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Author Topic: We need to break the loop FIAT->BTC->FIAT  (Read 3513 times)
kjj
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April 25, 2013, 03:23:57 AM
 #41

It would limit the entire Bitcoin economy to just those products which can be produced completely with a Bitcoin supply chain, all raw materials, production, labor, etc solely in Bitcoins.  


No, it would not. If a company can get some of supplies for fiat and some for bitcoins, then they need to sell part of their goods for fiat and part for bitcoins to cover supply costs.
 

You just don't get it do you? A "money" is a Medium of Labour exchange "*Currency*" (*meaning it can vary a tiny bit in value or quality from yester-day to current-day to tomorrow*) that is guaranteed to be of a reliable, more or less constantly repeatable value to everyone who uses it. Those needy for a constant, consistently valued utility of Labour-exchange include bushels-of-bonuses banksters, speculators, entrepreneurs, manufacturers, merchants, professionals, false-flag terrorists, street sweepers and even robbers. We all expect to be paid in something we can reliably use again to claim our rewards as we choose later.

Nobody can afford to get paid in something that they have no clue what it might only be worth an hour from now.

Even a slave has the freedom to decide to be fed, starve or just commit suicide, depending upon the certainty of what his reward for servitude will or will not be.

Without an assured value a "fiat bitcoin" can never ever become a "money".

Heh.  I should report this to Language Log.  I doubt that they've seen this particular false etymology before.  Current is "that which circulates".  The exact same word also applies to rivers, circuits, etc.  It has nothing to do with time.

The truth is that nothing is fixed or reliable.  Not the dollar, not the euro, not gold, not silver, nothing.

I've seen this stability nonsense pop up a lot lately.  Surely there aren't that many people in the world that think that the dollar is a fundamental constant of the universe?

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BTCLuke
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April 26, 2013, 04:26:00 PM
 #42

Breaking the loop is most directly tied to adoption of the bitcoin Economy.

Loop:  FIAT->BTC->FIAT->Consumption

Broken loop: FIAT->BTC->Consumption
Both of your loops are wrong. Correct loop would be

Production -> BTC -> Consumption
Although your loop is the outcome we all want here, I was addressing how to stop the current FIAT->BTC->FIAT loop mentioned in the OP.

Luke Parker
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April 27, 2013, 09:59:59 PM
 #43

How do we avoid that? Breaking the fucking loop FIAT->BTC->FIAT.

That's easy.

Just add a second crypto and the loop wouldn't be such a problem. ATM every bigger transaction effects the exchange rate and every change triggers greed/fear. That greed/fear generates vola and vola is the reason merchants stay out of crypto.

A bigger transaktion on BTC pushes panikers into LTC and vice versa. If the big money is smart money they will already have a 2nd position in LTC to sell after LTC/BTC rises. Panikers are either idiots and loose their money or stop generating vola on Crypto/Fiat.
Less vola means more people in crypto ...
After a while vola will be reduced and value increased.

To stop idiots from panik moves to USD simply add a payout fee or delay and make LTC/BTC exchange for free.

Think about it.

Sign a message and get some YAC: https://bitcointalk.org/index.php?topic=300152.0
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