7

That would be absolutely possible. In fact, there is a cryptocurrency out there called "Hashdollar" which is trying just that. I didn't look into it yet but if you tie the value of the Hashdollar to the US Dollar, you could use the p2p network to make "real" dollar transaction. The problem here is though, who will guarantee for the value of the Hashdollar? ...


5

Adding to my answer on What are some of the proposed ideas to why the Bitcoin dropped to sub $400 in the end of summer 2014?, which I think is still mostly accurate: Bitstamp loot There are about 19k bitcoins held by the hacker that raided Bitstamp. While, as far as I know, they haven't found their way back into the market, it is an amount that would ...


4

The most notable cases were: In 2011, the price reached a peak of $32 in June, and went down all the way to $2 in November. A decrease by a x16 factor, or 93.75%. In 2013, the price reached a peak of $266 in April, and quickly afterwards went down to the $65 range. A 75% drop. This can be seen graphically here and here. As for media coverage, this list of ...


4

Eventually, the difficulty will drop. This will cause the mining to increase. This will cause an increase in the price because the verification problem holding the price down is gone. There's another factor too -- once you've bought mining hardware, the cost of the hardware is a sunk cost. So long as it can pay for its electricity, you'll keep it running. A ...


4

A fixed value, relative to what? To a fiat currency? In which case, should it be US dollars, euros, yens, yuans...? Relative to a commodity such as oil or gasoline of some quality? Relative to gold, silver, platinum, diamonds? A basket of all the above? All of these have very variable values and both the reasons of their intrinsic volatility and the possible ...


4

If I could buy a bitcoin on Exchange A for $2,000, turn around and immediately sell it on Exchange B for $2,500, and make an immediate profit of $500, I would do that all day long, and get rich! But if even a small price discrepancy exists between two exchanges, many people will find it, and start buying on one/selling on the other. All that one-sided ...


3

1) I don't know anyone actively uses Bitcoin, or other altcoin, that is not mining it and/or trying to profit from it. 2) Bit coin price fluctuates, so as a business I would only use it to process a transaction and then convert it to cash ASAP. 3) Why is everyone losing Bitcoin in the news? True cash gets lost or stolen, but this make me fearful that my ...


3

This site can help you calculate the beta of Bitcoin: https://btcvol.info/ "What definition of volatility does btcvol.info use? The standard deviation of daily returns for the preceding 30- and 60-day windows. These are measures of historical volatility based on past Bitcoin prices. When the Bitcoin options market matures, it will be possible to calculate ...


3

NuBits is really interesting in how it pegs to the USD, which they explain in the white paper. I'm guessing you don't want to go hunting through there (white papers can be ... daunting), so the short version is.... If the demand for NuBits goes up (ie, lots of people want to buy Nubits, so the price for a NuBit should rise above $1 USD), the custodians of ...


3

You would need an institution that guarantees 1:1 the interchange. The reliability of that institution, in always being able to perform the exchange, would determine the trust and value-stability in the cryptocurrency. The US Treasury could credibly create a coin that's 1:1 with the US Dollar. Or, hypothetically, another institution that was widely ...


3

Bitcoin is a decentralized currency and there is nobody with "supervisory power" over it. Anyone is welcome to suggest improvements to the protocol (changing hashing rules or anything else) at any time, and can create a source code patch to any of the several pieces of Bitcoin client software to implement them. (The maintainers of Bitcoin Core or another ...


2

It would be pretty easy to implement this using the Bitcoin source: Have the central bank generate a private key K. Hardcode the corresponding public key into the source. Modify the transaction verification code so that any transaction signed by K is allowed to have outputs that exceed its inputs (or no inputs at all). Modify the verification code ...


2

This isn't an account, but it covers anything an account could. They update their prices based on how many USD they want for the item and the current BTC/USD ratio. There's even an electronic price tag that does this automatically: http://www.bbc.com/news/technology-26031331. Online, it's usually handled by some outside payment process company like ...


