Bitcoin is fundementally flawed, here's why and how it can be fixed

Birdy

sr. member

Activity: 364

Merit: 250

Quote from: lm2f on April 25, 2013, 10:22:29 PM

Quote from: Birdy on April 25, 2013, 10:12:14 PM

Quote from: lm2f on April 25, 2013, 09:35:04 PM

It's too volatile to be a legitmate currency.

The people behind bitcoin needs to tie it's value to the dollar if they ever want it to take off. One coin gets you one dollar, simple.

Dollars to bananas is so volatile!
Euros to oil, too.

It's not possible to tie it to dollars, dollars can be printed as wished.

If dollars are so bad, then why is it the world's #1 reserve currency?

Checkmate, buttcoiner.

You are misunderstanding something, I didn't rate dollars as good or bad.
I said it's not possible to tie them to Bitcoin, it wouldn't be Bitcoin anymore.
Bitcoins are limited, there is a maximum of 21 Mio, you would have to change that. (Hint: That's not gonna happen, because those who could vote for it by downloading a changed client would lose money in the process)

Serjster

newbie

Activity: 37

Merit: 0

Welcome to the world of free market economy.

Portnoy

legendary

Activity: 2030

Merit: 1000

My money; Our Bitcoin.

Derivatives and greater liquidity will bring more stability over time ( we are still early days ).

Merchants can also use such things to hedge, if they choose to hold a lot, or some, BTC
instead of using services like Bitpay, which can convert the BTC to fiat for them right away,
which lessons their exposure to fluctuations.

More merchant adoption brings more liquidity and more stability even as it increases in value
with greater demand.

And of course the value is largely irrelevant in its intended use as a global decentralized p2p
payment system.

lm2f

member

Activity: 82

Merit: 10

Quote from: Birdy on April 25, 2013, 10:12:14 PM

Quote from: lm2f on April 25, 2013, 09:35:04 PM

It's too volatile to be a legitmate currency.

The people behind bitcoin needs to tie it's value to the dollar if they ever want it to take off. One coin gets you one dollar, simple.

Dollars to bananas is so volatile!
Euros to oil, too.

It's not possible to tie it to dollars, dollars can be printed as wished.

If dollars are so bad, then why is it the world's #1 reserve currency?

Checkmate, buttcoiner.

Luno

sr. member

Activity: 504

Merit: 250

Ok, I'll defend my argument:

Of Bitcoin is tied to the Dollar, it's a voucher a "fake" Dollar = illegal!!!

Not all people merchants are interested in checking the exchange rate every other minute. The more people using Bitcoin outside exchanges, the less volatile it becomes.

Actually it's a psychological thing as you consider Bitcoin valuable in terms of it's price in Dollars, hence it's value as a currency is depending on it's Dollar price. Bitcoin is a country on it's own!

If you are considering Bitcoin volatility as a problem, you are only considering Bitcoin as a payment system complimenting the authorized one. besides being a slaves perspective you are actually relying on Bitcoins value being decreed by the FED.

That's why I suggested you read up on money theory!

Birdy

sr. member

Activity: 364

Merit: 250

Quote from: lm2f on April 25, 2013, 09:35:04 PM

It's too volatile to be a legitmate currency.

The people behind bitcoin needs to tie it's value to the dollar if they ever want it to take off. One coin gets you one dollar, simple.

Dollars to bananas is so volatile!
Euros to oil, too.

It's not possible to tie it to dollars, dollars can be printed as wished.

eyesore

newbie

Activity: 14

Merit: 0

Quote from: lm2f on April 25, 2013, 09:35:04 PM

It's too volatile to be a legitmate currency.

The people behind bitcoin needs to tie it's value to the dollar if they ever want it to take off. One coin gets you one dollar, simple.

Lol

Maybe you can come out with lm2fcoin, and back the coins with your own money.

slacker

newbie

Activity: 43

Merit: 0

Quote from: lm2f on April 25, 2013, 10:02:27 PM

Who will buy them from you when they can buy from Mt.Gox for $1?

The quantity of bitcoins is limited. When Mt. Gox run out of bitcoins, the speculators (who bought all bitcons from Mt. Gox at cheap price) will start selling at bigger price.

The big question is "Who will sell Bitcoins at $1 to Mt. Gox?".

lm2f

member

Activity: 82

Merit: 10

Quote from: slacker on April 25, 2013, 09:54:55 PM

Quote from: lm2f on April 25, 2013, 09:44:06 PM

How is it not possible to tie it to anything? Mt.Gox can just fix the sell and buy price to $1. Simple.

If Mt. Gox do this I will buy 10000 bitcoins from Mt. Gox, then will sell them on another exchanger (for $135 per BTC), and will repeat this until Mt. Gox goes broke.

Who will buy them from you when they can buy from Mt.Gox for $1?

gabo77

newbie

Activity: 30

Merit: 0

Quote from: Luno on April 25, 2013, 09:44:45 PM

volatility is not a problem, holding it's value against the Dollar is. Other currencies have swings of 20-40% against each other and ordinary people don't find out because things cost the same as they did yesterday in the grocer.

read up on economic theory and be amazed about what money is and is not.

That reasoning won't apply to currencies that are not geographically limited like bitcoin. Think about it, if bitcoins swings down, prices (in terms of bitcoins) will go up pretty fast online and vice versa. We already saw it!

slacker

newbie

Activity: 43

Merit: 0

Quote from: lm2f on April 25, 2013, 09:44:06 PM

How is it not possible to tie it to anything? Mt.Gox can just fix the sell and buy price to $1. Simple.

If Mt. Gox do this I will buy 10000 bitcoins from Mt. Gox, then will sell them on another exchanger (for $135 per BTC), and will repeat this until Mt. Gox goes broke.

Remember what George Soros did with the Bank of England.

lm2f

member

Activity: 82

Merit: 10

Quote from: Luno on April 25, 2013, 09:44:45 PM

volatility is not a problem, holding it's value against the Dollar is. Other currencies have swings of 20-40% against each other and ordinary people don't find out because things cost the same as they did yesterday in the grocer.

Bitcoin is not like the other currencies, the bitcoin userbase is made up of people who regularily check it's price against fiat and speculate/hoard accordingly.

Luno

sr. member

Activity: 504

Merit: 250

volatility is not a problem, holding it's value against the Dollar is. Other currencies have swings of 20-40% against each other and ordinary people don't find out because things cost the same as they did yesterday in the grocer.

read up on economic theory and be amazed about what money is and is not.

lm2f

member

Activity: 82

Merit: 10

Quote from: slacker on April 25, 2013, 09:40:38 PM

It is not possible to be "tied" to something.

The price will be more stable when amount of users go stable. Until then, the price will go up (with high volatility and big corrections).

How is it not possible to tie it to anything? Mt.Gox can just fix the sell and buy price to $1. Simple.

slacker

newbie

Activity: 43

Merit: 0

It is not possible to be "tied" to something.

The price will be more stable when amount of users go stable. Until then, the price will go up (with high volatility and big corrections).

lm2f

member

Activity: 82

Merit: 10

It's too volatile to be a legitmate currency.

The people behind bitcoin needs to tie it's value to the dollar if they ever want it to take off. One coin gets you one dollar, simple.

Topic: Bitcoin is fundementally flawed, here's why and how it can be fixed (Read 598 times)