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Why Greater Bitcoin Adoption May Not Result in Higher Prices

Putting aside the lack of a Bitcoin’s intrinsic value, what market need does Bitcoin satisfy to justify the $650 (and dropping) price per coin? Bitcoiners argue greater world wide adoption will drive the price of Bitcoin further into the stratosphere. I disagree.

Bitcoin has Dropped over 25% since Overstock Starting Accepting it as Payment

Wider Bitcoin adoption recently has not led to a higher Bitcoin price. In the past three months we have seen an acceleration in the number of merchants accepting Bitcoin, including online retailer Overstock.

http://smaulgld.com/will-greater-adoption-mean-higher-bitcoi...



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So far this has turned out to be true

Dell adopts the price goes down

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The article uses "BTC Drops 25% since Overstock Accepts"

As if there's any correlation whatsoever between the two.

The 25% drop came from:

- the malleability issue - which has already been basically fixed

- the DoS attacks - that have also already been addressed

The rest of it is the natural skittish sentiment that lingers after a shock to the market.

I'm open to legitimate analysis (positive and negative) from people that actually understand the technology and the market.

This is definitely not one of them.

The price of bitcoin fell and continued to fall

Since Overstock started taking it. Greater adoption and attention led to the mt gox attacks

Btw the "in the know" mentality of many bitcoiners is another reason it is destined to fail as only a select few are actually able to understand thin air currencies

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"Greater adoption led to the Mt Gox attacks"

Oh, really? That's a pretty broad statement.

Care to support that blanket assumption with any kind of solid reasoning, data, or otherwise?

Sorry but you're not proving that you are somebody that anybody should be listening to for a deeper understanding on whats happening with BTC or cryptocurrencies right now, at all.

Anonymous pundits love to bloviate on cryptocurrencies as if they are some kind of authority on it whenever there is a shock to the system.

Then within a few weeks or months the value rises up again in defiance of these self-declared pundits.

It makes me wonder why some people just hate on cryptocurrencies so much - that even though they take great pains to tell everyone over and over that they don't use it and think its worthless - they keep churning out long posts and blogs about something they are not personally involved in.

?

I never said Mt Gox was fine.

I said the transaction malleability issue that precipitated this whole thing has been addressed by the core developers and most people seem satisfied by the fix.

Mt Gox is definitely not fine. But who cares. They're just one exchange, and they are for all intents and purposes dead.

Bitcoin is surviving every attack and keeps bouncing back stronger.

Thats the lesson here. Not pulling faulty analysis out of your butt and presenting yourself as if you are some kind of objective authority with special insight into any of this - which clearly, you are not.

I didnt declare any authority

I presented an opinion no different that what you did. Perhaps you can refute the arguments rather than complaining about their existence?

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Adoption has to include companies like overstock paying

their vendors in bitcoin and holding them as a reserve asset on their balance sheet.
If they just accept them they are just selling bitcoin

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