Do we need a miners and holders union for bitcoin?

johnyj

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Quote from: superduh on July 05, 2013, 12:17:59 PM

what noone realizes is that actual central bank or BANKS can be doing this just by buying up freely from people using free money.
they can essentially do all the controlling if they wanted to since they hold the coins. if "we" dont do it someone will step in to do it regardless of if we like it or not (for their own interests)

Current crash (together with gold) just proved that now FED is going to tighten, institutional traders' free money is flowing out of bitcoin exchange

At least currently bitcoin appears to be no difference than those speculative commodities. I'm providing bitcoin-only sale with a fixed bitcoin price, but unless lots of people are doing it, the value will still be heavily affected by exchange

superduh

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what noone realizes is that actual central bank or BANKS can be doing this just by buying up freely from people using free money.
they can essentially do all the controlling if they wanted to since they hold the coins. if "we" dont do it someone will step in to do it regardless of if we like it or not (for their own interests)

johnyj

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Quote from: User_513 on July 05, 2013, 10:12:13 AM

Quote from: johnyj on July 05, 2013, 08:16:12 AM

Bitcoin holders and miners are essentially the central banks of bitcoin economy. ...

What do you think?

I think your question illustrates your lack of understanding about the entire point of Bitcoin, that being the need for a decentralized currency that the market controls the value of instead of some central 'bank' or another. When a small cabal controls the value of a currency and the supply of that currency, that cabal has the power to take as much wealth as they wish to from those using said currency. So no, I don't think Bitcoin needs some cabal or another to control it's value, why do you? Do you hope to use the power of this proposed cabal of yours to essentially force the market to pay more for Bitcoin than it is worth?

Bitcoin is not fiat money system, no one can change the coin supply and fundamentals, but exchange is different, if you don't take control, a couple of institutional traders could take the control. I think that some kind of cushion is need to avoid violent shock in the price

I would rather see bitcoin price rise by 10-25% each month (following the difficulty rise), instead of a 2000% jump followed by a 75% dive. No matter how much times you have increased in value, a 100% drop will put you back to 0, and this could happen if the panics are large enough, especially when there is possibility to short the coin

User_513

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Quote from: johnyj on July 05, 2013, 08:16:12 AM

Bitcoin holders and miners are essentially the central banks of bitcoin economy. ...

What do you think?

I think your question illustrates your lack of understanding about the entire point of Bitcoin, that being the need for a decentralized currency that the market controls the value of instead of some central 'bank' or another. When a small cabal controls the value of a currency and the supply of that currency, that cabal has the power to take as much wealth as they wish to from those using said currency. So no, I don't think Bitcoin needs some cabal or another to control it's value, why do you? Do you hope to use the power of this proposed cabal of yours to essentially force the market to pay more for Bitcoin than it is worth?

nobbynobbynoob

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Annuit cœptis humanae libertas

BitPay or Coinbase eliminate BTC-side exchange risk for merchants, should they desire that.

I don't think anyone in Bitcoinia favours shifting toward any kind of "central banking" like organized structure TBH.

_mr_e

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No.

johnyj

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Beyond Imagination

Bitcoin holders and miners are essentially the central banks of bitcoin economy. Their action affect the money supply of the whole system

If they don't sell any coins mined, means no money supply increase, it will stop the sell off of bitcoin and increase the price stability

If they sell a lot of coins, means increase the money supply on the market, which will stop the crazy rally of the bitcoin price

And it is even better if they have built some reserve, they could step in to buy coins to support the price when it falls too fast and sell coins when it rises too fast

If majority of miners and holders act in a coordinated way, they are effectively doing what FED is doing: Ensure the price stability of the currency, so that business get more confident in using bitcoin

In one word: A distributed money supply buffer to stablize the price. It won't affect the long term trend of bitcoin but will provide better short and mid term price stablility

Some true market believers might think this is not necessary, but high volatility in bitcoin price will hurt business confidence

What do you think?

Topic: Do we need a miners and holders union for bitcoin? (Read 946 times)