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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

#51

Post by drewblaisdell »

jval wrote: post #13

This 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…

> the price of coins is outrageously inflated at the moment.

I would love to listen to you justify this statement, or rather, explain how any store of value without intrinsic value can be over/undervalued.

In attempting to do this, you will find that there are gaps in your understanding of how currencies work.

Re: Bitcoin Price Touches $1,000 Again as Overstock Sales Hit $130,000

#52

Post by jljljl »

maxerickson wrote: post #38
olalonde wrote: post #28

Earlier quoted context omitted.

It's not as small as you think. This is what Overstock's CEO had to say about it on Twitter: "#Bitcoin's first full day on @overstock.com was a huge success: 840 orders, $130,000 in sales. Almost all new customers. #stunned". https://twitter.com/OverstockCEO/statuses/421754592427139072 130 BTC is 0.001% (130/12.5M) of all Bitcoin spent in one day at Overstock. Does Overstock typically receive 0.001% of all the USD mo…

From a comment below, they do about $3 million in a day. But there has never been a day where excited dollar enthusiasts spent easy money on Overstock to help the dollar look better. Yes, I'm insinuating that at least some of that volume is bitcoin millionaires having a laugh.

That "Almost all new customers" bit seems to emphasize your point. A lot of these people probably hadn't considered Overstock before they heard they were accepting BTC.

Re: Bitcoin Price Touches $1,000 Again as Overstock Sales Hit $130,000

#53

Post by lisp-and-seo »

dmm wrote: post #11
lisp-and-seo wrote: post #7

Earlier quoted context omitted.

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.

This is called spreading FUD. All it takes is 3 weeks.

Re: Bitcoin Price Touches $1,000 Again as Overstock Sales Hit $130,000

#54

Post by jljljl »

aqme28 wrote: post #47
CamperBob2 wrote: post #22

Earlier quoted context omitted.

Why would I want to spend Bitcoins that are increasing in value? I'll spend them on the way down, not up.

Why would I ever save dollars when they're always decreasing in value?

You would almost never want to save dollars, in the sense of putting them under your mattress and forgetting about them.

What you would want to do is invest your dollars, either in assets or in a savings/checking account, to get some return above the rate of inflation.

This is partly why the Fed is trying to raise inflation: a low, steady level of inflation encourages people to spend and invest in the economy, rather than simply sitting on dollars.

Re: Bitcoin Price Touches $1,000 Again as Overstock Sales Hit $130,000

#55

Post by kolev »

I feel sorry for those buying bitcoins at prices $900+, seriously! China has two more weeks until the shut down - so far Huobi and a couple of other exchanges still allow bank transfers into the exchanges and the Chinese are making their last profits. When Yuan stops flowing into the exchanges (or becomes much harder), the only Yuans you can get to buy is when you sell. I'm sure people will figure out to buy via friends from outside the country, but you can't really do the current level of speculation not having quick transfers in and out. Keep in mind most of the trade volume is in China! Mt.Gox has ridiculously low volume, yet, both Bitstamp and BTC-e follow it although they have much more volume now. Remember on the 14th the Taobao restriction also kicks in. Also, hearings won't be very positive this time as it looks. Anyway, November was a great month, but not every month in November! Also, the initial excitement about Overstock will quickly subside. It just can't get any better than this.

Re: Bitcoin Price Touches $1,000 Again as Overstock Sales Hit $130,000

#56

Post by baddox »

jval wrote: post #13

This 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…

Or perhaps not that many Bitcoin holders need an area rug right now?

Most of my wealth is in USD, and yet in my entire life I've never bought anything from Overstock. I suspect there are millions of USD holders that can say the same. I don't think that says anything bad about the USD.

Re: Bitcoin Price Touches $1,000 Again as Overstock Sales Hit $130,000

#57

Post by ok_craig »

atmosx wrote: post #45
RoboTeddy wrote: post #20

Earlier quoted context omitted.

> 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.

Really? If that was the case the bust of DPR and the downfall of SR should drive the price of BTC down, to it's knees - since it was the only market where BTC was treated like a curency . This fact shows that either BTC is not as rational as one might think or that big players (or a small team of players) are trying to keep the price as high as possible (by not selling in bulk). Note that if A. Shamir's paper is corr…

I don't see why the closing of silk road should have resulted in a drop of the price if "prices rise immediately in anticipation of positive future events." The closing of silk road lead people to anticipate that bitcoin would come to be associted with mostly legitimate purposes instead of nefarious ones in the future. So the price rose. (That was only part of it though; the senate hearings had a greater effect.)

Re: Bitcoin Price Touches $1,000 Again as Overstock Sales Hit $130,000

#58

Post by kolev »

kolev wrote: post #55

I feel sorry for those buying bitcoins at prices $900+, seriously! China has two more weeks until the shut down - so far Huobi and a couple of other exchanges still allow bank transfers into the exchanges and the Chinese are making their last profits. When Yuan stops flowing into the exchanges (or becomes much harder), the only Yuans you can get to buy is when you sell. I'm sure people will figure out to buy via frie…

Thanks for downvoting without giving a reason why!

Re: Bitcoin Price Touches $1,000 Again as Overstock Sales Hit $130,000

#60

Post by kolev »

kolev wrote: post #59
kaa2102 wrote: post #39

There was a lot of volatility in a short span of time from the China announcement to Overstock adoption.

Yes, lots of trading bots at play, too!

BTW, I wondered, will actually having a higher transaction fee on the API transaction, in fact, reduce volatility? Let's say, at Bitstamp with volume, you can get down to 0.02% fee (no so hard with even a few bitcoins and a few trades). If API trading fee is always at 0.05% or higher, then bots will slow down a bit.
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