why not just ban any trades, 1 mbtc < $1 ?!

Akka

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Quote from: btcusr on September 20, 2013, 06:16:48 AM

This kind of price fixing is done for many other products too; for example eggs, etc. Idea is to match demand with supply.

Let's say it takes $200 to mine 1 BTC on average, then shouldn't there be some price protection? Like, setting minimum prices or circuit breakers, etc.

No why? If a Bitcoin sells for less than it costs to be mined, then there are obviously to many miners.

If it costs $100 to mine a coin but they are sold for $140 should there be a buyer protection.

If miners loose money, some will quit until it equals out. If miners make money, more will join until it equals out. --> Nothing to do here.

btcusr

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@_vjy

This kind of price fixing is done for many other products too; for example eggs, etc. Idea is to match demand with supply.

Let's say it takes $200 to mine 1 BTC on average, then shouldn't there be some price protection? Like, setting minimum prices or circuit breakers, etc.

Atruk

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Quote from: btcusr on September 11, 2013, 09:55:50 PM

IPOs will do this always, right? They start with a base price, but of course they can go down.

May be exchanges should adopt smaller units. People will surely like to buy more units, then sub units. Say, 1 btc for $200 sounds like a steep entry point, but 5 mbtc for a dollar sounds better. Now that you have 5 units, and it feels better.

This isn't about what sounds better, it is about what is. You might be proud of your sew ins, but you are still wearing weave.

btcusr

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@_vjy

Illegal trade prices obviously go up. Now for reference people look up to exchanges, but when we have a base price that would become a reference.

I think, there must be a better way for pricing, or better way to manage units. We always don't have to follow mbtc / btc / satoshi, in exchanges, it can be a new unit like,
m * satoshi = n * newunit

Foxpup

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Vile Vixen and Miss Bitcointalk 2021-2023

It won't work, for the same reason price controls don't work anywhere else: because a trade requires both a buyer and a seller. Since there are no buyers willing to pay that price, no sellers will be able to sell. And since the value of an item is only what people are able to sell it for, instead of bitcoins being worth $140 each, bitcoins are now completely worthless. Whoops.

Of course, this ignores the fact that people will continue to trade bitcoins at "illegal" prices anyway, but if you could somehow prevent that, this is what would happen.

btcusr

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@_vjy

IPOs will do this always, right? They start with a base price, but of course they can go down.

May be exchanges should adopt smaller units. People will surely like to buy more units, then sub units. Say, 1 btc for $200 sounds like a steep entry point, but 5 mbtc for a dollar sounds better. Now that you have 5 units, and it feels better.

🏰 TradeFortress 🏰

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Then whichever exchange that implements that goes bankrupt.

Atruk

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Quote from: btcusr on September 11, 2013, 08:50:37 PM

Why not agree all exchanges together, and set base price for 1mbtc as $1, and not allow any trades which quote less than that?

Do you think this will stop all trades? No. Or, may be for an hour or two there won't be any trades, but I think, somehow further trades will proceed.

Is it even possible, to do so?

This will just create a huge market opportunity for exchanges that don't agree, and won't do anything to OTC trading. The market won't trade at that rate until the market finds that rate to be the rate.

btcusr

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@_vjy

Why not agree all exchanges together, and set base price for 1mbtc as $1, and not allow any trades which quote less than that?

Do you think this will stop all trades? No. Or, may be for an hour or two there won't be any trades, but I think, somehow further trades will proceed.

Is it even possible, to do so?

Topic: why not just ban any trades, 1 mbtc < $1 ?! (Read 918 times)