I'm wondering everyone's thoughts on how long increased merchant adoption will cause the bitcoin price to fall.
Here's a very well-written article explaining how during 2014, merchant adoption in bitcoin was a major reason the price has been falling all year.
http://cryptonomyreport.com/2014/09/bitcoin-2014-price-correction-explained-merchant-adoption-effect/But how long will this effect last? The article concludes by explaining how over time, increased merchant adoption will eventually lead to more people getting introduced to bitcoin and will outweigh the negative effects.
I'll post two small snippets below, remember to check out the article and share your thoughts.
Bitcoin 2014 Price Correction ExplainedReason for decline:Even though the acceptance of bitcoin for payment by these large corporations have helped legitimize this technology, the effect of increased merchant adoption has helped push down the price of bitcoin. The reason increased adoption has contributed to the price decline is simple. People who would’ve continued holding their bitcoins were now able to spend them (which is what they’re mainly supposed to be used for) and the merchants who accepted them, sold them immediately for the cash value. ...
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Long-term positive effect:As mentioned at the beginning of this article, cryptocurrencies are an extremely difficult concept to grasp. Their decentralized nature means that no single entity is responsible for educating consumers about what bitcoin is. Increased merchant adoption on a massive scale will immensely benefit bitcoin since these corporations will assist in educating the masses. ...
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Full Article:http://cryptonomyreport.com/2014/09/bitcoin-2014-price-correction-explained-merchant-adoption-effect/
