Maybe they should institute some kind of reserve that protects us from a fixed commodity, and we'll bring about inflation to protect the stockpile value of BTC... Who knows, maybe even allow them to print more BTC. You know, to protect the people, and stuff...
Dry humor. However, the existence of a cap is what allows this "BTC" to be traded as currency. If there were infinite amounts of BTC, and people knew that no matter how long they mined, they would never reach the end, no one would do it. In any financial system there will be the top percentile of "traders" and "miners" who have the wherewithal and know-how to master any scenario like this.
There will be other unregulated internet currencies. These are the times, the internet is life, and people will continue to make the best use out of it, especially to make a buck.
Topic: stabilizing bitcoin market - page 3. (Read 3704 times)
Explain to me, please, why everyone thinks that having a limited number of bitcoins, EVER, makes it somehow desirable.
The fixed number of bitcoins makes inflation impossible. Inflation is a bad thing, despite what politicians may want you to believe.
Explain to me, please, why everyone thinks that having a limited number of bitcoins, EVER, makes it somehow desirable.
Bitcoin will always be the crpytocurrency with 21M cap and set rate. If anyone wants something else (and a few do) they give it another name so as not to appear or be fraudsters. Bitcoin is what it is and a lot of people understand and trust it and desire it.
People don't desire the currencies with holes in their tanks nearly as much.
That still hasn't explained why having a set cap on your currency is such a good idea.
Even money backed by a gold standard has influx of new gold from mining as well as fluctuations on the gold market which can have drastic repercussions on the currency.
HOW and WHY is having a 21M cap and a set "mining" rate on bitcoins a desirable thing?
Explain to me, please, why everyone thinks that having a limited number of bitcoins, EVER, makes it somehow desirable.
Bitcoin will always be the crpytocurrency with 21M cap and set rate. If anyone wants something else (and a few do) they give it another name so as not to appear or be fraudsters. Bitcoin is what it is and a lot of people understand and trust it and desire it.
People don't desire the currencies with holes in their tanks nearly as much.
Like has nothing to do with it. I want to know WHY it is supposedly a good idea.
If you don't like the soft-cap, you can always mine an un-capped chain like Geistgeld or Tenebrix, if they're even still around.
Explain to me, please, why everyone thinks that having a limited number of bitcoins, EVER, makes it somehow desirable.
is it ever possible? market is so small (100mil usd) Talked to wellsfargo broker who told me that if market is so little stabilization will never happend.
Most people don't mind it being unstable, just as long as it keeps going up.
Other markets have financial derivatives that help to resist rallies and to give support during declines. Bitcoin does not yet have these innovations, at least not like other commodity markets, thus the degree of volatility is acute.
For instance, for whatever reason there was a ton to buying in late July, and through August. One possibility is that a fair amount of the demand was for bitcoins for "investment" into what was ultimately appears to have been just a ponzi. Mt. Gox lists about $5 million dollars worth of deposits in a month, so if the was the expected million dollars of fund inflows related to that one "investment", that could have been the driving force for a rally. Instead of a rally dissuading buyers, speculators pile in and the rally turns into a bubble. Without a method for other speculators to go short, the rally continues until some event causes the direction to change.
There is one option available -- MPEx offers BUY and CALL options. And it got widely used during last month's rally -- MPEx had a record month in terms of the volume of options traded. So the rally might even have gone higher without the resistance introduced thanks to the options.
- http://en.bitcoin.it/wiki/MPEx
- http://polimedia.us/bitcoin/mpex.php
A relatively new offering made available is the ability to buy futures contracts on ICBit.se. There too, speculators can bet against bitcoin if they choose. There is even margin available giving leverage to traders.
- http://www.ICBit.se
meh, does it matter what a bitcoin is worth in usd / euro? heeeeellll no imo, remove "real" currency allready, make the banks into homeless shelters or something usefull!
and shut down the fed / world bank! rawr!!
edit:
hello btw, long time forum reader / new poster here
and shut down the fed / world bank! rawr!!
edit:
hello btw, long time forum reader / new poster here
Why is the 21m set in stone. Is it possible protocol could be modified to make the total amount of BTC open ended but growing slowly at a predictable pace?
I feel like that would take away from part of the reason for bitcoins.
Why is the 21m set in stone. Is it possible protocol could be modified to make the total amount of BTC open ended but growing slowly at a predictable pace?
The market will not always remain this small. Bitcoins are being mined constantly until we reach the predetermined cap of 21 Million. The price should also increase over time as the use of BTC spreads. Therefore the cap will steadily increase.
is it ever possible? market is so small (100mil usd) Talked to wellsfargo broker who told me that if market is so little stabilization will never happend.
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