Author Topic: bitUSD marketcap  (Read 5963 times)

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Offline Chuckone

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How dumping BTSX get you profits from shorting bitusd?

My understanding is that if BTSX are dumped their price to usd will fall, so someone shorting bitusd (expecting usd to fall vs. BTSX) will lose.

Oh right yes I'm mistaken.

Someone with a large position is quite bullish about the future value of BTS...

So the big shorting action increasing bitUSD market cap is just because someone thinks BTSX will rise?  But someone had to buy that bitUSD didn't they.  And those people must think BTSX will go down so they buy bitUSD to protect themselves. So overall is increase in bitUSD market cap just means people are hedging, placing their bets within the system, not necessarily that any new money is entering?

Until there are on/off-ramps from fiat to bitUSD, each bitUSD created from shorts must be bought using BTSX on the Bitshares-X trading platform. So my understanding would be that any matched short definitely doesn't mean new money came in. The only way to have new money coming in the ecosystem would be through BTSX on the centralized exchanges. I'm no market expert, but that would be my interpretation.

Offline matt608

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How dumping BTSX get you profits from shorting bitusd?

My understanding is that if BTSX are dumped their price to usd will fall, so someone shorting bitusd (expecting usd to fall vs. BTSX) will lose.

Oh right yes I'm mistaken.

Someone with a large position is quite bullish about the future value of BTS...

Ok so the big shorting action increasing bitUSD market cap is because someone thinks BTSX will rise, but someone had to buy that bitUSD didn't they?  And those people must think BTSX will go down so they buy bitUSD to protect themselves. So overall is increase in bitUSD market cap just means people are hedging, placing their bets within the system, not that any new money/users are entering?
« Last Edit: October 28, 2014, 12:22:47 pm by matt608 »

Offline Chuckone

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How dumping BTSX get you profits from shorting bitusd?

My understanding is that if BTSX are dumped their price to usd will fall, so someone shorting bitusd (expecting usd to fall vs. BTSX) will lose.

Oh right yes I'm mistaken.

Someone with a large position is quite bullish about the future value of BTS...

Offline matt608

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How dumping BTSX get you profits from shorting bitusd?

My understanding is that if BTSX are dumped their price to usd will fall, so someone shorting bitusd (expecting usd to fall vs. BTSX) will lose.

Oh right yes I'm mistaken. 
« Last Edit: October 28, 2014, 12:17:14 pm by matt608 »

Offline mf-tzo

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How dumping BTSX get you profits from shorting bitusd?

My understanding is that if BTSX are dumped their price to usd will fall, so someone shorting bitusd (expecting usd to fall vs. BTSX) will lose.

Offline matt608

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There was some huge shorting action yesterday that more than tripled the current supply of bitUSD.

http://bitsharesblocks.com/blocks/block?id=858831

PS. I'm not sure about the price ratios etc of asset transactions after all the recent changes to shorting mechanics, I'm gonna have to go over them and make sure everything is still correct. Anyway the short answer is lots of shorting happened, so market cap went up.

Ok so these bitUSD which have been shorted are mostly still for sale? (trying to understand).  It's not new money flowing in to bitUSD, it's someone who already had a big position in BTSX borrowing bitUSD and then putting up for sale i.e. shorting bitUSD, with the believe that BTSX would go down and they would be able to buy them back for a smaller amount of BTSX than they paid to borrow them?  It's happened on the same day as a big dump  went down on bter.  Could it be the same person deliberately planning to dump BTSX to profit from shorting bitUSD?  What is the likely cause of this action?

« Last Edit: October 28, 2014, 12:06:08 pm by matt608 »

Offline 天籁

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Short    44.4745   34,240,435.40141    769,889.159

Bid        43.5169   16,101,215.99579    369,999.4489

Offline svk

There was some huge shorting action yesterday that more than tripled the current supply of bitUSD.

http://bitsharesblocks.com/blocks/block?id=858831

PS. I'm not sure about the price ratios etc of asset transactions after all the recent changes to shorting mechanics, I'm gonna have to go over them and make sure everything is still correct. Anyway the short answer is lots of shorting happened, so market cap went up.
« Last Edit: October 28, 2014, 11:25:51 am by svk »
Worker: dev.bitsharesblocks

Offline matt608

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On coinmarketcap today I saw the bitUSD market cap went up from around $380,000 to over $1million, what's going on there?