Merchants want the opposite. Merchants right now are pissed off because they just finished setting their prices at 1BTC per widget four months ago, but today they're only getting 0.1BTC per transaction.
Merchants are receiving less and less bitcoins everytime the price goes up. Merchants want BTC to go down, so that they can sell the same stock for more BTC.
Its like the whole thing that happened to the Japanese Yen between 2008 and today. As the Yen strengthened, Nintendo lost money. Even though the Wii was selling in record numbers, Nintendo lost revenue as the Yen grew stronger.
Similarly, a Merchant based on BTC today is making 10x less bitcoins per transaction. That is BAD for business. Furthermore, merchants are now forced to consider the highly fluctuating exchange rate as part of their business.
That depends on how the transactions are structured. Most merchants new to bitcoin will not hold on to bitcoin, and only use it as a transaction currency.
I can certainly tell you from a business perspective, $2B of money supply is A LOT more attractive than $200M.
Merchants want the opposite. Merchants right now are pissed off because they just finished setting their prices at 1BTC per widget four months ago, but today they're only getting 0.1BTC per transaction.
Merchants are receiving less and less bitcoins everytime the price goes up. Merchants want BTC to go down, so that they can sell the same stock for more BTC.
Its like the whole thing that happened to the Japanese Yen between 2008 and today. As the Yen strengthened, Nintendo lost money. Even though the Wii was selling in record numbers, Nintendo lost revenue as the Yen grew stronger.
Similarly, a Merchant based on BTC today is making 10x less bitcoins per transaction. That is BAD for business. Furthermore, merchants are now forced to consider the highly fluctuating exchange rate as part of their business.