To conclude : It is impossible. Forget it.
Topic: A Small Idea : a digital currency unit (Read 1812 times)
To conclude : It is impossible. Forget it.
To conclude : It is impossible. Forget it.
will there be an exchange where i can speculate on each person's country values? 
each country has what is known as living costs. basically the costs of average rent, food, and essentials.
so if you declare this as a unit. and say 1 bitcoin is worth 2LC (2 weeks of living costs) that would be easily able to convert independantly to each persons country value. without having to be a dollar to X exchange rate.
so if you declare this as a unit. and say 1 bitcoin is worth 2LC (2 weeks of living costs) that would be easily able to convert independantly to each persons country value. without having to be a dollar to X exchange rate.
Hi, i'm here to talk about an "idea" that poped in my mind just when i wanted to sleep last night (that's always like that ... can't sleep after ...)
......
If you think it's really stupid, say it too
(ps : i will rewrite this post, it's a little messy ...)
......
If you think it's really stupid, say it too
(ps : i will rewrite this post, it's a little messy ...)
I can imagine such a unit PEGGED to a basket of fiat currencies OR it can be valued by e.g. a food basket from all over the world.
Lets say in 2014 such a standardized basket would cost 1UNIT and the next year due to very low grain yield worldwide it would cost e.g. 1.2UNIT(inflation due to low grain yield)...
To conclude: I think assigning value to the UNIT should be based on some high utility real life object like a standardized food basket.
Or for simplicity it can just be hard pegged to an existing fiat or averaged bunch of fiat currencies.
Problems:
How would you issue such a crypto currency(if it was pegged to real life asset or fiat)? You wouldn't be able to conjure it like central banks do.
But how would one run the UNIT network/infrastructure? Without incentives like block reward and transfer fees?
The model of limited supply and gradual build up of the total supply could not be applied here. The UNIT total supply would have to be derived from the underlying asset supply.
p.s. sorry for using UNIT instead of Uc, just noticed
Hi, i'm here to talk about an "idea" that poped in my mind just when i wanted to sleep last night (that's always like that ... can't sleep after ...)
What money/currency has not instead of a lot of "measures", the unit :
When you use any unit of distance, you can express it in meters.
When you use any unit of time, you can express it in seconds.
When you use money, everyone use something different. Most of the world express it in Dollar or Euro.
But it's not units, it's currencies, that fluctuate all the time.
Sometimes sellers have to change their prices in "real" money because of the fluctuations, but with digital currencies, the prices are never the same.
Example of a sandwich sold by a baker
Let's say that a baker that sell is sandwich at 3$ want to use digital currencies. So he will try to use BitCoin and use the equivalent in bitcoin to the price in $.
But because of the fluctuation he will have to change the price everyday or so, not to sell it too cheap or too expansive
http://www.universalcurrencyunit.org/img/withoutunic-small.png
Like i've read in a french article, a journalist tried to buy something in a bakery "accepting Bitecoins". But the baker had stopped to took Bitcoins, because he thought he couldn't keep with the pace of this currency.
Why not use a fixed unit ?
So i thought, if we could use a international/universal unit, like any measures, could it make things easier ? (Like gold was used before i think ?)
That's what i mean by 'universal currency unit' (or 'unic' / Uc)
If you set a FIXED unit, and put currencies value with it, you can express every currency in this unit, exchange what you want of this unit using many currencies.
For digital currencies which have a very fluctuating value, maybe a short life, would it be really useful ?
And you can set something that is not related to any country (because even real money can be expressed in it)
So for the case of our baker, he could give the price of his sandwich in Unic and his country money (like we had for euro when it came)
He will just have to say what currencies he accept
http://www.universalcurrencyunit.org/img/withunic-small.png
So i think this would help to make seller accept better the digital currencies
Or maybe i'm just a fool, and for sure i forgot a lot of parameters ^^
What's next ?
if you think it's an interesting idea, vote for it.
If you would want to create something on that, or discuss more about it, i'm about to make a forum.
If you think it's really stupid, say it too
(ps : i will rewrite this post, it's a little messy ...)
What money/currency has not instead of a lot of "measures", the unit :
When you use any unit of distance, you can express it in meters.
When you use any unit of time, you can express it in seconds.
When you use money, everyone use something different. Most of the world express it in Dollar or Euro.
