

[TwinWinNerD]

Afaik the sales are even rising. The first week showed a massive amount of extra sales but after the inital storm cooled down, the sales are now rising again.

[Divinespark]

Just not enough new consumer adoption in the last few months
The slowing of new adoption needs to be reversed and accelerated
Merchant acceptance just one part of the whole picture

[Glizlack]

Part of the reason bitcoins started a bit stronger on overstock imo is when they started they had amd graphics cards and the scrypt mining was red hot prices was very high roi was fast.

So people seen it as a win win support overstock.com for taking bitcoins And get a hold of graphics cards psu and other equipment to build up new mining rigs

Steve

[zimmah]

Bitcoin won't shine as a currency until the algorithm taps out the last coin, the market corrects for this, and then stabilizes (way up).

Until then, it's a commodity...and very exotic investment vehicle.

No, right now bitcoin inflation is relatively high, only half of what it was initially. This is because bitcoin is still in the early stages, and bitcoins are still generated at a rapid pace to keep bitcoin cheap to the general public who is interested in bitcoin.

Next halving the inflation will be much lower already and I'd say by 2020 it would be 'late adopters' stage. As the rate of new bitcoins would than be pretty slow and with that few new coins coming on the market, people who have never bought bitcoin before would struggle to buy even a fraction of a bitcoin because the price would be astronomical by then.

We don't need to wait for 100 years for bitcoin to become valuable. As the amount of new bitcoins reduces gradually. And the demand increase exponentially. At least until we hit an acceptance of around 35% of world population (assuming we will eventually end up with a 95% market penetration)