Saturday, January 25, 2014

When To Buy Bitcoin

Bitcoin - Encryption we trust

Recently OverstockTiger Direct and many other online retailers have begun accepting the secure internet money known as Bitcoin (BTC or #). Bitcoin cannot be hacked like credit cards because you pay directly with encrypted money instead of entrusting others with credit card account information. It is more like using cash instead of a credit card which limits your vulnerability.

Merchants love Bitcoin for many reasons. There are less transaction fees involved with Bitcoin and unlike insecure credit cards, Bitcoin was designed for use on the internet. That means retailers like Walmart can use Bitcoin securely to purchase goods from anywhere in the world without wire fees and without exchange rate risk.

So, when should you purchase Bitcoin?

The answer is a couple days after a major retailer begins accepting purchases via Bitcoin.

The reason for this is controversial, but allow me to explain.  When a merchant accepts BTC for the first time, they have to get those sales into their accounting system as dollars, so they sell their new coins. Eventually, the merchant will stop selling all their coins as they work out how to use the new currency to their own advantage in international purchases.  In the short term, however, all the purchases against a new retail merchant are effectively a massive dump of coins on the BTC exchanges (aka stock market).

This massive dump of BTC onto the exchange is not met immediately with new demand for BTC because the merchants customers probably do not know how or where to buy BTC. It takes a few days for their accounts to be set up and the US Government and China make it as hard as possible to buy Bitcoin. (They have to protect their printing press money power against a currency backed by math and nerds and they are scared.)

In the next few days or maybe weeks new users begin to buy Bitcoins to shop securely online at the new merchant and the price rises. Here is the market movement as TigerDirect began accepting Bitcoin. Tiger Direct has a lot of users who own Bitcoin because they sell Advanced Micro Device (AMD) based computer hardware used to "mine" Bitcoins.

Tiger Direct Accepts Bitcoin

Other retailers have less BTC wealthy users, and speculation sometimes drives the price up, for instance Google China might sell ads in Bitcoin, but that would not drive large purchases via Bitcoin. Amazon is another example of a merchant who would temporarily drive BTC prices down after adoption. Walmart would be a difficult call.

Overstock.com reportedly had $130,000 in Bitcoin sales on their first day accepting the currency. So, you can imagine that even a fraction of that volume would push down Bitcoin prices as coin holders are replaced with a massive coin seller.

To wrap up, anytime Bitcoin dips below $800 per coin, it is a bargain. Bank of America released a report estimating the value of a Bitcoin at $1300. These bargains can be found immediately after a large adoption by a merchant who appeals to online consumers. Go get your account ready and jump in on the next big dip. Maybe $750 will buy you $1300 worth of "stuff" and that is a good deal!

38 comments:

flame93 said...
This comment has been removed by the author.
flame93 said...

Check out this great ways of making money with bitcoin 99MoneyMaking

Anonymous said...

Instant Growing - 1800% after 12 Hours
We have teamed up with a select group of Private companies and investors to offer 100% principal investment insurance for all of our investors. This group has agreed to insure all principal deposits for a share of our monthly earnings. This allows our group to diversify their investment portfolio and create a risk free, highly attractive, and profitable investment opportunity for our investors.
Invest Now
http://www.instantgrowing.com
Investment Insurance
http://www.payinghyiponline.com/instantgrowing.html

Robert said...

When bitcoins are involved with major corruption and bribery (FIFA), then we will know that they have arrived. buy perfect money e-voucher with credit card

Anonymous said...

Wow! Believe me I am in love this website work from home internet business! What an easy way to use and how functionally it proceeds. I would suggest it to every one of you!

atlantis seo marketing said...

I am really surprised how great promotional services they offer at very affordable prices! Such amazing and decent layouts! I would like to recommend atlantis seo marketing to everyone! They are perfect in their work!

http://www.gmailfaxpro.com said...

As times have changed so do the technology and in the communicating department such as fax I would surely mention http://www.gmailfaxpro.com because they have made it so easy for us.

http://www.luxtime.su/wallet/hermes-wallet said...

Exceptional blog you guys have conserved there, I absolutely appraise your effort. I am very thankful to all or any your group to share specific heartening stuff.

Garden Grove Media said...

Now I can just sit back and relax! Thanks to Garden Grove Media for providing this opportunity to all of us!! Amazing experience! Recommended to all!

Anonymous said...

No wonder why you receive countless of feedbacks.www.aw100.com

0800 said...

I was worried about the downfall of my business but then I saw 0800 advertisements and their work on the internet and I was amazed by the results the provided me through their image!

SEO Package Reviews said...

