Bitcoin Forum

What if we all say: from today, one bitcoin is 1.3 PPUSD? Will it's value be that? I guess so, since it's worth what we all want it to. What stops us to do so? Can we call this "speculation"?

I'm very curious about that.

Anyone who agrees to do that will run out of PPUSD very quickly.

... Unless all people at the same time move their ASK orders up to that level at the same time

Hey! I'll sell you my BTC @ 1.3USD!!!  :o

hey me too! count me in!  :)

1.29! 1.29!

what the hell? We just agreed it would be 1.30, are you a cheater?

It would only work if you use government regulations to impose it. The only way to create a cartel is government regulations. Cartels dont last long in the free market (as you just witnessed).

20 BTC @ 1.289 each!

Damn you! I got so excited after reading the headline only to find that it was not true >:( I thought I was rich for a minute there.

ok, i didn't want to do it... but it looks like you guys force my hand. selling 5000btc at 1.288 usd each! it's my final offer! :)

I don't know if this topic had any influence but on Mt.Gox the high price for today is 0.322. Might be, who knows...

You're much deeper than I am. 10BTC @ 1.285 USD each!

As you can see in the posts that follow yours, this idea is not very realistic. What you/we can do, though, if you want the value of Bitcoin to raise, is to make an effort and accept to buy bitcoins at a slightly higher price.

But I guess the main question is: why bother? I mean, it's just a choice of units. A Bitcent is already worth 3.3 USD, how great is that? Means nothing.

(BTW, the correct spelling "its value", not "it's value". I'd love everyone out there to consider that.)

Regular price is $1.30, On sale today only for $1.05!  Get them while they last!

Technical analysis has been showing the price of bitcoins was going up anyway and some good reasons to think that would be the case.

There certainly is some strong inflation going on right now in regards to Bitcoins, because demand is outstripping supply.  Postings here are irrelevant, other than to note that the overall trend is to be that the value of Bitcoins relative to the dollar is just going to go up.  Speculation about when parity (aka 1 BTC == 1 USD) has happened even before this thread was started.

Claiming this thread has the kind of influence suggested is like saying you had control of the Sun when it came up over the horizon this morning.  Your mass and possibly the mass of the things you own might have had a small impact upon that happening, but it is a minor and on a practical level an insignificant impact upon that happening.

Lot of things have influence on the bitcoin economy from day to day basis. It would be foolish to think something cause something else with no evidence to back it up.

We simply don't know why bitcoin spectulators bid the ways they bid, unless we start handling survey each day on why they bid.

You intended to say "strong deflation", right?  Inflation is when the size of the monetary base is increasing relative to the size of the economy, which ultimately results in the drop in relative value of the currency.  What we are experiencing, in aggregate, is deflation.

Inflation is when there is an increase of money bigger than the demand for money (not the size of the economy).

Well, that's what I said.  The economy is what creates the natural demand.

Wobber I have to say that with your post you have created a great example of how a free market economy works.  With all information being equal and a profit to be made there will always be someone willing to undercut the market to make a profit no matter how many people are at the current price.  This will continually drive the price down until eventually there is no great profit to be made by undercutting the market.

This currency is still way too young to be at a break even or stable price.  Too many people out there have bought currency they picked up for very cheap (maybe free) relative to current price.  When more time has passed and more people have sold for a profit and repurchased coins for higher (closer to market price) then we can see more stability in the currency as there will be fewer massive sell offs and stronger support levels going in either direction.

I agree with those that say that demand is greater that supply.  That is not necessarily bad.  It creates the ability to make a profit in the intermediate as well as long term scenarios; be it by exchange trading or merely picking up cheaper currency for future purchases.

The original proposal of 1.3 if adopted by most of the community would merely create a short term bubble that would quickly work its way back to close to current market price.  It would however create a great many happy and sad people (depending on what side of the equation you were on).

Sorry for the lengthy tangent.  I have been following Bitcoins for a while now but I am not much of a poster (yet).  Thank you again Wobber for creating this interesting example.

If everyone decided that 1 BTC was worth $1.3 USD, then yes, the exchange rate would be just that.

However, not everyone is going to decide that. People who want Bitcoins are not going to pay $1.30 (or sell $1.30 worth of merchandise) for them because they are not confident that other people will, in turn, give them $1.30 worth of goods/services for that Bitcoin they just bought. 

The reason, simplistically, is that there are too many bitcoins compared with too few goods/services being sold for Bitcoins. The amount of goods and services being sold for Bitcoins would have to greatly increase in order to bring people's expectations closer to $1.3/BTC