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Author Topic: Why does acceptance of Bitcoin has to do with the price of Bitcoin?  (Read 6115 times)
benyben123456
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July 09, 2014, 12:03:27 PM
 #1

Why is there a correlation between the two?
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JustBetweenUs
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July 09, 2014, 12:11:24 PM
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As more people use it, demand for a bitcoin will be higher. Since it has a finite supply, price per unit will naturally rise.

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DannyHamilton
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July 09, 2014, 12:39:02 PM
 #3

http://en.wikipedia.org/wiki/Supply_and_demand

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July 09, 2014, 12:42:39 PM
 #4

production of BTC is knowned.
demand of buy, not.

price change over the month.
bitcoin is a real stock system with no interference of manipulation market.
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July 09, 2014, 01:57:58 PM
 #5

It's the basics of economics you might have learned if you ever took Economics 101. There are only going to be so many Bitcoin (limited supply), and as more people decide to jump in or at least get their feet wet, the demand is going to go up. When the demand goes up, the price goes up.
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July 09, 2014, 02:04:02 PM
 #6

Well Merchants who accept bitcoins, may even decrease the value of the currency, when they accept it as payment, but only to convert it to fiat.

But imo more people adopting the currency, is more of a good thing, than a bad thing.

But if the users of bitcoin, only adopt to hoard, it's also a problem. {Less in circulation, drive the price up, when there is high demand} but this could be negative, if it causes volatility.  {Price high, lots of people sell.. price low, people hoard...and if this happens often, it decreases the store of value}

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July 09, 2014, 02:06:54 PM
 #7

The network effect, and more specifically Metcalfe's law.

Metcalfe's law states that the value of a telecommunications network is proportional to the square of the number of connected users of the system (n^2)
yatsey87
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July 09, 2014, 03:33:05 PM
 #8


Bingo. It's a classic model. The more people that get involved with bitcoin the rarer it becomes, especially with only a fixed amount being created. This is what makes the future of btc very exciting if the demand dwarfs the supply. Who knows where it could go or end up, especially if it takes off in the mainstream.,
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July 09, 2014, 03:36:34 PM
 #9

As others have said, supply and demand.

The supply will be the same, always will be as that is set in the code.

Demand however, is ever growing but as supply stays the same price goed up.
Ron~Popeil
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July 09, 2014, 03:38:22 PM
 #10

Well Merchants who accept bitcoins, may even decrease the value of the currency, when they accept it as payment, but only to convert it to fiat.

But imo more people adopting the currency, is more of a good thing, than a bad thing.

But if the users of bitcoin, only adopt to hoard, it's also a problem. {Less in circulation, drive the price up, when there is high demand} but this could be negative, if it causes volatility.  {Price high, lots of people sell.. price low, people hoard...and if this happens often, it decreases the store of value}

The immediate conversion is only a factor in the short term. As it becomes more wide spread merchants won't need to convert it to keep cash flows up.

I don't see hoarding as an issue at all. Economic activity is a good thing but so is saving. Speculation drives volatility for sure but speculators are not hoarders.


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July 09, 2014, 03:51:16 PM
 #11

At the present time merchant acceptance doesn't have much an immediate noticeable impact on the demand for bitcoin because almost all merchants use BitPay or Coinbase which instantly convert the bitcoin to USD. But overall it should have a positive effect on demand in the longer term.
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July 09, 2014, 04:06:47 PM
 #12

As others have said, supply and demand.

The supply will be the same, always will be as that is set in the code.

Demand however, is ever growing but as supply stays the same price goed up.
And that's why there are many predictions that say Bitcoin prices will be thousands and thousands dollars...
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July 09, 2014, 09:31:04 PM
 #13

not surprising since US dollars is printed in 50 milliards per month ...
at the end, the BTC will be marked in the price in supermarket ... with the "indicative" price in fiat money.  Grin


note : 1000 milliards of Euros will be printed in Europe at the september 2014.
http://www.romandie.com/news/Zone-euro-les-banques-pourront-emprunter-1000-mrd-EUR-a-long-terme-a/493954.rom
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July 09, 2014, 10:39:34 PM
 #14

Get some now and they might be worth more later
the more people are using the more they're woth
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July 09, 2014, 10:51:02 PM
 #15

Supply and demand.

leanne
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July 09, 2014, 11:20:56 PM
 #16

people need to be sure that someone accepts their btc. but it basically does come down to between how many people all outstanding btc have to be distributed. more people => less btc for everybody => a single btc is worth a lot more
DannyElfman
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July 10, 2014, 01:34:11 AM
 #17

The more merchants that accept bitcoin and the more people that use bitcoin the more people will need to buy bitcoin, thus a higher demand for bitcoin

This spot for rent.
Malin Keshar
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July 10, 2014, 01:48:31 AM
 #18

As more people use it, demand for a bitcoin will be higher. Since it has a finite supply, price per unit will naturally rise.

Deppends.

If people use bitcoin to receive payment then dump the bitcoins for fiat, the price won't change. Its deppends more about the hodlers.
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July 10, 2014, 10:23:10 PM
 #19

Supply and demand is right.  The more people using the coin will have less coins for sale on the open market which means the price will go up due to the scarcity of the supply for sale.
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July 10, 2014, 11:06:51 PM
 #20

As more people use it, demand for a bitcoin will be higher. Since it has a finite supply, price per unit will naturally rise.

Deppends.

If people use bitcoin to receive payment then dump the bitcoins for fiat, the price won't change. Its deppends more about the hodlers.
But people who receive payment will not necessarily sell all the bitcoin they receive for their goods/services, and the people that purchase bitcoin will not necessarily spend all of their bitcoin.

This spot for rent.
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