Lack of commitment to development is our biggest threat now

[huafei]

Current status is that BKC will be sold at $1 just as NBT are sold at $1.

why not use NBT as BKC?

[masterOfDisaster]

Because BKC are issued by BCE and NBT are issued by Nu.
These are two co-operating, but independent DAOs.
Why would BCE want to generate revenue for Nuby using NBT?
That makes no sense.

[Sabreiib]

Totally agree!

BTW, when inflation or deflation occurs, neither BKC borrower nor lender get loss, because their buying power remain same. Would you mind your money buying power doubles per unit but your quantity halves?

“Ticket scalper” are everywhere in this world, if we harness them, the liquidity they providing by sell/buy below offcial BKC ceiling price is the most healthy liquidity, last for ever as long as B&C operating well and none expenditure from B&C shareholders at all.

And I strongly suggest BKC pegged to 1$'s buying power in 1992. Reasons below:

1. If we peg BKC to 1$ initially in 2016, some central bank haters may think BKC is just another USD token.

2. If we peg at 1.7USD(can be discussed further), curiousness will arise in cryptoworld. Why BKC pegged to such interesting number? The price is the best ads in this field after all.

Hayek spend his whole life fighting against “big brother”, and fortunately he saw his predict of USSR’s crash; unfortunatey he didn’t see his good money dream coming ture. Anyone wanna issue private money will be put into prision.

However, Satoshi’s blockchain tech makes his dream feasible, Hayek died, but never his theory. We memorize him by pegging one USD buying power when he passed away in 1992. Good money is late for Hayek, but not late for saving the world from toxic FIAT!

I guess this will make Hayek fans (many liberalists in crypto world) touched.

[Nagalim]

Bkc is not pegged. Bkc is not pegged. Bkc is not pegged.

Increasing the price that we sell bkc is good for us and bad for bkc users. It is not anti-inflation, it is a profit tactic. There is a phenomenon whereby the bkc market price pulls away from the sell price. If we try to sell at too high a price, the market will pull away and we’ll lose money. By increasing the sell price, we would be increasing the chance of the market pulling away from us. We make pennies but lose the dollar.

[Sabreiib]

Bkc is not pegged. Bkc is not pegged. Bkc is not pegged.

Untill some of us setup Nubot and go.

We don’t need rewards from B&C company, we are ticket scalpers, we buy low (such as 0.9-0.95), sell high (0.99), this world is never in short of ticket scalpers. As long as B&C operating normally, people belive that BKC will consumed up sooner or later after B&C stops issue new BKC. Or those ticket scalpers believe their 0.99 order will be fullfilled sooner or later.

BKC liquid providers will increase like virus if this business is profitable.

Increasing the price that we sell bkc is good for us and bad for bkc users. It is not anti-inflation, it is a profit tactic. There is a phenomenon whereby the bkc market price pulls away from the sell price. If we try to sell at too high a price, the market will pull away and we’ll lose money. By increasing the sell price, we would be increasing the chance of the market pulling away from us. We make pennies but lose the dollar.

I guess you have been financially abused by FED for so long that when the fair treatment comes to you, you feel quite unease. If you hoard 1000$ value BKC in 2016, it’s your right to have 1200 value in 2025, because the buy power remains same.FED and Keynes has successfully washed your brain, it’s time to wake up.

Shareholders can easily decrease the tx fee on B&C exchange as they wish, if we peg BKC to 1000$ and lower tx fee to 0.001 of BKC charged per transaction, the fee remain stable.
Since the ticket scapler build the BKC buy wall, what are you worrying about?

[Sabreiib]

More, my friend has more than mine. We are big BKS shareholders.

[Nagalim]

Again, that’s not called pegging, it’s called trading. Think about the nsr/bkc price, it will be volatile, and there will be money to make off trading. That’s not much different from ltc/btc though, with traders keeping prices fixed within a margin via arbitrage. Pegging requires a commitment to the price beyond the margin of arbitrage and is resistent to market forces. Traders tend to take advantage of those forces, and can create destructive volatility.

