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    Author Topic: A crypto ecosphere that is not dominated by dollar  (Read 709 times)

    • Gitju (OP)
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    January 11, 2015, 04:52:36 PM
     #1
    When talking about bitcoin or any other altcoin the first topic that is often discussed is the actual btc/usd exchange rate.

    People still see the dollar as the "almighty god" of all existing currencies.

    The "value" of crypto would be much higher if we could change this.

    To change this we need value-added chains entirely based just on crypto.

    It starts with offering natural resources (wood, coal, oil, corn ...) in exchange to crypto.

    Other people are then able to create their own products/services out of it with a profit on top of it and without the need to refer to the dollar ecosphere.

    Btw: This would make the btc/usd exchange rate much more stable.

  • Flashman
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    January 11, 2015, 05:01:18 PM
     #2
    The dollar is just a default/familiar unit of value... do people really go round thinking how many barrels of oil a thing is worth? No... so trying to force them to do that before thinking how many bitcoin it's worth is just really another obstacle in getting them to think how much it's worth in bitcoin.
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  • botany
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    January 12, 2015, 03:50:48 PM
     #3
    Quote from: Gitju on January 11, 2015, 04:52:36 PM
    When talking about bitcoin or any other altcoin the first topic that is often discussed is the actual btc/usd exchange rate.

    People still see the dollar as the "almighty god" of all existing currencies.

    The "value" of crypto would be much higher if we could change this.

    To change this we need value-added chains entirely based just on crypto.

    It starts with offering natural resources (wood, coal, oil, corn ...) in exchange to crypto.

    Other people are then able to create their own products/services out of it with a profit on top of it and without the need to refer to the dollar ecosphere.

    Btw: This would make the btc/usd exchange rate much more stable.

    This would not make the btc/usd exchange rate much more stable.
    With bitcoin's volatility, price of natural resources denominated in bitcoin would be volatile too.

  • thriftshopping
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    January 15, 2015, 05:04:23 PM
     #4
    Quote from: Gitju on January 15, 2015, 04:41:01 PM
    The currency is volatile because of that.
    If you produce wine and sell a bottle always for .1 BTC,
    1 BTC = 10 bottles of this product despite the exchange rate.
    This is not true. If the cost to produce one bottle (in your example) rose above the value of .1 BTC (plus accounting for a reasonable profit margin) then the manufacturer will refuse to sell bottles via bitcoin. If the cost of .1 BTC rises far above the fiat based retail value of one bottle then no buyer will be willing to pay for bottles in bitcoin.

    This would probably actually force the overall adoption rate of bitcoin to decline because there would only be a very narrow BTC/USD price point where people would be willing and able to spend their bitcoin

  • peligro
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    January 17, 2015, 10:36:08 AM
     #5
    Its in dollars as it is the majority currency and reserves throughout. Go to the Chinese section and it is in yuan. People are comfortable in valuing based on what they use regularly. They use dollars or yuan to buy things and that is what they use to value BitCoin.
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