I agree that exchanging is the biggest problem and bottleneck currently. I am not sure if it has to do with the price, I think that is another issue.
The main problem is the difficulty of exchange, from my personal experience at least. If you do it online you have to go through verification because of your bank and fraud. So then again, it all comes down to the banks plus the fees they impose on transactions. Also, as a recent topic here in bitointalk claimed if you withdraw to your account over 1000€ you will get flagged. And there are many more issues, all coming down to exchange, trust, verification and banking.
A true bitcoin currency won't exist until I can simply exchange my fiat to BTC whenever I want, without having to wait 5 days of bank working days, provide 2 pieces of proof of residence, my ID etc. Simplicity is needed.
Topic: An idea to move Bitcoin closer to everyday use - page 2. (Read 1192 times)
Just pick 3 big exchanges and take their average exchange rates.
Have you ever converted from one fiat to another fiat(e.g. EUR to USD)? The exchange rates between foreign exchange offices also differ even when they are physically just some meters apart. I never heard, that that is a problem.
Have you ever converted from one fiat to another fiat(e.g. EUR to USD)? The exchange rates between foreign exchange offices also differ even when they are physically just some meters apart. I never heard, that that is a problem.
Do you offer every single merchant "pick 3 big exchanges and take their average"? You may relay this job to an aggregate website and then pray it is not down, hacked or whatever else.
Of course it is not a problem for manual sales once a week. But I am talking about turning it to industry. Do you think that in Paypal or Visa when it come to local currencies "pick 3 big exchanges and take their average"? They have certain directive source and just follow it.
I really have no idea, what problem you are seeing.
And btw. regarding a aggregate website:
https://www.google.at/search?hl=en&tbo=d&output=search&sclient=psy-ab&q=btc+usd&btnG=&oq=&gs_l=&pbx=1
Just pick 3 big exchanges and take their average exchange rates.
Have you ever converted from one fiat to another fiat(e.g. EUR to USD)? The exchange rates between foreign exchange offices also differ even when they are physically just some meters apart. I never heard, that that is a problem.
Have you ever converted from one fiat to another fiat(e.g. EUR to USD)? The exchange rates between foreign exchange offices also differ even when they are physically just some meters apart. I never heard, that that is a problem.
Do you offer every single merchant "pick 3 big exchanges and take their average"? You may relay this job to an aggregate website and then pray it is not down, hacked or whatever else.
Of course it is not a problem for manual sales once a week. But I am talking about turning it to industry. Do you think that in Paypal or Visa when it come to local currencies "pick 3 big exchanges and take their average"? They have certain directive source and just follow it.
You lost us with "like Central Bank's."
Sorry you are so sensitive. Yes I do consider blockchain as a robotic "Central Bank" of Bitcoin. Scary?
Just pick 3 big exchanges and take their average exchange rates.
Have you ever converted from one fiat to another fiat(e.g. EUR to USD)? The exchange rates between foreign exchange offices also differ even when they are physically just some meters apart. I never heard, that that is a problem.
Have you ever converted from one fiat to another fiat(e.g. EUR to USD)? The exchange rates between foreign exchange offices also differ even when they are physically just some meters apart. I never heard, that that is a problem.
You lost us with "like Central Bank's."
I think the BTC exchange rates do just fin right now. The challenge might arise with lesser known, smaller volume exchanges but those marketplaces should keep greater eye on the major marketplaces (i.e., Blockchain).
Why add another process to the mix to increase variance?
I think the BTC exchange rates do just fin right now. The challenge might arise with lesser known, smaller volume exchanges but those marketplaces should keep greater eye on the major marketplaces (i.e., Blockchain).
Why add another process to the mix to increase variance?
As we all know at the moment Bitcoin is not quite ready to be a payment system for everyday use. Many people put their efforts towards that direction (including myself) but it didn't work that well. Bitcoin still remains merely investment and speculation tool.
I analysed what could be the main obstacle in this process for Bitcoin. My conclusion appeared that exchange rate to local currency is the main problem here. There is no fully "trusted" source of the rate. We do have rates from the leading stock exchanges, we do have average or weighted aggregates of those rates. But still that sources are "points of weakness" in the system. We can't trust them that way like we trust blockchain information.
Therefore I came out with an idea to add to the blocks exchange rate information. Not necessary for all available currencies, world reserve currencies would be enough (USD, EUR, GBP). A peer will collect exchange rate from any available source or sources (or establish its own). Then miners averages and confirm such rate in the block (dropping obviously rubbish values). It becomes an "official" rate like Central Bank's rate in each country. Though commercial entities are free to add their own margins as commercial banks do now.
It should not be integral part of the Bitcoin protocol but kind plugin functionality. We can drop it when turn the world to Bitcoin economy.
Pleas give your thought on the idea and its technical implementation possibility.
I analysed what could be the main obstacle in this process for Bitcoin. My conclusion appeared that exchange rate to local currency is the main problem here. There is no fully "trusted" source of the rate. We do have rates from the leading stock exchanges, we do have average or weighted aggregates of those rates. But still that sources are "points of weakness" in the system. We can't trust them that way like we trust blockchain information.
Therefore I came out with an idea to add to the blocks exchange rate information. Not necessary for all available currencies, world reserve currencies would be enough (USD, EUR, GBP). A peer will collect exchange rate from any available source or sources (or establish its own). Then miners averages and confirm such rate in the block (dropping obviously rubbish values). It becomes an "official" rate like Central Bank's rate in each country. Though commercial entities are free to add their own margins as commercial banks do now.
It should not be integral part of the Bitcoin protocol but kind plugin functionality. We can drop it when turn the world to Bitcoin economy.
Pleas give your thought on the idea and its technical implementation possibility. Jump to: