Coin with un-negotiable fiat value set by algorithm

[Dargumin]

Hey guys.  I'm not a techy expert or overly familar with alt-currencies so please forgive me if this has been covered before.

Personally I don't like how easily the bitcoin price can be manipulated through the normal centralized exchange model.  Furthermore I'm not really a fan of bitcoins deflationary nature either. For me it is too much a commodity and too a little a medium of exchange.  

I was wondering if there are any alt-coins that focus on having the actual fiat exchange built into the currency itself (through the client). Instead of limiting the maximum amount of coins in existence, the physical amount of client users would determine the current absolute value of the coin.  i.e. the more users the greater the coins value.   This would be counteracted by another algorithm measuring velocity of circulation.  Again the value of the coin in the exchange is subject to velocity, too much hoarding?  Value goes down.  Plenty of spending? value goes up. Basically it regulates itself through an algorithm that takes into account economic factors to maintain its functionality.

  The currency is not exchanged in terms of bids/asks, rather the price is absolutley set and traded through the client. The only way in/out of the currency is to accept the current price as set by the algorithm. Whilst the price is set by the algorithm the fiat would still be exchanged through a decntralized medium.

Is this actually possible?  Has someone suggested this before?

[vinne81]

Hey guys.  I'm not a techy expert or overly familar with alt-currencies so please forgive me if this has been covered before.

Personally I don't like how easily the bitcoin price can be manipulated through the normal centralized exchange model.  Furthermore I'm not really a fan of bitcoins deflationary nature either. For me it is too much a commodity and too a little a medium of exchange. 

I was wondering if there are any alt-coins that focus on having the actual fiat exchange built into the currency itself (through the client). Instead of limiting the maximum amount of coins in existence, the physical amount of client users would determine the current absolute value of the coin.  i.e. the more users the greater the coins value.   This would be counteracted by another algorithm measuring velocity of circulation.  Again the value of the coin in the exchange is subject to velocity, too much hoarding?  Value goes down.  Plenty of spending? value goes up.

  The currency is not exchanged in terms of bids/asks, rather the price is absolutley set and traded through the client. The only way in/out of the currency is to accept the current price as set by the algorithm. Whilst the price is set by the algorithm the fiat would still be exchanged through a decntralized medium.

Is this actually possible?  Has someone suggested this before?

l2economics

[MooC Tals]

Impossible currencies are not able to exist without an exchange to deem the value of its currency. If you set your price the markets will always work around your set price and it will be changed regardless.

Not even Rome was able to do this.

[solracx]

Hey guys.  I'm not a techy expert or overly familar with alt-currencies so please forgive me if this has been covered before.

Personally I don't like how easily the bitcoin price can be manipulated through the normal centralized exchange model.  Furthermore I'm not really a fan of bitcoins deflationary nature either. For me it is too much a commodity and too a little a medium of exchange.  

I was wondering if there are any alt-coins that focus on having the actual fiat exchange built into the currency itself (through the client). Instead of limiting the maximum amount of coins in existence, the physical amount of client users would determine the current absolute value of the coin.  i.e. the more users the greater the coins value.   This would be counteracted by another algorithm measuring velocity of circulation.  Again the value of the coin in the exchange is subject to velocity, too much hoarding?  Value goes down.  Plenty of spending? value goes up. Basically it regulates itself through an algorithm that takes into account economic factors to maintain its functionality.

  The currency is not exchanged in terms of bids/asks, rather the price is absolutley set and traded through the client. The only way in/out of the currency is to accept the current price as set by the algorithm. Whilst the price is set by the algorithm the fiat would still be exchanged through a decntralized medium.

Is this actually possible?  Has someone suggested this before?

Yes, it is possible.   Just don't provide a reward for mining to miners.   That is, only privelage miners can create new coins and these coins are created based on the monye in posession.

[nonameo]

I don't think there's a coin out there that pegs itself to a fiat currency, but elacoin follows hashing power. In other words, if mining becomes more popular(coin demand, see bitcoin's price rises) more coins are released onto the market via larger reward. This will put downward pressure on the price.

edit: it's assumed that a coins adoption makes the value go up, which makes mining more profitable, which attracts miners and increases hash rate.

