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cryptopaths (OP)
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August 07, 2014, 04:43:14 PM |
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When a big company or even a little shop starts to accept bitcoin people start to get excited and think this adoption will result in the bitcoin price shooting up. Well I'm here to tell you the exact opposite is what actually happens. If a store or big company accepts bitcoin that's all fine and great but they're not holding on to it they're immediately dumping it in most cases and this will just result in the price getting lower. Places that keep the Bitcoin they get are keeping the price higher but they are a minority most just instantly dump upon receival of the bitcoin. We don't need to just get stores to accept bitcoin we need to show them the true value of it and why they should even themselves use it as a currency and not just dump it as some worthless commodity which some believe it to be. If we do this we will see a real increase in price.
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The Bitcoin network protocol was designed to be extremely flexible. It can be used to create timed transactions, escrow transactions, multi-signature transactions, etc. The current features of the client only hint at what will be possible in the future.
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jonanon
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August 07, 2014, 04:45:03 PM |
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I've brought this up in an argument before and can see exactly where you're coming from.
Perhaps more companies accepting BTC will create more awareness therefore more users of BTC.
Both points valid however.
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ScreamnShout
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August 07, 2014, 04:49:12 PM |
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Will the stores always sell the bitcoin they receive right away?
How do customers get bitcoin they use to give to the store?
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jonanon
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August 07, 2014, 04:52:02 PM |
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Will the stores always sell the bitcoin they receive right away?
How do customers get bitcoin they use to give to the store?
Most of the big companies who accept BTC will immediately convert to fiat so there is no risk (or upside). I would say most of the companies accepting BTC do so as a gimmick and have no intent to hold on to it. |
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LMGTFY
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August 07, 2014, 05:19:28 PM |
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How do customers get bitcoin they use to give to the store?
Quoted for relevancy. None of this happens in a vacuum. Stores aren't a perpetual motion machine, driving the BTC price down every time we purchase from them. In order for them to have BTC to depress the price of BTC there need to be prospective purchasers purchasing BTC and driving up the price. I doubt there'll be 100% efficiency - some purchasers will have a stash of BTC and won't bother buying more simply because they want to buy something, and some merchants will keep some or all of their BTC. But for the moment at least most purchasers will buy BTC around the time they make a purchase, and most merchants will sell BTC around the time they make a sale. |
This space intentionally left blank.
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franky1
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August 07, 2014, 05:23:54 PM |
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Will the stores always sell the bitcoin they receive right away?
How do customers get bitcoin they use to give to the store?
Most of the big companies who accept BTC will immediately convert to fiat so there is no risk (or upside). I would say most of the companies accepting BTC do so as a gimmick and have no intent to hold on to it. overstock do a $1mill a month in bitcoin.. and guess what, they only value the bitcoin in dollar. but never actually convert it to dollar. they are hoarding. secondly bitpay do not throw bitcoins onto exchanges to sell for dollar. they just use the dollar value of exchanges for establishing prices. but the whole btc-fiat. is done privately through private investment/capitol funds. its only coinbase that are swapping the coin on an exchange that is being measured by the community. so relax about companies dealing with bitpay. but your half right in regards to companies using coinbase.... well maybe a 3rd right. as even in coinbases case not all merchants sell 100% back to fiat. |
I DO NOT TRADE OR ACT AS ESCROW ON THIS FORUM EVER.
Please do your own research & respect what is written here as both opinion & information gleaned from experience. many people replying with insults but no on-topic content substance, automatically are 'facepalmed' and yawned at
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cryptopaths (OP)
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August 07, 2014, 05:36:01 PM |
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Will the stores always sell the bitcoin they receive right away?
How do customers get bitcoin they use to give to the store?
Most of the big companies who accept BTC will immediately convert to fiat so there is no risk (or upside). I would say most of the companies accepting BTC do so as a gimmick and have no intent to hold on to it. overstock do a $1mill a month in bitcoin.. and guess what, they only value the bitcoin in dollar. but never actually convert it to dollar. they are hoarding. secondly bitpay do not throw bitcoins onto exchanges to sell for dollar. they just use the dollar value of exchanges for establishing prices. but the whole btc-fiat. is done privately through private investment/capitol funds. its only coinbase that are swapping the coin on an exchange that is being measured by the community. so relax about companies dealing with bitpay. but your half right in regards to companies using coinbase.... well maybe a 3rd right. as even in coinbases case not all merchants sell 100% back to fiat. I never said all merchants sell back to fiat. |
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Super Bitcoin
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August 07, 2014, 05:43:57 PM |
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i think thats all just part of manipulated . we must strong to fight
to win .
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botany
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August 07, 2014, 06:03:28 PM |
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Even if it does hurt bitcoin prices in the short term, widening adoption of bitcoin is bound to be a positive in the long run.
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Deviant1
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August 07, 2014, 08:11:56 PM |
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Even if it does hurt bitcoin prices in the short term, widening adoption of bitcoin is bound to be a positive in the long run.
