What does the volatility of BTC at the moment mean for DNM?

It's not really an overstatement to say that BTC price has been plummeting recently and has been on a downward spiral since the beginning of 2014. Some of our favorite vendors aren't millionaires, they might live month to month on the small profits they turn on DNM. With BTC prices gradually dropping, vendors are going to start seeing a huge loss on every single order if they have to wait a week for a pack to arrive and the price of BTC drops 5% during that time. I understand it's a risk vendors have always taken with DNM but for a while, BTC prices were going up, up, up. I'm curious how the price dropping will affect things and looking for some opinions on some long-time DNM users. Are we going to see more vendors requiring FE? Vendors offering incentives to FE? Will some vendors who already weren't making a ton of money abandon DNM altogether? Or is this the best time to be a vendor if you can sit on the coins for a while for a huge profit? Any and all discussion here is welcome.


Comments


[8 Points] None:

nothing. its a constant factor of BTC. when i started they were 7 bucks. it goes up and down, this is a faster time than usual but it cannot keep falling forever. give it a week.


[3 Points] GrandWizardsLair:

If Bitcoin collapses, the Grand Wizard expects we will see a Litecoin/Darkcoin/Dogecoin/Etc.Coin market springing up. So long as there are people looking to buy and sell items anonymously there will be darknets run on cybercurrency.

Many vendors may start demanding FE because of market volatility: we may raise our escrow prices to cover the bitcoin drop. For a few vendors who were already teetering on the edge this may be the straw that breaks the camel's back. Most will weather it just fine. If you've been doing this for a while you've seen bitcoin price fluctuations like this and over the past year most of them have been steadily downward. So this is just more of the same: you grumble, dust yourself off and carry on carrying on.

For buyers the Wiz would recommend purchasing a good bit more than you need at the moment and buying as quickly as you can from vendors you already know and trust. If the Grand Wizard had more cash lying around the house he would be buying bitcoins at $150 and $125. But if the Grand Wizard's aunt had balls she'd be his uncle so that isn't really apropos of anything.


[2 Points] IMightBeDEA:

Comments regarding continuous "falling" of bitcoin are obviously from those who haven't been around for a long period of time.

What we're currently seeing is a stabilization of the price of BTC. BTC reaching 1k> was largely in part to the MTGOX fiasco, and this is just the slow progress of bitcoin reaching a stable price.

It should be noted also that mining bitcoins has become exponentially harder, and at-home mining operations are less than desirable and will actually probably cause a loss in income. We're seeing more and more large scale mining ops, and therefore a smaller group of people in control of a larger sum of BTC. It's speculated that many of the big time contenders are "shorting" BTC at the moment, saturating the market with extra coins, then waiting until they see a point in time that it would be beneficial to SELL SELL SELL the REAL majority of their stock.

I'm an avid chart analyst myself, and in my opinion(take it with a grain of salt, or sand if that's more your style) the most BTC could potentially drop in the near future would be the 120-150 range. At this point, it becomes a buyers market, and we will most likely see fluctuations in the price of BTC once we reach this floor limit. If BTC reaches a comfortable constant pricepoint allowing a decent margin of profit for miners, we could potentially see a sticking pricepoint for an extended period of time.

tl;dr BTC are not as unstable as the common Redditor would have you believe, and although it might not be immediate, we will see a rise or stabilization in the price of bitcoin sometime in the near future.


[1 Points] sobulbous:

Volatility is nothing new. When BTC ran up from pennies to dollars it was volatile. Keep it in context. Volatility is a 2 way street. Price is in a correction from a massive run up. Stabilization is something that will happen over time.


[1 Points] kungFUPanda666:

Vendors wil lose less if they pay express out of pocket so we can finalize quicker


[0 Points] DickClarkFive:

Depends on what BTC does. In the short term there will be increased FE deals for sure. In the long term, no one knows.... if BTC somewhat stabilizes, within a large volitiity range, not much would change. A vendor might loose 5% one week, then gain 5% the next. If BTC continue to collapse, It's going to pose a existential problem for the markets.

Personally, I think they will continue to fall in price. Its a fad that's wearing off, and no one really uses them for anything besides DNM (outside a niche of BTC enthusiasts). They will drop in valve to something really low, and be seen as really just an anonymous payment system rather than a "currency."