In a recent article, we were predicting the impact Overtock.com would have on Bitcoin prices. You can read more here: http://www.coinmonkey.com/cryptocurrency-spring/.
Overstock came in 5 months early, and began accepting Bitcoin last week. http://www.overstock.com/bitcoin. So why hasn’t Bitcoin moved on the news? Turns out Overstock is essentially using Bitcoin like a credit card. Users can pay with Bitcoin when they checkout, but then the Bitcoin Overstock receives is immediately converted into US dollars through the website Coinbase.com. Coinbase takes a small fee, and Overstock gets their money.
This 2 step process could actually backfire if there aren’t any buyers for the Bitcoin. Imagine if a company bought a fleet of 20 cars from Overstock and decided to pay with Bitcoin. Once the funds were transferred to Coinbase, a lack of Bitcoin buyers could cause Bitcoin prices to drop significantly.
So, It looks like Bitcoin is over-stuck in the same trading range for a while.
But wait, on March 1st, the Sacramento Kings said they would start accepting Bitcoin for game tickets: http://espn.go.com/nba/story/_/id/10303116/sacramento-kings-become-first-pro-sports-team-accept-bitcoin.