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Bitcoin is falling down

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• jwzguy

  

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  I don't think merchant acceptance creates a huge downward pressure - that implies that merchant adoption influences how much saving people do. That has never been a factor in my decision making, at least.

  Posted on August 14, 2014 at 11:31 AM
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• cyberclones

  

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  @jwzguy I don't think merchant acceptance creates a huge downward pressure - that implies that merchant adoption influences how much saving people do. That has never been a factor in my decision making, at least.

  What he is talking about is that most merchants involved in bitcoin don't hold bitcoin they simply covert it to fiat right away to pay their overhead. So the more merchants that are accepting bitcoin the more is being sold on the market.

  Posted on August 14, 2014 at 11:43 AM
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• jwzguy

  

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  @cyberclones

  What he is talking about is that most merchants involved in bitcoin don't hold bitcoin they simply covert it to fiat right away to pay their overhead. So the more merchants that are accepting bitcoin the more is being sold on the market.

  Right, but that assumes the user is not buying more Bitcoin or getting paid in Bitcoin, or selling their own items for Bitcoin that's used to pay for what they are buying.

  That implies that merchant adoption will determine how much you are spending vs saving. I don't find that to be true, for myself or anyone I know. I have been able to buy everything and anything I have wanted to buy for a long time now. It hasn't made me hold a different amount of Bitcoin.

  The same thing goes for dollars. If you were not worried about constant devaluation, anyway - your decision to spend/save isn't going to rely heavily on how easy it is to spend.

  Posted on August 14, 2014 at 11:48 AM
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• LazyBee

  

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  Drop seems to be over for now. Went below $500 briefly which I did not expect. Bitcoin is still very speculative. Selling pressure due to merchant adoption is not that big a factor relatively.

  Posted on August 14, 2014 at 12:43 PM
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• cyberclones

  

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  @jwzguy Right, but that assumes the user is not buying more Bitcoin or getting paid in Bitcoin, or selling their own items for Bitcoin that's used to pay for what they are buying.

  That implies that merchant adoption will determine how much you are spending vs saving. I don't find that to be true, for myself or anyone I know. I have been able to buy everything and anything I have wanted to buy for a long time now. It hasn't made me hold a different amount of Bitcoin.

  The same thing goes for dollars. If you were not worried about constant devaluation, anyway - your decision to spend/save isn't going to rely heavily on how easy it is to spend.

  Not saying it will affect the way people save their coins but rather those that have lots of coins that aren't being repurchased when spent.

  It is making the assumption that people are spending bitcoins they already own and aren't buying to replace them right away. Once you see merchants able to use bitcoin to pay their own bills it won't be as big of issue but right now there are still a lot of bitcoins that were purchased at $6 or even $100 that are creating a small bleed on the system. I'm not thinking this is the only reason for the decline in price but is will be a constant for a little while.

  Posted on August 14, 2014 at 12:53 PM
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• jwzguy

  

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  @cyberclones It is making the assumption that people are spending bitcoins they already own and aren't buying to replace them right away. Once you see merchants able to use bitcoin to pay their own bills it won't be as big of issue but right now there are still a lot of bitcoins that were purchased at $6 or even $100 that are creating a small bleed on the system. I'm not thinking this is the only reason for the decline in price but is will be a constant for a little while.

  I'm just saying I do not consider the fact that more merchants accept Bitcoin as a significant reason for those Bitcoins purchased at $6-100 to be spent. It seems like a common myth being spread by people who aren't looking deeper than "well, the merchants aren't keeping it, so that's more Bitcoin being sold."

  If you need to spend more money than you are earning, you will have to cash out some of your holdings, regardless of whether the merchant directly accepts Bitcoin or not. If you don't, spending without rebuying is not going to be encouraged by merchant adoption, probably the opposite.

  Over the last few years, the more merchants that accept Bitcoin directly, the more comfortable I feel leaving a -larger- percent of my holdings in Bitcoin, because I know the value is less and less likely to be "trapped" there.

  Merchant adoption (even if they hold 0%) is not a bad thing, and I see some well known trolls on reddit constantly trying to spin it as if it was.

  Posted on August 14, 2014 at 1:00 PM
  Last Edited: August 14, 2014 at 1:01 PM
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• Alchemix

  

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  I just sold some shares of an American company (who thinks its ok to avoid paying taxes by moving to Ireland) and i will be using the money to buy BTC. Im hope that the price drops lower in the next week so i can buy more...I fully expect BTC to be $850-$900 by Christmas.

  Posted on August 14, 2014 at 1:02 PM
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• Goefells

  

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  If only I could buy some BTC cheaply. Our local exchange(Not dollar based) only has sell orders which are equal to BTC prices closer to $600...sigh.

  Posted on August 14, 2014 at 2:13 PM
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• davisconfuse

  

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  as I see , changes from morning till now , its still going downer , now its 508$ maybe next week it will become 400 dollar and we will be so sad for the Tragedy of Bitcoin :( :) , yeah if it's keep going down

  Posted on August 14, 2014 at 2:25 PM
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• JayeK

  

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  Just consider the dip in price as a summer sale.

  Posted on August 14, 2014 at 2:43 PM
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