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Strategies & Market Trends : ahhaha's ahs -- Ignore unavailable to you. Want to Upgrade?

To: deeno who wrote (22779)	4/2/2013 1:36:05 PM
From: ahhaha	Read Replies (2) \| Respond to of 24758

One can use Paypal to purchase bitcoins on one of the exchanges, like Mt Gox, at the going dollar conversion rate, or at, say, bitcoinATM.com. There are other ways to acquire bitcoins that don't involve a currency transaction. I'm working with some people to remove currency conversion of the bitcoin, but instead have it convertible only into instantaneous credit. You'll never have a fully trusted currency as long as its intrinsic value isn't fixed. The fix could be fixed to zero except instantaneously a la Dirac delta function. You can imagine I'm getting a lot of resistance since it seems as though I'm getting rid of the need for the infrastructure so highly prized by the programmers who created bitcoin. Question. Why can't bitcoin in its current incarnation work? Answer. $/bitcoin went from 10 to 100 over the last 12 months. Such is the nature of supply and demand, but you don't want the designations of value to also change at a similar rate. What's the problem here? Holding designations of value causes the designations to accrue their own value, and this causes the bitcoin system to bestow the store of value function on the bitcoin when the programming infrastructure is independent of any such notion. What does the infrastructure provide? Integrity that comes by speed of execution(zero value over the range of temporal execution except at a recognition instant). The infrastructure can complete a transaction before any factors change their relative values, and that's how the bitcoin concept could be very powerful. So how is it any different than, say, VISA? Open source software. Cheaper since it rides virtually rather than through the ripoff stream of a corporation. Way more secure and therefore, decidedly anonymous. Private, i.e., outside of government control. If I receive a bitcoin credit, how can I convert it in order to spend the value in a world of metal coin biters? Conversion necessarily subjects the value to decay, the decay inherent in a market driven by supply and demand, but if one "spends" the value immediately, the market would not have had a chance to apply decay. All credit transactions are instantaneous in that sense. Give me credits, give me quatloos, give me bitcoins, but don't give me dollars.