[idea] A federal reserve system for bitcoin

[ifinta]

I started a fund for bitcoin today - a seed for a federal reserve system of the bitcoin

The idea is simple:

I hold 50% - 50% bitcoin and EUR on my xapo account. If the difference between two proportion reaches 10% - I made a transaction to balance it. It is easy with xapo.

If you will join - just create a fund on an exchange or an debit card application, u.s.w. - just as you will. You can deposit, maybe exchange some fiat (EUR, USD, ...) as you wish to this account.
Target is to make this funds balanced: 50% fiat (or gold, or silver) - 50% bitcoins.

If the difference between two proportion reaches 10% (or as you wish, but maximal 10%) then please act - make a transaction.

What is needed more?

A big, distributed and active community - of course.

And an app with charts for our community:

The app should be simple. It should have two fields to store the actual BTC and the actual fiat (or gold, or silver) values (two funds of the users). It should automatically follow the bitcoin price. If the two funds unbalanced more as 10% the app should notify the user somehow to take an action.

The charts should be simple also.

The charts should show the communicated values:
 - btc stored by app users (active and inactive also; inactive an user is, if the user takes no action (don't changed the fields) after a notify (timeout i.e. 1 hour))
 - btc value in usd.
 - fiats (or gold, or silver) and its values.
 - fiat (or gold, or silver) values summarized in usd.
 
If exists an app able to act as above - please post it...
If exists similar community already - I am willing to join...

[7788bitcoin]

Interesting idea. However, this will make xapo to become the gate keeper and I am not sure if they are good enough to take up this role...

[Xester]

Interesting idea. However, this will make xapo to become the gate keeper and I am not sure if they are good enough to take up this role...

The system is great but just like what you said Xapo is not up for the job. Xapo have their own design and system in which they will not be overruled by some modification not coming from within. But as a tip why dont you submit your proposal to xapo and if they will work hand -in-hand with you many will join and will have the confidence to be a part of your plan.

[ifinta]

Interesting idea. However, this will make xapo to become the gate keeper and I am not sure if they are good enough to take up this role...

The system is great but just like what you said Xapo is not up for the job. Xapo have their own design and system in which they will not be overruled by some modification not coming from within. But as a tip why dont you submit your proposal to xapo and if they will work hand -in-hand with you many will join and will have the confidence to be a part of your plan.

I choosed for my reserve xapo and EUR. But you can choose other exchange or payment system, i.e. poloniex with USDT, or KRAKEN with USD. So will be decentralised and distributed.

[pitham1]

What is the objective of this federal reserve?
The value of your total funds will go up in a volatile environment, when there are wild swings in either direction of the price you invested in.
Otherwise, the fund will just keep selling bitcoins in an uptrend.

[ifinta]

What is the objective of this federal reserve?

Objective of this idea is - to have and show a community with reserves and strategy, if the bitcoin price falls (or grows).

...
The value of your total funds will go up in a volatile environment, when there are wild swings in either direction of the price you invested in.
...

Yes - it is true. We (the community) can earn with this system also.

...
Otherwise, the fund will just keep selling bitcoins in an uptrend.

Yes, it is true also - and the fund in fiat (reserved if bitcoin price falls) grows. I think it is good also.

[Lieldoryn]

With such rapid growth of bitcoin as we are seeing now probably there are few people willing to freeze their euros or dollars. Yes, of course you can play it safe in case of falling of bitcoin prices, but this trend is not observed and more profitable to invest in bitcoin 100% of our Euro.

[ifinta]

With such rapid growth of bitcoin as we are seeing now probably there are few people willing to freeze their euros or dollars. Yes, of course you can play it safe in case of falling of bitcoin prices, but this trend is not observed and more profitable to invest in bitcoin 100% of our Euro.

This thread not about profitability of trading. Of course I have more bitcoins (and altcoins also) as I funded for this reason.
Everybody can decided to join or not. The size of the reserve is also freely selectable.

I think this strategy long time profitable enough. At heavily grow or free fall of prices there are always reserves behind members. It can be very profitable also.

The app can show - how many active (and inactive) member and fiat behind, and can act as an information about the bitcoin market.

[Hydrogen]

Why hold "50% fiat" in an era where state deficits are large and unsustainable with hyperinflation and fiat devaluation being likely prospects in the future? The united states economy being $20 trillion in debt is the reason savvy investors and countries like russia, japan and australia are shifting their holdings as far away from american fiat as possible.

The EU is very similar to the dollar in many ways & its value is likely to decrease. Many EU nations are giving illegal immigrants free welfare and healthcare which threatens to further impoverish their holdings, dragging their fiat value down with it. Especially if more nations commit to #brexit.

