Exchangers are not going to stick around until there is real commerce happening within BC. I mean, why would an exchanger sit around and accept bitcoins that are generated on your computers? They are going to just blow out their float of dollars and fold. (End up with a pile of coins and no dollars forever waiting for someone to buy the coins again with dollars).
We are in a sort of "chicken and egg" situation at the moment.
Exchangers wont stick around until they can move money in both directions and somewhat evenly. (And can see some sort of a profit of course).
In order for an exchanger to sell bitcoins (more than can be generated by an average user's computer, of course) to someone, they need customers who have dollars and want coins. They would buy coins with dollars (from an exchanger) because they don't have the computational power to generate enough in a short enough timeframe to make the required purchase. (ex. I am not going to sit here and wait a year to generate enough coins to buy a t-shirt online. It might not fit me by then, or it might be out of style.. lol!)
Also, a merchant is not going to sell products for coins when they know that the exchangers are out of dollars. They would know that they can't get their value out. (Essentially reducing the value of the coins to nothing. I can buy coins by -- essentially -- paying my power bill but if I can't pay my power bill with these coins I am running at a loss. They would be worth less than $0). They will just revert back to dollars. One could argue that the merchant could still accept the coins -- sure -- but they would just pile them up hoping that one day they could get their value out. Most businesses would see this as unnecessary risk.
What traditionally defines "money" (talking fiat here) is what you can use for the payment of taxes. And I don't see the governments taking bitcoin as a form of payment anytime soon.
One could (in theory) start your own country and mandate payment in bitcoins. That would be one way around that mess, but you would need adoption. One man (or a hand-full) by himself on an island will surely fail in trade. Humans live in hives; like bees.
Why did/do we have a queen?
(And I digress..)
Here is my proposal: I am going to actually sell goods with bitcoin. I am willing to take the risk because I believe in a new online economy. I understand all of the risks involved. I would like to partner (I will settle for another man's word) who can exchange in/out of dollars for me at a fair value that will keep customers happy. I will do this because I know that for in order for this system to succeed we need exchangers AND goods/services.
Cheers and good luck!
