Thing about price dropping of BTC that people dont get

[michaelwang33]

Drop is good, it helps spread the existing bitcoin to new people which is desperately needed if bitcoin is going to be adopted and used by the masses.

I'd like to see it drop down to $200 USD. That will get a lot of holders to sell and distribute the currency to people who will actually use it for commerce.

Agreed. A price drop around a time like this (with Dell announcing their acceptance of the currency) will help make it more accessible to new users. People tend to look at volume over value, so I can see how some may stay away from Bitcoin when they hear $20 will only get them a fraction of a coin.

I don't think people who have yet to adopt bitcoin will care that they can only buy ~.0333 BTC for $20 but rather they care about the fact that they can use it to send money almost for free.

[kingscrown]

ok so far sides are:
1. big comanies drop BTC to market right away - making price low
2. some people clam, there are people buying BTC just to buy something else

imo 1 is right, 2nd is... false.


give your opinions

[markus1000]

For now it is likely that:
1. in the short term more people are using their existing bitcoins to buy stuff at dell or other shops, instead of buying BTC first and then use them to go to dell.
2. Companies sell their BTC for fiat
3. Most customers won't replenish their BTC.


=> Negative effect on price

However this is just one of several components that effects price. Other are net investment, and miners.

When bitcoin adoption goes up people will replenish their BTC and new people will start using it.

[minerpumpkin]

For start - BTC is a currency not investment, but most people dont get it. Why its important?

The more BIG companies adobt BTC - they do it trought Bitpay Coinbase etc - that means - they SELL same moment they get coins.
Big companies taking BTC are not makign price raise, actually the bigger the company - the worse price will be.

This is why soon price of BTC will drop - more and more big companies are taking it now so soon indeed it will be a currency - but it will be nowhere near your expectations of 1k$ a coin or even curreny 600$.

Dont hate on me, shoot your opinions

I guess a lot of people actually get this. And it is to quite a big extent true, I guess. This is actually one of the more widely used explanations for the current drop. But it generates a wider acceptance and exposure to the public, which is definitely good in the long term!

[BitcoinMillionaire]

Gotta spend of them BTCs. Being rich doesn't just cut it. You need to buy yourself some nice things to impress the ladys

[cinder]

Actually, as more company accept bitcoin for payment, the value might go up because it is then backed by real asset.

Hence the argument, wider adaptation implies higher price.

[jonald_fyookball]

For now it is likely that:
1. in the short term more people are using their existing bitcoins to buy stuff at dell or other shops, instead of buying BTC first and then use them to go to dell.
2. Companies sell their BTC for fiat
3. Most customers won't replenish their BTC.


=> Negative effect on price

However this is just one of several components that effects price. Other are net investment, and miners.

When bitcoin adoption goes up people will replenish their BTC and new people will start using it.

I think most customers WILL replenish their BTC.  Why wouldn't they?
They are bitcoin users right?  You think people are just going
to get Bitcoins once, spend them, and be done with Bitcoin?
That doesn't make any sense.

[Malin Keshar]

If you can't use your bitcoins, chances are people will scare or get bored and leave the bitcoin stuff, therefore killing the bitcoin value.

Even if it may hurt at short time, its something that have to happen. Just hope we can revert the sell pressure by having more holders until the end of 2016

[BTCtrader71]

if i seen a PC on amazon for $600, i would weigh up the pro's and cons of either using bitcoin of fiat. and right now bitcoin is undervalued, im holding out until atleast $1000.. so ill just use my FIAT.

There's a third option that is better than using fiat: take your fiat, buy btc on coinbase (or wherever), buy amazon gift card on gyft.com using bitcoin, pay for PC using the gift card.

The rationale is that you get 3% rebate when you buy a gift card with bitcoin. That goes for amazon, CVS, target, whole foods, best buy, American Airlines, sears, barnes and noble, and lots of other places. Anybody with half a brain will do this rather than just pay with fiat the old fashioned way.

[kingscrown]

if i seen a PC on amazon for $600, i would weigh up the pro's and cons of either using bitcoin of fiat. and right now bitcoin is undervalued, im holding out until atleast $1000.. so ill just use my FIAT.

There's a third option that is better than using fiat: take your fiat, buy btc on coinbase (or wherever), buy amazon gift card on gyft.com using bitcoin, pay for PC using the gift card.

