How Do we bring the value of BitCoins back up?

[IdeaMan]

The trick is actually to stabilize the value of bit coin - give or take.

The answer is to create a financial entity large enough to back up a certain USD/BTC price throughout the entire bit coin economy.

As an example, let's say you wanted to stabilize the price (ratio) at 1$:1BTC for all eternity - they would simply place a $21,000,000 bid at 1$ on MtGox.  As a result the price cannot go below 1$.

This amount of force in that market would also influence many people to move their prices (bid or ask) towards the super bid at 1$.

Really though, what you would best be served by doing is running a bot that constantly adjusts it's bid price and quantity to:

(The current number of BitCoins @ a price of 21,000,000 / Current number of BTC minted)

To achieve this effect without the interference of big business, we would need to create something akin to a price bloc that acted on the exchange(s).

The bot would have to:
1) communicate to a server how much buying power it contributed to the bloc.
2) poll the server for the tool buying power of the price bloc
3) calculate this instance's proportional share of the price bloc
4) calculate this instance's proportional share of the number of BTC build
5) automatically adjust the user's bids on exchange(s) to reflect these new values as per the above equation
6) do the reverse for ask prices

It would be nice if the bot:
1) polled the instances of the client for a vote on target bid/ask prices, which would be then be determined by the instance's proportional share of the purchasing power in the bloc and the bloc's total purchasing power
2) listed the public value of the bloc in terms of total purchasing power and weighted average price per BitCoin in the user's local currency

It would be nice if the server
1) fed JSON data out on request
2) tracked historical values and displayed them with easy-to-read graphs
3) had an API to access it's data as part of other bots or data modeling systems

Donate to this wallet to contribute to the bounty for this idea:
19CCVDxm53WZuyGvNr4ZaVFgn1kYha4dC1

The bounty will be paid to the best bot (determined by consensus in the thread about the bot, ultimately decided by me, since I'm the IdeaMan) one week after the first bot is posted on that thread.

I keep 1 percent for coming up with the idea (deal with it), the other 99 goes to the developer who can first submit a functional bot to this thread that handles MtGox.  Further payouts will be spread to the development team as a whole equally, again minus my 1 percent. For the sake of transparency, all transactions to and from this wallet will be posted to a new thread regarding this bot.

And of course, my 1 percent of the incoming donations will be used by the final bot to stabilize prices.

[1714011686]

1714011686

[mmortal03]

Wallet encryption is the killer app needed to allow us to convince a lot more people to get involved.

[kokjo]

Stop selling? just hold your bitcoin ,and buy more at the low price.

[aq]

Wallet encryption is the killer app needed to allow us to convince a lot more people to get involved.

What makes things worse is that looking from an average user perspective, it seems that the development speed can only be measured in Bubnoffs. The official client looks like either some still completely unusable pre-alpha stuff, or something that has been abandoned by its developers a long time ago.

The client is full of technological complex things, yet the current developers are unable to add wallet encryption within a few month. For the end users that is - I don't care if someone has this in his private repository.

And think about this: adding wallet encryption is an easy task - if there would be an urgent need to add something more complex, it will probably take years. Maybe we need to search and reactivate Satoshi himself, because if the development process would have been so slow from the start, the first bitcoin software version would not have seen the light before maybe 2040.

Someone needs to convince Gavin that "the user experience is my lowest priority" is probably not the best approach.

[kokjo]

Someone needs to convince Gavin that "the user experience is my lowest priority" is probably not the best approach.

go fix it yourself!

[aq]

Someone needs to convince Gavin that "the user experience is my lowest priority" is probably not the best approach.

go fix it yourself!

Sorry, impossible. I am not the official maintainer. And BTW, there is already a fix named "bitcoin-qt", but I doubt that Gavin will make it the official client anytime soon. It "only" has a much better user interface (same core), and that has as no priority for Gavin

[ThiagoCMC]

solution is banal: create new bitcoin services and invite people from outside the forum to use them

Absolutely right!

When Bitcoin become more useful,  the price in dollars will increase.

If people think in Bitcoin as a investment, the price will drop, because the Bitcoins will be only on wallets...

Bitcoins is a currency, so, the coins needs to be in circulation. The transactions are slowing down... Right!? This isn't a good thing!!

Take a look here: http://www.technologyreview.com/computing/38392/?p1=Mag_story0

Bitcoins is not a investment!

So, more people using Bitcoins, better is.

Think about it!
Thiago

[Mjbmonetarymetals]

Well said !! If anybody would like to lighten up there wallet **shameless plug alert** how about buying something really shiny https://bitcointalk.org/index.php?topic=23256.0   

[kjj]

adding wallet encryption is an easy task

Awesome!  Post your pull request (or patches).

[coinhammer]

Continue to create awareness about Bitcoin, tell your friends, spread the word trough social networks, and Buy and Sell goods using Bitcoin. Also, and this may ruffle some feathers, but I believe ixcoin and other forks are a detrimental distraction that ultimately cheapens Bitcoins perception and dilutes its credibility.

[Chris Acheson]

Wallet encryption is the killer app needed to allow us to convince a lot more people to get involved.

What makes things worse is that looking from an average user perspective, it seems that the development speed can only be measured in Bubnoffs. The official client looks like either some still completely unusable pre-alpha stuff, or something that has been abandoned by its developers a long time ago.

The client is full of technological complex things, yet the current developers are unable to add wallet encryption within a few month. For the end users that is - I don't care if someone has this in his private repository.

And think about this: adding wallet encryption is an easy task - if there would be an urgent need to add something more complex, it will probably take years. Maybe we need to search and reactivate Satoshi himself, because if the development process would have been so slow from the start, the first bitcoin software version would not have seen the light before maybe 2040.

Someone needs to convince Gavin that "the user experience is my lowest priority" is probably not the best approach.

Perhaps you might want to contribute to this project: https://bitcointalk.org/index.php?topic=29109.0

[mmortal03]

Wallet encryption is the killer app needed to allow us to convince a lot more people to get involved.

What makes things worse is that looking from an average user perspective, it seems that the development speed can only be measured in Bubnoffs. The official client looks like either some still completely unusable pre-alpha stuff, or something that has been abandoned by its developers a long time ago.

The client is full of technological complex things, yet the current developers are unable to add wallet encryption within a few month. For the end users that is - I don't care if someone has this in his private repository.

And think about this: adding wallet encryption is an easy task - if there would be an urgent need to add something more complex, it will probably take years. Maybe we need to search and reactivate Satoshi himself, because if the development process would have been so slow from the start, the first bitcoin software version would not have seen the light before maybe 2040.

Someone needs to convince Gavin that "the user experience is my lowest priority" is probably not the best approach.

Perhaps you might want to contribute to this project: https://bitcointalk.org/index.php?topic=29109.0

Thanks for the link. Does that have wallet encryption?

adding wallet encryption is an easy task

Awesome!  Post your pull request (or patches).

I think his point is that it should be easy for the people who already understand the code. You'd think they'd want to prioritize it.  The bitcoin client already uses encryption in other areas, so those who are able to understand that area of the code should have no problem carrying things over to handling wallet encryption.  It doesn't have to be hack-proof (a.k.a. perfect) or anything.  Even simple password protection at the startup of the client -- with the physical encryption of the wallet file only occurring when the client is closed -- would be a huge step forward.

[Chris Acheson]

Perhaps you might want to contribute to this project: https://bitcointalk.org/index.php?topic=29109.0

Thanks for the link. Does that have wallet encryption?

It hasn't been released yet, but presumably it will.  He's got a dev blog here: http://bitco.tumblr.com/