Why do they sell gold by the gram for much more than the ounce?
Because someone is willing to pay the price, without coercion.
Topic: A solution to volatility. - page 2. (Read 1639 times)
Because someone is willing to pay the price, without coercion.
Why do they sell gold by the gram for much more than the ounce?
Because someone is willing to pay the price, without coercion.
Why do they sell gold by the gram for much more than the ounce?
Because someone is willing to pay the price, without coercion.
Why do they sell gold by the gram for much more than the ounce?
Because someone is willing to pay the price, without coercion.
Why do they sell gold by the gram for much more than the ounce?
Because someone is willing to pay the price, without coercion.
Of course I got the idea from the gold market. Why do they sell gold by the gram for much more than the ounce? Are they ridiculous too?
Only allow...
This is of course only a thought experiment and impossible to implement without strict government regulation...
Your desire to control others is duly noted.
i dont think its a good solution for the volatility problem.
Not sure how this would work for e-commerce transactions. That's like saying you can only acquire and spend U.S. Dollars in denominations of $20s, $50s, or $100s.
what a ridiculous idea.
Volatility is not a problem, and in fact it's at this point even desirable to have.
If we would implement your suggestion it would only drive away buyers with smaller pockets.
Volatility is not a problem, and in fact it's at this point even desirable to have.
If we would implement your suggestion it would only drive away buyers with smaller pockets.
Daytraders cause Zeno's Paradox. Before Bitcoin can get to 100 it must first get to 50 and before it gets to 50 it must get to 25 etc. As Bitcoin price goes up, it becomes unaffordable for some to buy a whole Bitcoin. Add to that the market manipulation that causes very high volatility at even the smallest fractional levels. Many people feel the solution is to name fractional amounts so they feel like the integer amounts on the left side of the decimal. It's really a false paradox.
The solution is simple. Use the gold model. Only allow whole bitcoins to be sold. Precious metal markets sort of work this way. Sure you can buy gold by the gram, but you pay a lot more so it's not something you do frequently. Gold is best bought by the Troy Ounce at a minimum. Bitcoin can also be sold in fractions, but there should be a premium to do so. This will reduce the day trading that causes the huge fluctuations that makes it feel like Bitcoin is not increasing in value. Buying a whole Bitcoin may also become an exclusive goal for the rich and attract them faster. This way, fractional amounts will not be worth gambling on the markets.
This is of course only a thought experiment and impossible to implement without strict government regulation anyway. However, it behooves the exchanges to consider this proposal because it would likely serve to increase transactional revenue as Bitcoin will have less volatility and greater appeal to conservative investors.
This will also incentivise vendors to accept Bitcoin because they will accrue fractional amounts without paying a premium and can sell them at a premium.
The solution is simple. Use the gold model. Only allow whole bitcoins to be sold. Precious metal markets sort of work this way. Sure you can buy gold by the gram, but you pay a lot more so it's not something you do frequently. Gold is best bought by the Troy Ounce at a minimum. Bitcoin can also be sold in fractions, but there should be a premium to do so. This will reduce the day trading that causes the huge fluctuations that makes it feel like Bitcoin is not increasing in value. Buying a whole Bitcoin may also become an exclusive goal for the rich and attract them faster. This way, fractional amounts will not be worth gambling on the markets.
This is of course only a thought experiment and impossible to implement without strict government regulation anyway. However, it behooves the exchanges to consider this proposal because it would likely serve to increase transactional revenue as Bitcoin will have less volatility and greater appeal to conservative investors.
This will also incentivise vendors to accept Bitcoin because they will accrue fractional amounts without paying a premium and can sell them at a premium.
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