The press must know by now Mtgox is an inflated price, but they still continue to reference it as the price of bitcoin .
Why not? Anyone with a free account can sell at this this price.
You can sell but you can never get the USD from that sale.
Bitcoin Price Touches $1,000 Again as Overstock Sales Hit $130,000
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Re: Bitcoin Price Touches $1,000 Again as Overstock Sales Hit $130,000
#12I think this really helps justify Bitcoin as a viable currency to the public. Seeing relatively large sales being done with Bitcoin at a well-known retailer is a big confidence booster.
Seeing relatively large sales For comparison, overstock sold 1.1B in 2012.. which is 2.6M in 21 hours vs 124K in 21 hours
What about holiday sales being majority of yearly revenue?
Re: Bitcoin Price Touches $1,000 Again as Overstock Sales Hit $130,000
#13This is just ridiculous. If Overstock is the biggest retailer in the world accepting Bitcoin, and on their opening day they only manage $130,000 in sales (130 BTC), what does that tell you about the volume of Bitcoin actually being used in trade and commerce rather than speculation?
There are 12.5 Million BTC in circulation. I don't doubt that Bitcoin will become a revolutionary system of payments and money storage down the track, but the price of coins is outrageously inflated at the moment.
Re: Bitcoin Price Touches $1,000 Again as Overstock Sales Hit $130,000
#14Earlier quoted context omitted.
Not only is it inflated, but it has more volatility. I no longer own any bitcoins, but if I were going to invest or purchase from an exchange, it would not by MtGox because of all the HFT that happens there.
High frequency trading minimizes volatility. And MtGox is notorious for not taking weeks to pay out. So I'm not entirely sure what you're on about.
>>And MtGox is notorious for not taking weeks to pay out.
There must be a typo there. The word "not" should be removed. MtGox is a mess. It doesn't matter if MtGox values bitcoin at $999,999 each. You'll never see a dime. I'm curious to know who is using that exchange and how well it's working for them. Maybe they're daytraders who don't actually feel like getting fiat yet. I know I've been trading coinsfiat on btc-e.com but haven't actually requested the USD of my profits yet. When that time comes, I plan to buy bitcoin ---> coinbase.com ---> bank account. And in this way I pay the rate coinbase.com will give me.
If you try to go MtGox--->BankAccount, failure. So the fiat/BTC rate on MtGox is meaningless unless you're lucky enough that it actually worked for you.
Re: Bitcoin Price Touches $1,000 Again as Overstock Sales Hit $130,000
#15I think this really helps justify Bitcoin as a viable currency to the public. Seeing relatively large sales being done with Bitcoin at a well-known retailer is a big confidence booster.
Seeing relatively large sales For comparison, overstock sold 1.1B in 2012.. which is 2.6M in 21 hours vs 124K in 21 hours
So what you're saying is that on the first day of availability, Bitcoin made up 5% of their sales by volume. I'd consider that a pretty big success.
Re: Bitcoin Price Touches $1,000 Again as Overstock Sales Hit $130,000
#16Earlier quoted context omitted.
Seeing relatively large sales For comparison, overstock sold 1.1B in 2012.. which is 2.6M in 21 hours vs 124K in 21 hours
What about holiday sales being majority of yearly revenue?
Not really the case for Overstock.. Q4 2012 was 342M, Q1 2013 was 311M... their sales have been flat for 2012, 2011, and 2010.. so it's likely Q1 2014 is similar to last year
Re: Bitcoin Price Touches $1,000 Again as Overstock Sales Hit $130,000
#17This is just ridiculous. If Overstock is the biggest retailer in the world accepting Bitcoin, and on their opening day they only manage $130,000 in sales (130 BTC), what does that tell you about the volume of Bitcoin actually being used in trade and commerce rather than speculation? There are 12.5 Million BTC in circulation. I don't doubt that Bitcoin will become a revolutionary system of payments and money storage d…
It tells you bitcoin is at the adoption stage. People are just finding out about it.
Plus Overstock isn't exactly a hot retailer. If Amazon does this, it will be HUGE.
Re: Bitcoin Price Touches $1,000 Again as Overstock Sales Hit $130,000
#18I think this really helps justify Bitcoin as a viable currency to the public. Seeing relatively large sales being done with Bitcoin at a well-known retailer is a big confidence booster.
Seeing relatively large sales For comparison, overstock sold 1.1B in 2012.. which is 2.6M in 21 hours vs 124K in 21 hours
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Re: Bitcoin Price Touches $1,000 Again as Overstock Sales Hit $130,000
#19The press must know by now Mtgox is an inflated price, but they still continue to reference it as the price of bitcoin .
Perhaps it's moderately inflated, but it is still the most well-known exchange among the populace; therefore, they're going to go with it. It's sort of like real currencies. Yes, on the spot market they're worth X, but when you're on the street trying to exchange it, it'll be worth X * 0.9.
It's inflated because USD withdrawals are severely delayed, often taking months to clear. There are people waiting since June 2013 for withdrawals.
Domestic JPY withdrawals seem to happen smoothly so some people use that route to get fiat out.
Re: Bitcoin Price Touches $1,000 Again as Overstock Sales Hit $130,000
#20This is just ridiculous. If Overstock is the biggest retailer in the world accepting Bitcoin, and on their opening day they only manage $130,000 in sales (130 BTC), what does that tell you about the volume of Bitcoin actually being used in trade and commerce rather than speculation? There are 12.5 Million BTC in circulation. I don't doubt that Bitcoin will become a revolutionary system of payments and money storage d…
> I don't doubt that Bitcoin will become a revolutionary system of payments and money storage down the track, but the price of coins is outrageously inflated at the moment.
Prices rise immediately in anticipation of positive future events.