[2014-07-04] How Bitcoin Merchants Are Pushing The Price Down

[ganabb]

http://www.cryptocoinsnews.com/news/bitcoin-merchants-pushing-price/2014/07/04

To understand why, imagine Mr. John Doe buying a new laptop. He heads over to Overstock.com, finds a nice white shiny laptop that makes him feel worthy, and proceeds to checkout. He is told he can pay with Paypal, credit card and Bitcoin. He heard something on the evening news about Bitcoin but he has never purchased one. Do you think John Doe will go over to the Bitstamp exchange to register, buy Bitcoin, and then pay?

[1715628605]

1715628605

[1715628605]

1715628605

[1715628605]

1715628605

[1715628605]

1715628605

[1715628605]

1715628605

[1715628605]

1715628605

[cr1776]

Yeah because they never had to take days or weeks apply for a credit card or open a paypal account.

You have to wonder about the authors of these articles.
:-)

[murraypaul]

Yeah because they never had to take days or weeks apply for a credit card or open a paypal account.

Mr John Doe almost certainly already has a credit card. And since when did it take weeks to open a PayPal account?
The point is that he doesn't have Bitcoin already, so it makes no sense for him to go and buy Bitcoin, just to spend them straight away.

[LiteCoinGuy]

we worked years to get to this stage so thank god they drive the price down  

[cr1776]

Yeah because they never had to take days or weeks apply for a credit card or open a paypal account.

Mr John Doe almost certainly already has a credit card. And since when did it take weeks to open a PayPal account?
The point is that he doesn't have Bitcoin already, so it makes no sense for him to go and buy Bitcoin, just to spend them straight away.

Yes that was why I said "had", past tense.  At some point he had to open a credit card, and it likely took weeks to get the card in the mail.  Paypal also used to take quite a while to get it open and tied to a bank account back in 1998 and 1999 - don't know how quick it is right now, but certainly no faster than using coinbase.

Question: Why would anyone open a paypal account when they already had a credit card?  Same answer for bitcoin, it provides some benefit to them.  Either lower prices or any one of innumerable benefits.

The entire article is just one stupid statement after another, starting with the title:  "Usage pushes the price down".

This is a duplicate in the press section, by the way from July 4th:
https://bitcointalk.org/index.php?topic=679085.0

[murraypaul]

Yeah because they never had to take days or weeks apply for a credit card or open a paypal account.

Mr John Doe almost certainly already has a credit card. And since when did it take weeks to open a PayPal account?
The point is that he doesn't have Bitcoin already, so it makes no sense for him to go and buy Bitcoin, just to spend them straight away.

Yes that was why I said "had", past tense.  At some point he had to open a credit card, and it likely took weeks to get the card in the mail.  Paypal also used to take quite a while to get it open and tied to a bank account back in 1998 and 1999 - don't know how quick it is right now, but certainly no faster than using coinbase.

Question: Why would anyone open a paypal account when they already had a credit card?  Same answer for bitcoin, it provides some benefit to them.  Either lower prices or any one of innumerable benefits.

The credit card gives him another, easier, way of spending the fiat currency he already has.
Paypal gives him another, easier, way of spending the fiat currency he already has.
Bitcoin doesn't. He would need to convert his fiat currency into Bitcoin in order to then spend it. That is a fundamental difference.
Bitcoin spending won't majorly take off until enough people actually have Bitcoin to spend.
For John Doe it would make no sense to convert fiat to Bitcoin just to spend it at a retailer where he could have spend his fiat instead. Unless it is something he really wants to buy (somewhat) anonymously.

[#yolo]

He might not buy it with BTC out for convenience rather than curiosity, Even if he doesn't buy one he is likely to Google it for some more info, IMO hearing about something twice in a short period is likely to make you interested in it rather than just moving away...

[CoinMode]

Yeah because they never had to take days or weeks apply for a credit card or open a paypal account.

Mr John Doe almost certainly already has a credit card. And since when did it take weeks to open a PayPal account?
The point is that he doesn't have Bitcoin already, so it makes no sense for him to go and buy Bitcoin, just to spend them straight away.

I've never had a credit card and never will because it goes against my morals. Loaning money with interest is an inherently evil practice that has been banished from the world many times before, and will be banished once again. The same group of people keep pushing this scheme on the world over and over. This time, there will be no way they can tell enough lies to cover up what happened in the past. This time, the thing that shuts them down will be permanently stored in a blockchain. Now is the moment we end, once and for all, the slavery that is the credit system.

[murraypaul]

Yeah because they never had to take days or weeks apply for a credit card or open a paypal account.

Mr John Doe almost certainly already has a credit card. And since when did it take weeks to open a PayPal account?
The point is that he doesn't have Bitcoin already, so it makes no sense for him to go and buy Bitcoin, just to spend them straight away.

I've never had a credit card and never will because it goes against my morals. Loaning money with interest is an inherently evil practice that has been banished from the world many times before, and will be banished once again. The same group of people keep pushing this scheme on the world over and over. This time, there will be no way they can tell enough lies to cover up what happened in the past. This time, the thing that shuts them down will be permanently stored in a blockchain. Now is the moment we end, once and for all, the slavery that is the credit system.

You aren't really Mr. John Doe then, are you?

And has lending money with interest ever been successfully banished? When?
What tended to happen in the middle ages is that Christians were forbidden from lending, but not from borrowing, so they borrowed from non-Christians instead.

[Swordsoffreedom]

Yeah because they never had to take days or weeks apply for a credit card or open a paypal account.

You have to wonder about the authors of these articles.
:-)

True enough people will switch when they see an immediate incentive.
That said I'm sure some of the users will look and consider it if they click on the overstock link to Bitcoin.

[cr1776]

...
For John Doe it would make no sense to convert fiat to Bitcoin just to spend it at a retailer where he could have spend his fiat instead. Unless it is something he really wants to buy (somewhat) anonymously.

Or something he wants to save credit card fees on.  Or something he wants to buy from overseas.  etc. 

Just because your John Doe won't do something does not mean that Jane Doe won't.  Some people will, some won't.