(this was a hijack in another thread, so figured it should be moved somewhere separate -- deleted my reply in original thread)
I don't think I'm on the same page as those suggesting BTC shouldn't be valued in fiat. I don't understand how it's possible -- maybe my brain doesn't function the same way to be able to process the idea. I can't wrap my mind around the idea that buyers and sellers shouldn't be looking to something familiar (and high-volume) in valuing BTC in transactions. If someone could help me understand, I'd appreciate it.
Posting the exchange rate furthers the screwed up perception that Bitcoin is just a proxy for the USD. It also encourages more emotional involvement with the price roller coaster. Over focusing on USD/BTC prices may encourage regulators to argue that Bitcoin isn't its own valuable asset but is instead some kind of shell game to move around USD (which is a crappy argument, but it's made stronger the more people fixate on the exchange rate).
It's not reasonable for all things, but what I'd like to see is more goods and services being priced actually in Bitcoin without reference to USD, because without that we won't have price stability. Promoting the market prices would be a step in the wrong direction.
Now, if someone wanted some kind of optional ticker thing, sounds fine to me, but you can do that via a browser addon...
So - now I'm interested, because I hear it often, but often don't have great people to ask for clarification from.
USD has pretty much every imaginable good on the face of the Earth priced with it, usually hundreds of times by different merchants.
How does someone establish a price on something in Bitcoin without comparing it to USD? I mean -- it's not just a proxy for USD, obviously, and just about every other fiat currency has a BTC price established. But - if you can buy Printer XYZ123 for $40, how can you ever be a competitive merchant who completely ignores that USD price, especially considering you're probably purchasing either the printer or the materials for the printer in a fiat currency? I understand the benefits behind decoupling BTC from USD, I just don't understand what incentive anyone has to do it, outside of ideology and a long-term commitment to BTC.
EVERY major fiat currency is priced against all the others. Whenever someone talks about the value of currency, they either price it against commodities or currencies - but nobody would think "Oh, I can exchange EUR to USD, so EUR must be reliant on the ability to buy USD with it." I suppose the argument is that Bitcoin doesn't gain and maintain value based on the ability to convert it to and from USD.... but I just don't see how it'll ever be possible to really separate BTC<->fiat exchange when thinking "what's a Bitcoin worth?" You have to compare it to something, and the most market data exists for USD, EUR, and CNY.