I had to surgically extract this short little phrase out of your commentary being that for me it represents the elephant in the room right there.

I can see how the supply can be managed ok. It's the "as demand rises..." bit that seems to trip off everybody's a bit too easily. Where is that demand going to come from ? eBay has an operating income of over $3 billion dollars. Taking market share off them will be like pulling teeth because the nature of auction markets is such that the bigger the audience for your auction, the higher the price you can sell your stuff at.

Where's the "demand" half of the price equation going to come from for Bitbay markets ? How will people be encouraged to adopt ? I can only see 2 answers but I'm absolutely open to other suggestions if I've missed them:

[1] - create new markets which exclusively use Bitbay

[2] - get existing ones (like eBay & Alibaba) to adopt your coin as a currency and sell the idea that they can extend their platform feature set based on the coin's bockchain

In either case the offering must swing on features that users can't get elsewhere. What would those features be and what prevents a counterparty with huge infrastructure like eBay from implementing them ?

The basic appeal of a cryptocurrency is twofold:

 - you ditch the counterparty (banks)
 - you get your hands on unlevered base money (which you don't do with fiat money)

I can see one area where that appeal translates to bitbay - in attracting users who don't have access to bank accounts and therefore can't get registered on eBay. That's one clear, well delineated group of potential adopters. What are the others ?