As mentioned in the article "Merchants love Bitcoin" due to the less transaction fees involved with Bitcoin and unlike insecure credit cards. Thanks for the valuable information about Bitcoin. SEO Package Reviews

Unknown said...

I want to say thank to you people for this great and helpful info. Thanks!!!
Local seo

mind.it said...

looking at weekly Bitcoin technical analysis from Fibonacci attitude, the drop comes without a surprise. The unit has reached Fibonacci 100% retracement degree, which is also the preceding all-time excessive. From there, Bitcoin price imminently corrected. coin-banks trading

Adiba Alam said...

When you buy BitCoins (either by utilizing fiat money or by utilizing another digital money) you are really assuming a part in BitCoin's upward cost.
nice project

Robert said...

Nice to be visiting your blog once more, it has been months for me. Well this article that ive been waited for therefore long. i want this article to finish my assignment within the faculty, and it has same topic together with your article. Thanks, nice share.
easy to use secure wallet

Unknown said...


Hey, Wow all the posts are very informative for the people who visit this site.Good work!We also have a Blog.Please feel free to visit our site. Thank you for sharing.
Buy perfect money e-voucher online
Keep Posting:)

Elizabeth J. Neal said...

Please share more like that. Read More

Anna Schafer said...

Best work you have done, this online website is really cool with great facts. bitcoin mixer

Unknown said...

You hit realize out of the most other topics.
trade cfd

Flack Jhonsan said...
This comment has been removed by the author.
Flack Jhonsan said...

Thanks for taking the time to discuss this, I feel strongly about it and love learning more on this topic. https://bitcoinmix.org

Anonymous said...

You have discussed amazing points about Business. It will be very useful for the readers. I will keep on reading the latest information. Now you can Start Earning Online Money

Eliza Beth said...

This is a great inspiring article.I am pretty much pleased with your good work.You put really very helpful information... top list of ICO websites

Unknown said...

Learn more about how it works and find bitcoin casinos and bitcoin poker sites at RealMobileCasinos.com. Here we explain further about how to use this currency and how everything works with the wallet and where to best get your own wallet. Cryptocurrency Mining

How to send fax online with Gmail for free said...

That's a great article. I use my bitcoin to fax online

bill.wood said...

If you are having issues developing your business plan then you may want to work with a certified public account or business planning firm that has experience when working with accredited investors. Ren Carlton

Eliza Beth said...

Wow i can say that this is another great article as expected of this blog.Bookmarked this site.. news update

shane lee said...

When we speak of Indian stocks, the name of the NSE of India and the BSE of India robotically flashes in the mind! Those who have not yet ventured into investing in Indian stocks will get robotically attracted towards putting in money too. stock trading online

VIPRA'SWORDS said...

riends , as we know only six of companies are registered in Nasdaq as american depository receipts,i.e Infosys, ICICI bank,HDFC bank , Tata Motors DVR, Vedanta resources,.ADR's basically is a negotiable instrument for those US citizens , who want to invest in foreign equity with in US market.These ADR's are avialable for trade in limited number of quantity .The benifit what as an Indian trader and investor you get is that US market almost start by 7 o clcok as per IST ,hence, price volume action and buying projections almost remain same.Any news coming in favor or loss making for scrips and respective movements in stock can give us clue but problem with most of website i have come across is to get live rate and also precise closing rate of these scrips as the closing rates are not updated one.The authentic rates what i have come across in in investing.com link as well as Yahoo finance.A negative or strong positive closing and all basic laws of screening you can put to predict that how these seven scrips will behave in market today.

Sherry Beck said...

The written piece is truly fruitful for me personally; continue posting these types of articles.
design companies in San Francisco

Amy Farmer said...

Flexible and committed, the team responded well to fluctuating design ideas and user interface design carefully analyzed the potential impact of the top agencies in the world product. Their innovative approach made for a fruitful partnership.

Best said...

and independent contractors are able to not only competitively bid as they do now, but they would be able to accept Bitcoin and other cryptocurrencies and this will drive in more business. It is not a fad, it is a matter of making an easier and cheaper transaction. cryptocurrence processing

Aubrey Dickey said...

Whether somebody pursuit of his vital thing, hence he or she desires to be accessible that at length, hence that thing is maintained over here.
bitcoin trading platform

crypto blueprint said...

Hey enormous stuff or pleasant information you are offering here.

Harry jack said...

Using factoring carrier as opportunity investment on your agency within reason easy to do.Alternative Funding Group

Stephanie Clifton said...

Stupendous blog you guys have provided there, I will absolutely valuate your effort.
corporate branding companies

Angel17 said...

Bitcoin is a nice trade. Everyone should try trading this. rescreening Bradenton, FL

ShareThis

Ads

LinkWithin

Related Posts Plugin for WordPress, Blogger...