But it's not units, it's currencies, that fluctuate all the time.
Sometimes sellers have to change their prices in "real" money because of the fluctuations, but with digital currencies, the prices are never the same.
Example of a sandwich sold by a baker
Let's say that a baker that sell is sandwich at 3$ want to use digital currencies. So he will try to use BitCoin and use the equivalent in bitcoin to the price in $.
But because of the fluctuation he will have to change the price everyday or so, not to sell it too cheap or too expansive
http://www.universalcurrencyunit.org/img/withoutunic-small.png
Like i've read in a french article, a journalist tried to buy something in a bakery "accepting Bitecoins". But the baker had stopped to took Bitcoins, because he thought he couldn't keep with the pace of this currency.
Why not use a fixed unit ?
So i thought, if we could use a international/universal unit, like any measures, could it make things easier ? (Like gold was used before i think ?)
That's what i mean by 'universal currency unit' (or 'unic' / Uc)
If you set a FIXED unit, and put currencies value with it, you can express every currency in this unit, exchange what you want of this unit using many currencies.
For digital currencies which have a very fluctuating value, maybe a short life, would it be really useful ?
And you can set something that is not related to any country (because even real money can be expressed in it)
So for the case of our baker, he could give the price of his sandwich in Unic and his country money (like we had for euro when it came)
He will just have to say what currencies he accept
http://www.universalcurrencyunit.org/img/withunic-small.png
So i think this would help to make seller accept better the digital currencies
Or maybe i'm just a fool, and for sure i forgot a lot of parameters ^^
What's next ?
if you think it's an interesting idea, vote for it.
If you would want to create something on that, or discuss more about it, i'm about to make a forum.
If you think it's really stupid, say it too
(ps : i will rewrite this post, it's a little messy ...)
Perhaps this is what BitUSD will be used for. Bitshares seems to be developing some kind of currency which will precisely track the price of the dollar and provide a cryptocurrency which is free from volatility.
This is made possible by a technical form known as contract for difference. Alice and Bob both wager on the price in opposite directions up or down resulting in price stability.
https://en.wikipedia.org/wiki/Basket_of_goods
https://en.wikipedia.org/wiki/Big_mac_index
And yes, why not separating the "unit of account" from the "means of exchange"/"store of value" function of money. Once the dollar is history, prices in shops could be displayed in Big Macs, but payable in (fluctuating) bitcoins, litecoins, gold, silver, whatever, converted on the spot. We're living in the information age right now, so it's easily possible.
https://en.wikipedia.org/wiki/Big_mac_index
And yes, why not separating the "unit of account" from the "means of exchange"/"store of value" function of money. Once the dollar is history, prices in shops could be displayed in Big Macs, but payable in (fluctuating) bitcoins, litecoins, gold, silver, whatever, converted on the spot. We're living in the information age right now, so it's easily possible.
If bitcoin/usd rates were as stable as ltc/btc rates this problem would be a minor one, its just a matter of time for cryptos to achieve a balance.
its worth a try
Like i've read in a french article, a journalist tried to buy something in a bakery "accepting Bitecoins". But the baker had stopped to took Bitcoins, because he thought he couldn't keep with the pace of this currency.
Okay, look right here:-
1. To accept bitcoins, practically, you need a computer (else, lots and lots of maths that'll take days/weeks to do)
2. You need an internet connection (To check you actually got the coins)
So, why not just have the computer automagically get the current price in bitcoins per transaction? It's what I do for my services.
1 sandwich = 1 sandwich
problem solved
Au contraire! Sandwich, IL, ≠ Sandwich, Kent. One is far more superior, while the other is located in... (almost went there
) 1 sandwich = 1 sandwich
problem solved
Why do people keep trying to reinvent bad ideas that were debunked a century ago?
https://mises.org/econcalc.asp
https://mises.org/econcalc.asp
I think a universal unit of measure for currencies should be based on something that is of universal value to all humans. Gold and dollars do not meet this requirement. Maybe we should use something based on human dietary needs, such as average daily required calories. Then we use a weighted price basket of the world's 5 or 10 most common staple foods (staple food index) to determine the value of these universal units. Let's say:
1 unit of universal value = market price of 2,000 calories of staple food index
Merchants could then choose to price their goods and services in this new unit of value. For example, a baker who currently sells a 2,000 calorie loaf of bread for 5 dollars (2 for 10) decides that he wants to price his goods in this new measure. The cost of the wheat to make the bread is only 1 dollar and staple food index is 2 dollars. If the baker would sell the bread at cost, the price would be 0.5 units of universal value. But obviously he takes into account fixed costs, labor, and profit, so he sets the price at 2.5 units, 400 percent higher than the cost of raw materials, just like 5 dollars was 400 percent higher than 1 dollar.
