We must build a new exchange rate system

Razick

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Quote from: bibi-bo on December 01, 2016, 06:09:51 PM

Quote from: gogxmagog on December 01, 2016, 05:30:41 PM

Quote from: bibi-bo on July 14, 2016, 11:13:05 AM

We must build a new exchange rate system based on the quantity of money in existence. For example the bitcoin/U.S. dollar exchange rate should be: 1 bitcoin = 500.000 U.S. dollars because all the U.S. dollars in the world are 10.5 trillion. (10.5 trillion/21 million = 500.000).

What do you think about this idea?

You should learn about supply & demand rules..those are the main rules out there which drive the prices of a stock/currency/good.
Also don't forget about speculation and manipulations which then are another thread to deal with.

Im talking about new rules. New ideas.

New rules have to work though. Yours don't. Economics is a science that explains how we make rational choices, and rational choice includes how we value things. There is a way that things are valued and it's not something you can change. If, for example, I suddenly declare that bread shall cost $0.01 per loaf (and enforce it), no one will make bread anymore.

So you can't just make up a new system of valuing things. It won't work.

bibi-bo

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Quote from: Yakamoto on December 01, 2016, 06:55:20 PM

Quote from: bibi-bo on July 14, 2016, 11:13:05 AM

We must build a new exchange rate system based on the quantity of money in existence. For example the bitcoin/U.S. dollar exchange rate should be: 1 bitcoin = 500.000 U.S. dollars because all the U.S. dollars in the world are 10.5 trillion. (10.5 trillion/21 million = 500.000).

What do you think about this idea?

If you can convince people to buy it for that much, and equally convince others to not sell for lower than that value, sure. Knock yourself out.

Bitcoin is a relatively free market, there is no way to force people to buy or sell for values as massive as that. You can't force a fixed rate.

Also it shouldn't be tied to just the value of USD in existence. If the USD was backed by all the Bitcoin in the world something like this would make sense, but it isn't, so that's not applicable.

Run the numbers with close to $10 quadrillion. That is approx. the global economy value, including market valuations, metals, futures, etc.

The idea is perfect. This is how exhange rates will work in the future. No market. Only quantity.

Yakamoto

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Activity: 1218

Merit: 1007

Quote from: bibi-bo on July 14, 2016, 11:13:05 AM

We must build a new exchange rate system based on the quantity of money in existence. For example the bitcoin/U.S. dollar exchange rate should be: 1 bitcoin = 500.000 U.S. dollars because all the U.S. dollars in the world are 10.5 trillion. (10.5 trillion/21 million = 500.000).

What do you think about this idea?

If you can convince people to buy it for that much, and equally convince others to not sell for lower than that value, sure. Knock yourself out.

Bitcoin is a relatively free market, there is no way to force people to buy or sell for values as massive as that. You can't force a fixed rate.

Also it shouldn't be tied to just the value of USD in existence. If the USD was backed by all the Bitcoin in the world something like this would make sense, but it isn't, so that's not applicable.

Run the numbers with close to $10 quadrillion. That is approx. the global economy value, including market valuations, metals, futures, etc.

bibi-bo

newbie

Activity: 10

Merit: 0

Quote from: gogxmagog on December 01, 2016, 05:30:41 PM

Quote from: bibi-bo on July 14, 2016, 11:13:05 AM

We must build a new exchange rate system based on the quantity of money in existence. For example the bitcoin/U.S. dollar exchange rate should be: 1 bitcoin = 500.000 U.S. dollars because all the U.S. dollars in the world are 10.5 trillion. (10.5 trillion/21 million = 500.000).

What do you think about this idea?

You should learn about supply & demand rules..those are the main rules out there which drive the prices of a stock/currency/good.
Also don't forget about speculation and manipulations which then are another thread to deal with.

Im talking about new rules. New ideas.

gogxmagog

legendary

Activity: 1456

Merit: 1010

Ad maiora!

Quote from: bibi-bo on July 14, 2016, 11:13:05 AM

We must build a new exchange rate system based on the quantity of money in existence. For example the bitcoin/U.S. dollar exchange rate should be: 1 bitcoin = 500.000 U.S. dollars because all the U.S. dollars in the world are 10.5 trillion. (10.5 trillion/21 million = 500.000).

What do you think about this idea?

You should learn about supply & demand rules..those are the main rules out there which drive the prices of a stock/currency/good.
Also don't forget about speculation and manipulations which then are another thread to deal with.

bibi-bo

newbie

Activity: 10

Merit: 0

Quote from: Razick on December 01, 2016, 03:02:53 PM

I once made my own currency. I only created three units. By your logic, I could just divide the US money supply by 3 to derive the value of my currency, but I'd get laughed at when I took my currency to the bank and asked them to exchange it for trillions of dollars.

