But what disturbs me is that regardless of the recent 'programs' to spread bitcoin in the last few months... it's still going down vs fiat. Hard. I didn't even get into the scene until lat August, and I've already seen a a fall of 80% (10->2). As a merchant, that means I gotta sell off my BTC right away inorder to pay for stock. Until people can pay for stock in BTC, that'll continue. And until people can be paid in BTC to make the stock, to be sold to the merchant... (of course, unless I'm confused about something).
Yeah it is kinda sucky, no argument there. But - until some stability in the exchange rate is achieved (whether at $.01 or $100), people need to not try and use Bitcoin in ways that volatility precludes. What I mean is, even a volatile currency is effective in certain situations. Consider Bit-pay's solution, wherein they allow a merchant to receive Bitcoin and "cash out" instantly upon receipt. This fully eliminates exchange rate risk, but still allows the merchant to receive payment with zero chargeback risk from any country in the world. If you're a merchant, don't try to hold bitcoins (unless you want to speculate on appreciation). Bitcoin is most useful in those situations where it can be purchased, transferred, and sold very quickly. Moving money from Japan to the US very quickly, buying something anonymously, or making a donation to a politically unpopular cause - these core uses are valid even without a stable exchange rate.
Once market use for the above payments is widespread, the volatility will subside. Then, Bitcoin can increasingly be held on to. Bitcoin adoption will work in stages, and those who try to use it in "stage 3" type behavior before it has reached stage 3 will be disappointed.
If there were some massive global PR about a new 'Bitcoin' which everyone can 'get in on', I could see that working. Of course these are all big 'ifs', and I admit I'm not educated in market forces at all... but that's why I ask questions
I think that plan would fail miserably, but it's always okay to speak your mind =) Remember that Bitcoin IS open to all people. Anyone can "get in on it." But like all real commodities, it has a price, and the ability to "get in" is limited by one's funds. This is not a shortfall of Bitcoin, but simply the natural property of a scarce commodity. Creating a new chain that "everyone could get in on" would mean either that it was given away freely based on something other than a pricing mechanism ( a lottery or something), or it was unlimited in its supply (in which case it'd be worthless and impotent in the transfer of value).
Price mechanisms are our friend. Distributing valuable goods with anything other than a free market price will result in serious economic distortions. Create an alternative currency without a market price and a price will set itself in a black market, or shortages will occur.
