Quote from: freeminer on October 17, 2011, 09:01:32 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

Sorry for cross-posting, but I have the same idea.

We need a Bitcoin Foundation.

Sad to admit it, but bitcoin society need credible trusted organization, which would regulate the market of bitcoins. Some rich man could take on this responsibility, but it would be much better if it was an open non-profit organization with the Supervisory Board consisting of eminent people with a good reputation.

This organization will accept donations in fiat money and at least guarantees the minimum price on bitcoins. For example, if the organization took donations for the $ 1 million, it can guarantee a price not less than 1/7.5 = $ 0.13 per bitcoin.

I believe that it is possible to imagine a more subtle mechanisms, but they must be clear to all market participants.

It's a nice idea, but has lot's of problems. For one, it creates a central authority...what happens when that authority is compromised (perhaps shutdown by a gov't)? I once thought about having an option on the exchanges to place a special bid that represented the amount of dollars (or other currency) you'd be willing to spend if the price went low enough...across all exchanges, the sum total of these special bids would be divided by all bitcoins ever mined to create a floor price...all these bids would execute if the price ever reached that floor. However, people could just cancel those bids if the price started going low enough...so in the end, such a thing would be pretty useless (and needlessly tie up peoples' money at an exchange).

Maybe better indicators would help people estimate the fundamental and speculative demand. That in turn might give some people more confidence that there actually are real support levels for the price of a bitcoin. I'm not sure exactly what kind of indicators would help however.