Quantity is not directly related to value. For example, a pound of bread has a different value than a pound of gold. Floating exchange rates set in a free market environment allow for accurate valuation. Your system does not.

Where did you find the 3 units? No mining, no premine, only buy/sell.

Zisove28

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Merit: 100

Quote from: Razick on December 01, 2016, 03:02:53 PM

I once made my own currency. I only created three units. By your logic, I could just divide the US money supply by 3 to derive the value of my currency, but I'd get laughed at when I took my currency to the bank and asked them to exchange it for trillions of dollars.

Quantity is not directly related to value. For example, a pound of bread has a different value than a pound of gold. Floating exchange rates set in a free market environment allow for accurate valuation. Your system does not.

I do not understand why only the dollars? because Bitcoin is an international currency. It means for your theory you need to take note of the amount of all currencies in the world.

smarky7cd

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....Errr no. The exchange rate of BTC isn't based on just supply. This article provides a rather good and simple explanation: https://www.buybitcoinworldwide.com/kb/what-determines-bitcoins-price/

bibi-bo

newbie

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No, the idea is perfect. But no mining. Only buy/sell.

Razick

legendary

Activity: 1330

Merit: 1003

I once made my own currency. I only created three units. By your logic, I could just divide the US money supply by 3 to derive the value of my currency, but I'd get laughed at when I took my currency to the bank and asked them to exchange it for trillions of dollars.

Quantity is not directly related to value. For example, a pound of bread has a different value than a pound of gold. Floating exchange rates set in a free market environment allow for accurate valuation. Your system does not.

transabox

full member

Activity: 177

Merit: 100

Quote from: Kevin77 on December 01, 2016, 01:24:19 PM

Quote from: Gotottack on November 30, 2016, 10:06:56 AM

This is not a good exchange rate if it does happen. This would mean that the price of Bitcoin would only depend on the dollar. Hence, this would mean that Bitcoin will, in turn, be a centralized currency! Because the basis of it's price is dependent upon a centralized currency which is the USD.

Yes. It seems OP just want huge price levels for bitcoins for some reason but not with exactly in a way why bitcoin was created. Tying bitcoin prices with dollars virtually will mean bitcoins as cryptography version of dollars similar to how altcoin prices are decided with respect to bitcoin prices.

Bitcoin's value must be calculated by people's demand because we people by ourselves value bitcoins not just due to for a central authority.

Yes, that's for sure. Bitcoin can not be tied to the dollar. Its value depends on other phenomena. This is an alternative currency, and its system is built differently

Kevin77

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Quote from: Gotottack on November 30, 2016, 10:06:56 AM

This is not a good exchange rate if it does happen. This would mean that the price of Bitcoin would only depend on the dollar. Hence, this would mean that Bitcoin will, in turn, be a centralized currency! Because the basis of it's price is dependent upon a centralized currency which is the USD.

Yes. It seems OP just want huge price levels for bitcoins for some reason but not with exactly in a way why bitcoin was created. Tying bitcoin prices with dollars virtually will mean bitcoins as cryptography version of dollars similar to how altcoin prices are decided with respect to bitcoin prices.

Bitcoin's value must be calculated by people's demand because we people by ourselves value bitcoins not just due to for a central authority.

Mario274

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Activity: 158

Merit: 100

Quote from: Gotottack on November 30, 2016, 10:51:48 AM

Quote from: Xester on November 30, 2016, 10:32:00 AM

Quote from: Gotottack on November 30, 2016, 10:06:56 AM

This is not a good exchange rate if it does happen. This would mean that the price of Bitcoin would only depend on the dollar. Hence, this would mean that Bitcoin will, in turn, be a centralized currency! Because the basis of it's price is dependent upon a centralized currency which is the USD.

Yes I actually agree with you. Bitcoin as of now being dictated by the Markets price trend is already a good thing. There is no need to alter the exchange rates, as of now its already at 700 plus dollars and returning it back to 500$ is one of the worst things that can actually happen. We all dream of price inflation and bitcoin has already doing that for 6 or more years now. For me bitcoins price is sufficient enough and we dont need to change the exchange rate system.

The downside of this suggestion is not just because of the $200+ decrease in price. Let us remember that Bitcoin was designed to be a decentralized currency. Meaning no government, state, organization or any group controls bitcoin. It is a currency by the people and for the people who believes in it. Matching the price of USD means that Bitcoin will be part of the US, which will run contrary to its original purpose.

