We must build a new exchange rate system

[Financial_Genius]

There are 3 main factors, which really depend on the course of bitcoin:
1.Economic – these factors include several important points. First, the rate depends on how many bitcoins are produced and mined. When the amount of bitcoin in real transactions is higher than the volume of the currency in transactions on the exchange, the rate is increasing.
2.Technical – this includes all the important points related to the technical component of the operation of cryptocurrency. The main factor is the difficulty of bitcoin mining. If the methods become more complex and services are closed, it affects the number of earners, which in turn affects the exchange rate.
3.The interest in the currency – using search queries it was proven that the interest in bitcoin also affects its course. So, seeing a significant increase in queries to Google of cryptocurrencies, it was observed that its rate increased. The more attention draws to itself the currency, the more it is used more and more, and this is the main factor influencing the exchange rate in any kind of money.

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[oblomov]

We must build a new exchange rate system based on the quantity of money in existence. For example the bitcoin/U.S. dollar exchange rate should be: 1 bitcoin = 500.000 U.S. dollars because all the U.S. dollars in the world are 10.5 trillion. (10.5 trillion/21 million = 500.000).

What do you think about this idea?

Why should the total value of all BTC equal the total value of USD or some other fiat currency?

Most commodities are denominated in US dollars.  The majority of global equity, fixed income, and real estate is denominated in either USD, EUR, JPY, GBP, CAD, or CNY.

Literally billions of people use dollars on a daily basis.

Compare this with a few millions that use BTC. 

Despite having advantages over fiat, BTC and other cryptocurrencies have a long way to go in terms of adoption.

[Barbut]

OP doesn`t know how exchange rate system works, he just wrote something that had logic in one moment, but just in his head. And what is
more interesting is `we` on the beginning, I wonder who is that `we`? How can anyone here build new system?
This changing systems can`t happen over night, I think just with masses on the street this can be done. When will bitcoin come to the point
where all world is using it, maybe we can talk about changing exchange system.

[a7mos]

this can happen only if all people who are using USD start using bitcoin. other than this it is impossible to happen. no one will pay that amount of money to buy only one btc now when there are a lot of people willing to sell him for very cheaper prices

[bibi-bo]

We must build a new exchange rate system based on the quantity of money in existence. For example the bitcoin/U.S. dollar exchange rate should be: 1 bitcoin = 500.000 U.S. dollars because all the U.S. dollars in the world are 10.5 trillion. (10.5 trillion/21 million = 500.000).

What do you think about this idea?

Yes, I like your idea. You're right. I'm all willing to help you set up that new system of yours. I guess we could start with me selling you one BTC. I'll pay the bank fee to transfer the $500.000 to my account and I'll send you one BTC right away.

How are you supporting this idea. You are a legendary and you should know a lot about Bitcoin. This system would completely destroy the point of the market cap. I definitely think it is a bad idea.

Why we need a market cap?

[Gotottack]

This is not a good exchange rate if it does happen. This would mean that the price of Bitcoin would only depend on the dollar. Hence, this would mean that Bitcoin will, in turn, be a centralized currency! Because the basis of it's price is dependent upon a centralized currency which is the USD.

[Mastsetad]

The price of bitcoin depends on its demand and that is the best thing i guess, because in this way the price would depend on the users asking for bitcoins, as there are just a limited amount of bitcoin in circulation so the price would increase with the increment in its demand.

[Achargeturry78]

We must build a new exchange rate system based on the quantity of money in existence. For example the bitcoin/U.S. dollar exchange rate should be: 1 bitcoin = 500.000 U.S. dollars because all the U.S. dollars in the world are 10.5 trillion. (10.5 trillion/21 million = 500.000).

What do you think about this idea?

Im not sure with did this thus your have a greate idea hense we can do great things with this idea but doing this with coins will not make better we know that bitcoin is not stable and this part of bitcoin economy if you're setting it's price more tradings site will die.

[Xester]

This is not a good exchange rate if it does happen. This would mean that the price of Bitcoin would only depend on the dollar. Hence, this would mean that Bitcoin will, in turn, be a centralized currency! Because the basis of it's price is dependent upon a centralized currency which is the USD.

Yes I actually agree with you. Bitcoin as of now being dictated by the Markets price trend is already a good thing. There is no need to alter the exchange rates, as of now its already at 700 plus dollars and returning it back to 500$ is one of the worst things that can actually happen. We all dream of price inflation and bitcoin has already doing that for 6 or more years now. For me bitcoins price is sufficient enough and we dont need to change the exchange rate system.

[Gotottack]

This is not a good exchange rate if it does happen. This would mean that the price of Bitcoin would only depend on the dollar. Hence, this would mean that Bitcoin will, in turn, be a centralized currency! Because the basis of it's price is dependent upon a centralized currency which is the USD.

Yes I actually agree with you. Bitcoin as of now being dictated by the Markets price trend is already a good thing. There is no need to alter the exchange rates, as of now its already at 700 plus dollars and returning it back to 500$ is one of the worst things that can actually happen. We all dream of price inflation and bitcoin has already doing that for 6 or more years now. For me bitcoins price is sufficient enough and we dont need to change the exchange rate system.