2

The market prices bitcoins, just as anything else (on a free market) according to supply and demand. Supply and demand is prices (expressed in any other good) and amounts. Example 10 bitcoins for USD 140 and 20 bitcoins for USD 139. That is, the lower the price a buyer can get, the more he is willing to buy. This is a value scale. All the users' value scales ...


2

First of all, let a number of bitcoins be bought and (x1) is how much you paid for it. Now the price of 1 bitcoin changes Then you use the formula: x2= (New value of 1 bitcoin)*(Number of bitcoins you have) Now you just find the difference between x1 and x2. This will give you your profit/loss. All you have to remember is the initial value. In your case ...


2

There is really no way to know why the price of BCH went up recently, but a few of the possible reasons are: People converted BTC to BCH after the planned 2x hard fork fell through source People are taking advantage of the HF call-off with a little pump and dump action source 1 source 2


2

I'm not sure if you're trolling or not, but 200 bitcoins is currently worth ~2,357,000$. ( Which seems to pretty aligned with the number you are giving.) There's no virus/scam or bug, the price simply increased. Congratulations. I'd advise you to make a backup of the private key of the adress you're currently storing the 200 bitcoins on, and either ...


2

Can crypto's achieve the same shop use? For Bitcoin, the trend is in the opposite direction. Bitcoin’s soaring transaction fees, following the digital currency’s 1,300 per cent surge in value in the past year, have made it practically useless as a token of exchange in Hong Kong. “A customer wanted to pay for a HK$56 cup of coffee, but since the ...


2

What you are probably missing is the fact that you can buy partial bitcoins, you don't have to purchase a whole bitcoin at once. You could buy a small bit of bitcoin for $20 if you wanted, it can be an affordable investment for anyone.


2

Inflation is increase in price without increase in utility. A car with similar features helps you get from point A to point B just like it did one year ago (same utility). However, the cost of the car increased by 2x one year later (higher price) indicating that the currency in which the price has been quoted has been reduced to 0.5x versus its value last ...


1

It seems to me that since block reward and mining industry gross margins are reasonably steady in the short term, that if Bitcoin were to (say) rise ten fold in price similar to previous rises eg. at the end of 2013, this would encourage a near-proportionate rise in the hash rate and electricity consumption. Essentially. However, that rise wouldn't happen ...


1

I use Cryptocurrency Alerting. It has percentage price alerting, but it also has alerts for when coins get added to new exchanges, wallet transaction monitoring, and bitcoin mempool monitoring.


1

Try https://www.kryptolabs.io its for Facebook Messenger pretty neat and of course the other ones mentioned here.


1

Currently I'm using vertfolio https://vertfolio.com, it’s new but simple and easy to use, they have alerts based on the percent of the change ( daily and hourly ).


1

You can use coinzalert.com to monitor the Bitcoin and altcoin market.


1

I have never used it personally, but I have a lot of good things of the Bitcoin Paranoid app. It's supposed to alert you on price changes. Here's the bitcointalk thread: https://bitcointalk.org/index.php?topic=178391.0


1

Probably in a similar way as companies hedge against currency fluctuations. You could sell a basket of fiat currency against the dollar to protect for dollar strength., What they can not do is protecting the crypto currency from decline, so obviously there is a risk as soon as the crypto currency declines in value. We have seen how well pegs can play out ...


1

Your analysis is incorrect because you have completely ignored the issue of market depth. You're assuming depth is zero on asks and infinite on bids (if this was the case, of course the price would easily go up). If someone were to sell $500 items for 1 BTC each (I'm using different numbers, because your numbers implied a BTC value which is actually lower ...


1

"The price" is established through supply and demand, by definition. Speculators might temporarily skew supply or demand after reading some news or predicting/anticipating some event. Or simply by rumours and herd mentality (more often than not). What those speculators react to you'd have to ask them and doesn't sound like an on topic question here. It's ...


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