> It's denominated in USD already, so increases in USD should be priced in. No, as explained in the other comment. > Also, Silk Road has become a small part o

> It's denominated in USD already, so increases in USD should be priced in. No, as explained in the other comment. > Also, Silk Road has become a small part of bitcoin transactions. Citation? Also, I was using Silk Road as an example; any transaction which is denominated in USD and simply uses bitcoin as a proxy would further this phenomena. Many places that "accept" bitcoin only do so temporarily. They immediately convert any received bitcoins into USD. The EFF is one such example [1]. 1. https://www.eff.org/deeplinks/2013/05/eff-will-accept-bitcoins-support-digital-liberty https://www.eff.org/deeplinks/2013/05/eff-will-accept-bitcoi...