Post
Topic
Board Bitcoin Discussion
Re: Put the Gox Down and Step Away. Ideas: How to make a Pro BTC Exchange
by
hominin
on 13/04/2013, 16:06:31 UTC
wow, all these ideas for buying and selling BTC for a profit more efficiently! how about, don't? how about using BTC as a currency, to buy and sell stuff and services like its supposed to be used instead of trying to make a quick buck exchanging it? these kinds of posts are simply proposing to fix the problem by making the problem more efficient  Roll Eyes

lets improve liquidity by introducing better markets?! its the lack of liquidity that prevented BTC from hitting rock bottom and the little liquidity there is comes from people trading with BTC instead of trading in it. as with the mainstream economies, its that competitive greed that is ruining the currency, making it more volatile and therefore less suited to exchange of goods and services, further eroding the liquidity - it is supposed to be a cooperative currency and trying to make money from money (at the expense of others) is not a very cooperative occupation  Sad

how about mining pools controlling the sale of BTC (they are after all, creating the currency) or some sort of mechanism to make BTC "rust" (it could simply rust back into mining rewards instead of disappearing, preventing this competitive mindset and encouraging more circulation  Smiley

A better market for BTC will lead to a more stable price and better acceptance of BTC from merchants.

Assume you got a bar: You want to get paid in BTC but want to be sure you get about 4$ for each bear. How can you be sure you get 4$ +/-1% if the prices goes up and down 30% every day and the biggest exchange is unable to handle trading several times a week?

that's just mainstream competitive market thinking with the perspective of viewing BTC as a commodity instead of a currency. i am from australia, can't speak for all australians, but in general, when someone buys or sells a beer here, we don't check the price of USD at the markets to make sure the beer costs US$4, we simply have a price for the beer in AU$4 with the understanding that AU$4 will still be worth AU$4 when it is next exchanged. the value of AU$4 against USD, or the volatility of that conversion is not a concern to the buyer or the seller as they're circulating the currency quick enough for it to not effect them. the exchange rate and liquidity are only really relevant if you are investing in currency and holding onto it. similarly, if your bartender just thinks about selling the beer for 0.04BTC and there is a big enough economy for him to spend that 0.04BTC and acquire goods and services with the same value as the beer, he doesn't really need to worry much about the conversion rate to $, only make periodic adjustments when the goods or services they're buying increase or decrease in BTC value.

another good example of alternative thinking are bitcoin brokers (as opposed to exchanges); those that set their prices based on their own supply of $ and BTC or 24 hour market averages are a lot less volatile.