Feasibility of Creating a 5-BitCoin Currency

Richy_T

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Quote from: Ryland R. Taylor-Almanza on October 07, 2012, 03:21:32 AM

I could be wrong, but I'm pretty sure OP meant an entirely new cryptocurrency (let's call it, 5coin) with a new block chain and everything, but one 5coin would always be equal to 5 bitcoins. If that is the case, it would very hard (pretty much impossible) to keep the two currencies in sync. Maybe if there was someone that had a shit ton of both currencies, and always traded 5 Bitcoin/5coin, but the chances of that are pretty slim too.

Ask Norman Lamont how trying to force a fixed exchange rate goes. I think I just heard George Soros chuckle.

Richy_T

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Quote from: mobodick on October 04, 2012, 01:08:03 AM

Quote from: LegalEagle on October 04, 2012, 12:06:40 AM

In the same way a $5 bill is worth five $1 bills. What challenges would this present? Is this technically feasible? Would it help stabilize the currency? Discuss.

What is one bitcoin?

If you convert have five one-bitcoins and you convert that to five bitcoins in a forest and there's nobody there to hear, does anybody care?

Ryland R. Taylor-Almanza

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I could be wrong, but I'm pretty sure OP meant an entirely new cryptocurrency (let's call it, 5coin) with a new block chain and everything, but one 5coin would always be equal to 5 bitcoins. If that is the case, it would very hard (pretty much impossible) to keep the two currencies in sync. Maybe if there was someone that had a shit ton of both currencies, and always traded 5 Bitcoin/5coin, but the chances of that are pretty slim too.

BrannigansLaw

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Sometimes this community is embarrassing to be on. Especially when you get the numptys predicting the future, there is a lot of shite flying out of people mouths and I keep getting it in the eye.

Zeek_W

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Isn't there already a BTC5 coin?

https://www.casascius.com/

Grin

Jutarul

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Quote from: MysteryMiner on October 06, 2012, 07:02:49 PM

Both of these proposals is total BS

Bitcoins are hard to understand for majority of population is they are now. And the Bitcoin is ~~excellent~~ sufficient as it is now.

FTFY. Also please make clear which proposals you mean?

MysteryMiner

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Death to enemies!

Both of these proposals is total BS

Bitcoins are hard to understand for majority of population is they are now. And the Bitcoin is excellent as it is now.

Jutarul

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Quote from: justusranvier on October 06, 2012, 06:06:30 PM

It sounds like the OP's question is related to a concept someone mention in one of the colored bitcoins threads.

No. The OP asks for a constant scaling factor between two coins. The only way to achieve that is to implement it on a protocol level. Colored coins are on top of the protocol and their value is determined by the free market.

justusranvier

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It sounds like the OP's question is related to a concept someone mention in one of the colored bitcoins threads.

pretendo

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Le epic troll!

MysteryMiner

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Quote from: LegalEagle on October 04, 2012, 12:43:44 AM

Quote from: BurtW on October 04, 2012, 12:29:13 AM

Quote from: LegalEagle on October 04, 2012, 12:06:40 AM

In the same way a $5 bill is worth five $1 bills. What challenges would this present? Is this technically feasible? Would it help stabilize the currency? Discuss.

In the same way 5.0 BTC is worth exactly five times 1.0 BTC. We can also do 10.0 BTC, which is, you guessed it, worth exactly ten times 1.0 BTC.

WTF are you talking about?

The idea is that it would prevent deflation, if implemented correctly.

Asshole.

Only asshole would want to prevent deflation!

BurtW

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Quote from: Jutarul on October 04, 2012, 02:49:25 AM

IMHO, the only scenario where an additional BTC address space with a different valuation may become useful is e.g. if smaller than 1 satoshi denominations are required (This way you could expand the number of digits without actually changing the number of possible digits a bitcoin can cover).

We have such a long way to go before we even need to think about this. By the time one satoshi = one dollar, one dollar will be worth almost nothing.

At any rate if one satoshi = one dollar then the current Bitcoin protocol can eventually cover

$2,100,000,000,000,000

Well come to think of it at the rate we make dollars every day that might be the total number of dollars in existence by that time.

BurtW

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Quote from: LegalEagle on October 04, 2012, 12:43:44 AM

In the same way a $5 bill is worth five $1 bills. What challenges would this present? Is this technically feasible? Would it help stabilize the currency? Discuss.

Again, I simply still do not understand what the heck you are talking about. The purpose of $5 bills is so that you can carry 5 dollars in your pocket using 1/5 the mass and volume as five one dollar bills. With a $100 bill I can carry around 100 dollars using 1/100th the mass and volume as 100 one dollar bills.

Now how does any of this really apply to Bitcoins? I can "carry arround" Pirate's 500,000 BTC on a Bitcoin address and it "weights" the same and has the same "volume" as 0.00000001 BTC on a Bitcoin address.

