Given the assumption that you are a big corporation or entity with lots of processing power and money (think Google?).
Will this entity, from an investing cost of opportunity point of view, buy all bitcoins available, or just create a new instance of a BTC like network, let's say the GoogCoin ?
I'm pretty sure that at some point big companies such as Google or Apple will try to start their own block chain. But even with their huge processing power, I doubt they could create a longer block chain than bitcoin. Although the reputation of these companies might help to gain user base, bitcoin will always have a huge time advantage, and thus much more cryptographic weight. |
|
|
|
Assuming Bob places his ask before Carl the following would happen on BC.
Alice buys 10 from Bob @0.9 for a total of 9. Alice has an outstanding bid of 10 @ 1.1, bob's order disappears from the system.
Alice buys the remaining 10 from Carl when he places his order @ 0.95 for a total of 9.5, alice's order disappears, Carl is left with an outstanding ask of 10 @ .95.
If Bob and Carl place their asks before Alice, then when Alice comes along the order is matched against the bids with the lowest price first.
Ok so it's simpler than I thought. I also notice that there is a preference for low prices (a 1.1 bid and a 0.9 ask leads to a 0.9 transaction price, not 1), which does make sense I guess. |
|
|
|
You get to decide how trades get executed, is it at buyers price? sellers price? median price?
Choice is yours.
Bitcoin central and mtgox work in the same way : the one who sells bitcoins is guaranteed to get the price he asked for when placing the order, the one who buys them is guaranteed that he'll buy from offers with a lower or equal price than the price he input when posting his buying order.
Say Alice places a bid for a quantity of 20 at a price of 1.1 Bob places a ask for a quantity of 10 at a price of 0.9 Carl places a ask for a quantity of 20 at a price of 0.95 How does this gets adjudicated ? |
|
|
|
What do you mean? The rules of opening a business using USD, EUR or any other common currency are clear and out there. My question is very simple: how technically do you do this - I put goods on the offer and price them in BTC. I only accept BTC as a payment method, but it is very unlikely (at the moment) thatI will be able to buy goods from a wholesaler for BTC, so I will have to use EUR. So, after I sell all the goods for BTC how do I deal with taxes? This is my main question - how to legally run a Bitcoin only shop. I don't think anyone answered that clearly.
Can't you just declare your business income in BTC, and pay whatever the government asks you for that? My point is that as long as you tell the government exactly what you do, I don't see how it could blame you for anything. |
|
|
|
Yes, but who decides how much 1 BTC is worth? What if the value goes up by 100% before there is time to pay the tax? It isn't that simple I am afraid.
It is. If you don't trust bitcoin to have a little stability in the future, then I guess you're unlikely to use bitcoin anyway. The currency you want to use to price your products is an economic decision you have to make for your business. Whether it is USD, EUR, JPY or BTC doesn't matter: it's always the same problem. |
|
|
|
|
I'm pretty sure that, as long as you declare what you do, it's perfectly legal. I guess for IRS bitcoin is nothing but a "foreign currency" and it should be treated as such, nothing more.
Forbidding it would be completely crazy.
|
|
|
|
That means that the total amount of bitcoins will double in two years. Thus 50% a year.
But that is 50% is much less than what we've been seeing so far! In 2010 the bitcoin currency inflated approximately 100% (from roughly 2.5 million to 5. million). So, on a percentage basis, the rate of increase of the currency is slowing, from 100% in 2010 to to 50% in 2011. Very rough year-over-year "inflation" numbers: 2009: n/a 2010: 100% 2011: 50% 2012: 33% 2013: 13% (Why so low? Because generation drops from 50 BTC to 25 BTC.) Well, yes, this is true. I guess in the past (especially in the last 6 months), the increase of bitcoin notoriety has been huge. Even greater than inflation. |
|
|
|
Demand for bitcoin is higher than he inflation rate.
This will be true if and only if we double our user base in two years. |
|
|
|
How did you come up with 50%?
Well we're at about half of the first 4-year period. That means that the total amount of bitcoins will double in two years. Thus 50% a year. |
|
|
|
|
We should not forget that we are in inflationnary phase. A lot of bitcoins are created right now, and will be until 2013.
So unless we have an even bigger and faster increase of user base, bitcoin value should not increase that much.
So even if it seems that the market wants to see the BTC/USD parity, we have to expect a big correction after this happens.
IMO
|
|
|
|
|
Ok then, I guess I'll just have to keep on working on my own implementation.
|
|
|
|
|
Davout,
would you consider offering an exchange place for stock holdings on bitcoin-central?
Here is the idea:
people owning some share holdings would accept to sell them on "second-hand". This means that their share holding would stay officialy theirs, but they will convert whatever dividends they receive into bitcoins and pay the holders of the shares on bitcoin-central.
I've down it with an eBay and DRDGold share but I don't have any trading plateform.
|
|
|
|
database, is a matter of taste and developer preferences really, I personally would use riak and definitely would not touch any of mysql/postgress/sqlite and ko .
Riak is not even in the debian repo :/ |
|
|
|
|
Maybe we could ask davout to include FlattrEUR in bitcoin-central.
|
|
|
|
|
What about XMPP for network communications ?
And a NoSQL database for storing blocks ?
|
|
|
|
Will there ever be a threat to the system if a user or organization begins to collect bit coins and destroy them intentionally?
Well, no, unless they have a really large amount of money to waste buying those bitcoins. Right now the current market value of all bitcoin stock is about five millions USD, but if someone wanted to buy a significative part of that, he would raise the price dramatically. Therefore I doubt one could do it with less than say 50 millions USD. |
|
|
|
|
High frequency trading would not be directly possible with bitcoins.
But one can use an accounting-based trading system, as you would do with any currency.
|
|
|
|
I wouldn't be surprised if in 30-50 years they were able to genetically engineer some sea organism to extract gold from seawater and concentrate it in their shell, as they do with calcium and other elements now. I think Bruce is right, in the long run gold is doomed as a source of value.
Even if it was possible, and I think it is, it wouldn't change much. It would just be a different kind of gold mining. |
|
|
|
|
Show Posts
