Preventing volatility as our priority.
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Feathercoin has a niche of potential staunch supporters, who do not see it as interchangeable with other alt coins. They form the real demand and a potential core of wider Feathercoin support. Not all of them know about Feathercoin yet. The threat is that Feathercoin will be sold to them at a very high price in the upcoming pump. Instead of owning a deflationary stored-value coin, they will be left with a coin whose value will keep declining for a long time. They will be disappointed and will contribute much less to Feathercoin success.
We should come up with a real plan for achieving a smooth, slowly rising deflationary curve. I think this problem is so important, that addressing it should take priority over all other tasks. No matter how much work is done on improving the coin itself, a pump can nullify it by simply being taller.
At the very least, we should give a bubble warning to the buyers if the price has risen too quickly. We should disclaim that we have no control over the market spikes, and that buying for overpriced prices is a pure gamble.
Another possibility would be to sell Feathercoin call options as has been suggested for Bitcoin. This would shield investors from unacceptable losses in case of a price drop.
Finally, I apologize for talking about this again. I am in no a position to implement any of these proposals. I’m trying to be as helpul as I can be by bringing attention to this problem.
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What you said is what I care most about . Under these conditions market risks can be equated with the risks affecting individual market participants.
I have already launched 100K Club . But we are still not strong enough
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That’s interesting, how do we project the curve and who would be responsible for providing the advice?
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I do not have the answers. But we have to start perceiving market manipulations schemes as the biggest problem we have (http://en.wikipedia.org/wiki/Market_manipulation).
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The best solution would be one baked into code.
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The best solution would be one baked into code.
That’s like saying that the best solution would be if we could do it by magic.
Btw., I found the introduction part of this article interesting:
http://ac.els-cdn.com/S0304405X05000590/1-s2.0-S0304405X05000590-main.pdf?_tid=f250b97c-09dd-11e4-bc3c-00000aab0f27&acdnat=1405181138_e1936b93af480fdc2fc3cf722de43424 -
Except magic isn’t real. ;)
All I mean, is a decentralised solution regulated by code would be a better solution than having someone or some group responsible for policing the market.
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Wait, that’s an interesting idea, actually. You are absolutely right that although our adversary(ies) is (are) individual funds manager(s), if we appoint an individual to police the market, we will be frowned upon. But if we write an open source price stabilization algorithm, nobody can complain. Obviously, the algorithm will need certain amount of funds and the more it will have the more efficient it can be. Also, the algorithm shouldn’t be deterministic, because if its buy/sell decisions can be predicted too well, other players can take advantage of it. I’ll try to think about a solution, but I can only code well in Ruby.
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I like the concept. BTW, lizhi, count me into your 100K club. Let me know what you need from me…
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Best way to prevent volaitlity, and lead to a gradual incline is to get the Neo-Scrypt out the door. That’ll stop all the Scypt ASICs from dumping their coins all over the shop, and lead to a shortage of coins. Then the bots will naturally take care of everything for us as a shortage ensues.
Then we can worry about pumps and spikes etc. At the moment there are too many coins waiting to be dumped at the first sign of profits…
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And someone has just bought big on BTCE. volume in the last 24 hours is now 27BTC, it was under 10 when I looked a few hours ago
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Interesting discussion, but exchanges and the pump and dumps have always been our big problem. Wider use is the only long term solution to that.
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I’m more on wrappers side here. The thought to solve this with some sort of algorithm is tempting at first, but remember that it’s always possible to reverse engineer such a thing, thus making it possible to manipulate (it’s always just a matter of time).
It’s of greater importance to get the coin widespread and used by more people in their everyday normal life. Right now the value is decided by the price on a stock exchange, hence it’s hard to relate what a coin is actually worth. If people on the other hand know that a coke costs a certain amount of coins at one place, one can expect it to cost about the same at another place.
tl;dr
When people can relate to what a coin is worth by exchanging it for goods the coin will most likely stabilize more or less by itself :)
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The link to fiat is very strong and I can’t see a way it can be broken when it’s the first question on anyone’s mind.
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Trying to fight the association with fiat is pointless since it’s the dominant currency of today. Remember that Rome wasn’t built in a day (fuck yeah, finally got to use that cheesy expression! ;D ).
When crypto evolves and become even more mature people will start using it more and more. Integrity and privacy are big areas of concern for a lot of people today, and more are waking up each day, realizing that they want to have a right to privacy and integrity. Crypto currency is not just a big middle finger to the bank systems, it’s also a big “fuck you in the face” to states trying to control their citizens with dishonest methods like mass surveilance and what not.
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it’s also a big “fuck you in the face” to states
Love it!!
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When crypto evolves and become even more mature people will start using it more and more. Integrity and privacy are big areas of concern for a lot of people today,
Or maybe the blockchain works fine as is and it’s US that need to “mature” instead?
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Or maybe the blockchain works fine as is and it’s US that need to “mature” instead?
It’s not necessarily the blockchain itself that’s the problem today, rather the utilities and services revolving around it. We still don’t have good enough payment solutions for example, something that’s desperately needed in order for business owners to start accepting crypto on a wider basis. That area is however evolving :)
But yeah, the states in general (not just US) need to mature it’s view on crypto aswell. Right now we’re in some kind of limbo where the states and the respective IRS department haven’t got a clue on how to handle crypto. Their solution is at best shitty as fuck where they stick their heads in the sand and pretend that crypto is a problem that will go away by itself if you just hide long enough.
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The problem is people look to the government for answers and expect guidance from them. It’s a bit like a teenager asking his computer illiterate parents about his/her computer. You’ll see a rush for them to pool financial and technological experts and advisor from their usual fold and I suspect that’s when the real problems will start, because their fold is made up of vested interests from the old world.
