These business would know that announcement of their try would lead to an increase in the future difficulty level. Therefore they would want to place bets on future difficulty increases before announcing their entry.
Existing business would take the other side of these bet to insure themselves against loss.
I don't understand what motivation the existing businesses would have to take the other side of the bet.
Could you please explain?
The value of bitcoin is inversely proportional to its velocity. If merchants are constantly exchanging BTC for USD after every transaction, the velocity will be high and BTC value will be low.
You need to define what sort of transactions contribute to velocity. For instance, if I take money out of my safe and put it on the table and then put it back in the safe, even if I do this millions of times a second I'm not decreasing its value. I think you'll find that currency conversions also don't contribute.
Could you also please explain what you're trying to achieve with contingent blocks? It looks like an option based on difficulty. What does it enable?
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