With daily price variations of order of $10, how can you price anything in BTC?

Ukigo

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Quote from: Tonko on March 25, 2013, 12:40:41 AM

Quote from: Vladimir on March 24, 2013, 11:40:17 PM

You wait until BTC worth 10k$ then 10$ daily price variation is not such a big deal.

If 1 BTC is stated to be worth 10k$, what does it matter if a hair from Putin's asshole is the only thing that you can buy with it?

LoL )
that magic hair (from that &^%$#!! hole ) does not worth that much. Huh

----------------

There will be another coin with more stable
exchange rate.
businesses will adopt that TrueCoin for everyday operations.
BTC on the other hand will store value (wealth) and preserve it from devaluation/
confiscation.

The competition from TrueCoin will decrease volatility in BTC/fiat pairs.

KSV

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SVERIGES VIRTUELLA VALUTAVÄXLING

Quote from: Vladimir on March 24, 2013, 11:40:17 PM

Quote from: Tonko on March 24, 2013, 10:59:25 PM

Goods costing 10 BTC mean you can pay up to $100 more or less in corresponding fiat?!
That doesn't make sense to me.

You wait until BTC worth 10k$ then 10$ daily price variation is not such a big deal.

and you have won the best price award

Stephen Gornick

legendary

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Quote from: Tonko on March 25, 2013, 01:04:46 AM

So why buy anything at all with BTC? Better wait, but then wait until when?

Similar reasoning can be applied if you are just to buy BTC and price is $10 more in the morning than it was in the evening. Indirectly you can spend $100 more on the same item. In one day! Again, why buy anything at all then?

The only reasonable behavior is then to just accumulate BTCs

It may depend on how easy it is for you to replenish your wallet so that your spending isn't causing you to deplete your Bitcoin balance.

In the U.S. I can transfer in funds cheaply from my bank using Dwolla. The cost is just $0.25 per transaction.

So I'll have USD funds at an exchange and as I make purchases with bitcoins I'll make a corresponding buy at my exchange so that my net BTC position doesn't decrease.

Additionally, there are people who receive bitcoins as income or wish to convert the increased purchasing power that the rising exchange rate has provided. For them, there are costs and delays to convert that income to fiat. If they can use those funds to pay for their purchases then they don't need to go through the hassle of cashing out.

So not everyone is hesitant to spend their coins.

contactluis

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Quote from: Tonko on March 25, 2013, 01:04:46 AM

People seem to have a real problem understanding what am I questioning here.

Say you have some BTCs today and find, say a hard drive priced @1 BTC. Well, tomorrow BTC is worth twice and now you can get that hard drive for 0.5 BTC.
So why buy anything at all with BTC? Better wait, but then wait until when?

Similar reasoning can be applied if you are just to buy BTC and price is $10 more in the morning than it was in the evening. Indirectly you can spend $100 more on the same item. In one day! Again, why buy anything at all then?

The only reasonable behavior is then to just accumulate BTCs, expecting a constant increase until some presumed day when price will be stable so that buying anything else with it won't be possible immediate loss.

If you can, go to silk road and the answer to your first example will be answered. In silk road, a seller can choose to sell their happy products either in BTC or $. If the seller decides to sell their product in BTC, he/she is not going to make many sales when the price of BTC rises. If they set their prices in dollars, when you go to check out, the web site tells you how many BTCs are needed to complete the purchase.

When I decide to buy my products at silk road is take my $ from Dwolla, exchange them at Mt.Gox and immediately transfer the same amount into my Silk Road account. Then I wait a couple of days for the price to appreciate and I can buy my weed for a reduce cost. For some reason weed gets me very high when I know that I got it for half the price. Grin

Chaz

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Why buy a 4tb hdd now when you might be able to buy a 8tb hdd for the same price in around a years time?

Brushan

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Quote from: Tonko on March 25, 2013, 01:04:46 AM

People seem to have a real problem understanding what am I questioning here.

Say you have some BTCs today and find, say a hard drive priced @1 BTC. Well, tomorrow BTC is worth twice and now you can get that hard drive for 0.5 BTC.
So why buy anything at all with BTC? Better wait, but then wait until when?

Similar reasoning can be applied if you are just to buy BTC and price is $10 more in the morning than it was in the evening. Indirectly you can spend $100 more on the same item. In one day! Again, why buy anything at all then?

The only reasonable behavior is then to just accumulate BTCs, expecting a constant increase until some presumed day when price will be stable so that buying anything else with it won't be possible immediate loss.

You are thinking like that just because you've find something that grows in value nonstop. Why buy a hard drive for 100USD when i can buy a bitcoin and it will be worth 200USD tomorrow?

Tonko

full member

Activity: 126

Merit: 100

People seem to have a real problem understanding what am I questioning here.

Say you have some BTCs today and find, say a hard drive priced @1 BTC. Well, tomorrow BTC is worth twice and now you can get that hard drive for 0.5 BTC.
So why buy anything at all with BTC? Better wait, but then wait until when?

Similar reasoning can be applied if you are just to buy BTC and price is $10 more in the morning than it was in the evening. Indirectly you can spend $100 more on the same item. In one day! Again, why buy anything at all then?

The only reasonable behavior is then to just accumulate BTCs, expecting a constant increase until some presumed day when price will be stable so that buying anything else with it won't be possible immediate loss.

JordanL

donator

Activity: 294

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You can't price anything in BTC right now, unless it's something like a mining rig that earns BTC. You have to pin prices to a fiat currency, and have them converted to the BTC exchange rate in real time.

Tonko

full member

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Quote from: Vladimir on March 24, 2013, 11:40:17 PM

You wait until BTC worth 10k$ then 10$ daily price variation is not such a big deal.

If 1 BTC is stated to be worth 10k$, what does it matter if a hair from Putin's asshole is the only thing that you can buy with it?

Vladimir

hero member

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Quote from: Tonko on March 24, 2013, 10:59:25 PM

Goods costing 10 BTC mean you can pay up to $100 more or less in corresponding fiat?!
That doesn't make sense to me.

You wait until BTC worth 10k$ then 10$ daily price variation is not such a big deal.

Tonko

full member

Activity: 126

Merit: 100

Quote from: notig on March 24, 2013, 11:03:20 PM

It's incredibly easy to program prices in something that doesn't fluctuate much and tie it to bitcoins. Go to the bitcoinstore and see for yourself

I saw. What prompted me to ask, however, is the fact that I have also seen some incredibly pricey offers. Some shops apparently live in the distant past, asking 2 to 3 times prices in fiat.

notig

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It's incredibly easy to program prices in something that doesn't fluctuate much and tie it to bitcoins. Go to the bitcoinstore and see for yourself.
Brick and mortar stores might have it more tricky... but LED signs would easily fix that. In the future OLED's will be printable... all you will see are LED signs and not because of bitcoins... because it would be so easy to adjust the prices it would save labor.

Tonko

full member

Activity: 126

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Goods costing 10 BTC mean you can pay up to $100 more or less in corresponding fiat?!
That doesn't make sense to me.

Topic: With daily price variations of order of $10, how can you price anything in BTC? (Read 1319 times)