Bitcoin Forum

I am interested in bitcoin as a currency

I am really amazed by the lack of counter party and the technology

But how does any normal person say a merchant use a currency that jumps from 200 to 266 and then goes down to 105 and then goes back ip to 166 or so all in about  36 hours ?

If I sold bread or milk or eggs or cheese or nuts how many bit coins  will I take for a particlar sale in a day ? how will i mark my loaf of bread or a gallon of milk or pound  of butter ?

Will bitcoin be killed by the speculation than the government ???




Regards

simple answer: it doesnt.

They use a payment processor that handles that risk for them.

So , you are telling me that bit coin will be more a vehicle for speculation than a normal currency for a long long time ?

Likely, and most definitely until it has large enough user base who can stabilize supply/demand.

basically. its a fault of its design, theres nothing that can be done.

And a large user base on limited supply almost always means the price will go up to the stratosphere and keep going up ??? Meaning economically very difficult to stabilize

Could you please be more specific and explain a little more ? How does this work ? Payment processor I'm editable sells at the exchange the very same moment the coins are in ethe merchants wallet ?

Or

payment processors like bitpay handles the exchange process, so they take the coins your customer sends to you then cashes them out themselves and wires the money to your account. They incur some level of risk during this process, so how they manage to stay in business given recent events i dont know.

https://bitpay.com/bitcoin-direct-deposit (https://bitpay.com/bitcoin-direct-deposit)

Reducing volatility for merchants is a solved problem. I don't know exactly what BitPay's trading strategy is, but whatever they are doing is working (http://blog.bitpay.com/2013/04/bitpay-eclipses-silk-road-in-bitcoin.html).

Now bitcoin is more commodity than currency. Probably it's not yet very convenient for micro transactions. it's more comparable to gold.

When the process of adoption completes, its value will become more stable and we can start using it as currency.

your quoting company propaganda for truth? how would they know what a shadowy darknet site is making?

It will balance out...

Peg prices to USD? I thought this was obvious

 ::)

I pay for my web hosting site with Bitcoins.

Every month I go to their site, whatever the price is at that moment, I pay it.

Whether you as a consumer wish to hold dollars and switch in and out of Bitcoin for convenience sake or you are like me and have switched completely over to bitcoins, that is up to you.

take a vacation in zimbabwe. as far as i know it is the only currency with an expiration date.
the inflation was so bad the price of an item would go up 3 times in 15 minutes.
velocity was a real problem

The payment processor uses the weighted average.

you are joking ...aren't you ?

My question is serious though ....

#I'm_Asking_to_learn_not_to_offend

I think you need to step back and relax.  BTC is not going to happen overnight, been 4 years so far.  It is just now becoming known to more than just the techno geek.  There is going to growing pains for at least 1-2 years more would be my very uneducated guess.

Go you to your local mall, for example, and ask 100 people what a Bitcoin is.  I am guessing maybe 5 will know. 10 if you live in Silicon Valley. :)  Until that changes and the rates stabilize it will be very hard to be used as a currency.  But this is fine as many more mechanisms need to but put in place in the meantime anyway.

Basically for a while, if you can't take the the heat, best to stay out of the kitchen and let this thing run it's course.  No one knew how what to do with the internet back in the 90s and it had actually already been around for decades.

I disagree.

It is like blaming the commodities for being traded and speculated with.

The Bitcoin is a great thing, yet to find its correct definition, it is used by different people for different purposes.

Today, majority (an the most influential) of the users are short-term speculators. Tomorrow that will change - they will be replaced by the hoarders, futures traders and long-term investors. Eventually, when the price stabilises, we might see more and more people using BTC as currency.

But all that time, it will be the same Bitcoin, just being used by different people for different purpose.

Who are they? And payment processors are used for electronic currency - debit, credit cards, e-cheques etc.

Even Butterfly Labs uses BitPay as payment processor (at least did back in september).

Since bitcoin is a decentralized currency, there are no real payment processors.

Centralized currency processors are backed up by banks, banks by central banks and insurance companies, insurance companies by reinsurance companies.

Dream on, milk, opera tickets and tax have all been paid with bitcoins, lol

But not directly. And it will not be soon when payments will be paid with actual physical as well as electronic bitcoins. States worldwide will never accept them. It's a national currency suicide.

Yes. Mostly a fault of human design, i.e. design of human nature, where greed is always stronger than collectivism.

:-)

but aren't our failing known to us ...

how do we try and organize so that the greed of a few does not hijack the need for a majority

Hi2All,

This is a artificial price fall and unethical way of financial practices.

Past 8+hrs and still bidders are ready to buy $165+ and the sellers too. then how is it falling into $80?

chk mtgox, bitstamp and btc-e order summery and pending orders.

Thankyou

Anto

The bitcoin price will always rise sharply and drop sharply due to extremely low liquidity on the market, but people will learn from each rise and fall and adjust their strategy accordingly. Currently there are just many new people who don't have enough confident in bitcoin, but after several years they will learn from this kind of correction and profit from it

For example, people can deleverage by only putting 10% of his risk money into BTC, so even a 90% drop will only translate into a 9% drop of the total risk capital, and those 500% gain will be reduced to 50% gain, still a good risk/return ratio

And when the price rise enough high and we start to use mBTC or uBTC, the liquidity will improve a lot, those who holding lots of BTC will not move very big amount of BTC like they do today, just like those who holding billions worth of assets seldom do a mass liquidation