The only thing you must read from the article above is the first line, ” Did you get a stack of bitcoins for Christmas? Better spend them fast.” Did you see that, “spend them..” Exactly, there are an increasing number of ways to spend Bitcoin. Let’s not be coy, this is the news, they need an edge, a perspective to talk about a topic, even if it mask opinion.
Let’s equate the declining value of Bitcoin to, say, the declining value of the US dollar. The US Treasury will keep the value of the dollar low to make American goods more desirable, thus encouraging exports or to correct balance of payments. In Bitcoin, the main barrier to entry was it’s price. Lowering that cost makes it a more usable currency, thus interesting to retailers. And that’s what we’re seeing, month after month. Most recently, Time, inc. Bitcoin is acting like a currency, albeit with some help from miners and sellers like the US Marshall service. And what about the exchanges that handle Bitcoin for retailers. That’s where it gets tricky. Are they swapping for top dollar, and what complications are there due to taxes. New York State recently to a step favorable to Bitcoin in making a transaction a tax-free barter.
Should the price of Bitcoin go up? Is it necessary for the value to rise so that Bitcoin can increase its share of volume as a currency and transaction medium? No, because Bitcoin has not reached saturation to the point where its value must increase to maintain its volume as a currency.