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Offline btswildpig

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Proposol by ALT:The controlled enhancement for PEG
« on: November 17, 2014, 06:36:28 PM »

Proposol by ALT:The controlled enhancement for PEG

Although I think the peg theory works , the fluctuation is not much , and you can always sell the peg asset for BTS at the open market rate according to the price feed within 30 days .
But this kind of effort is not that acceptable in the eyes of the general public . Because the peg demand from the public is that it can be converted to fiat at all time for 1:1 .

So , what's causing the difference between the ideal demand and the reality ?

1. Generally speaking , the people who believed in the peg should have incentive to provide 1:1 exchange for fees . Why didn't they ? Because they can't be sure they should put in how much fiat money for this kind of exchange  . If the issuing amount of BTA is to much for the market to bear , then the people who provide this exchange service would have a lot of BTA but no fiat money .

2 . Even if some one provide such a exchange service , the issuing amount still can not meet the demand if the issuing amount is too small (comparing to the potential demand .).  For example , there are just 0.4 million BitCNY now , major exchanges would not consider to use it as some sort of redeem code to be a on-ramp or off-ramp . If too many people on the market don't think the price of BTS will rise , they don't have the incentive to issue new BTA .

So , as we can see , these two issues are related to the issuing amount .  Because if the issuing amount is unpredictable , it leads to uncertainty for those who offer to exchange it with fiat .

But what if we can control the issuing amount base on market demand ? The delegates can feed a maximum and minimum amount for the issuing of BTA according to the actual demand for BitCNY and the need for circulation .

When the issuing amount is lower than the minimum amount , the system encourages the shorts to execute by a discount on interest or lift the limit for the short order to expire after 30 days .

When the issuing amount higher than the maximum limit , the short orders should not be execute .

Because being an simple exchange between fiat and BTA is profitable , those who want to provide such service should gave financial proof to the public , the delegates gather those numbers to provide maximum demand parameters for the system.

Those who want to hold and use BTA , should provide their demand for BTA as well , so the delegates can gather them to provide minimum demand parameters for the system .

I believe this way we can have a lot of individuals who will exchange BTA for fiat , and merchants who will use BTA as a payment tool.
这个是私人账号,表达的一切言论均不代表任何团队和任何人。This is my personal account , anything I said with this account will be my opinion alone and has nothing to do with any group.

Offline Ander

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Re: Proposol by ALT:The controlled enhancement for PEG
« Reply #1 on: November 17, 2014, 06:47:17 PM »
Honestly I think the only missing ingredient to the PEG working exactly as we want it too is that we need more liquidity/traders/market makers.   Once bitshares grows the peg will get very strong.
https://metaexchange.info | Bitcoin<->Altcoin exchange | Instant | Safe | Low spreads

zerosum

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Re: Proposol by ALT:The controlled enhancement for PEG
« Reply #2 on: November 17, 2014, 09:52:15 PM »
That's what the market need - Communist planning.

Hooray! Hooray!

Ggozzo

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Re: Proposol by ALT:The controlled enhancement for PEG
« Reply #3 on: November 17, 2014, 09:57:48 PM »
What is BTA?

Offline btswildpig

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Re: Proposol by ALT:The controlled enhancement for PEG
« Reply #4 on: November 18, 2014, 12:51:10 AM »
That's what the market need - Communist planning.

Hooray! Hooray!

You really don't have a clue about economics , do you ?

If you knew , you would know a Command Economy model is let the market meet the state's demand , Market Economy on the other hand , is to let the state meet the market's demand .

So , please , pretty pretty please , get some reading ?
这个是私人账号,表达的一切言论均不代表任何团队和任何人。This is my personal account , anything I said with this account will be my opinion alone and has nothing to do with any group.

zerosum

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Re: Proposol by ALT:The controlled enhancement for PEG
« Reply #5 on: November 18, 2014, 12:55:26 AM »
That's what the market need - Communist planning.

Hooray! Hooray!

You really don't have a clue about economics , do you ?

If you knew , you would know a Command Economy model is let the market meet the state's demand , Market Economy on the other hand , is to let the state meet the market's demand .

So , please , pretty pretty please , get some reading ?
getting on it ASAP.

Offline btswildpig

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Re: Proposol by ALT:The controlled enhancement for PEG
« Reply #6 on: November 18, 2014, 01:00:52 AM »
That's what the market need - Communist planning.

Hooray! Hooray!

You really don't have a clue about economics , do you ?

If you knew , you would know a Command Economy model is let the market meet the state's demand , Market Economy on the other hand , is to let the state meet the market's demand .

So , please , pretty pretty please , get some reading ?
getting on it ASAP.

Glad to hear, because the communist planing I know , would not even issue any new money supply to meet the market's demand , or would not reduce supply to meet the market's demand . If there's a "demand" involved and the state can meet the demand quite well , then it's not communist planing any more .
这个是私人账号,表达的一切言论均不代表任何团队和任何人。This is my personal account , anything I said with this account will be my opinion alone and has nothing to do with any group.

zerosum

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Re: Proposol by ALT:The controlled enhancement for PEG
« Reply #7 on: November 18, 2014, 01:05:52 AM »
That's what the market need - Communist planning.

Hooray! Hooray!

You really don't have a clue about economics , do you ?

If you knew , you would know a Command Economy model is let the market meet the state's demand , Market Economy on the other hand , is to let the state meet the market's demand .

So , please , pretty pretty please , get some reading ?
getting on it ASAP.

Glad to hear, because the communist planing I know , would not even issue any new money supply to meet the market's demand , or would not reduce supply to meet the market's demand . If there's a "demand" involved and the state can meet the demand quite well , then it's not communist planing any more .

Well where I used to live there was communist planning... the only thing that they did not plan was their own demise.

