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    Author Topic: 90 Cents is the Best Bitcoin Value  (Read 7002 times)
    Enochian (OP)
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    June 17, 2011, 11:26:39 PM
     #1

    If we could make a stable market in Bitcoins at a price of 90 cents each, Bitcoins would take off as an alternative currency.

    First, regular merchants could advertise that they accept payment for purchases from their store in either Bitcoins or dollars.  This would give customers paying in Bitcoins an automatic 10% discount on their purchases.  This discount for customers paying in Bitcoins, and the fact that the store accepts Bitcoins, would attract additional business to the merchant, and more than cover the cost of giving the discount.

    Second, as long as merchants used their Bitcoins to purchase stuff they needed from other merchants also accepting Bitcoins, accepting Bitcoins wouldn't cost them anything at all.  The 10% cost of converting Bitcoins back into dollars would only affect the last guy in the chain.  This would suck dollars into the Bitcoin economy and keep the Bitcoins circulating.

    Third, at a price of 90 cents each, early adopters who created and stashed hundreds of thousands of Bitcoins away back when mining was easy, have no chance of becoming Bitcoin Multibillionaires.  They would have to settle for a modest reward for their contributions.

    Bitcoins are presently trading at $15.80.  What sorts of things could we do to incentivize them to trend towards their ideal value of 90 cents?



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