Post
Topic
Board Economics
Re: Why bitcoins are dropping, and will continue to do so
by
Nagle
on 05/07/2011, 15:16:55 UTC

Just because merchants are accepting bitcoin doesn't mean people are going out and buying bitcoins to spend at said merchants.  And guess what those merchants are doing a soon as they receive bitcoins as payment for goods and services?
Bingo
Any merchant who accepts Bitcoins needs to cash out really fast. We're seeing 25% changes in a day, and 10% changes in 10 minutes.  By the time a Bitcoin transaction is confirmed, it may have lost 10% of its value. You can't run a business on that.