Love the rewards program. I'll use Overstock more because of it. Merchants *should* kick back a percent or two to bitcoin users, since they're saving 3% on CC fees. That'll be a great driver as more businesses accept bitcoin, and provide such incentive for consumers to use it.

But I think some of the best things recently have been the news that Overstock is holding a little of their bitcoin, wants to ultimately offer their employees the option to receive some of their paycheck in bitcoin, and is having Coinbase present at their annual suppliers' conference to try and get some suppliers to accept bitcoin. All of that is a great effort at closing the loop.

BitPay's payroll API is another example of closing the payments loop... http://www.businesswire.com/news/home/20140113006504/en/BitPay-Announces-Bitcoin-Payroll-API#.Uv0q0R_ztTM

This stuff takes time, but it's happening.

why wouldn't they?

if they offer an incentive it's a win-win and is what people have been saying all along would benefit users, which drives use.

it's basic economics.

but seriously, I'm interested to know why you don't think this will work out with Overstock....

where do they go when Overstock moves them through Coinbase?  Overstock does not hold most of them, so they end up dumped back into the marketplace.

A portion go to speculators, that's well documented.  How much is that and how much of that ends up being spent.  I know I've spent coins I originally bought through coinbase intending to hold them and then used them when price leveled out for a while.

just applying basic economic principles.  If it's a cost savings for people, people will use it, if it isn't they won't.

What I do like about this with Overstock is that they're applying that nudge of some sort of incentive.  we'll see if it impacts anything, I suppose.

I do

agree, its convenient for me to keep some bitcoin on my chrome addin wallet, makes shopping super fast and easy

To be a healthy ecosystem, we need a lot of holders just as we need a lot of spenders.   Ultimately we want the number of bitcoin transactions per day increasing, and we want more people to need more bitcoins so that the demand easily outweighs the supply

I didn't know they accepted Bitcoin as a payment just because of that I will go and buy some things from them.

Overstock is going to be one of my main places to spend money now because they have a wide variety.

Setting the stage for many things great to come. The ceo should reward himself with a pat on the back for this one. They've brought in many new customers, I being one.

Source? Fees to convert bitcoin to USD which is what Overstock is certainly doing are not less than merchant fees for large retailers the last time I looked.