So today we had two major retailers announce that they're taking bitcoin and we're now lower value than we were 24 hours ago. This market is brutal.
As many people have pointed out already, those major retailers announced that they are taking dollars -- that will come from the sale of bitcoins, mostly by bitcoin enthusiasts. So those news may give bitcoin more visibility, but it is questionable whether they will expand the number of bitcoin owners, and they imply more coins moving from hoards into the market.
And, anyway, those news are irrelevant to the Chinese traders -- who seem to be leading the current drop.
Merchant adoption is the next step towards global acceptance after the initial investment / speculation phase. It's the next logical step and it's a good sign.
They are not taking dollars, they are taking Bitcoins. And not all of the merchants are selling 100% of the Bitcoins back to dollars by the way.
When people start to realize how easy crazy is to buy things in locally and the internet without the need of giving credit card or bank information to anyone acceptance is going to increase. It's the next natural / logical step, credit cards are a thing of the past and obsolete.
Interesting points. However I still cannot understand why someone would pay with bitcoins if rewards credit cards offer bonus cashback + services and features.
eg. many companies add an extra year warranty + some have purchase protection if item gets stolen/breaks within 90 days + protection from sellers who dont send quality goods and refuse to make good on the purchase and many more features.
Some of these benefits coupled with extra cash back (eg. I have a card that gives 2% cashback on all purchases) wont exactly make people flock to bitcoin unless they have something to hide or are paranoid and want to be "anonymous" (as if the nsa cant track you anyway...).
P.S. Of course there is a use for someone who cant get their hands on a credit card with features like those mentioned above (most people probably can though).
Some merchant have something for sale for 0.98 BTC: I see no reason why you can not pay 1 BTC, and seconds after get 0.02 BTC back from the merchant, if this is an offer and you agree. But what would be the point? It is so fun receiving money?