Bitcoin's price continues downward trend, Is this good?

[Emperion]

Bitcoin's price is still down after a week of very high transaction volume. Over the last few weeks, Bitcoin's total transaction volume has increased significantly. When more bitcoins enter circulation , the price must drop for the demand of Bitcoin to keep up with the current supply. More people are spending their bitcoins rather than hoarding them. From an investor standpoint, this is likely seen as a negative thing as it is driving prices down to a very low level. From the average consumer's standpoint, this will increase adoption.

A Currency must have three basic properties, these are: A unit of account, a store of value, and a medium of exchange.  Bitcoin can be used to determine the value of something ( a unit of account). Almost all Altcoins are traded against Bitcoin, thus Bitcoin is used as a unit of account on a daily basis. Bitcoin functions as a store of value. Bitcoins hold a set value at any given time based on the laws of supply and demand and the trades that occur on a daily basis. There is a natural inflation rate due to more bitcoins constantly being mined. Bitcoin also functions as a medium of exchange. Bitcoin can be used to pay for a variety of goods and services. Bitcoin adoption has increased rapidly this year and transaction volumes are increasing.

Most countries still use 40 year old banking methods that are severely outdated. Transactions and bank deposits take 3-5 days to complete and are subject to large fees. Bitcoin transactions are very fast and cheap to send. Before the invention of user friendly wallets, Bitcoin was hard to use and very complicated. Hosted wallet services make using Bitcoin easy and more consumers are starting to realize that the technology is easy to use. I would highly recommend Using Circle for safe, and secure Bitcoin banking.

Read the full article at: http://cryptocoinchronicle.com/2014/09/bitcoin-price-continues-downward-trend/

[bountygiver]

could it caused by that most merchants exchange the BTC to country money immediately?

[Chef Ramsay]

Much of this type of commentary is covered in the speculation subforum but beware of the trolls. Also, don't spend too much time there as emotions tend to run high.

[Traffic4u]

If you were to argue that the recent price decline was the result of merchants selling their bitcoin they received from customers then yes it would certainly be a good thing. This would mean that we are having higher adoption levels which is good for the long term viability of bitcoin and the long term price of bitcoin. For obvious reasons this is bad for the short term price of bitcoin.

Do you have any evidence that this is what is behind the recent price drop? I have not personally seen evidence of this and am personally dumfounded as to the cause

[kingscrown]

could it caused by that most merchants exchange the BTC to country money immediately?

exactly. the bigger adoption the bigger price going down

[exocytosis]

Yeah, the falling price is a sign of Bitcoin's massive growth and success. And it's needed to shake out all the weak hands. Preferably, we need to get to single digits to shake out all those hands. Plus, falling prices means cheaper coins for us believers.
It's a win-win situation, really.

[krishatnet]

Bitcoin price is currently in downtrend. What is the reason for current down trend?

[JimminyCricket]

I don't think bit coin price is dropping for the reasons given.
If I were to buy an item using bitcoin, I would replace the bitcoin by buying more using fiat. i.e. I buy a computer for 2BTC, I would subsequently re-stock my BTC by buying 2BTC on the exchanges. This is basically price-neutral.

There is a much better explanation of why the price is dropping;
East European miners had effectively cornered the production of new BTC and were holding bitcoin back to squeeze the market and artificially raise the price. (Like deBeers did in South Africa with diamonds in the 19th century). Recently, new Chinese mining farms have started up big time, and the monopoly is broken (for the time being), with miners selling immediately in order to cover their costs. As the price drops further, miners are further encouraged to sell their newly minted BTC ASAP. What we are witnessing are the consequences of one mining cartel snatching control from another - a temporary state of affairs where true free-market forces can determine BTC price.

The problem is that the basic BTC economy is flawed - centralized ASIC mining is not working.



 

[liu405]

 GOOD ,because  now  i can buy more btc using the same money. in the future ,it will rising up i believe.
in case that  the price is rising up now,are you sure you will buy it?if you won't buy it,then  when you will buy?only when the price is downward,you  can buy
So i don't warry about the price for the moment.

[tljenson]

If you were to argue that the recent price decline was the result of merchants selling their bitcoin they received from customers then yes it would certainly be a good thing. This would mean that we are having higher adoption levels which is good for the long term viability of bitcoin and the long term price of bitcoin. For obvious reasons this is bad for the short term price of bitcoin.

Do you have any evidence that this is what is behind the recent price drop? I have not personally seen evidence of this and am personally dumfounded as to the cause

The problem folks, is the human mind has a big problem thinking long term. The price goes down over a period of months and everybody freaks. Oh NO THIS IS THE END. THE END IS NIGH. This is bullshit, I wish people would get the hell over it. This thing called bitcoin has barely gotten off the ground.

[BlackHawk23]

Everything in Economy goes down and up...
We just only wait and be good to sell/buy at the right moment, like everything in economy.

[1Referee]

It will go even lower, the bigger the acceptance the lower the price will be as retailers, online shops, etc directly get the money instead of the Bitcoins when they sell products.

[BIT-Sharon]

It is so called speculations. Maybe it's the best chance for new hoarders, however, you should be cautious of its standpoint. Anyway, it is not bad.

[Sindelar1938]

Stop checking price every day, all it does is add to your depression and inclination to act hastily
Long-term play, period

[UsernameBitcoin]

don't forget: every 10 minutes 25 bitcoins enter the market and want to find a buyer

[shanem]

It is good for all of us believers, I would exchange more fiat to btc at cheap price.
This is the shakeout period before btc goes above 1k again.

[Sutters Mill]

Whether the price going up or down is good or not depends on your stance. If you want to buy in its good, but if you're wanting to sell or keep your coins as an investment it's certainly not.

[Towlie]

So it sounds to me like now is the time to buy if you plan on holding.

Maybe, but what if the price keeps on going down and down. It seems to go down whether there's good news or bad news so maybe bitcoin isn't a very solid investment after all.

[kingscrown]

So it sounds to me like now is the time to buy if you plan on holding.

Maybe, but what if the price keeps on going down and down. It seems to go down whether there's good news or bad news so maybe bitcoin isn't a very solid investment after all.

if you invest free cash that u have and can wait even half year to pforit the nid say its more or less safe bet to buy now

[bitllionaire]

this is not good,it is pure manipulation