There is also a divider to account for things like asic adoption and video card tech.

I would also like to point out that a coin serves its customers, and should first and foremost serve the needs of its customers. While elacoin isn't there yet, I think it is better prepared to serve those customers than say, bitcoin, which encourages people to hoard it and drive the value up. I attribute much of bitcoin's acceptance to the many people pushing it because they like the idea of a deflationary currency and pseudonymous, decentralized transactions and not to anything inherent to its design

[vinne81]

I don't think there's a coin out there that pegs itself to a fiat currency, but elacoin follows hashing power. In other words, if mining becomes more popular(coin demand, see bitcoin's price rises) more coins are released onto the market via larger reward. This will put downward pressure on the price.

edit: it's assumed that a coins adoption makes the value go up, which makes mining more profitable, which attracts miners and increases hash rate.

There is also a divider to account for things like asic adoption and video card tech.

The OP says

the bitcoin price can be manipulated through the normal centralized exchange model

Price is not manipulated, the market is always right. Any further discussion is void. Something is worth what one wants to give for it. No point in setting the price of a certain altcoin to X fiat if nobody with fiat then wants to buy it.

[chunkatuff]

make a coin that regulates itself based on AGI (artificial general intelligence) and have the hashing power power the program

[Dargumin]

I don't think there's a coin out there that pegs itself to a fiat currency, but elacoin follows hashing power. In other words, if mining becomes more popular(coin demand, see bitcoin's price rises) more coins are released onto the market via larger reward. This will put downward pressure on the price.

edit: it's assumed that a coins adoption makes the value go up, which makes mining more profitable, which attracts miners and increases hash rate.

There is also a divider to account for things like asic adoption and video card tech.

The OP says

the bitcoin price can be manipulated through the normal centralized exchange model

Price is not manipulated, the market is always right. Any further discussion is void. Something is worth what one wants to give for it. No point in setting the price of a certain altcoin to X fiat if nobody with fiat then wants to buy it.

Crypto-currencies are global but people should still be able to go to sleep and not worry that they will wake up to a price crash because someone dumped a large amount of coins while volume was low.

[anderl]

I don't think there's a coin out there that pegs itself to a fiat currency, but elacoin follows hashing power. In other words, if mining becomes more popular(coin demand, see bitcoin's price rises) more coins are released onto the market via larger reward. This will put downward pressure on the price.

edit: it's assumed that a coins adoption makes the value go up, which makes mining more profitable, which attracts miners and increases hash rate.

There is also a divider to account for things like asic adoption and video card tech.

The OP says

the bitcoin price can be manipulated through the normal centralized exchange model

Price is not manipulated, the market is always right. Any further discussion is void. Something is worth what one wants to give for it. No point in setting the price of a certain altcoin to X fiat if nobody with fiat then wants to buy it.

Crypto-currencies are global but people should still be able to go to sleep and not worry that they will wake up to a price crash because someone dumped a large amount of coins while volume was low.

there is an economic intelligence deficit in this thread.

the response to your statement is it is your fault for paying so much for the currency.  I always ask people if I offered you an ounce of gold what would you pay me in dollars, if I also had a cheeseburger what woudl you pay me for that.  then if were were stranded on a desert island only two people left alive and I had the same two items  how much would you pay me again?

price is relative.  what you value at any give time is not the same thing you value under different conditions, now imaging what someone else would value something for.  if you can't make up your mind from minute to minute what something is worth how are you going to get someone else to value something based on your principals.

give up on the fixed price model. 

now there are ways to keeping prices stable but it does require manipulation of money supply, velocity, and incentivizing and disincentivizing demand.  but it does create short term volatility and it doesn't mean that prices won't run away from the mechanisms.

[Dargumin]

What if the coin arrives on the other end already exchanged into fiat.  Then if you wish to convert it back to the coin you again have to go through the client at the agreed exchange rate.  Wouldn't that prevent people trying to trade the coin away from the value determined by the algorithm?