+1! I also believe that while it may lower the price in the short term, the long term effect of more and more places taking BTC will eventually make up for it. |
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RodeoX
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The revolution will be monetized!
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August 07, 2014, 08:18:01 PM |
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Retail adoption is the only thing that will ensure there will be a bitcoin in the future. It is bitcoins utility that makes it attractive. If no one is using it to make purchases, well... this will not work out.
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ensurance982
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August 07, 2014, 08:21:28 PM |
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When a big company or even a little shop starts to accept bitcoin people start to get excited and think this adoption will result in the bitcoin price shooting up. Well I'm here to tell you the exact opposite is what actually happens. If a store or big company accepts bitcoin that's all fine and great but they're not holding on to it they're immediately dumping it in most cases and this will just result in the price getting lower. Places that keep the Bitcoin they get are keeping the price higher but they are a minority most just instantly dump upon receival of the bitcoin. We don't need to just get stores to accept bitcoin we need to show them the true value of it and why they should even themselves use it as a currency and not just dump it as some worthless commodity which some believe it to be. If we do this we will see a real increase in price.
It may be true that this is hurting the price over a short period of time, yes. But I think a lot of people who buy those BTC (maybe even big buyers buying at BitPay, etc.) keep those BTC. Also, it helps Bitcoin get traction in the long term, which is more important than short term gains. |
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pedrog
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August 07, 2014, 08:22:25 PM |
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Retailers aren't in the speculation business, they sell or should sell their bitcoins immediately, specially in businesses with low profit margins.
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zetaray
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August 07, 2014, 08:37:01 PM |
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When more shops accepts bitcoin, more people will buy bitcoin to purchase from them. So what if those shops dump the coins for fiat? They will be bought right after by someone else to buy other things. Bitcoin is going around how it should be.
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Beliathon
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August 07, 2014, 08:51:57 PM |
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Retail adoption is the only thing that will ensure there will be a bitcoin in the future. It is bitcoins utility that makes it attractive. If no one is using it to make purchases, well... this will not work out.
This. Stop sweating the price you greedy shits. It's not about making white americans rich, it's about providing banking services to the unbanked. |
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ensurance982
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August 07, 2014, 08:53:55 PM |
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When more shops accepts bitcoin, more people will buy bitcoin to purchase from them. So what if those shops dump the coins for fiat? They will be bought right after by someone else to buy other things. Bitcoin is going around how it should be.
Well, but that wouldn't move the price at all - assuming your explanation! I also don't think that people will buy bitcoin just to shop somewhere, shops still accept regular payment systems next to bitcoin! It's Bitcoin enthusiasts who shop using Bitcoin! And some of them are already 'all in' and can't re-buy their coins!  |
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Omikifuse
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August 07, 2014, 09:00:48 PM |
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This again?
Yes, store acceptance may hurt bitcoin short term, but then more people will know about it and be safe about it, then make savings in bitcoins too, not only in fiat.
Litecoin, doge, and I think all altcoins have little to no market acceptance, can't say they are valuing because of that.
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oblox
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August 07, 2014, 09:03:18 PM |
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Will the stores always sell the bitcoin they receive right away?
How do customers get bitcoin they use to give to the store?
Most of the big companies who accept BTC will immediately convert to fiat so there is no risk (or upside). I would say most of the companies accepting BTC do so as a gimmick and have no intent to hold on to it. overstock do a $1mill a month in bitcoin.. and guess what, they only value the bitcoin in dollar. but never actually convert it to dollar. they are hoarding. secondly bitpay do not throw bitcoins onto exchanges to sell for dollar. they just use the dollar value of exchanges for establishing prices. but the whole btc-fiat. is done privately through private investment/capitol funds. its only coinbase that are swapping the coin on an exchange that is being measured by the community. so relax about companies dealing with bitpay. but your half right in regards to companies using coinbase.... well maybe a 3rd right. as even in coinbases case not all merchants sell 100% back to fiat. Umm... Overstock is very much instantly converting BTC sales to USD using coinbase... what gives you any idea they are "hoarding"? |
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MineForeman.com
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August 07, 2014, 09:28:04 PM |
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I see where you are going but your not looking at the big picture.
Lets say one million new people start to use bitcoin and on average of those million keep 1 BTC in their wallet at any particular time (average, some more some less). In the grand scheme of things I think you will agree that is tiny.
In effect though, that has taken 1,000,000 BTC out of circulation at any particular time, that is just under 5% of the total bitcoins that will ever exist, it is close to 9% of what is in circulation.
Neil
P.S. If you want to really blow your mind, think what would happen if 21 million people (still a tiny number) wanted to keep an average of 1 BTC in their wallet at any one time.
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counter
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August 07, 2014, 09:32:09 PM |
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The point it that Bitcoin is being adopted by big players, I think anyway. I think people are thinking in the short term price of Bitcoin too much. What matters is Bitcion gains trust of the average person and if they see big companies testing the waters it's worth dips in the price. They say all press is good press and I think that is a suitable way of looking at the retail adoption at this time.
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