Quote from: the founder (FlexCoin) on September 27, 2011, 08:02:00 PM

Quote from: dsp on September 27, 2011, 07:34:48 PM

Well using this math every time BTCUSD moves $0.01 its costing someone $73K.

Correct!! it's costing the market $73,000 (or increasing the value of holders by an aggregate amount of $73,000)

Quote from: dsp on September 27, 2011, 07:37:49 PM

So looking at mtgox I can move the price up a penny by buying $800 of coins right now. Makes you wonder why no one is doing this. $800 = $70K. Its like a printing press with this new math.

It's not new math, it's how things have been done since the Egyptians and Romans measured their relative Money Supply

Yea but until you execute a trade it a unrealized gain/loss. So its not real....ized

The point being is in the short term inflation is out of hand cause if you or the market don't have the 73k per Penney to hold the price where you want it, your at the whim of the market. But even this is a lie as well as not everyone is in agreement with the current buyers/sellers or price. To further complicate this they may not show their hand and give you a hair cut until you push it far enough oooooo like lets say $35. If you buy coins at that price and did not do the simple math that satoshi put right in-front of your face. Now consider this that only what it takes to hold the price in the face of 1/3 of the coins being issued. Had the coin supply been cut off the inflation would not have choked out the parabolic move and it would have collapsed much further maybe to zero in a panic. So as a currency it is better to have a smaller run and a smaller collapse. Bulls can take a 50% short term loss if the prospects are still good. But if it droped by 95%, you would get people to cut run and never come back. And by looking at the weighted price most people paid around $10. In the short run the bears are right as we have to wait for economic activity to cause the shortage and spike the price. In the long run the bulls win out. The issue then is to figure out the growth rate so you can reasonable predict when this might happen, all i know is it wont be a linear run so in the next 24 months I bet some one will be-able to fit a log scale that can predict within +-10%.