|
rhDXxqyhqMU3bkvk7U5eeUPcwS515YLqPR
|
|
|
|
|
I like the idea of a dollar coin or fiat coin or whatever it ends up being called. A crypto-coin equivalent of fiat is necessary in creating a decentralized exchange. But can it be done without a centralized "house?"
What if, for example, I can trade 1 USD for 1 USDCoin (and 1 EUR for 1 EURCoin, etc.). Each time I trade 1 USD for 1 USDCoin I get a unique USDCoin, and that USDCoin can only be exchanged for 1 fiat USD in the physical world, but can be exchanged for other currencies through a decentralized exchange. There would be an unlimited number of these fiat coins (as there are, theoretically unlimited fiat units). They can be created by anyone who can ensure that they are backed by a physical unit of fiat currency. Let's call fiat coins in general FTC, but that is an overarching terms for USDCoin, EURCoin, JPYCoin, etc.
The problem is making sure that a FTC issued is backed somewhere by a physical unit of fiat currency. This would require something in the physical world, like an ATM, but not connected to any network. It would just be a secure storage area for the fiat currency, and a system to issue FTC - call it a FTCATM.
For example, Alice wants to trade 100 USD for BTC. She would first go to a FTCATM, insert her $100 in USD, and in return receive 100 USDCoins. She can then exchange those 100 USDCoins on a p2p exchange for BTC or any other currency. If she wants to trade out of her crypto-currency of choice, she would exchange it back to USDCoin, and then go to the FTCATM and exchange her USDCoin for fiat currency.
The FTCATM would have to be essentially as ubiquitous as ATMs today. But once installed they are not controlled by any central authority. There would have to be an incentive for merchants to place these in their stores, but that should be trivial with a small fee. There would be some centralization involved in manufacturing a FTCATM, and they would have to be extremely secure. But there's no reason they could not be open source, and made by several different entities.
Just an idea - not sure if its been floated around, but I'd love to hear criticism, weak points, or even if it is workable.
|
|
|
|
This week’s events exposed a major problem. BTC works great for BTC to BTC transactions. But buying and selling BTC with a fiat currency is a major source of problems. Putting aside nascent local markets that have sprung up, if one wants to obtain a BTC they have two options – sell either a good or service in exchange for BTC, or exchange fiat for BTC. There are not many options for the first (though they are growing), and the latter needs serious work. MtGox’s problems are evident, but Bitfloor performed poorly, and getting a BTC from Coinbase takes (as of now) 5 days. That is a major area of weakness, and one that, and this is pure speculation, was maliciously taken advantage of this week. I'm new to posting here but have been reading for almost 2 years now. This has been suggested before, I am sure, but I think it is more urgent now. I'm trying to understand Ripple, which I understand is an attempt to create a decentralized currency exchange. I’m still not clear – and these are important questions – (1) how fiat gets into the exchange to begin with, and (2) how fiat gets out. I see this is being discussed https://bitcointalk.org/index.php?topic=175490.0, https://bitcointalk.org/index.php?topic=175443.0, and https://bitcointalk.org/index.php?topic=175490.0 on the implementation side of things. I have more reading to do. I hope there are answers to the final two questions - how fiat gets in and how fiat gets out. |
|
|
|
|
This is very helpful, thanks
|
|
|
|
|
Having the characteristics of a bubble and being a bubble are different things. One can never know it is a bubble until it pops.
The price is driven by demand. Whether that demand comes from speculation or desire to hold what is fast becoming a recognized alternative global currency one cannot tell. It is probably a combination of both. And that is not a bad thing.
Eventually the cost of goods and services denominated in BTC will stop falling so rapidly. That will be necessary for BTC to become a true alternate currency. But that does not necessarily mean that the bubble will pop, and the cost of goods and services denominated in BTC will rise just as rapidly as they fell.
|
|
|
|
|
BTC-E is the one I've used since I switched to LTC mining. They've had some problems in recent days with logging in, but their staff resolved my issue quickly.
|
|
|
|
These rules make sense but I wish the hundreds of hours I've spent reading without being logged in going back to early 2011 could count  |
|
|
|
|
Been lurking/reading for about a year now, but new to posting!
|
|
|
|
|
Show Posts