B&C will most likely do its best to keep reserves to keep solvent during times when BKC is volatile and they aren’t selling from bank. In those times it will struggle to pay developers without share dilutions. They will take a lot from the concept of Nu’s FLOT, but will hold a smaller reserve because they lack the need for liquidity operations.

[masterOfDisaster]

Whats bad at selling BKC with a price floor that’s being adjusted according to inflation (rate up) as long as the tx fees are adjusted at the same time (fee down)?

Say once a year the sell price (e.g. bkc_rate_new = 1.02 * bkc_rate_old) AND tx fee (tx_fee_new = tx_fee_old / 1.02) get adjusted by the percentage of the inflation rate, everything stays the same BCE wise (for BCE customers), but BKC has 0 inflation compared to the outside world.

[Nagalim]

Price ceiling, not a price floor, there is no price floor in BKC. Yah, that might work. The BKC is more expensive, but it pays for more trades per BKC.

[Sabreiib]

B&C will most likely do its best to keep reserves to keep solvent during times when BKC is volatile and they aren’t selling from bank.

For B&C shareholders, BKC is fixed value because every time they sell BKC, is 1$ in this year, and after they get BTC, they can transfer to NBT/Tether or FIAT as they wish. At least, shareholder can arrange 30% of revenue to development fund, I think it is Nu shareholders to worry about how to pay Jordan/Sigmike in 2017.

[Sabreiib]

Could you elaborate it? Let’s assume there is USD/BKC pair on CCEDK, now the sell/buy wall shifts from 1.1$/1.05$ to 1.2$/1.1$, what’s your concern? The tx fee on B&C platform?

[masterOfDisaster]

Price ceiling, not a price floor, there is no price floor in BKC.

No, no - I mean a price floor that gets adjusted to align BKC to the USD inflation rate!

The BKC is more expensive, but it pays for more trades per BKC.

Right!

Let’s assume there is USD/BKC pair on CCEDK, now the sell/buy wall shifts from 1.1$/1.05$ to 1.2$/1.1$, what’s your concern?

I have no concerns regarding exchange rates at foreign (from BCE) exchanges. All that needs to be warranted to compensate USD inflation is a price floor when BCE sells BKC.

[Sabreiib]

I have no concerns regarding exchange rates at foreign (from BCE) exchanges. All that needs to be warranted to compensate USD inflation is a price floor when BCE sells BKC.

When B&C officially sell BKC at a little higher price, the “ticket scalpers” will follow, don’t forget there is competition among them. Remember I plan to buy BKC at 0.9$ while you will buy@0.91$?

Of course, during first 1-2 years, the buy wall is perhaps lower than 1$, this means the customers bought BKC @1$ official price will lose by selling BKC at 0.95$. However, in the long run, eg 4 years later this issue disappears.

Economics is organic not machine(by Hayek), eg I don’t care the tx fee in BTC-E or CCEDK is 0.2% or 0.3%, don’t care the price of document I find online is 0.5$ or 0.6$ at all. BTW, the inflation rate itself is a blurry concept. It maybe 2.5% or 3.1%, god may not know the exact number, this is not machine, not the accurate swiss watch. fuzzy mathematics…

The loose pegging quality of BKC is not so good as NBT strict pegging, but time will tell whether people like a accurate devalued USD or a blurry anti-inflated good money. Furthermore if profitable B&C company pay for strict pegging for BKC…anything is possible.

[Nagalim]

NBT/Tether or FIAT

B&C cannot hold in FIAT or Tether for the same reason Nu cannot. If it holds in NBT, then failure of Nu is failure of B&C as well. Either way, it needs to elect multisig custodians, just like Nu.

BKC is fixed value

This is not true. Just because you sell it for $1 doesn’t mean that the guy down the street isn’t selling it for $0.9

A price floor for BKC makes no sense. That is a peg. Y’all are chasing your own tails, this conversation is just going round in circles.

