Quote from: bitcoinbelieve on September 15, 2014, 08:36:39 AM

Quote from: oaks05 on September 12, 2014, 06:17:15 AM

Im sure alot can happen before this scenario happens but ive always felt for Bitcoin to take off like it did last year something big has to happen, what if another stock market crash happens and banks start failing again, people will be searching for a way to protect there money by pulling it outta banks and outta stocks to prevent big losses they sustained back in 2008, and put it into bitcoin, I could be way off but ive had this feeling for a long time though, does anything think im way off base or have some merit here?

The market is oversaturated with bitcoin thanks to the vendors (newegg, dish, overstock, etc...) where they immediately convert bitcoin into fiat. This creates more seller than buyer thus causing the demand for bitcoin to decline. It is good thing that bitcoin is being accepted by various of vendors but at the same time, it could be worse thing happened to bitcoin. It's catch 20/20.

Most users who are spending bitcoin believe in bitcoin (as your name seems to suggest). And in most situations, since these bitcoin believers generally believe that bitcoin is undervalued, they are going to replace any bitcoins that they use to purchase something. So the selling pressure you just described is almost non-existent since it is typically a zero sum swap.

Vendors accepting bitcoin is only a good thing. It is not a catch 22. And most importantly the vendors selling bitcoin for fiat is likely only transitory in the grand scheme of things. As bitcoin gains transaction and consumer/vendor use continues to increase, it will at a point become undesirable to exchange bitcoin for fiat. If for no other reasons because of the astronomically low fees that fiat can't compete with