There are no advantages to holding euros with many disadvantages lurking on the horizon.

It might be better to hold 50% bitcoin / 50% gold or silver. With deficit and debt & concerns over currency devaluation the value of gold/silver is likely to increase, esp if currency devaluation/hyperinflation becomes real.

[ifinta]

...
It might be better to hold 50% bitcoin / 50% gold or silver. With deficit and debt & concerns over currency devaluation the value of gold/silver is likely to increase, esp if currency devaluation/hyperinflation becomes real.

Good idea - and it is your decision. It is perfect, if you join with a such reserve... I will change the first post, just to save your idea.

[ImHash]

Or instead you could buy bitcoins with everything you've got and go to sleep for 5 years and after you woke up see you have 15 times more money than 5 years ago, federal reserve is for a centralized systems and it can not work in crypto where every thing is decentralized.
There will be no free fall for bitcoin market, there are only 21M bitcoins and anyone with more coins is going to win bigger than others in the future.
Imagine every one holding and not selling, what then? you can't go and print more money (mine more bitcoins) so eventually you will have half the value of your coins in fiat then what?

[ifinta]

Or instead you could buy bitcoins with everything you've got and go to sleep for 5 years and after you woke up see you have 15 times more money than 5 years ago, federal reserve is for a centralized systems and it can not work in crypto where every thing is decentralized.
There will be no free fall for bitcoin market, there are only 21M bitcoins and anyone with more coins is going to win bigger than others in the future.
Imagine every one holding and not selling, what then? you can't go and print more money (mine more bitcoins) so eventually you will have half the value of your coins in fiat then what?

Sorry - I think you don't understand the first post. Please re-read it.

 - This will be a decentralized and well distributed system.
 - Nobody will print more bitcoin in future with this system - such work is a work for the well controlled miners. It will be exists through this system no more coins as before.

[radamiel]

Bitcoin does not require federal reserve, its decentralized and anonymous nature makes it able to evolve, bitcoin is free unbinding unnecessary things make rules.

[ifinta]

Report:
 - My funds on xapo (at this time): 3817 EUR (or 1.957242979 BTC)
 - In the past 24h I decided two times my funds to balance...

[davis196]

Interesting idea. However, this will make xapo to become the gate keeper and I am not sure if they are good enough to take up this role...

I don`t trust Xapo and many people are like me.
Anyway,it`s a good business idea and someone should create such exchange platform.
I don`t know will this be profitable with the rising btc transaction fees and confirmation time.

[ifinta]

Report:
 - Just decided to act...
 - My funds on xapo (at this time): 4121,06 EUR (or 1.81859392 BTC)

[deisik]

I started a fund for bitcoin today - a seed for a federal reserve system of the bitcoin

The idea is simple:

I hold 50% - 50% bitcoin and EUR on my xapo account. If the difference between two proportion reaches 10% - I made a transaction to balance it. It is easy with xapo.

If you will join - just create a fund on an exchange or an debit card application, u.s.w. - just as you will. You can deposit, maybe exchange some fiat (EUR, USD, ...) as you wish to this account.
Target is to make this funds balanced: 50% fiat (or gold, or silver) - 50% bitcoins

Could you explain the purpose of all that?

I read it a few times and still can't understand your idea. I understand what you are going to do, basically, you choose to keep balance in your funds at some ratio between fiat and crypto. Obviously, you are free to do whatever you may choose to do with your money. Sell your coins, buy yours coins, even gift them all, but what end exactly this idea should help to achieve?

[ifeoluwa]

The whole idea is still not clear, can you break it down more? what if the difference exceeds 10%

[ifinta]

Report:
 - Just decided to act...
 - My funds on xapo (at this time): 3916,85 EUR (or 1.91843410 BTC)

[ifinta]

I started a fund for bitcoin today - a seed for a federal reserve system of the bitcoin

The idea is simple:

I hold 50% - 50% bitcoin and EUR on my xapo account. If the difference between two proportion reaches 10% - I made a transaction to balance it. It is easy with xapo.

If you will join - just create a fund on an exchange or an debit card application, u.s.w. - just as you will. You can deposit, maybe exchange some fiat (EUR, USD, ...) as you wish to this account.
Target is to make this funds balanced: 50% fiat (or gold, or silver) - 50% bitcoins

Could you explain the purpose of all that?

I read it a few times and still can't understand your idea. I understand what you are going to do, basically, you choose to keep balance in your funds at some ratio between fiat and crypto. Obviously, you are free to do whatever you may choose to do with your money. Sell your coins, buy yours coins, even gift them all, but what end exactly this idea should help to achieve?

- This idea should increase the market depth of bitcoin.
- The volatility should decrease.