[masterOfDisaster]

When B&C officially sell BKC at a little higher price, the “ticket scalpers” will follow, don’t forget there is competition among them. Remember I plan to buy BKC at 0.9$ while you will buy@0.91$?

Sure!
That’s why I argue BKC need an inflation adjusted price floor.
There’s no peg warranted by BCE necessary to find buy walls placed by traders - you and I already announced that experiment
BCE is in a better position (than Nu) to provide BKC with a dual use:

• means of payment for BCE fees
• inflation adjusted currency, if an inflation adjusted price floor when BCE sells BKC is warranted

It’s no easy thing to introduce this inflation adjustment.
Future BKS holders might forfeit that decision.
That would be horrible for the reputation, but not directly threaten BCE, because there was never an obligation for BCE to buy back BKC.

Nu is in the more trustworthy situation, if it decides to issue an inflation adjusted currency (might call it FH-NBT; Friedrich Hayek NBT), because Nu issues pegged products.
The tricky part is that the compensation of the inflation effects rests on the shoulders of Nu.
A skyrocketing USD inflation rate might kill either Nu or the peg of this product.

BCE doesn’t face such risks.

[Sabreiib]

Psychology involved heavily in human’s economics activity. And human’s brain works in different way from computer. An expert IT programmer may find difficulty in finding the REAL EXACT ACCURATE inflation rate, but that’s not necessary because Brains in economics activity not this style.

When you describe a girl is beautiful, it’s hard to quantificat it, every person has a slightly different assessment, it’s the fuzzy side, but she is a beautiful girl, you can confirm! This is another certain side, so human being brain is amazing.

When most customers believe BKC is anti-inflated, it is anti-inflated, although the “most” concept itself is also a fuzzy concept!

The origin of fuzzy concepts is partly due to the fact that the human brain does not operate like a computer.

While ordinary computers use strict binary logic gates, the brain does not; i.e., it is capable of making all kinds of neural associations according to all kinds of ordering principles (or fairly chaotically) in associative patterns which are not logical but nevertheless meaningful. For example, a work of art can be meaningful without being logical. A pattern can be regular and non-arbitrary, hence meaningful, without it being possible to describe it completely or exhaustively in formal-logical terms.

[masterOfDisaster]

A price floor for BKC makes no sense. That is a peg.

I beg to differ.

A price floor allows an adjustment according to inflation rate. Do you really think customers care whether they pay $1 per BKC or $1.02 next year?
The costs per tx depend on the fee, that is variable.
Customers will get used to variable costs when using BCE.

A peg would require BCE to warrant for buying back BKC.

Y’all are chasing your own tails, this conversation is just going round in circles.

No, we are straight-forward discussing what potential benefits and drawbacks an inflation adjustment of BKC has.
One benefit is, that it increases the use of BKC beyond just paying tx fees.
What are the drawbacks?

[Sabreiib]

This is not true. Just because you sell it for $1 doesn’t mean that the guy down the street isn’t selling it for $0.9

I said for B&C shareholders, every BKC is fixed value.

For the guy down the street, the BKC value is guarantee by “ticket scalper”'s buy wall price.The value maybe uncertain, but probably be anti-inflation.

[Nagalim]

hey pay $1 per BKC

Thats a ceiling not a floor.

for B&C shareholders, every BKC is fixed value.

Sure, we can take this view. But then we need to talk about the rate of BKC sale from reserve. The rate will go down as you push the price up if you dont match it with an inverse effect, like lowering fees.

[masterOfDisaster]

Thats a ceiling not a floor.

Actually it’s rather a fixed price.

But if you look at the BKC/USD rate (at which BCE sells BKC) over time, it will move upwards while compensating inflation effects (in this scenario at least).
I’d rather imagine that as a floor, which gets lifted over time
I don’t really care how it’s called.

You refer to the market rate from trading, which will be below that price, when you call it ceiling, right?