I'm new to the Bitcoin / Cryptocurrency world, and the economics are pretty interesting.. My question is more of a large-scale economics question.
Would using Bitcoins, to purchase goods (not on this forum) or services, increase its perceived value due to wider exposure or level-out/decrease its perceived value by establishing an accepted value of it?
I hope that was clear enough. Just looking for ideas and thoughts.
In my own words and understanding if you do tend to use up your bitcoin to buy goods and other stuffs and services i cant see that it would increase nor decrease its current value since those merchants are holding up their bitcoin that they do earn unless if they would decide to sold up those amounts on an exchange then it will surely affect depending on how big it is but if we do say on small amounts even on selling or exchanging them wont really give impact at all.
Converting Bitcoin to fiat currency means selling your bitcoin, if you are selling a huge amount of bitcoin that will eat out buy demands of bitcoin then it will affect the price because priced moved lower but I know eventually the price will recover.