Topic: Bot to operate a price bloc to stabilize price of BitCoins - page 4. (Read 5978 times)
And what would you deem the optimal bid wall price to be?
Whaddya think about Zeitgeist?
I wouldn't call myself a huge fan of the film, but it makes a few interesting points.
Not that that has anything at all to do with this thread.
Whaddya think about Zeitgeist?
The trick is actually to stabilize the value of bit coin - give or take.
The answer is to create a financial entity large enough to back up a certain USD/BTC price throughout the entire bit coin economy.
As an example, let's say you wanted to stabilize the price (ratio) at 1$:1BTC for all eternity - they would simply place a $21,000,000 bid at 1$ on MtGox. As a result the price cannot go below 1$.
This amount of force in that market would also influence many people to move their prices (bid or ask) towards the super bid at 1$.
Really though, what you would best be served by doing is running a bot that constantly adjusts it's bid price and quantity to:
(The current number of BitCoins @ a price of 21,000,000 / Current number of BTC minted)
To achieve this effect without the interference of big business, we would need to create something akin to a price bloc that acted on the exchange(s).
The bot would have to:
1) communicate to a server how much buying power it contributed to the bloc.
2) poll the server for the tool buying power of the price bloc
3) calculate this instance's proportional share of the price bloc
4) calculate this instance's proportional share of the number of BTC build
5) automatically adjust the user's bids on exchange(s) to reflect these new values as per the above equation
6) do the reverse for ask prices
It would be nice if the bot:
1) polled the instances of the client for a vote on target bid/ask prices, which would be then be determined by the instance's proportional share of the purchasing power in the bloc and the bloc's total purchasing power
2) listed the public value of the bloc in terms of total purchasing power and weighted average price per BitCoin in the user's local currency
It would be nice if the server
1) fed JSON data out on request
2) tracked historical values and displayed them with easy-to-read graphs
3) had an API to access it's data as part of other bots or data modeling systems
Donate to this wallet to contribute to the bounty for this idea:
19CCVDxm53WZuyGvNr4ZaVFgn1kYha4dC1
The bounty will be paid to the best bot (determined by consensus in the thread about the bot, ultimately decided by me, since I'm the IdeaMan) one week after the first bot is posted on that thread.
I keep 1 percent for coming up with the idea (deal with it), the other 99 goes to the developer who can first submit a functional bot to this thread that handles MtGox. Further payouts will be spread to the development team as a whole equally, again minus my 1 percent. For the sake of transparency, all transactions to and from this wallet will be posted to a new thread regarding this bot.
And of course, my 1 percent of the incoming donations will be used by the final bot to stabilize prices.
(the above is copy-pasted from my post in the thread that brought me to this idea, this is the official thread)
The answer is to create a financial entity large enough to back up a certain USD/BTC price throughout the entire bit coin economy.
As an example, let's say you wanted to stabilize the price (ratio) at 1$:1BTC for all eternity - they would simply place a $21,000,000 bid at 1$ on MtGox. As a result the price cannot go below 1$.
This amount of force in that market would also influence many people to move their prices (bid or ask) towards the super bid at 1$.
Really though, what you would best be served by doing is running a bot that constantly adjusts it's bid price and quantity to:
(The current number of BitCoins @ a price of 21,000,000 / Current number of BTC minted)
To achieve this effect without the interference of big business, we would need to create something akin to a price bloc that acted on the exchange(s).
The bot would have to:
1) communicate to a server how much buying power it contributed to the bloc.
2) poll the server for the tool buying power of the price bloc
3) calculate this instance's proportional share of the price bloc
4) calculate this instance's proportional share of the number of BTC build
5) automatically adjust the user's bids on exchange(s) to reflect these new values as per the above equation
6) do the reverse for ask prices
It would be nice if the bot:
1) polled the instances of the client for a vote on target bid/ask prices, which would be then be determined by the instance's proportional share of the purchasing power in the bloc and the bloc's total purchasing power
2) listed the public value of the bloc in terms of total purchasing power and weighted average price per BitCoin in the user's local currency
It would be nice if the server
1) fed JSON data out on request
2) tracked historical values and displayed them with easy-to-read graphs
3) had an API to access it's data as part of other bots or data modeling systems
Donate to this wallet to contribute to the bounty for this idea:
19CCVDxm53WZuyGvNr4ZaVFgn1kYha4dC1
The bounty will be paid to the best bot (determined by consensus in the thread about the bot, ultimately decided by me, since I'm the IdeaMan) one week after the first bot is posted on that thread.
I keep 1 percent for coming up with the idea (deal with it), the other 99 goes to the developer who can first submit a functional bot to this thread that handles MtGox. Further payouts will be spread to the development team as a whole equally, again minus my 1 percent. For the sake of transparency, all transactions to and from this wallet will be posted to a new thread regarding this bot.
And of course, my 1 percent of the incoming donations will be used by the final bot to stabilize prices.
(the above is copy-pasted from my post in the thread that brought me to this idea, this is the official thread)
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