I don't think they are reluctant, I think it has to do with the fact that there is low demand for bitUSD right now. It's easy to get in but not so easy to get out. I think the only solution is to create demand for bitUSD through merchant adoption. The best mm bots can do right now is create artificial volume.
Merchant adoption isn't how you create demand. The way to create demand is through payroll. People need to get paid in BitUSD.
If we are going to hire DAC developers they will want to get paid in BitUSD so that alone should be enough to create demand.
It all has to do with holding period on bit usd. If I buy bit usd today and must wait 1 day to sell and btsx goes up 1% then I lose. Likewise if I buy btsx and hold for a day I lose. So spread is proportional to holding period and volatility.
To have a tight peg we need usd to bitusd makers.
I think because we are in the early stages we put perhaps too much emphasis on BitUSD "adoption" when we should put more emphasis on using BitUSD ourselves. In order to do that we need ways to set up smart contracts or other means so that we can easily pay developers in BitUSD.
I think the future for BitUSD is bright but we have to use it before merchants will care about it. Bitcoin is slow to focus on payroll and paying wages because Bitcoin isn't good for that. BitUSD doesn't have to be slow at that because it's perfect for that.
So instead of focusing on where we can spend BitUSD we should focus on allowing people to earn it through DACs somehow so that more of us have some through earnings. It doesn't make a lot of sense why people would take regular USD out of their bank and buy BitUSD but it does make sense that people would work for BitUSD and then start using it.
I'm I am new to this space, never heard of Bitcoin before and I ask: "How can I earn some BitUSD?" what would I be told?