> The more merchants that come online and support BitCoin payments the faster its going to drop in value
I don't know enough to say it definitively, but this may be pure fantasy. Merchants "accepting Bitcoin" seems, to me at least, like a publicity stunt to attract the young, techno-hipster crowd, which is valuable for marketing. I wonder if "accepting Bitcoin" translates to actual high-volume transactions. I think this drop is just business as usual for Bitcoin, which tends to rise and fall according to the publicity it gets. Also, its trading volume is still sparse enough for random noise (or deliberate manipulation) to change the price significantly.
From my light experience of watching this Bitcoin thing for the last year, yes, you're right on target. Merchant "adoption" of Bitcoin for purchase is mostly hype. If I recall correctly Overstock.com does about only 10% of their sales in Bitcoin.
I don't know enough to say it definitively, but this may be pure fantasy. Merchants "accepting Bitcoin" seems, to me at least, like a publicity stunt to attract the young, techno-hipster crowd, which is valuable for marketing. I wonder if "accepting Bitcoin" translates to actual high-volume transactions. I think this drop is just business as usual for Bitcoin, which tends to rise and fall according to the publicity it gets. Also, its trading volume is still sparse enough for random noise (or deliberate manipulation) to change the price significantly.