If they are forced to use only NXT for their trades then the demand will generate a higher price for NXT. That is how the math works. Do you expect that their will such a tidal wave of business inflow that the price of NXT will not be able to keep up? I think that would be when it would actually go to the moon.
James, BrooklynBTC, Sebestian, other people, and I have all made very good arguments for why what you wrote above it wrong. You show no sign that you even understand the counter arguments. I understand your argument completely, and it's wrong. In fact, I once agreed with what you are saying before thinking about it. You are repeating yourself.
I do understand your counter arguments. If a certain mathematical proportion of Bitcoin is traded it will case the price to fluctuate in "chaotic" ways. But what does that mean exactly? If You look at the history of Bitcoin price, has this math ever been relevant? Has it ever been indicative of anything? Can you site an example of when this math has ever been a reason for market fluctuations? Bitcoin has had price fluctuations but these fluctuations have been related to confidence and speculation and not this math.
If the parameters of the AE are set to allow for NXT only trades, and someone puts a billion USD's on a listing, What would you infer from that? I would suspect that they wanted to get rid of their USD's, and that they wanted to trade them for NXT. At the current market cap for NXT, this would be impossible; But the cool thing is, the price of NXT is not fixed, and therefor the capacity is not fixed. If people who own NXT are willing to adjust there expectations for the price of their NXT, (which I am sure that they would), then your math would be the effect of this; then, assuming that there would be enough people who didn't recognize the implications of this loading of a billion USD's onto the exchange, and hold tight to their NXT to get as much for them as the billionaire could bare to pay for them, there would be an exchange in proportion to the total in circulation currency that would cause the price of NXT to be "chaotic", as it would shoot up.
So the math would be the effect of the market. The math doesn't take into account the human aspect of self interest, and the ability of people to recognize situations, and act according to their interests. Math can't smell blood in the water.
So now that our investor has around a billion USD's worth of NXT, would you expect him to act in a way that would be counter to his interests and dispose of his NXT in a way that would decrease their value? He would assumingly have a fairly large number of NXT (how many can not be determined as the market would have set the price for his trades and the price would dictate the total quantity of his NXT holdings). He would essentially be in the same situation as some of the NXT stakeholders. Has there ever been an instance that a NXT stakeholder used your math to devalue their holdings? There have been price fluctuations in the NXT currency, but it, to my knowledge, has never been for the reason that you are implying. And if the investor wants to exchange his billion USD's worth of NXT for another asset listed on the AE, will there be an asset with a billion dollar capacity? Will the AE have a billion USD's worth of total assets?
If there were parameters set that allowed exchanges in any currency or asset, and someone puts a billion dollars on listing, I would still suspect that they wanted to get rid of the USD's, but would there be a billion dollar capacity asset? Would there be a billion dollars worth of total assets? The billionaire would be listing his USD's from a whole other vantage point. His holdings would be the strong holdings and he could set his price. The most likely outcome of this situation would be that this imported currency, because of it's capacity, would become the base currency for trading, as it would come to the exchange with an inherent confidence, and a capacity to back trades across the entire exchange, and the native currency would most likely have no means to recover or compete with this import; and sadly this import would be fiat.
In my opinion, it would be error to undercut the NXT currency in order to accommodate usage of the AE because it would weaken the NXT platform as a whole. NXT is more than just an AE.
If 10% of NXT is traded it will cause the market to fluctuate to levels of chaos. And if the Earth is hit by a meteor the diameter of a small city, it will cause the atmosphere to be incinerated.