Unless you are really talking about physical BTC or physical BTC bills then they already exist. We already have people making 1 BTC coins, 25 BTC coins, etc. and 1 BTC bills, 10 BTC bills, etc.

But physical BTC coins and bills have other security concerns and paper/coin money is passe, don't you think?

Please explain your idea in more detail.

Yuhfhrh

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Quote from: Jutarul on October 04, 2012, 02:49:25 AM

Quote from: LegalEagle on October 04, 2012, 12:06:40 AM

In the same way a $5 bill is worth five $1 bills. What challenges would this present? Is this technically feasible? Would it help stabilize the currency? Discuss.

The purpose of different bill denominations is value compression. However, in bitcoin, value is practically perfectly compressible, thus there is no need to introduce denominations.

Technically you could implement denominations on the protocol level, e.g. by introducing a second bitcoin address scheme which has e.g. a different lead symbol, were the protocol guarantees that coins on particular addresses are worth a specific amount of coins on another address. That means the protocol would have to deal with two kinds of addresses at the same time.

IMHO, the only scenario where an additional BTC address space with a different valuation may become useful is e.g. if smaller than 1 satoshi denominations are required (This way you could expand the number of digits without actually changing the number of possible digits a bitcoin can cover).

Thanks for wrapping this up perfectly.

Jutarul

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Quote from: LegalEagle on October 04, 2012, 12:06:40 AM

In the same way a $5 bill is worth five $1 bills. What challenges would this present? Is this technically feasible? Would it help stabilize the currency? Discuss.

The purpose of different bill denominations is value compression. However, in bitcoin, value is practically perfectly compressible, thus there is no need to introduce denominations.

Technically you could implement denominations on the protocol level, e.g. by introducing a second bitcoin address scheme which has e.g. a different lead symbol, were the protocol guarantees that coins on particular addresses are worth a specific amount of coins on another address. That means the protocol would have to deal with two kinds of addresses at the same time.

IMHO, the only scenario where an additional BTC address space with a different valuation may become useful is e.g. if smaller than 1 satoshi denominations are required (This way you could expand the number of digits without actually changing the number of possible digits a bitcoin can cover).

Bitcoin Oz

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Wat

Let me try to figure this out.

If .5 btc is equal to 1 USD and the exchange rate moves such that .005 is equal to 1 USD then we should call .005 1 bitcoin ?

Relative to whatever a USD is would be a bitcoin so if 1 usd is worth .000001 then that is what a bitcoin is .

Or something Huh

annette786

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Quote from: LegalEagle on October 04, 2012, 12:06:40 AM

In the same way a $5 bill is worth five $1 bills. What challenges would this present? Is this technically feasible? Would it help stabilize the currency? Discuss.

Perhaps OP is trying to imply a split (instead of a reverse split). i.e. when 1 BTC = $1000, you do a thousand to one split so 1 BTC = $1. Is this what you are asking?

chmod755

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Quote from: LegalEagle on October 04, 2012, 12:06:40 AM

In the same way a $5 bill is worth five $1 bills. What challenges would this present? Is this technically feasible? Would it help stabilize the currency? Discuss.

It's difficult and I think it looks horrible: http://imgur.com/T8OZu

drakahn

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Quote from: LegalEagle on October 04, 2012, 01:05:48 AM

Quote from: drakahn on October 04, 2012, 12:51:25 AM

Quote from: LegalEagle on October 04, 2012, 12:43:44 AM

Quote from: BurtW on October 04, 2012, 12:29:13 AM

Quote from: LegalEagle on October 04, 2012, 12:06:40 AM

In the same way a $5 bill is worth five $1 bills. What challenges would this present? Is this technically feasible? Would it help stabilize the currency? Discuss.

In the same way 5.0 BTC is worth exactly five times 1.0 BTC. We can also do 10.0 BTC, which is, you guessed it, worth exactly ten times 1.0 BTC.

WTF are you talking about?

The idea is that it would prevent deflation, if implemented correctly.

Asshole.

What idea?

The idea behind the suggestion.

... What suggestion?

Seriously I don't see an idea or a suggestion...

You said $5 is worth 5 times $1 ... that's not an idea or a suggestion....a wallet with 5btc is worth 5 wallets with 1btc ... it doesn't matter if its on paper or not...

Yuhfhrh

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Quote from: LegalEagle on October 04, 2012, 12:06:40 AM

In the same way a $5 bill is worth five $1 bills. What challenges would this present? Is this technically feasible? Would it help stabilize the currency? Discuss.

Take your trolling somewhere else. (I'm sorry if you are actually being serious :p)

Topic: Feasibility of Creating a 5-BitCoin Currency (Read 2599 times)