Post
Topic
Board Bitcoin Discussion
Re: Are you all idiots? ...or what?
by
opossum
on 27/10/2014, 00:51:10 UTC
99.9% of the time, paying with bitcoin goes through a payment processor such as bitpay, bitpay instantly sells your bitcoins for FIAT hence putting sell pressure on the market. So basically if people take your advice right now and start buying products with bitcoins, the price will fall.

No that is a myth.

The reason the BTC price is falling is that miners are selling immediately, and not hoarding.
The miners are suppose to sell, there job is to mine not to hord. No Gold miners is hording gold, they sell it instantly.
I would disagree that they are "suppose" to sell, but I would say that the economics of mining means that they will sell right away. The reason the miners will likely always sell much of their mined bitcoin right away is because of the large initial investment required to purchase a miner, which is often larger then the amount of bitcoin that a miner wishes/can afford to own.