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Topic: Could a coin price be locked in place? - page 7. (Read 873 times)

hero member
Activity: 2786
Merit: 902
yesssir! 🫡
December 19, 2018, 06:01:27 AM
#7
The only use of that crypto left would be anonymous transactions which will be needed by a very few people on a daily basis and that crypto would loose all its popularity and I don't see a very long future for this kind of coin at all.

Not really. If price is stable ppl would actually put more trust to it primarily because the risk of your money dropping value, would be gone. In that case we can assume more merchants! Additionally bitcoin is easy to set-up, so it would be useful to countries where most ppl doesn't have bank accounts. Can't really see it having no future when it has an actual use.

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If I prefer stability then I would prefer fiat over any investment because value of 1$ will always be 1$ so no need for me to let go of my money. Fiat is without any doubt the more stable than anything in the world.

Not always. Fiats are backed by governments so naturally, the value would drop if its backer falls into crisis.
hero member
Activity: 980
Merit: 500
December 18, 2018, 04:32:48 PM
#6
I'm not talking about these supposed stablecoins like Tether, but normal coins.  Let's say an agreement was made among all the major Bitcoin exchanges.  Starting January 1, a Bitcoin is worth $5000 USD, plain and simple, and that's it.  The price never goes higher or lower.  A Bitcoin is $5000 today, tomorrow, next week, next month, etc.  NOTHING changes it.  Not a war, not the economy, not Trump getting re-elected (which he will, he's doing a great job), nothing.

I wonder if that could be done and what the effect would be. 

One effect is that I wouldn't be buying BTC, because with no price volatility, how could I ever make a profit?  But one good thing is that normal companies may be more inclined to use Bitcoin, since its price is now fixed and does not change.
If the price of the Bitcoin is fixed, then I simply don't see the importance and use of Bitcoin in the mainstream and its use in everyday life. If the price of the Bitcoin is stable (fixed), then why in the world would I exchange my government backed fiat currencies which are accepted everywhere for crypto like Bitcoin which have a very limited acceptance and can be banned by government any day they like. If I prefer stability then I would prefer fiat over any investment because value of 1$ will always be 1$ so no need for me to let go of my money. Fiat is without any doubt the more stable than anything in the world.
The only use of that crypto left would be anonymous transactions which will be needed by a very few people on a daily basis and that crypto would loose all its popularity and I don't see a very long future for this kind of coin at all.
legendary
Activity: 1652
Merit: 1483
December 18, 2018, 05:38:45 AM
#5
I'm not talking about these supposed stablecoins like Tether, but normal coins.  Let's say an agreement was made among all the major Bitcoin exchanges.  Starting January 1, a Bitcoin is worth $5000 USD, plain and simple, and that's it.  The price never goes higher or lower.  A Bitcoin is $5000 today, tomorrow, next week, next month, etc.  NOTHING changes it.  Not a war, not the economy, not Trump getting re-elected (which he will, he's doing a great job), nothing.

I wonder if that could be done and what the effect would be. 

it would never happen. exchanges wouldn't collude to end volatility because that's how they profit.

in theory, trading would just grind to a halt since traders wouldn't be able to buy and sell at real prices. everyone would just withdraw their coins and fiat and send them to legitimate exchanges that weren't trying to rig the price.

exchanges really aren't that powerful. there are so many now all across the world that effective collusion like that is totally impossible. it's the market---traders and investors---that determine the price, not exchanges.
legendary
Activity: 3374
Merit: 1922
Shuffle.com
December 18, 2018, 12:08:50 AM
#4
Most traders will likely stop using Bitcoin and exchanges could go out of business if they keep this $5,000 rule. This will never happen because all exchanges will change anything to keep their users happy and if it occurs at some point it won't last long because there are other places where people can sell and buy BTC for more or less than $5.000.

Another thing that can happen is bitcoin mining will become unprofitable since the required power to mine a block increases over time and having a fixed price won't be enough to sustain their expenses.
legendary
Activity: 3080
Merit: 1353
December 17, 2018, 11:35:07 PM
#3
Then it will totally defeat the purpose of having Bitcoin or crypto in general. Although that's one disadvantage is that its very volatile but we have battled it in the last 10 years that people learn how to live (and die) with it. I don't understand how you can't make a profit through volatility though, might be difficult in the beginning but as you mature as trader then you will learn how to embrace and take advantage of its price fluctuations either short or long term goal.
hero member
Activity: 2786
Merit: 902
yesssir! 🫡
December 17, 2018, 11:29:04 PM
#2
No, the exchanges don't set the price, it is the whole demand and supply that affects it, which they are not in control of. Now, if you want them to manipulate their own market, it still not enough since they can't force people to buy and not everyone would join knowing they can be sued for it.

I can't really see how bitcoin would be stable when nothing backs the price 乁( ͡ಠ ʖ̯ ͡ಠ)ㄏ. If ever it happens tho, I think it'll be easier for big companies to trust cryptocoins.
jr. member
Activity: 199
Merit: 1
December 16, 2018, 09:39:13 PM
#1
I'm not talking about these supposed stablecoins like Tether, but normal coins.  Let's say an agreement was made among all the major Bitcoin exchanges.  Starting January 1, a Bitcoin is worth $5000 USD, plain and simple, and that's it.  The price never goes higher or lower.  A Bitcoin is $5000 today, tomorrow, next week, next month, etc.  NOTHING changes it.  Not a war, not the economy, not Trump getting re-elected (which he will, he's doing a great job), nothing.

I wonder if that could be done and what the effect would be. 

One effect is that I wouldn't be buying BTC, because with no price volatility, how could I ever make a profit?  But one good thing is that normal companies may be more inclined to use Bitcoin, since its price is now fixed and does not change.
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