A new design suggestion: Pegged exchange rate of BTC

[nomadwfs]

The problem with BTC is not the exchange rate of it for fiat currency. The problem is that it's a pain in the a** to actually USE it to exchange BTC for goods/services.

[kjj]

Are you kidding?  I've found that using BTC to pay for stuff online is vastly more pleasant than using paypal or a credit card.

[memvola]

Are you kidding?  I've found that using BTC to pay for stuff online is vastly more pleasant than using paypal or a credit card.

+1

I think most of us are looking from the perspective of already having credit cards and paypal accounts, and already knowing how to use them. Besides the fees, and the fact that you have to register a bank account to get them, which is a pain if you are an expat, they cause additional problems. For instance, a couple of months ago, my bank decided to replace my credit card because of a security issue (the fact that I used it abroad), and it caused a lot of grief, such as paypal not being able to pay for my domain updates. These things happen regularly.

I don't mean that Bitcoin doesn't have it's own issues parallel to these, like having to secure your wallet, but the payment system itself is almost without any problems. We just lack a few tools that will fix some of the unpleasant things we have to deal with.

[dacoinminster]

Pegged distributed currencies (the descendents of bitcoin) are quite possible, and they are on the way. Check out this thread:

https://bitcointalk.org/index.php?topic=29135.0

I had my own schemes for how this could work, but I've decided that morpheus' idea is the best way to do it.

These new block chains will be highly dependent on bitcoin, for price discovery and for mining (using merged mining). If you (like me) think they will be ridiculously successful, it's time to buy some bitcoins.

[cunicula]

Because they can print RMB at will.

Expect to see that blow up in their faces in the next 5 to 10 years.

Same as FED printing USD, and that pegged exchange rate is not fixed, I remember it is 3.x in 80s, 8.x in 90s, now 6.x

A pegged system could be aimed by hedge funds. Soros crashed bank of england and some aisan countries, but he was defeated by the HongKong government when he played the same trick, because chinese government had much more USD reserve than he could leverage. As long as an economy scale is small, maintain price stability is difficult

Not even remotely the same thing.  China is printing RMB to balance a massive influx of dollars in a futile effort to keep the value of their currency low to keep sucking manufacturing into the country.  Google "mercantilism".

And a having a peg doesn't mean that you can't change it occasionally.  It just means that the PBC is ready, willing, and able to convert any quantity of USD into RMB (or the reverse) at whatever the official rate is that day.

May want to consider getting an education before posting. You are off-topic and out of your depth.

[kjj]

May want to consider getting an education before posting. You are off-topic and out of your depth.

Well, if you say it, it must be true.  Thank you for setting me straight.

[cunicula]

May want to consider getting an education before posting. You are off-topic and out of your depth.

Well, if you say it, it must be true.  Thank you for setting me straight.

You might consider donating to show your appreciation.

[dacoinminster]

May want to consider getting an education before posting. You are off-topic and out of your depth.

Well, if you say it, it must be true.  Thank you for setting me straight.

You might consider donating to show your appreciation.

Donation address: 1A76BH8MAkPGSuxZhbHAqVBp9BtX24DBe5

I hate it when people run out of logic and resort to insults. Anybody know a way to send negative bitcoins?

kjj, I think your reply showed class.

[cunicula]

May want to consider getting an education before posting. You are off-topic and out of your depth.

Well, if you say it, it must be true.  Thank you for setting me straight.

You might consider donating to show your appreciation.

Donation address: 1A76BH8MAkPGSuxZhbHAqVBp9BtX24DBe5

I hate it when people run out of logic and resort to insults. Anybody know a way to send negative bitcoins?

kjj, I think your reply showed class.

Sometimes I'm so exasperated by stupidity that I lack the patience to use reasoning. Sorry, I'm not perfect.

[kjj]

Sometimes I'm so exasperated by stupidity that I lack the patience to use reasoning. Sorry, I'm not perfect.

Meh.  Don't worry about it.  I do the same thing too.  In fact, I have a bit of a reputation for it.  I don't let it get me down when people do it back to me.

By the way, if you can think of anything actually wrong with my arguments, feel free to jump back in.

I still maintain that China is printing massive piles of RMB in an effort to maintain their dollar peg.  Their peg isn't completely hard, in that it floats a tiny little bit in the short term, and can move quite a bit in the long term.  But it is still a peg in that the price is set by policy rather than by the market, and there is no conceivable amount of either USD or RMB that could be dumped on PBC that would move the price by more than a token amount.

This is only possible in that situation because they can create one currency at will (and then sterilize it to hide the inflation), and they have an enormous stockpile of the other that they can draw down for a while if it ever becomes necessary.

[dacoinminster]

I'm glad you guys were able to make up.

I was shocked to realize that I actually DO have a way to send him negative coins (well, something very similar anyway). By not paying him 0.1BTC he would otherwise have won, I effectively sent him -0.1 BTC here: https://bitcointalk.org/index.php?topic=31057.msg443612#msg443612

I just couldn't resist the opportunity to follow-through on what I originally thought was an empty threat! :-P