What are the reasons behind Bitcoin staying at $400-600 range after $1200 bubble

[thezerg]

Note that a merchant choosing to accept BTC is a big deal in terms of PR, stockholder confidence, and technical integration.  But going to the bitpay/coinbase app and adjusting the dial from 100% fiat to 90, 80, 50, 25% is a simple.  In other words, these services may be a gateway to corporate btc ownership -- when BTC starts to rally we may find flows coming from merchants dry up.

[twiifm]

Note that a merchant choosing to accept BTC is a big deal in terms of PR, stockholder confidence, and technical integration.  But going to the bitpay/coinbase app and adjusting the dial from 100% fiat to 90, 80, 50, 25% is a simple.  In other words, these services may be a gateway to corporate btc ownership -- when BTC starts to rally we may find flows coming from merchants dry up.

I dunno about this theory.   DELL & EXPE are public.   Where does it get listed on their balance sheet?   Any CFAs in here?

[Sevvero]

This seems like an interesting topic for veterans of financial interests

There are enough people wanting to buy for this particular price.

[giveBTCpls]

Like the poster above said you are just not looking at the big picture if you are even considering selling Bitcoin, the future price is high and the future price is unknown, henceforth is just a waiting game. We will never be aware of Bitcoin's price until big ass players (namely, ebay) jump in the game.

[boraf]

Losing China market is a big deal. Hence you see the market cap cut in more than half.

[vuduchyld]

Note that a merchant choosing to accept BTC is a big deal in terms of PR, stockholder confidence, and technical integration.  But going to the bitpay/coinbase app and adjusting the dial from 100% fiat to 90, 80, 50, 25% is a simple.  In other words, these services may be a gateway to corporate btc ownership -- when BTC starts to rally we may find flows coming from merchants dry up.

I dunno about this theory.   DELL & EXPE are public.   Where does it get listed on their balance sheet?   Any CFAs in here?

For what it's worth, I believe Dell was purchased by a private equity group and is no longer public.

But from my observations (not a CPA or CFA, but I am an MBA and a CVA (Certified Valuation Analyst)), most public company balance sheets aren't particularly detailed in the mandatory releases.  BTC would probably be considered in the current assets section under cash/equivalents...possibly under short-term investments. There is no way they would be compelled to release what they have in BTC compared to dollars, yen, euros, etc...

[twiifm]

Note that a merchant choosing to accept BTC is a big deal in terms of PR, stockholder confidence, and technical integration.  But going to the bitpay/coinbase app and adjusting the dial from 100% fiat to 90, 80, 50, 25% is a simple.  In other words, these services may be a gateway to corporate btc ownership -- when BTC starts to rally we may find flows coming from merchants dry up.

I dunno about this theory.   DELL & EXPE are public.   Where does it get listed on their balance sheet?   Any CFAs in here?

For what it's worth, I believe Dell was purchased by a private equity group and is no longer public.

But from my observations (not a CPA or CFA, but I am an MBA and a CVA (Certified Valuation Analyst)), most public company balance sheets aren't particularly detailed in the mandatory releases.  BTC would probably be considered in the current assets section under cash/equivalents...possibly under short-term investments. There is no way they would be compelled to release what they have in BTC compared to dollars, yen, euros, etc...

Would companies hold cash in foreign currencies though?  I used to buy supplies & production abroad and I just do the conversion at time of payment

[vuduchyld]

Note that a merchant choosing to accept BTC is a big deal in terms of PR, stockholder confidence, and technical integration.  But going to the bitpay/coinbase app and adjusting the dial from 100% fiat to 90, 80, 50, 25% is a simple.  In other words, these services may be a gateway to corporate btc ownership -- when BTC starts to rally we may find flows coming from merchants dry up.

I dunno about this theory.   DELL & EXPE are public.   Where does it get listed on their balance sheet?   Any CFAs in here?

For what it's worth, I believe Dell was purchased by a private equity group and is no longer public.

But from my observations (not a CPA or CFA, but I am an MBA and a CVA (Certified Valuation Analyst)), most public company balance sheets aren't particularly detailed in the mandatory releases.  BTC would probably be considered in the current assets section under cash/equivalents...possibly under short-term investments. There is no way they would be compelled to release what they have in BTC compared to dollars, yen, euros, etc...

Would companies hold cash in foreign currencies though?  I used to buy supplies & production abroad and I just do the conversion at time of payment

In my experience, smaller businesses typically would not hold much, if any, cash in foreign currencies.  For larger companies, though, it depends on 1) exchange rates, and 2) in what currencies are the operating expenses denominated.

[twiifm]

Note that a merchant choosing to accept BTC is a big deal in terms of PR, stockholder confidence, and technical integration.  But going to the bitpay/coinbase app and adjusting the dial from 100% fiat to 90, 80, 50, 25% is a simple.  In other words, these services may be a gateway to corporate btc ownership -- when BTC starts to rally we may find flows coming from merchants dry up.