Obviously this idea needs a lot more development...
1 unit of universal value = market price of 2,000 calories of staple food index
Merchants could then choose to price their goods and services in this new unit of value. For example, a baker who currently sells a 2,000 calorie loaf of bread for 5 dollars (2 for 10) decides that he wants to price his goods in this new measure. The cost of the wheat to make the bread is only 1 dollar and staple food index is 2 dollars. If the baker would sell the bread at cost, the price would be 0.5 units of universal value. But obviously he takes into account fixed costs, labor, and profit, so he sets the price at 2.5 units, 400 percent higher than the cost of raw materials, just like 5 dollars was 400 percent higher than 1 dollar.
Obviously this idea needs a lot more development...
The proposed solution is not a solution.
We had this discussion in 2011 https://bitcointalksearch.org/topic/m.626993
when I open my bitcoin business I will use fixed bitcoin prices
Are you sure that your potential customer base will be happy with huge price volatility?I would have thought that even most of the people currently possessing btc and actively using it for purchasing would want the prices to be pegged to their local currency. Let alone all the other people who don't yet understand bitcoin.
OP all you've done is make another faux-currency. In your scenario, you could just as easily use dollars instead of your new one, and then everything converts to dollars.
I agree with the idea you're going for though, and in fact, when I open my bitcoin business I will use fixed bitcoin prices, and never "cash out" into fiat. My determination of the value of a bitcoin will the basis for my price model, and I will be using long term contracts with my suppliers to ensure I don't get hit too hard with arbitrage, although I'm perfectly willing to take somewhat of a hit, if that's what it takes. What I-- and you, without realizing it-- am going for, is closing the loop on a bitcoin-only economy. Bitcoiners can scoff at fiat all they want, but when they still perceive their value in terms of fiat, they are still caught in the "system" and the banksters still control them.
The reason you can used fixed bitcoin prices is because bitcoin is limited, so if you assume a certain percentage of the population adopting it, and average out the costs of living and adjust, you can get a base value for what bitcoin has to be worth in order to transact with in a closed economy of X% adoption. Of course, in order to not seem ridiculously expensive by everybody else, my model will have to take into account the current economy size, and be adjusted a few times per year, but oh well, such is life.
I agree with the idea you're going for though, and in fact, when I open my bitcoin business I will use fixed bitcoin prices, and never "cash out" into fiat. My determination of the value of a bitcoin will the basis for my price model, and I will be using long term contracts with my suppliers to ensure I don't get hit too hard with arbitrage, although I'm perfectly willing to take somewhat of a hit, if that's what it takes. What I-- and you, without realizing it-- am going for, is closing the loop on a bitcoin-only economy. Bitcoiners can scoff at fiat all they want, but when they still perceive their value in terms of fiat, they are still caught in the "system" and the banksters still control them.
The reason you can used fixed bitcoin prices is because bitcoin is limited, so if you assume a certain percentage of the population adopting it, and average out the costs of living and adjust, you can get a base value for what bitcoin has to be worth in order to transact with in a closed economy of X% adoption. Of course, in order to not seem ridiculously expensive by everybody else, my model will have to take into account the current economy size, and be adjusted a few times per year, but oh well, such is life.
each country has what is known as living costs. basically the costs of average rent, food, and essentials.
so if you declare this as a unit. and say 1 bitcoin is worth 2LC (2 weeks of living costs) that would be easily able to convert independantly to each persons country value. without having to be a dollar to X exchange rate.
so if you declare this as a unit. and say 1 bitcoin is worth 2LC (2 weeks of living costs) that would be easily able to convert independantly to each persons country value. without having to be a dollar to X exchange rate.
Why dont we just assign bitcoin a solid value? Say 1000 each? then there would be a value to base the standard against.
This is a good idea and inevitable if you ask me. The only question is how to keep the unit price stable.
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