Quote from: tokeweed on July 01, 2013, 12:44:18 PM

Quote from: Xyver on June 14, 2013, 04:21:51 AM

I'm trying to think of ways to have Bitcoin keep its value, instead of always fluctuating up and down. As far as I know, it rises because lots of people buy coins, and once it hits a certain point, someone decides to sell a large amount, so the price drops a little bit, causing everyone else to sell, dropping the price lots. It falls down, until it hits a low enough value that people wish to "buy back in", and then the price begins to rise again, and the cycle repeats.

My idea is that instead of waiting for the price to rise to sell coins, wait for the price to rise to buy something with coins. Go to coingig, or bitcoinstore, and find an item that you want, and tell yourself "When Bitcoin hits 120$ (or any price), I'm going to buy this item instead of selling to an exchange.".

I think that this would help keep the price stable, as well as distribute the coins more, instead of keeping them all locked up in an exchange.

EDIT:: My knowledge of economics is minimal, so I could be way off.

it's an idea. but nope, won't happen.

It is not just about you earning income in bitcoins and then spending bitcoins, if the person you pay bitcoin to converts them to Fiat currency that is exactly the same as if you do it yourself, it creates the same sell order on MTgox or equivalent. The value of a bitcoin is a simple supply/demand equation, more buyers than sellers price goes up, more sellers than buyers price goes down. <- its obviously more complex than this - but this is the core.

For bitcoin to continue to advance in value we have to eliminate the selling of bitcoin to buy fiat from the cycle, this means getting people like utility companies and supermarkets and farmers to accept bitcoin in payment. We need retailers and the suppliers of goods that ordinary people use to be prepared to accept bitcoin as payment - and for them to be able to pay their suppliers in bitcoin. If you can buy food and energy with bitcoin you can meet your basic needs from bitcoin alone, if you can do that you can be paid in bitcoin, and from there bitcoin becomes an alternative to Fiat and we can stop worrying about how many USD 1BTC is worth because it will not matter.