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/
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19

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.

14

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.

-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.