Dumping BTSX and other questions

[Rune]

But as I see it, if BitUSD or BTSX or Bitcoin for that matter gets wildly popular and used, the USD would be dead, same as EUR.

Over time that will happen. Until then, bitassets are the best way to introduce people to the concept of crypto currencies, and also a huge improvement to any of the current bitcoin on-ramps. When BTS becomes popular, it will not be traded a lot on huge mt gox style exchanges, as bitcoin currently is, because most liquidity will be on the internal market. You will not require markets with huge depth to get in at a fair price then, because you just buy bitassets to get into the system, then trade them to BTS on the internal market. This will also have the effect of finally making bit ATM's viable, and will dramatically improve things like decentralized exchanges and localbitcoins.

[busygin]

But as I see it, if BitUSD or BTSX or Bitcoin for that matter gets wildly popular and used, the USD would be dead, same as EUR.

If USD is in trouble, there will probably be some other cash equivalent in bitassets. The point is that BTS(X) is not meant to be used as a currency but certain bitassets are.

[robrigo]

What would happen to BitUSD and BitBTC if someone would dump a shit load of BTSX on the market? My guess would be that it would take much more BTSX to buy BitUSD or BitBTC.

Next question.

Let's say BTSX gets really popular and you believe  in the whole idea/concept. Would it not make sense to just hold BTSX, not buy any assets? This would be true even if BitUSD gets popular? Right?

You could take the "HODL" approach and only hold BTS(X) if you're a long term bull. There is a profit to be made off the fluctuations if you decide you would like to take the risk, as well.

For instance, if BTS(X) bubbles and I think it will return to a lower price, I can buy up bitUSD when the buying power of BTS(X) is high. Then when it returns to the lower price I expect, I can sell my bitUSD back for more BTSX than I originally paid, and achieve a net gain of BTSX.

Conversely, if the price is low and I think it will rise, I can place a short bitUSD order. When that order is filled (demand for bitUSD chomps through the sell wall and hits the short wall at the median price feed published by delegates) it becomes a margin order which I have 30 days to cover. If the price rises as I expect, I can buy bitUSD when my BTSX buying power is high and cover my margin position. By doing so, I borrowed bitUSD ("minted") to sell it when bitUSD was at a higher price in terms of BTSX, and I am able to repay that obligation at a lower cost later (if the cost of bitUSD vs. BTSX goes down; i.e. BTSX price rises). Thus a profit can be earned from the difference.

I'm pretty noobish at these concepts but this is how I understand the system working and why I still purchase bitUSD even as a long term BTSX bull.

But as I see it, if BitUSD or BTSX or Bitcoin for that matter gets wildly popular and used, the USD would be dead, same as EUR.

But will gold be dead? You can buy bitGLD currently and bitSLV (silver) in the future for a stable store of value, if / when fiat does take a turn for the worse.

I think BTC and BTSX will always be volatile, kind of like a publicly traded company's stock.

[eNORm]

But as I see it, if BitUSD or BTSX or Bitcoin for that matter gets wildly popular and used, the USD would be dead, same as EUR.

[busygin]

Let's say BTSX gets really popular and you believe  in the whole idea/concept. Would it not make sense to just hold BTSX, not buy any assets? This would be true even if BitUSD gets popular? Right?

If bitUSD becomes widely accepted, it's a better version of cash. You hold some cash even when you see something worthy to invest, right?

[eNORm]

What would happen to BitUSD and BitBTC if someone would dump a shit load of BTSX on the market? My guess would be that it would take much more BTSX to buy BitUSD or BitBTC.

Next question.

Let's say BTSX gets really popular and you believe  in the whole idea/concept. Would it not make sense to just hold BTSX, not buy any assets? This would be true even if BitUSD gets popular? Right?