cant the miners just input an exchange rate as observed from somewhere? its in the interest of miners to report an accurate exchange rate.

the exchange isnt the source of the supply its the source of the exchange rate. It has to be a reliable exchange or maybe a few exchanges can be used to source an exchange rate. Can a system be arrranged where the miner input the exchange rate or something?

It doesnt target an exchange rate as I understand it. Am I wrong?

im asking if it can be done

I said if the coin supply could be adjusted in  a decentralised manner, not centralised. All you need is a crypto exchange to source an exchange rate, it doesnt matter if mt gox is not allowing USD withdrawals or whatever.

Could the coin supply be adjusted in a decentralised manner according to an exchange rate sourced from an exchange like mt gox? Of course the exchange itself would be a point of centralisation but the average of a few exchanges could be used to source an exchange rate.

Could the coin supply be adjusted in a decentralised manner according to an exchange rate sourced from an exchange like mt gox? Of course the exchange itself would be a point of centralisation but the average of a few exchanges could be used to source an exchange rate.

Assuming you want to target parity with the USD cant an exchange rate be observed from an exchange like gox and used to formulate coin creation policy in a decentralised manner?

Ill go to the next one in Perth.

dead sexy

Large financials could use their financial largesse to buy up large quantities of the supply of bitcoin in order to undermine it by creating volatility, manipulate its price or reduce bitcoin liquidity. Bitcoins divisibility helps to offset the liquidity aspect for quite a while I suppose.

What do others think? Could this potential threat be combated as bitcoin becomes more of a competitor to the major established financial entities?