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trout (OP)
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October 15, 2011, 11:06:36 AM |
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Can somebody just promise to back the price up?
Say, somebody with a real name (or a real company)
could issue a legally binding obligation to buy BTC
for at least 0.1$, no matter what. This only takes 2 100 000 USD to guarantee that forever and less than a million for the next couple of years.
Most likely you will never need to actually buy BTC at that price; just proving that you are able
to do that is good enough.
I guess there are enough people with much BTC and much USD
to be able to do that and to have interest in that. The benefits are obvious: more trust in the currency,
hence wider acceptance.
--
long-time lurker, scarce poster
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"If you don't want people to know you're a scumbag then don't be a scumbag." -- margaritahuyan
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worldinacoin
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October 15, 2011, 11:09:39 AM |
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I will set it as one Satoshi  |
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finway
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October 15, 2011, 11:14:18 AM |
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faith, that's enough.
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cbeast
Donator
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 Offline
Activity: 1736
Merit: 1006
Let's talk governance, lipstick, and pigs.
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October 15, 2011, 11:31:56 AM |
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Cryptocurrency like bitcoin is a fundamentally new technology. These take time to be adopted by the clueless masses. You are right though, it probably will be some big player that creates a killer app using bitcoin.
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Any significantly advanced cryptocurrency is indistinguishable from Ponzi Tulips.
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worldinacoin
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October 15, 2011, 11:34:58 AM |
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faith, that's enough.
Exactly, it depends all on consumer sentiments. |
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trout (OP)
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October 15, 2011, 12:20:05 PM |
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faith, that's enough.
Exactly, it depends all on consumer sentiments. faith is easier to incite with legally-binding obligation rather than just words. |
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worldinacoin
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October 15, 2011, 12:23:29 PM |
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It will be extremely complicated for any company to issue a legally binding obligation on a decentralized p2p "currency". What are the considerations to be given to that company in return for such an obligation? There should also be an agreement for such an obligation, an agreement between the company and who?
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cbeast
Donator
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Activity: 1736
Merit: 1006
Let's talk governance, lipstick, and pigs.
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October 15, 2011, 12:51:44 PM |
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It will be extremely complicated for any company to issue a legally binding obligation on a decentralized p2p "currency". What are the considerations to be given to that company in return for such an obligation? There should also be an agreement for such an obligation, an agreement between the company and who?
The minimum consideration for bitcoin is the payment for electricity to an electricity provider. Other that, there is nothing standing between bitcoin and any private or public firm. Their obligation would simply be their product or service. An example might be paying in bitcoins for advertising clicks and allow the bitcoin to be used for micropayments or cash value after a fee for exchange. |
Any significantly advanced cryptocurrency is indistinguishable from Ponzi Tulips.
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WiseOldOwl
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October 15, 2011, 12:56:36 PM |
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He is talking about getting a "underwriter" to make the market. They don't need any control over it, they are at risk themselves. The only thing is, do we want a world class professional with a company behind him manipulating our small market this early? But just to be clear it is the same thing as someone coming with a bunch of money and putting in conflicting orders. Buy 1M BTC at $4 Sell 1M BTC at $5 Since no one will break those walls, you make the profits from the variations in between. Someone sells 10 at $4, then someone buys 10 at $5, you make 10 bucks Once you get a obligation of a market maker, it basically adds stability and liquidity. Only thing is, who are they entering into a contract with??? it would have to be MtGox or same. |
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Jalum
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October 15, 2011, 01:02:17 PM |
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Can somebody just promise to back the price up?
Say, somebody with a real name (or a real company)
could issue a legally binding obligation to buy BTC
for at least 0.1$, no matter what. This only takes 2 100 000 USD to guarantee that forever and less than a million for the next couple of years.
HAHAHAHA never change bitcoiners! |
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• Telegram
• ANN Thread
• Bounty Thread
• Whitepaper |
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cbeast
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Activity: 1736
Merit: 1006
Let's talk governance, lipstick, and pigs.
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October 15, 2011, 01:07:07 PM |
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OK, I understand that explanation. I just don't understand the need. I think people have become accustomed to economies that are manipulated by inflation and somehow think that volatility is a bad thing. Volatility will naturally decrease as the bitcoin economy swells. The bitcoin economy right now is limited to currency traders and is not yet a real economy. I don't think anyone will complain about high volatility while the purchasing value of real goods and services grows as bitcoin skyrockets.
