Author

Topic: A bitcoin based stock market (Read 437 times)

legendary
Activity: 1120
Merit: 1008
CryptoTalk.Org - Get Paid for every Post!
June 02, 2016, 02:13:16 PM
#6
Bitcoin have high volatility thats why it is one of the best choice for day traders and traders love big movements and daily significant sideways. If you look at altcoin market than you will see more volatility than bitcoin.
newbie
Activity: 5
Merit: 0
June 02, 2016, 01:35:02 PM
#5
That makes sense. I'll do some further research into the topic and let you all know what I find out.
legendary
Activity: 1750
Merit: 1115
Providing AI/ChatGpt Services - PM!
June 02, 2016, 01:31:39 PM
#4
The point has been brought up several times and presented with a list of factors contributing to its advantages and disadvantages.Depends how you look at it as its practically hasn't been implemented yet.I'd like to answer your question with my opinions below .

Bitcoin itself is an investment,unlike fiat.We have barely seen people holding fiat as investment as the prior basis.On the other side stock market is completely based on fiat and shares give a value to your fiat but the price fluctuations.The point is,here fiat has to reside or depend on an external commodity to give itself some value.Standalone ,fiat won't be much value apart from its actual price.

Bitcoin could be seen as an direct attribute not depending on any other factors for its value norms.To clear my point,if you buy 2 bitcoins at $400 and sell it for $500 when the price rises ,you're not really investing into a 3rd party attribute but the bitcoin itself.If you consider stock market ,it would be pointless in buying shares with bitcoins ,as you have two away risks involved.Moreover companies will never allow it,as they're equally at risk if they take bitcoin as basis for their stocks.
newbie
Activity: 5
Merit: 0
June 02, 2016, 10:12:57 AM
#3
I agree, over a short term. But the point of a cryptocurrency based stock market with a set amount of coins to be released should, theoretically, have a cap on inflation at whatever the maximum release is. Other currencies just allow governments to print money whenever they want. It could take a few years to become practical, but once Bitcoin and other currencies reach their respective caps it should be an option worth exploring.
legendary
Activity: 1232
Merit: 1000
June 02, 2016, 09:29:51 AM
#2
With a solid amount of bitcoin to be released, 21 million, this currency isn't going to be subject to fluctuation or inflation like the fiat currencies. Part of the stock market's volatility is based on the value of the dollar currently and the value of the dollar in the future.

The volatility of fiat currencies like the dollar is negligible when compared to the volatility of bitcoin.
Dollar's value might get eroded over decades, but that is nothing compared to the price movements of bitcoin.
newbie
Activity: 5
Merit: 0
June 02, 2016, 02:25:10 AM
#1
Hello, I just joined this forum based on an idea I had a few minutes ago. I've had a bit of money in bitcoin and I'm looking at other currencies such as Etherium. Taking a look at the values of these currencies on https://coinmarketcap.com/, I noticed their relative volatility, not unlike a stock market. Both of these are objects of concern when it comes to growth and volatility. Everybody want these currencies to go up in value, stocks too. Nobody wants them to crash. Bitcoin's coin cap presents an opportunity to stop these problems. With a solid amount of bitcoin to be released, 21 million, this currency isn't going to be subject to fluctuation or inflation like the fiat currencies. Part of the stock market's volatility is based on the value of the dollar currently and the value of the dollar in the future. It's complicated, I don't fully understand it myself. But removing this volatility with bitcoin presents a valuable opportunity for security worldwide and a more intrinsic valuation of bitcoin. If you can purchase a stock with bitcoin, many more people are likely to accept it as money. Once bitcoin hits its cap, it is likely to only go up in value as there are only so many to go around. This can only mean good things for both the currency and its potential market, as the coin would have more value over time. Valuations of stock could occur more based on how the company actually functions and performs, rather than also relying on how the dollar or euro is doing that particular quarter. Though this is just a nighttime idea, I'd like to discuss the possibility and pros and cons of this form of market. Anybody else interested?
Jump to: