Solution to the trade liquidity of Feathercoin and real World trade applications
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Problem number 1
As feathercoin enthusiasts we do not want to spend our feathercoins to buy goods and services, many of us believe the value of our coins are going to increase so much that we are scared of giving them away for purchasing day to day shopping items. We don’t actually see our coins as currency but we view them as commodities like gold, silver, oil. When someone purchases an ounce of gold at 1000 USD he or she expects the investment to increase in time, and does not let go of that ounce of gold to buy an iPhone when the price of gold drops to 750 USD the next day. It is exactly the same way with our Feathercoins.
What can be done about this?
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You describe the situation very good.
Why spend feather coins today if they are worth 100 dollars in 2 years. And right to do so would be a real stupid thing to do. If you however somehow bring price stability to the market so the price would be fairly stable people would mine, trade and one would have an attractive distribution of the coins between sellers and buyers.
Price stability is a good thing for a currency even if it can take the fun out of it. Guess merchants trading in litecoin and bitcoin are not to happy about the value of coins falling 30 - 40 % so far in december, even if they went up far more in november month.
I am like you maybe not spending my coins due to the fact i think they will go up in value at some point and i guess many others also think that. I the currency was stable, i would not be thinking like that.
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mmyhre
my solution stated above will solve the price stability problem, if the created ecosystem of the feathercoin market will demand feather coins to be purchased at exchange at any price regardless to supply the demand by the seller’s on the auctions and direct sales of goods, because it is automatic and seamless the buyer will not care at what price the FTC/USD pair is at so if the price is at 100 the auctions and sales generated demand for FTC will offset the downforce of the profit takings at the FTC/USD exchange. plus the solution will also work when the price of FTC is not stable because the Seller’s can adjust their risk thru choosing to receive FTC and USD in any ratio they want, so high priced goods like jewellery electronics etc. would be able to sell using FTC safely whether the Price of FTC is 10 usd in the morning and 50 usd in the afternoon the seller and the buyer will not be affected during their trade.
Thanks for the comment
Demir -
[quote]FTC is 10 usd in the morning and 50 usd in the afternoon the seller and the buyer will not be affected during their trade.[/quote]
That`s true, but would you spend FTC in that kind of environment. I that environment one would trade, and that is exactly what is happening.
Because the price can swing that much people hold on the currency instead of using it. That`s the sole major issue that somehow needs to be taken care of.
The question you need to ask yourself is. Why don`t you spend the 10 000 coins you have in the marketplace. The answer: Because you are waiting for the value to go up.
And you are quite welcome.