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Any significantly advanced cryptocurrency is indistinguishable from Ponzi Tulips.
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cbeast
Donator
Legendary
Offline
Activity: 1736
Merit: 1006
Let's talk governance, lipstick, and pigs.
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October 15, 2011, 01:10:47 PM |
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I would like to see some company like FB pin their credits to BTC. Would it really be that much of a risk?
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Any significantly advanced cryptocurrency is indistinguishable from Ponzi Tulips.
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WiseOldOwl
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October 15, 2011, 01:13:59 PM |
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I would like to see some company like FB pin their credits to BTC. Would it really be that much of a risk?
That would be a start |
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trout (OP)
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October 15, 2011, 01:49:22 PM |
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the idea is not to control the volatility, but just to guarantee that BTC will never become worthless.
This guarantee may become useless if the price soars, but is important in the beginning (now)
Think of it as face value of the bullion coins. Like, 1 South African Rand on a "krugerrand."
Putting a huge "buy" wall on MtGox is not the same, since everybody knows the wall can disappear any time.
I'm not sure how a "legal-binding obligation" can be formalized, but if a company with considerable reputation and market value simply publishes such a statement, it's already a big deal. I'm sure there are better and more "binding" ways to do it though.
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WiseOldOwl
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October 15, 2011, 02:04:56 PM |
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No, a statement would not be nearly enough IMO. I should have taken an extra couple seconds to simplify. http://www.otcmarkets.com/otc-pink/homeHere ^^^ You can learn about market makers in small commodities or stocks. It really breaks down how and what the market makers do somewhere in the info or faq or w/e. If we start a company (bitcoin) and want it to have shares (bitcoins) you have to get a company to make the market, or agree to buy and sell no matter what happens. So you have this game of avg investor versus MM (MarketMaker) where the MM wins a hell of a lot of the time. Just by researching why this is used in pinksheets and otc markets (or on a much much larger scale NYSE Nasdaq etc.) you will be able to see the pro's and con's |
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worldinacoin
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October 15, 2011, 02:08:06 PM |
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Pink Sheets would be interesting. If some bitcoin investors start such a company and maybe sell bonds to that effect, it will have to effect of making bitcoins far more mainstream than just a currency known to computer geeks.
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WiseOldOwl
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October 15, 2011, 02:08:54 PM |
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Pink Sheets would be interesting. If some bitcoin investors start such a company and maybe sell bonds to that effect, it will have to effect of making bitcoins far more mainstream than just a currency known to computer geeks.
Now your thinkin'!!! How very wise of you... |
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cbeast
Donator
Legendary
Offline
Activity: 1736
Merit: 1006
Let's talk governance, lipstick, and pigs.
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October 15, 2011, 02:37:07 PM |
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Pink Sheets would be interesting. If some bitcoin investors start such a company and maybe sell bonds to that effect, it will have to effect of making bitcoins far more mainstream than just a currency known to computer geeks.
Now your thinkin'!!! How very wise of you... Let's bundle them with some other investments like IXcoins, Solid Coins, etc. to add value. Hell, I'll even throw in some IOUs I have on paper napkins to really make these bonds soar. |
Any significantly advanced cryptocurrency is indistinguishable from Ponzi Tulips.
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Snapman
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October 15, 2011, 02:48:22 PM |
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what if 1 btc would equal 1 share of stock in this new company
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BTCRadio: 17cafKShokyQCbaNuzaDo5HLoSnffMNPAs
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Shuai
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October 15, 2011, 03:02:40 PM |
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Can somebody just promise to back the price up?
Say, somebody with a real name (or a real company)
could issue a legally binding obligation to buy BTC
for at least 0.1$, no matter what. This only takes 2 100 000 USD to guarantee that forever and less than a million for the next couple of years.
Most likely you will never need to actually buy BTC at that price; just proving that you are able
to do that is good enough.
I guess there are enough people with much BTC and much USD
to be able to do that and to have interest in that. The benefits are obvious: more trust in the currency,
hence wider acceptance.
--
long-time lurker, scarce poster
if its so easy and only requires 2,1 mil, why dont you just do it yourself? |
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