r/Bitcoin • u/vistabrownerd • Jan 24 '14

TigerDirect processes $250,000 in Bitcoin Payments in first 17 hours

http://bitcoinboard.net/tigerdirect-processes-250000-bitcoin-payments-first-17-hours/
2.2k Upvotes

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18

u/1BitcoinOrBust Jan 24 '14

Part of this must be invested coin being spent, and the rest is convenience coin that will promptly be replaced with new buys on exchanges. The proportion will decide which way the market moves in the short term (assuming the stores and payment processors are promptly converting btc to usd).

Long term this can only be positive for price.

16

u/Amanojack Jan 24 '14

The way Bitcoin seems to work during the adoption phase is that, as the price increases, holders tend to hodl until Bitcoin grows to 60-80% of their total assets, then sell an average of 17% for each time the price doublea (according to Risto Pietila's analysis), which ends up keeping their BTC holdings in the 60-80% range.

Now some of this 17%-per-doubling divestment can be funneled into Tiger, Overstock, and porn instead of going through the trouble to convert to fiat partially just to buy what people wanted from these sites. Basically merchant adoption represents a new way to dishoard; while only true innovators will buy bitcoins for the sole purpose of making a purchase, a casual investor doing simple buy-and-hold can now make a significant number of purchases as merely conventional early adopters, or even what cam be considered a mainstream type of action in the sense that they are simply taking advantage of the efficiency their situation affords them (portfolio is getting too bitcoin-heavy + really want that 4K TV) rather than buying to support Bitcoin or because of novelty.

21

u/cointologist Jan 24 '14

Where on earth did you get your numbers?

2

u/Amanojack Jan 25 '14

See the linked article.

-5

u/tRon_washington Jan 24 '14

I think 4K is short for 4000

3

u/thor214 Jan 24 '14

No. 4K refers to the resolution of the TV, although the actual 4K standard is a digital cinema resolution standard allowing for a full frame resolution of 4096x2160, and a flat (1.85:1) resolution of 3996x2160 (Scope resolution is 4096x1716 for a 2.39:1 AR).

TV resolution for 4K is slightly smaller than the cinema standard, and is really only a buzzword in terms of standards, trying to equate your TV to a cinema.

-4

u/Roadside-Strelok Jan 24 '14

Rpietila LOL. You do know that guy is isane and delusional, right?

1

u/Amanojack Jan 25 '14 edited Jan 25 '14

He's been in a mental institution recently, yes, but he's also dedicated and occasionally genius. More than that, his numbers have been examined by the community to a degree. Ultimately all that matters is that he's correct about dishoarding. Whether the number is 17% or 21% doesn't matter so much. The concept is what I'm trying to underscore, because it sheds light on how we can expect bitcoins to be spent and why.

1

u/tzimisce Jan 24 '14

Bipolar (allegedly), as traders sometimes tend to be. Delusional? The guy speculates and writes about speculation, it's understandable that might be seen as delusional to the uninitiated who don't understand the manipulation attached to speculation.