Bill MacDonald
Sep 8, 2018 · 1 min read

I hear what you’re saying for most of your article but get confused when it comes to the merchants. In the world you describe, one where merchants are taking BTC as a method of payment, why would they need/want to convert that BTC back to USD? In that paradigm the volume would be high (enough), the price would be stable (enough). And with other merchants accepting it why would the the BTC holding merchants bother to convert back to USD?

Poorly analogous is my Venmo account; when I receive dollars (I assume they are dollars, I have never really looked, for all I know they are V-Points or something) I don’t take them out of the app, and that’s with only the one use case of paying friends or the random-self-employed. Instead I let the money sit there until the next time I need them.

If in the case where merchants accepted BTC it represented 25% of the total monies received then that would be considered a monumental win. Yet merchants would have plenty USD in their banks and BTC to spend anywhere they need.

None of this alleviates the fee or speed issues you discuss but it might paint a more likely picture given the premise.

    Bill MacDonald

    Written by

    Blockchain Student