Japanese Scholars Draft Proposal for a Better Bitcoin

[bornil267645]

A team of Japanese researchers has published a paper with a set of proposals it says would improve bitcoin, effectively creating a hypothetical low-volatility ...

http://www.coindesk.com/japanese-scholars-draft-proposal-better-bitcoin/

[pawel7777]

IBC [IBC = "improved bitcoin"] uses the currency board model as inspiration, effectively pegging bitcoin to the US dollar, euro or another currency. The system would include a supply rule that would address demand and price fluctuations. Thus, when the IBC value increases, the system would issue more coins until the value returns to the benchmark level.

Yeah... No, that's not gonna happen.

[Zawamiya]

A team of Japanese researchers has published a paper with a set of proposals it says would improve bitcoin, effectively creating a hypothetical low-volatility ...

http://www.coindesk.com/japanese-scholars-draft-proposal-better-bitcoin/

Well, there are already better bitcoin. Its called Litecoin, Darkcoin.

[Vessko]

Their observations are correct - Bitcoin volatility is basically caused by a fact that the "producer" has very limited ability to exercise arbitrage (both of the problems they point out amount to essentially the same). Here is another article on the subject:

Bitcoin, Gold, and the Quantity of Money

Basically, price volatility inherently follows from Bitcoin's properties and there is really no way to resolve it.

However, their proposed "fix" is complete nonsense. Another bunch of Keynesian economists, sigh...

[madmadmax]

Hedging with gold is at least reasonable, hedging against USD is borderline retarded which makes me think how intelligent are really the scholars

[segvec]

A team of Japanese researchers has published a paper with a set of proposals it says would improve bitcoin, effectively creating a hypothetical low-volatility ...

http://www.coindesk.com/japanese-scholars-draft-proposal-better-bitcoin/

Well, there are already better bitcoin. Its called Litecoin, Darkcoin.

Amateur comment.
Darkcoin or litecoin for that matter are not better than Bitcoin by any means.

[eden1]

interesting article but i learned nothing new 

[teukon]

A dollar-pegged bitcoin?  What's next?  A horse-drawn automobile?

[segvec]

A dollar-pegged bitcoin?  What's next?  A horse-drawn automobile?

This.
Apparently the world's dumbest Japanese Scholars.

[Undermood]

A dollar-pegged bitcoin?  What's next?  A horse-drawn automobile?

This.
Apparently the world's dumbest Japanese Scholars.

The method will change the Bitcoin's principle which is dependent and decentralized. Yes, it just temporarily stabilizes the price to fiat, but due to high inflation of dollar and scarcity of bitcoin, there will be contradiction between them.

[Lethn]

IBC [IBC = "improved bitcoin"] uses the currency board model as inspiration, effectively pegging bitcoin to the US dollar, euro or another currency. The system would include a supply rule that would address demand and price fluctuations. Thus, when the IBC value increases, the system would issue more coins until the value returns to the benchmark level.

Yeah... No, that's not gonna happen.

That one line alone sounds an awful lot like a fixed exchange rate which has worked soooooo well for currencies, their plan of making the coin low volatile is to simply get rid of the free market economy when they fail to realise that rising and falling prices is what happens in a capitalist society and that hyperinflation is the main cause of market volatility but good job explaining that to morons who only study one economic theory.

[Sindelar1938]

They don't seem to understand bitcoin at all. This is demand side Keynesian hogwash that has worked oh so well in fiat economies

[Lethn]

The thing is Bitcoin was clearly made with a vastly economic theory in mind and because it's making the damned neo-keynesians look bad they want to change to so it's 'better' when in reality they want to ruin it so it's just as bad as their currencies.

[101111]

Meanwhile the Yen is turning into confetti, oh the irony.

[Elwar]

Meanwhile the Yen is turning into confetti, oh the irony.

A Yen backed Bitcoin?

Venezuelan Peso?

[Sheldor333]

Yeah that would just make bitcoin like all the other fiat currencies that are already around, bitcoin would be just an online currency. This would be more then a step back. It sounds to me like they don't understand fundamentals behind bitcoin.

[Lethn]

Yeah that would just make bitcoin like all the other fiat currencies that are already around, bitcoin would be just an online currency. This would be more then a step back. It sounds to me like they don't understand fundamentals behind bitcoin.

It's not like they don't understand it, they're attacking it, it's like these people who come onto the forum demanding the developers change Bitcoins fundamentals rather than just go out and make an altcoin themselves, people on this forum may bitch and whine about altcoins but I highly respect someone who just wants to try out their idea for a currency rather than hijack someone else's idea.