The downside of this suggestion is not just because of the $200+ decrease in price. Let us remember that Bitcoin was designed to be a decentralized currency. Meaning no government, state, organization or any group controls bitcoin. It is a currency by the people and for the people who believes in it. Matching the price of USD means that Bitcoin will be part of the US, which will run contrary to its original purpose.

[Mario274]

This is not a good exchange rate if it does happen. This would mean that the price of Bitcoin would only depend on the dollar. Hence, this would mean that Bitcoin will, in turn, be a centralized currency! Because the basis of it's price is dependent upon a centralized currency which is the USD.

Yes I actually agree with you. Bitcoin as of now being dictated by the Markets price trend is already a good thing. There is no need to alter the exchange rates, as of now its already at 700 plus dollars and returning it back to 500$ is one of the worst things that can actually happen. We all dream of price inflation and bitcoin has already doing that for 6 or more years now. For me bitcoins price is sufficient enough and we dont need to change the exchange rate system.

The downside of this suggestion is not just because of the $200+ decrease in price. Let us remember that Bitcoin was designed to be a decentralized currency. Meaning no government, state, organization or any group controls bitcoin. It is a currency by the people and for the people who believes in it. Matching the price of USD means that Bitcoin will be part of the US, which will run contrary to its original purpose.

You're right, the price of Bitcoins can not be tied to any national currency. Bitcoin standalone system.
Bitcoin cost depends on many factors

[Kevin77]

This is not a good exchange rate if it does happen. This would mean that the price of Bitcoin would only depend on the dollar. Hence, this would mean that Bitcoin will, in turn, be a centralized currency! Because the basis of it's price is dependent upon a centralized currency which is the USD.

Yes. It seems OP just want huge price levels for bitcoins for some reason but not with exactly in a way why bitcoin was created. Tying bitcoin prices with dollars virtually will mean bitcoins as cryptography version of dollars similar to how altcoin prices are decided with respect to bitcoin prices.

Bitcoin's value must be calculated by people's demand because we people by ourselves value bitcoins not just due to for a central authority.

[transabox]

This is not a good exchange rate if it does happen. This would mean that the price of Bitcoin would only depend on the dollar. Hence, this would mean that Bitcoin will, in turn, be a centralized currency! Because the basis of it's price is dependent upon a centralized currency which is the USD.

Yes. It seems OP just want huge price levels for bitcoins for some reason but not with exactly in a way why bitcoin was created. Tying bitcoin prices with dollars virtually will mean bitcoins as cryptography version of dollars similar to how altcoin prices are decided with respect to bitcoin prices.

Bitcoin's value must be calculated by people's demand because we people by ourselves value bitcoins not just due to for a central authority.

Yes, that's for sure. Bitcoin can not be tied to the dollar. Its value depends on other phenomena. This is an alternative currency, and its system is built differently

[Razick]

I once made my own currency. I only created three units. By your logic, I could just divide the US money supply by 3 to derive the value of my currency, but I'd get laughed at when I took my currency to the bank and asked them to exchange it for trillions of dollars.

Quantity is not directly related to value. For example, a pound of bread has a different value than a pound of gold. Floating exchange rates set in a free market environment allow for accurate valuation. Your system does not.

[bibi-bo]

No, the idea is perfect. But no mining. Only buy/sell.

[smarky7cd]

....Errr no. The exchange rate of BTC isn't based on just supply. This article provides a rather good and simple explanation: https://www.buybitcoinworldwide.com/kb/what-determines-bitcoins-price/

[Zisove28]

I once made my own currency. I only created three units. By your logic, I could just divide the US money supply by 3 to derive the value of my currency, but I'd get laughed at when I took my currency to the bank and asked them to exchange it for trillions of dollars.

Quantity is not directly related to value. For example, a pound of bread has a different value than a pound of gold. Floating exchange rates set in a free market environment allow for accurate valuation. Your system does not.

I do not understand why only the dollars? because Bitcoin is an international currency. It means for your theory you need to take note of the amount of all currencies in the world.

[bibi-bo]

I once made my own currency. I only created three units. By your logic, I could just divide the US money supply by 3 to derive the value of my currency, but I'd get laughed at when I took my currency to the bank and asked them to exchange it for trillions of dollars.

Quantity is not directly related to value. For example, a pound of bread has a different value than a pound of gold. Floating exchange rates set in a free market environment allow for accurate valuation. Your system does not.

Where did you find the 3 units? No mining, no premine, only buy/sell.

[gogxmagog]

We must build a new exchange rate system based on the quantity of money in existence. For example the bitcoin/U.S. dollar exchange rate should be: 1 bitcoin = 500.000 U.S. dollars because all the U.S. dollars in the world are 10.5 trillion. (10.5 trillion/21 million = 500.000).

What do you think about this idea?

You should learn about supply & demand rules..those are the main rules out there which drive the prices of a stock/currency/good.
Also don't forget about speculation and manipulations which then are another thread to deal with.

[bibi-bo]

We must build a new exchange rate system based on the quantity of money in existence. For example the bitcoin/U.S. dollar exchange rate should be: 1 bitcoin = 500.000 U.S. dollars because all the U.S. dollars in the world are 10.5 trillion. (10.5 trillion/21 million = 500.000).

What do you think about this idea?

You should learn about supply & demand rules..those are the main rules out there which drive the prices of a stock/currency/good.
Also don't forget about speculation and manipulations which then are another thread to deal with.

Im talking about new rules. New ideas.