> It isn't in equilibrium though unless each party knows how much that 1BTC is worth to the other party. Strictly speaking, one can never possibly know other p

> It isn't in equilibrium though unless each party knows how much that 1BTC is worth to the other party. Strictly speaking, one can never possibly know other person's "real" valuation. People can always lie to themselves and change their mind. The only way we can know how much 1 BTC is worth is by seeing a successful 1 BTC transaction. > Also, the whole thing is a bit odd anyway as it is using a currency to facilitate a direct barter. There's nothing odd. If I want to exchange my bike for an iPhone, I have to be very lucky to find someone who wants my bike and does not want his iPhone. That's why we all use money, it's the most marketable product — you can sell it to anyone. > Bob's worst scenario is no item and no money, with Alice getting both items and no money and Bob has no idea beyond Alice's say-so whether Alice values both items more than the money. This is fixed easily by having insurance deposit 1.5x or higher that of the price. So Alice is motivated to pay the bill to release higher amount.