For this to happen, first of all we would need a stable bitcoin prices. You need to have a base for you conversions. Otherwise it will be like everyone using there own prices and no body having the right ones. This will be challenging the whole accounting process. And without the basic commodities available in bitcoin, it won't be useful as well.
First we need a basic conversion mechanism for bitcoins to currencies. The exchanges are making this behave like some investment. It would be better to get clearing house or somthing.
Topic: About physical assets and a real Bitcoin economy, your opinion ? (Read 783 times)
February 17, 2014, 04:37:19 AM
That's entirely up to the companies and the people who put up the data for that sort of thing, these guys have already managed to get a BTC/Precious Metal price going: http://autrading.co.uk/home.php
If you actually look at everything in terms of Bitcoin or measure Bitcoin against other cryptocurrencies you'll find that actually there's a whole different story to what's going on with prices compared to if you look at it in the crazy hyperinflationary currencies, if anything 1BTC - 2BTC for an ounce of gold compared to $1200 isn't bad at all.
If you actually look at everything in terms of Bitcoin or measure Bitcoin against other cryptocurrencies you'll find that actually there's a whole different story to what's going on with prices compared to if you look at it in the crazy hyperinflationary currencies, if anything 1BTC - 2BTC for an ounce of gold compared to $1200 isn't bad at all.
February 17, 2014, 02:21:04 AM
If this starts happening then bitcoins gets shuts down. Sure bitcoin works well as a speculative commodity but as soon as you start undermining national currencies, tax free, on a large scale basis, your time is up.
Also the deflationary model doesn't quite work well when it comes to fixed prices. The small number of bitcoins means that wild swings can occur very rapidly.
Also the deflationary model doesn't quite work well when it comes to fixed prices. The small number of bitcoins means that wild swings can occur very rapidly.
So, if I follow you well, regulation, not market volatility, is the real threat to BTC existence as global currency. On the other hand, as far as I understand, a "speculative commodity" is useless and worth 0 if not bridged somehow to real economy, so that a BTC-based economy must exist to justify BTC's viability. Total market cap of bitcoins must be equal (at least) to the amount of pizzas one can buy with it...
February 16, 2014, 04:17:02 PM
That would be funny if the conversion ratios started being calculated as USD per BTC rather than the other way around
February 16, 2014, 03:02:39 PM
Hello, how do you think physical assets could be quoted only in Bitcoin, and not in EUR/USD/JPY. We have recently launched a platform selling collectibles with fixed price in BTC (wecoin88.com), but many challenges are still facing us, including geographical arbitrage, price distortion, volatility, etc. It is clear that the development of derivatives contract are helping, but apart from that, how do you see physical assets being listed and traded in BTC ?
If this starts happening then bitcoins gets shuts down. Sure bitcoin works well as a speculative commodity but as soon as you start undermining national currencies, tax free, on a large scale basis, your time is up.
Also the deflationary model doesn't quite work well when it comes to fixed prices. The small number of bitcoins means that wild swings can occur very rapidly.
February 16, 2014, 11:37:21 AM
Hello, how do you think physical assets could be quoted only in Bitcoin, and not in EUR/USD/JPY. We have recently launched a platform selling collectibles with fixed price in BTC (wecoin88.com), but many challenges are still facing us, including geographical arbitrage, price distortion, volatility, etc. It is clear that the development of derivatives contract are helping, but apart from that, how do you see physical assets being listed and traded in BTC ?
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