Bitcoin , Exchanges and the problem of the price/value of a Bitcoin

[Srbotones]

So, summing up: IMO we need to create a kind of new type of exchange that can correlate the entire activity inside the Bitcoin economy to have an appropiate value and price of it.

We need a decentralized peer-to-peer exchange/order book where  BTC is exchanged for cash.

That's what I think.

[mestar]

The selling from miners outpaces the buying demand from consumers. Ultimately this will taper off or reverse when:

1.) consumer demand for bitcoin increases
2.) miners control less new coins - ie. more halving
3.) mining capacity takes a break from expanding and levels out

You are right right on all points except for the third. 

Buying mining hardware never puts any pressure on Bitcoin price, and exchanges don't need to see those purchases. 

However, electricity for mining always goes trough the exchanges, and difficulty leveling out simply means that the power consumption is at the highest level it can be, so that is the point at which the downward pressure on the Bitcoin price is the highest.

Like exactly now, or in the next couple of months.

[cafucafucafu]

I have to agree with the OP. Exchanges are a very bad way to set the price. Yes gold, shares and other things use exchanges, but BTC is a currency. Imagine if pizza was sold on exchanges? It would cause havoc to the price with margin trading etc.

Even with greater adoption, we will always face this problem so long as the volume on exchanges is a small fraction of what is being traded worldwide. Is this just a fact we must face?

[odolvlobo]

I have to agree with the OP. Exchanges are a very bad way to set the price. Yes gold, shares and other things use exchanges, but BTC is a currency. Imagine if pizza was sold on exchanges? It would cause havoc to the price with margin trading etc.

Aren't you aware that all currencies are sold on exchanges?

Also, pizza may not be sold on exchanges, but corn, soybeans, soy products, wheat, pork, cattle, butter, milk, cocoa, coffee, cotton, orange juice, sugar, crude oil, heating oil, diesel, refined petroleum products, gasoline,  electric power, coal, natural gas, copper, aluminium, lead, zinc, nickel, tin, steel, gold, silver, platinum, and palladium are.

[Srbotones]

I have to agree with the OP. Exchanges are a very bad way to set the price. Yes gold, shares and other things use exchanges, but BTC is a currency. Imagine if pizza was sold on exchanges? It would cause havoc to the price with margin trading etc.

Aren't you aware that all currencies are sold on exchanges?

Also, pizza may not be sold on exchanges, but corn, soybeans, soy products, wheat, pork, cattle, butter, milk, cocoa, coffee, cotton, orange juice, sugar, crude oil, heating oil, diesel, refined petroleum products, gasoline,  electric power, coal, natural gas, copper, aluminium, lead, zinc, nickel, tin, steel, gold, silver, platinum, and palladium are.

Not comparable.

We are talking about Bitcoin, not petrol or gold or pizzas.

Bitcoin can be used as a currency, as a share and as a commodity so, taing this into account, a price criteria only based on exchanges are wrong, of course you have to take exchanges into account , but not as the only way to measure. There's another 90% of activity outside to measure