Quote from: Steve on October 17, 2011, 08:25:59 PM

Quote from: the founder (FlexCoin) on October 17, 2011, 06:54:08 PM

Quote from: d.james on October 17, 2011, 06:52:24 PM

If I had 20million USD laying around I'd probably buy out the current BTC market.

Or maybe offer an insurance backing service of some sort, insuring the value of your BTCs up to $1 each.

I think the problem is not many people have 20 million USD laying around that are involved with BTC

It's not necessary for one person to put up money to buy out the whole market...lot's of individuals with smaller amounts would do that as the price creeps lower. The floor price is set by the demand for coins for facilitating commerce (which we know is not much right now). Anything above that floor represents savings demand (aka speculation).

Here are some wild guess about what is needed for actual commerce today. If you assume 10,000 people wanted to retain $100 worth in bitcoin just to have on hand for spending, then the implied price of bitcoin would be $0.13. If 100,000 people wanted have $100 spending money, or 10,000 wanted to have $1,000 in spending money, then the implied price is $1.30. $100 seems like a reasonable bare minimum that someone interested in using bitcoin for commerce would want to have on hand for spending. Currently, I'd guesstimate that the fundamental value of bitcoin is definitely less than $1 and probably less than $0.25. Everything above that reflects the savings (speculation) demand. Of course, if actual commerce with bitcoin slows down, then the fundamental value could fall as well. And, inflation is always eating away at the price.

One area of commerce that I've found bitcoin to be particularly convenient is paying for software related services (programming, website design, logos, graphics, etc). I think if someone put together a nice site focused on software development related services where people could offer their talents in exchange for bitcoin, it might help get some more commerce going.

+1 really good post

I also like the glbse idea very much.