The rationale is that you get 3% rebate when you buy a gift card with bitcoin. That goes for amazon, CVS, target, whole foods, best buy, American Airlines, sears, barnes and noble, and lots of other places. Anybody with half a brain will do this rather than just pay with fiat the old fashioned way.

that i didnt know as im in EU. are those amazon cards workign for EU amazons too?

[bassclef]

The recent price drop was initiated on the Chinese exchange (it is the market maker, others follow its price). Check the charts, they always move the price.

Coinbase/Bitpay sell their coins on Bitstamp.

Think about this for a moment.

Market just got bored, traders in China saw a weakness and dumped a lot of coins. They probably hoped it would go lower. 

[BTCtrader71]

if i seen a PC on amazon for $600, i would weigh up the pro's and cons of either using bitcoin of fiat. and right now bitcoin is undervalued, im holding out until atleast $1000.. so ill just use my FIAT.

There's a third option that is better than using fiat: take your fiat, buy btc on coinbase (or wherever), buy amazon gift card on gyft.com using bitcoin, pay for PC using the gift card.

The rationale is that you get 3% rebate when you buy a gift card with bitcoin. That goes for amazon, CVS, target, whole foods, best buy, American Airlines, sears, barnes and noble, and lots of other places. Anybody with half a brain will do this rather than just pay with fiat the old fashioned way.

that i didnt know as im in EU. are those amazon cards workign for EU amazons too?

I don't know, being in the US. You should find out and let us know 

[kingscrown]

The recent price drop was initiated on the Chinese exchange (it is the market maker, others follow its price). Check the charts, they always move the price.

Coinbase/Bitpay sell their coins on Bitstamp.

Think about this for a moment.

Market just got bored, traders in China saw a weakness and dumped a lot of coins. They probably hoped it would go lower. 

Sure i wasnt exactly speakign about current situation just long term. Peopel think when big player adds BTC its "good news" for the price. Inthe long run [few years] maybe yes but for now wit hevery big player theres bigger Chance of price dumping

[williamj2543]

Although bitcoin needs a MUCH higher value if it is going to work as a currency. Currently a handful of people have more money than the entire bitcoin protocol. Imagine if you had more wealth than the amount of cash, it just wouldn't work. For bitcoin to work as a real currency, it's market capitalization would have to be at least 10 trillion dollars, so that many rich parties could have their wealth in it.

[rogerwilco]

When only a few dozen isolated business "accept" Bitcoin through Bitpay/Coinbase, of course they're going to swap for fiat. Because they have no immediate practical use for the coins, they're going to dwell on the "risky/volatile investment" part about Bitcoin (which isn't even an inherent quality) instead of its use as a currency.

Once a critical mass of businesses accept it however, then the advantage Bitcoin provides as a means of exchange is no longer merely theoretical. They'll find some immediate advantage to hanging onto at least a few coins for the sake of interacting with a sufficient number of other parties that accept it as well. Once the frictionless side of Bitcoin manifests into a tangible advantage for individual businesses, that's when you'll see business adoption become a boon for the price.

[bitbaby]

ok so far sides are:
1. big comanies drop BTC to market right away - making price low
2. some people clam, there are people buying BTC just to buy something else

imo 1 is right, 2nd is... false.


give your opinions

Actually I think you're right, every company that starts to accept btc will only take it and dump it to turn it into fiat and it will definitely drop it's price but having said the more people start accepting, it will benefit bitcoin in the long run.

[kingscrown]

i said obvious thing here but seems so many peopel believe Dell or others will hold the coins...

no - they will dump them. for at least few years news on new BIG company adding BTC = news on price drop!

[Seanzqt]

BitCoin is like predicting the end of the world, the same way they predicted 2012 would end but never did. That is why it's called speculation, I don't trust a lot of speculation as I've seen a lot of them flop (but still it's a good read).

[twiifm]

over all there will be more hoarders of bitcoin than spenders so relax about the daily movements of bitcoin price. over the long term the price will rise. just at a more stable rate..

So you are making the same bear paradox argument.   BTCs get hoarded,  this hinders it from being useful medium of exchange.

[nwfella]

i see not everybody accepts my statement. do u really believe big companies will hold BTC instead of selling?
theres even no wya for tchem to not sell sich without that they cant make invoices.

I believe some of them will yes.  Particularly the more forward-thinking libertarian types but bitcoin price will indeed continue to drop as more large vendors come online if the majority of those vendors just instantly cash out (which most will I suspect for a time).