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[myself]

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[N12]

I asked the MtGox CEO, and he said Paxum is mainly used for withdrawals, not deposits.

So it should be affecting prices up, not down, if at all.

[Kluge]

Wouldn't it encourage Paxum users to stay in Bitcoin as much as it would encourage them to sell their BTC, since users must use a less preferable medium for both BTC sales and purchases involving a bank?

I asked the MtGox CEO, and he said Paxum is mainly used for withdrawals, not deposits.

So it should be affecting prices up, not down, if at all.

Oh.

[FreeMoney]

It's hard for me to tell what this sort of thing should do. If it's harder to get coins you ought be more reluctant to give up what you've got, right? But if it's harder for others to get started it will lower demand. But on the third hand, if it's hard to get them in 'formal' ways then people might pay extra when they find someone who can supply, so maybe you can charge more for them if you do mine or earn them.

[Stephen Gornick]

I asked the MtGox CEO, and he said Paxum is mainly used for withdrawals, not deposits.

So it should be affecting prices up, not down, if at all.

Anything that causes it to be harder to move cash in or out of the Bitcoin exchanges is a negative which puts downward pressure on the exchange rate.   Knowing the volume that the exchanges send and receive using Paxum would be helpful in trying to come up with an estimate of how much of an impact losing Paxum will be but none share this info so estimating the impact is just speculation.   Paxum's footprint is growing huge and now includes many countries which are the destination for remittance payments so the potential that Paxum had was huge though.

There still is the possibility of individuals using Paxum for exchanging bitcoins online, person-to-person, but having the ability to go from an exchange directly to Paxum for EFT withdawal to a bank was certainly something that will be missed.

The reason there isn't much move in the price as a response is likely that the use of Paxum was something just starting to gain traction so the numbers aren't that significant as a percent of total transaction volume.  But if you were using (and relying on) Paxum already -- this development will definitely hurt.

[FreeMoney]

Anything that causes it to be harder to move cash in or out of the Bitcoin exchanges is a negative which puts downward pressure on the exchange rate.  

I'm not convinced.

If Bitcoin demanders have a low elasticity of demand then their difficulty in getting it will push the price up.

Now, I'm not talking about the price showing on a Paxum/BTC exchange, obviously that price has to fall, but now that people can't get it via Paxum they move to the perfectmoney/BTC exchange or they decide to pay me enough to get off of the couch and meet them.

Maybe I'm missing something, but it seems the effect is mixed.

It'll always be hard to tell because when they really start cracking down will correlate in a few ways to a real demand explosion.

[cunicula]

Anything that causes it to be harder to move cash in or out of the Bitcoin exchanges is a negative which puts downward pressure on the exchange rate.  

 

If Bitcoin demanders have a low elasticity of demand then their difficulty in getting it will push the price up.


Maybe I'm missing something, but it seems the effect is mixed.

Elasticity of demand is not exactly the correct term, but FreeMoney is right about the theory here. If people absolutely need bitcoin for future purchases and obtaining bitcoin becomes more difficult and uncertain, then this can increase bitcoin demand. People may need to hold larger bitcoin reserves to avoid the possibility of running out of btc and being unable to obtain more.

That said, I think this is a theoretical possibility rather than the reality.

[legitnick]

[cbeast]

People may need to hold larger bitcoin reserves to avoid the possibility of running out of btc and being unable to obtain more.

That said, I think this is a theoretical possibility rather than the reality.

How is that theoretically possible? Once people own all 21M Bitcoin they sit around staring at their wallets all day?

[finway]

They can't close their shorting.

[adamstgBit]

People may need to hold larger bitcoin reserves to avoid the possibility of running out of btc and being unable to obtain more.

That said, I think this is a theoretical possibility rather than the reality.

How is that theoretically possible? Once people own all 21M Bitcoin they sit around staring at their wallets all day?

Peon, stop asking questions and go back to your menial labor. We've been over this elsewhere. You are an idiot. Your brain is not of sufficient quality to absorb instruction. There is nothing I or anyone else can do for you. It's genetics, stupid.

you should be banned

[Spekulatius]

Peon, stop asking questions and go back to your menial labor. We've been over this elsewhere. You are an idiot. Your brain is not of sufficient quality to absorb instruction. There is nothing I or anyone else can do for you. It's genetics, stupid.

Go here: http://www.suicideforum.com/forumdisplay.php?15-Let-it-all-out&s=c8a60b214cdbae4768e54406af916dc9

[cbeast]

People may need to hold larger bitcoin reserves to avoid the possibility of running out of btc and being unable to obtain more.

That said, I think this is a theoretical possibility rather than the reality.

How is that theoretically possible? Once people own all 21M Bitcoin they sit around staring at their wallets all day?

Peon, stop asking questions and go back to your menial labor. We've been over this elsewhere. You are an idiot. Your brain is not of sufficient quality to absorb instruction. There is nothing I or anyone else can do for you. It's genetics, stupid.

That argument makes you sound so very intelligent. I am waiting for your answer. Mind your Ps and Qs.