I dunno about this theory.   DELL & EXPE are public.   Where does it get listed on their balance sheet?   Any CFAs in here?

For what it's worth, I believe Dell was purchased by a private equity group and is no longer public.

But from my observations (not a CPA or CFA, but I am an MBA and a CVA (Certified Valuation Analyst)), most public company balance sheets aren't particularly detailed in the mandatory releases.  BTC would probably be considered in the current assets section under cash/equivalents...possibly under short-term investments. There is no way they would be compelled to release what they have in BTC compared to dollars, yen, euros, etc...

Would companies hold cash in foreign currencies though?  I used to buy supplies & production abroad and I just do the conversion at time of payment

In my experience, smaller businesses typically would not hold much, if any, cash in foreign currencies.  For larger companies, though, it depends on 1) exchange rates, and 2) in what currencies are the operating expenses denominated.

I suppose if you had a large cash reserve and a forex trader on staff you can do it.  Usually, we make supply contracts like 6 months out.  So the price is locked in the foreign currency at current spot.  Usually YEN or EUR.  The only reason it makes sense to hold foreign reserves is if I speculate a rise against USD.  I don't know if a big company would do this.  Its too much extra work

Besides why would they hold BTCs if they have no invoices in BTC?

[vuduchyld]

Note that a merchant choosing to accept BTC is a big deal in terms of PR, stockholder confidence, and technical integration.  But going to the bitpay/coinbase app and adjusting the dial from 100% fiat to 90, 80, 50, 25% is a simple.  In other words, these services may be a gateway to corporate btc ownership -- when BTC starts to rally we may find flows coming from merchants dry up.

I dunno about this theory.   DELL & EXPE are public.   Where does it get listed on their balance sheet?   Any CFAs in here?

For what it's worth, I believe Dell was purchased by a private equity group and is no longer public.

But from my observations (not a CPA or CFA, but I am an MBA and a CVA (Certified Valuation Analyst)), most public company balance sheets aren't particularly detailed in the mandatory releases.  BTC would probably be considered in the current assets section under cash/equivalents...possibly under short-term investments. There is no way they would be compelled to release what they have in BTC compared to dollars, yen, euros, etc...

Would companies hold cash in foreign currencies though?  I used to buy supplies & production abroad and I just do the conversion at time of payment

In my experience, smaller businesses typically would not hold much, if any, cash in foreign currencies.  For larger companies, though, it depends on 1) exchange rates, and 2) in what currencies are the operating expenses denominated.

I suppose if you had a large cash reserve and a forex trader on staff you can do it.  Usually, we make supply contracts like 6 months out.  So the price is locked in the foreign currency at current spot.  Usually YEN or EUR.  The only reason it makes sense to hold foreign reserves is if I speculate a rise against USD.  I don't know if a big company would do this.  Its too much extra work

Besides why would they hold BTCs if they have no invoices in BTC?

Yes, I agree with you.  But think about a company like Coca Cola.  I read somewhere recently that they do business in 72 different currencies.  I want to say that they are about $48 billion in sales, which is comparable to Dell at $54 billion.  They surely have an immense Finance staff.

This is from their Feb 2010 10-K:
"Foreign currency exchange gains and losses are primarily the result of the remeasurement of monetary assets and liabilities from certain currencies into functional currencies. The effects of the remeasurement of these assets and liabilities are partially offset by the impact of our economic hedging program for certain exposures on our consolidated balance sheets. Refer to Note 4 of Notes to Consolidated Financial Statements. Foreign currency exchange gains and losses are included as a component of other income (loss) — net in our consolidated financial statements. Refer to the heading "Operations Review — Other Income (Loss) — Net." The Company recorded a foreign currency loss of $34 million in 2009, a foreign currency gain of $24 million in 2008 and a foreign currency loss of $10 million in 2007."

Emphasis mine

I found that here.  http://www.wikinvest.com/stock/Coca-Cola_Company_(KO)/Foreign_Exchange

As for how that affects BTC, it's really hard to say. Clearly, they are unlikely to have invoices in BTC.  (At least not right now...maybe someday?) It's a great point.   But would a company like, say, Dell, with a big Finance staff, engaging in a BTC hedging strategy? 

I think my original point was that we're not likely to know...certainly not regarding Dell, because now that they are no longer public, they aren't even required to issue a 10k.  Even companies that do issue 10k's are capable of obfuscating their exact holdings quite easily. They won't release balance sheets indicating how much BTC they are carrying.  It's just not required.

[ensurance982]

$1200 is probably the highest btc price we will ever see.. it will more than likely stabilize in around $400 more or less. $1200 was just a bubble. if anything big is going to happen with price I believe it will be bad, as in crash. but I will still use either way <3

Ha, I don't believe that one second! It's the same things people said after the April 2013 bubble, that we'd never see prices above $200 again. Higher prices just seemed so unrealistic and way off! But it happened! Oh yeah, and it already happened before that as well, and before that, too!