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Title: New way to cash out of BTC. (How to make market fluctuations less volatile.) Post by: TattleCoin on September 07, 2011, 06:55:09 AM Hello,
I recently wrote an article about a new site offering a new way to cash out of BTC. I loved the discussion that went on in my last thread, so I'd like to open up another discussion about this site Coinabul. http://tattlecoin.com/2011/fact-bitcoin-down-alternative-ways-cash-out/ (http://tattlecoin.com/2011/fact-bitcoin-down-alternative-ways-cash-out/) Do you think that cashing out using gold would really keep the markets stable? I think that the more currencies, or in this case, commodities that get exchanged for Bitcoins the more stable Bitcoin as a whole becomes. I know several people are running arbitrage bots and for that reason I don't think Bitcoin will ever dip down too low. But hey, maybe you think something different! Let me know. -Wolf Title: Re: New way to cash out of BTC. (How to make market fluctuations less volatile.) Post by: BitVapes on September 07, 2011, 08:01:27 AM The person who is selling gold for bitcoins will still sell those bitcoins on an exchange for legacy currency so he can re-stock his bullion supply and pay his expenses/cost of living, so the net effect is the same. Until that gold seller can re-stock his inventory by buying gold at wholesale prices using only bitcoin, and pay his rent, taxes and put food on his table using only bitcoin, the bitcoins will still need to be exchanged for legacy currency by someone in the chain.
Title: Re: New way to cash out of BTC. (How to make market fluctuations less volatile.) Post by: TattleCoin on September 07, 2011, 08:09:50 AM The person who is selling gold for bitcoins will still sell those bitcoins on an exchange for legacy currency so he can re-stock his bullion supply and pay his expenses/cost of living, so the net effect is the same. Until that gold seller can re-stock his inventory by buying gold at wholesale prices using only bitcoin, and pay his rent, taxes and put food on his table using only bitcoin, the bitcoins will still need to be exchanged for legacy currency by someone in the chain. But there will be a definite lag in the system before the value of Bitcoin takes a hit. What I'm trying to say is that the longer that lag is drawn out the less impact it will have on the market.Title: Re: New way to cash out of BTC. (How to make market fluctuations less volatile.) Post by: Revalin on September 07, 2011, 09:52:49 AM Gold may be a commodity, but unless you're planning to produce something with it, it's just another currency. Trading to gold directly reduces friction, but that doesn't increase stability unless you're planning to offer a long-term fixed exchange rate.
Title: Re: New way to cash out of BTC. (How to make market fluctuations less volatile.) Post by: TattleCoin on September 07, 2011, 05:15:55 PM Gold may be a commodity, but unless you're planning to produce something with it, it's just another currency. Trading to gold directly reduces friction, but that doesn't increase stability unless you're planning to offer a long-term fixed exchange rate. I don't think anything has a long-term fixed exchange rate :/ |