Eg A sends fiat >  b receives coin...want to cash out? Go through the decentralised client exchange.

A Sends coin >  B receives fiat...want to stay in coinland?  As above.

Edit: actually this is going too far away from the point of having a coin.  

[anderl]

What if the coin arrives on the other end already exchanged into fiat.  Then if you wish to convert it back to the coin you again have to go through the client at the agreed exchange rate.  Wouldn't that prevent people trying to trade the coin away from the value determined by the algorithm?

Eg A sends fiat >  b receives coin...want to cash out? Go through the decentralised client exchange.

A Sends coin >  B receives fiat...want to stay in coinland?  As above.

Edit: actually this is going too far away from the point of having a coin.  

plus you have to consider that fiats change in value as well.  what stops someone from changing from COIN/USD.  USD changes in value against the EUR and they trade USD/EUR and then from EUR back into coin at the EUR/COIN fixed price.  they could end up having a fixed arbitrage that would only get worse as USD/EUR deviate away from their original paired price.  See the system already very fluid and trying to force fluids to start still is a waste of energy.  better to just try and redirect their flow or better yet let them go where they want to go.

[Fuserleer]

We were considering this with eMunie, but couldn't decide between the pro's and con's.  I made a poll thread here and it was a dead 50-50 for a good while until "no" finally took the lead.

There are benefits, but I think we are going to pass, as the long term cons do appear to outweigh the short term bonuses of doing it.

[anderl]

We were considering this with eMunie, but couldn't decide between the pro's and con's.  I made a poll thread here and it was a dead 50-50 for a good while until "no" finally took the lead.

There are benefits, but I think we are going to pass, as the long term cons do appear to outweigh the short term bonuses of doing it.

what about pegging to a basket of currencies.  Base it on total exchange conversion.  Well maybe not because it might look like a dollar peg as cryptos are dominated by USD right now.

[TheSwede75]

We were considering this with eMunie, but couldn't decide between the pro's and con's.  I made a poll thread here and it was a dead 50-50 for a good while until "no" finally took the lead.

There are benefits, but I think we are going to pass, as the long term cons do appear to outweigh the short term bonuses of doing it.

what about pegging to a basket of currencies.  Base it on total exchange conversion.  Well maybe not because it might look like a dollar peg as cryptos are dominated by USD right now.

This has already been done by social network zurker.com check out their coin pegged against a basket of 22 currency median.

[fenican]

The problem with this is that the currency becomes a debt instrument that is reliant on a broker, who could be robbed or arrested, to exchange it for fiat

Absent a broker that pegs or guarantees a value, there is no way to peg a crypto to fiat

The client could suggest a value but chances are the market would not honor it

[Mr.V]

Hey guys.  I'm not a techy expert or overly familar with alt-currencies so please forgive me if this has been covered before.

Personally I don't like how easily the bitcoin price can be manipulated through the normal centralized exchange model.  Furthermore I'm not really a fan of bitcoins deflationary nature either. For me it is too much a commodity and too a little a medium of exchange.  

I was wondering if there are any alt-coins that focus on having the actual fiat exchange built into the currency itself (through the client). Instead of limiting the maximum amount of coins in existence, the physical amount of client users would determine the current absolute value of the coin.  i.e. the more users the greater the coins value.   This would be counteracted by another algorithm measuring velocity of circulation.  Again the value of the coin in the exchange is subject to velocity, too much hoarding?  Value goes down.  Plenty of spending? value goes up. Basically it regulates itself through an algorithm that takes into account economic factors to maintain its functionality.

  The currency is not exchanged in terms of bids/asks, rather the price is absolutley set and traded through the client. The only way in/out of the currency is to accept the current price as set by the algorithm. Whilst the price is set by the algorithm the fiat would still be exchanged through a decntralized medium.

Is this actually possible?  Has someone suggested this before?

Check out microcash it is to be used as a currency, cryptos evolved away from tht so your right its more of a commodity like Gold