Retail adoption hurts bitcoin price it doesn't help it and here's why

[Soros Shorts]

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.

This only makes sense if you made the incorrect assumption that the BTC spent came from long term holders who would otherwise have sat on them.

[applesRyummy]

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.

This only makes sense if you made the incorrect assumption that the BTC spent came from long term holders who would otherwise have sat on them.

I would think that a very large portion of the transactions to retail business likely come from newer users.

[Nagle]

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.

Overstock converts 90% to dollars, and holds about 10% as Bitcoins. Read their 10-Q.

[BowieMan]

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.

Yeah, it may happen in the short term, Okay. But in the long term it is a very good thing for Bitcoin and much needed to gain more traction and it basically is more PR for it. Also, I think BitPay, etc. sell their BTC to some people based on contracts. Those people tend to hold large amounts of BTC

[Mobius]

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.

Overstock converts 90% to dollars, and holds about 10% as Bitcoins. Read their 10-Q.

Even 10% of their sales is a lot considering that most of the BTC from their sales were likely specifically purchased for the explicit reason to spend on overstock or would have been sold on an exchange. In other words, a million in sales to overstock equals $100,000 in net additional purchases of BTC

[proofofarat]

You're right that it lowers price and we should be encouraging the 'buy back bitcoin' to users to keep the price stable otherwise adoption will slow as people see what may appear to look like a death trend to 0 (obviously this won't happen unless there is a fundamental protocol flaw yet to be discovered)

[BitCoinNutJob]

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.

You have to figure in #1 people will start to accept BTC as BTC and even if not #2 The BTC market cap still has to grow if ever business starts to accept BTC because of liquidity needing to expand from all the BTC to USD transactions.

[proofofarat]

That said the most important thing now is to make wallets easy to use, they're all horrible at the moment with qr codes, transaction ids, confirmation times and addresses shown along with all that sort of programmer crap all over it. None of this info should be relevant eventually but we are all still excited by the protocol that the underlyings are exposed to people who don't want to know about how it works.

[proofofarat]

In a nutshell we need a wallet that my 5 year old could use and show my gran why it's great. When this is done, we need a way for people to easily purchase bitcoin anywhere in the world. This is also dreadful at the moment, even some of my city it friends are put off by it... Entering card details on an unheard of website, uploading your passport , etc...

[proofofarat]

Only when this circle of transactions gets solved will bitcoin possibly reach it's consumer potential. We are years away from it but getting there.

[Hiraga]

All the retailers selling their coins doesn't hurt the bitcoin price. Someone else is buying them back, perhaps even for a higher price, there's enough volume and growth to keep it up as long the price is not too much a bubble.

[Bizzaran]

Will the stores always sell the bitcoin they receive right away?

How do customers get bitcoin they use to give to the store?

3 % per purchase vs 0.1%
1)Discount bitcoiners v credit card 2)Pay staff bonuses in Bitcoin (sales commission) 3)Pay suppliers in Bitcoin

[Cranky4u]

If retail do not adopt BTC then what the hell are you gonna spend your satoshi's on? Nothing, because they would not be accepted by anyone.

As for price correlation, this is simple supply and demand with more BTC spending going on then the new adopters whomm see retailers using the product will need to convert fiat to BTC. I believe the expanding demand would outstrip the already circulating, actually linited, BTC hence the medium to long term would push BTC prices up.

[Baitty]

This is just silly we need retailers to accept bitcoin because otherwise we can't spend bitcoin which would mean the demand of the Bitcoin would then go lower as it can't be used as much this thread is just silly and spreading yet more fud.

[botany]

If retail do not adopt BTC then what the hell are you gonna spend your satoshi's on? Nothing, because they would not be accepted by anyone.

As for price correlation, this is simple supply and demand with more BTC spending going on then the new adopters whomm see retailers using the product will need to convert fiat to BTC. I believe the expanding demand would outstrip the already circulating, actually linited, BTC hence the medium to long term would push BTC prices up.

In fact, previously, a new retailer accepting BTC was taken as positive news and there used to be a spike in the price of bitcoin.
This is no longer the case now a days, with the BTC price remaining stable.

[Baitty]

If retail do not adopt BTC then what the hell are you gonna spend your satoshi's on? Nothing, because they would not be accepted by anyone.

As for price correlation, this is simple supply and demand with more BTC spending going on then the new adopters whomm see retailers using the product will need to convert fiat to BTC. I believe the expanding demand would outstrip the already circulating, actually linited, BTC hence the medium to long term would push BTC prices up.

In fact, previously, a new retailer accepting BTC was taken as positive news and there used to be a spike in the price of bitcoin.
This is no longer the case now a days, with the BTC price remaining stable.

It doesn't mean it's going to stay that way people just didn't see getting Bitcoin would of paid off for them to spend at such sites like Dell if there are a little more important retailers accepting then the price should go up.

[botany]

If retail do not adopt BTC then what the hell are you gonna spend your satoshi's on? Nothing, because they would not be accepted by anyone.

As for price correlation, this is simple supply and demand with more BTC spending going on then the new adopters whomm see retailers using the product will need to convert fiat to BTC. I believe the expanding demand would outstrip the already circulating, actually linited, BTC hence the medium to long term would push BTC prices up.

In fact, previously, a new retailer accepting BTC was taken as positive news and there used to be a spike in the price of bitcoin.
This is no longer the case now a days, with the BTC price remaining stable.

It doesn't mean it's going to stay that way people just didn't see getting Bitcoin would of paid off for them to spend at such sites like Dell if there are a little more important retailers accepting then the price should go up.

Dell is a very important retailer, in my opinion. In fact, it is proof that bitcoin is almost mainstream and is being treated like a currency, and not just an investment.

[RappingSniper]

This argument has been parroted endlessly. WE KNOW! However, merchant adoption must come first otherwise the average consumer has no reason to even USE bitcoin.

[Drendas]

Do these businesses not have any employees? Every buisness that begins accepting has employees getting introduced to bitcoin for the first time. I agree it would be awsome if every buisness that accepted them would at least retain the 2-3% they would pay in fees in bitcoin and I think we as consumers have a right to only spend our coins with those retailers who openly state they retain a portion. But back to my origional point the world is a big place.

[Drendas]

I talk to many people everyday who still have not even heard of bitcoin so what better way for people to be exposed to it than to learn on the job your company now accepts it.