You're right, the price of Bitcoins can not be tied to any national currency. Bitcoin standalone system.
Bitcoin cost depends on many factors

Gotottack

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Activity: 882

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Quote from: Xester on November 30, 2016, 10:32:00 AM

Quote from: Gotottack on November 30, 2016, 10:06:56 AM

This is not a good exchange rate if it does happen. This would mean that the price of Bitcoin would only depend on the dollar. Hence, this would mean that Bitcoin will, in turn, be a centralized currency! Because the basis of it's price is dependent upon a centralized currency which is the USD.

Yes I actually agree with you. Bitcoin as of now being dictated by the Markets price trend is already a good thing. There is no need to alter the exchange rates, as of now its already at 700 plus dollars and returning it back to 500$ is one of the worst things that can actually happen. We all dream of price inflation and bitcoin has already doing that for 6 or more years now. For me bitcoins price is sufficient enough and we dont need to change the exchange rate system.

The downside of this suggestion is not just because of the $200+ decrease in price. Let us remember that Bitcoin was designed to be a decentralized currency. Meaning no government, state, organization or any group controls bitcoin. It is a currency by the people and for the people who believes in it. Matching the price of USD means that Bitcoin will be part of the US, which will run contrary to its original purpose.

Xester

hero member

Activity: 994

Merit: 544

Quote from: Gotottack on November 30, 2016, 10:06:56 AM

This is not a good exchange rate if it does happen. This would mean that the price of Bitcoin would only depend on the dollar. Hence, this would mean that Bitcoin will, in turn, be a centralized currency! Because the basis of it's price is dependent upon a centralized currency which is the USD.

Yes I actually agree with you. Bitcoin as of now being dictated by the Markets price trend is already a good thing. There is no need to alter the exchange rates, as of now its already at 700 plus dollars and returning it back to 500$ is one of the worst things that can actually happen. We all dream of price inflation and bitcoin has already doing that for 6 or more years now. For me bitcoins price is sufficient enough and we dont need to change the exchange rate system.

Achargeturry78

sr. member

Activity: 630

Merit: 267

Just follow the rules

Quote from: bibi-bo on July 14, 2016, 11:13:05 AM

We must build a new exchange rate system based on the quantity of money in existence. For example the bitcoin/U.S. dollar exchange rate should be: 1 bitcoin = 500.000 U.S. dollars because all the U.S. dollars in the world are 10.5 trillion. (10.5 trillion/21 million = 500.000).

What do you think about this idea?

Im not sure with did this thus your have a greate idea hense we can do great things with this idea but doing this with coins will not make better we know that bitcoin is not stable and this part of bitcoin economy if you're setting it's price more tradings site will die.

Mastsetad

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Merit: 250

The price of bitcoin depends on its demand and that is the best thing i guess, because in this way the price would depend on the users asking for bitcoins, as there are just a limited amount of bitcoin in circulation so the price would increase with the increment in its demand.

Gotottack

hero member

Activity: 882

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This is not a good exchange rate if it does happen. This would mean that the price of Bitcoin would only depend on the dollar. Hence, this would mean that Bitcoin will, in turn, be a centralized currency! Because the basis of it's price is dependent upon a centralized currency which is the USD.

bibi-bo

newbie

Activity: 10

Merit: 0

Quote from: justspare on October 04, 2016, 02:19:15 AM

Quote from: countryfree on July 14, 2016, 05:07:56 PM

Quote from: bibi-bo on July 14, 2016, 11:13:05 AM

We must build a new exchange rate system based on the quantity of money in existence. For example the bitcoin/U.S. dollar exchange rate should be: 1 bitcoin = 500.000 U.S. dollars because all the U.S. dollars in the world are 10.5 trillion. (10.5 trillion/21 million = 500.000).

What do you think about this idea?

Yes, I like your idea. You're right. I'm all willing to help you set up that new system of yours. I guess we could start with me selling you one BTC. I'll pay the bank fee to transfer the $500.000 to my account and I'll send you one BTC right away.

How are you supporting this idea. You are a legendary and you should know a lot about Bitcoin. This system would completely destroy the point of the market cap. I definitely think it is a bad idea.

Why we need a market cap?

a7mos

hero member

Activity: 574

Merit: 500

this can happen only if all people who are using USD start using bitcoin. other than this it is impossible to happen. no one will pay that amount of money to buy only one btc now when there are a lot of people willing to sell him for very cheaper prices

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