An economy is made up of earnings, savings, investment, trade.
The vague as hell rhetoric around supply and demand doesn't cut it.
Some people don't switch products because of performance nor price. Deal with it, purists.
Some people choose a product because the kind of community it attracts, how many people have interchangeable parts, which product has a service center closer.
I really shouldn't have to explain this.
So with the drama that goes on in some places, people may decide to fork (like they do software) and start over and produce an identical chain with few differences but a different community. We will have to at some point negotiate among these blockchains. Exchanging by signing contracts isn't going to cut it. We will have to have a means of converting coins.
A few of us have some ideas but we're curious what you guys think.
One idea we came up with is: Mining conversion tokens
You mine bitcoins and in the process of creating a block you also include a multiplier token which is now part of the action. The token portion would be reversible and other multiplier tokens could be inserted in the conversion.
If you were to convert between bitcoin and an exact clone of bitcoin you would give a 1:1 token and they would do the same.
If you were to convert between Bitcoin and 5 tinycoins that are worth 1/5th:
1. Each tinycoin and bitcoin would be in a package with a multiplier.
2. 5 1:1 tokens from the tinycoin chain would be combined into 1 5:1 token.
3. 1 1:1 token from the bitcoin chain would be extracted and compared with the 5:1 token from the tinycoin chain.
4. #3 causes the 1 1:1 token to split into 5 1:5 tokens.
5. This would cause the bitcoin block to split into 5 copies with the 1:5 token in each copy.
6. #3 causes the 5 tinycoins to become one tinycoin.
7. This causes the 1 5:1 token to become embedded in the tinycoin.
There would not be a trace within the coin block that the conversion took place. We could have a conversion record separately so that people can't just insert whatever multiplier they want. It could have been 5 tinycoins for 1 sausage coin. Any store that accepts 5 tinycoins for 1 bitcoin would accept the tinycoin with the multiplier. Similarly any store that sold candy for 1 tinycoin would not return change for a bitcoin with a 1:5 multiplier.
This would allow direct chain to chain trades without everyone having to have wallets in chains they don't usually work with.