Offline alt

Re: Proposol by ALT:The controlled enhancement for PEG
« Reply #8 on: November 18, 2014, 01:14:12 AM »
我个人是相信在现有的自由市场下做承兑商也能盈利的。
问题是少数人相信无法达成共识,集中做需要比较大规模的启动资金,面临的法律风险会很高。

我觉得设定一个发行量限制能培养大家的共识,促进分布式兑换点的成立,一旦这个共识形成之后,应该可以去掉限制交还给自由市场了

Offline btswildpig

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Re: Proposol by ALT:The controlled enhancement for PEG
« Reply #9 on: November 18, 2014, 01:24:57 AM »
That's what the market need - Communist planning.

Hooray! Hooray!

You really don't have a clue about economics , do you ?

If you knew , you would know a Command Economy model is let the market meet the state's demand , Market Economy on the other hand , is to let the state meet the market's demand .

So , please , pretty pretty please , get some reading ?
getting on it ASAP.

Glad to hear, because the communist planing I know , would not even issue any new money supply to meet the market's demand , or would not reduce supply to meet the market's demand . If there's a "demand" involved and the state can meet the demand quite well , then it's not communist planing any more .

Well where I used to live there was communist planning... the only thing that they did not plan was their own demise.

I quite know where you are talking about .
I'm quite familiar with that , in fact .
Every economy model involves great length of planing . It's a common mistake to think Command Economy equals to what you know as planning economy .

The difference between Command Economy and Market Economy is that which comes first , planing or demand .

If meeting the demand is a high priority for the state to adjust their planing , then this state is not the kind of country you used to live in .

 The kind of brain power that needs in the planing in the USA economy, you can not even begin to imagine , you just don't know because they didn't tell you every single day while they are constantly planing and their experts were collecting big consulting fees and their advanced computer are running complex models .
这个是私人账号,表达的一切言论均不代表任何团队和任何人。This is my personal account , anything I said with this account will be my opinion alone and has nothing to do with any group.

Offline joele

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Re: Proposol by ALT:The controlled enhancement for PEG
« Reply #10 on: November 18, 2014, 01:34:00 AM »
What is BTA?

Same question here, does it mean bitAssets?

Offline btswildpig

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这个是私人账号,表达的一切言论均不代表任何团队和任何人。This is my personal account , anything I said with this account will be my opinion alone and has nothing to do with any group.

zerosum

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Re: Proposol by ALT:The controlled enhancement for PEG
« Reply #12 on: November 18, 2014, 01:36:20 AM »
That's what the market need - Communist planning.

Hooray! Hooray!

You really don't have a clue about economics , do you ?

If you knew , you would know a Command Economy model is let the market meet the state's demand , Market Economy on the other hand , is to let the state meet the market's demand .

So , please , pretty pretty please , get some reading ?
getting on it ASAP.

Glad to hear, because the communist planing I know , would not even issue any new money supply to meet the market's demand , or would not reduce supply to meet the market's demand . If there's a "demand" involved and the state can meet the demand quite well , then it's not communist planing any more .

Well where I used to live there was communist planning... the only thing that they did not plan was their own demise.

I quite know where you are talking about .
I'm quite familiar with that , in fact .
Every economy model involves great length of planing . It's a common mistake to think Command Economy equals to what you know as planning economy .

The difference between Command Economy and Market Economy is that which comes first , planing or demand .

If meeting the demand is a high priority for the state to adjust their planing , then this state is not the kind of country you used to live in .

 The kind of brain power that needs in the planing in the USA economy, you can not even begin to imagine , you just don't know because they didn't tell you every single day while they are constantly planing and their experts were collecting big consulting fees and their advanced computer are running complex models .

I do not believe that what they are trying to do is possible only in their own minds. Examples are abundant on both sides of the globe.

Offline btswildpig

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Re: Proposol by ALT:The controlled enhancement for PEG
« Reply #13 on: November 18, 2014, 02:03:04 AM »
That's what the market need - Communist planning.

Hooray! Hooray!

You really don't have a clue about economics , do you ?

If you knew , you would know a Command Economy model is let the market meet the state's demand , Market Economy on the other hand , is to let the state meet the market's demand .

So , please , pretty pretty please , get some reading ?
getting on it ASAP.

Glad to hear, because the communist planing I know , would not even issue any new money supply to meet the market's demand , or would not reduce supply to meet the market's demand . If there's a "demand" involved and the state can meet the demand quite well , then it's not communist planing any more .

Well where I used to live there was communist planning... the only thing that they did not plan was their own demise.

I quite know where you are talking about .
I'm quite familiar with that , in fact .
Every economy model involves great length of planing . It's a common mistake to think Command Economy equals to what you know as planning economy .

The difference between Command Economy and Market Economy is that which comes first , planing or demand .

If meeting the demand is a high priority for the state to adjust their planing , then this state is not the kind of country you used to live in .

 The kind of brain power that needs in the planing in the USA economy, you can not even begin to imagine , you just don't know because they didn't tell you every single day while they are constantly planing and their experts were collecting big consulting fees and their advanced computer are running complex models .

I do not believe that what they are trying to do is possible only in their own minds. Examples are abundant on both sides of the globe.

hmm , you get your examples from newspaper or academic journals ?
Because the real juice is in the latter .

The newspaper wouldn't normally tell you ten years after USSR , the Americans were still using plans to control the M2 supply . The American then turned to other open market operations planing just because the control of M2 is not efficient anymore due to the global status of US Dollars.
这个是私人账号,表达的一切言论均不代表任何团队和任何人。This is my personal account , anything I said with this account will be my opinion alone and has nothing to do with any group.

zerosum

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Re: Proposol by ALT:The controlled enhancement for PEG
« Reply #14 on: November 18, 2014, 02:27:20 AM »
I do not want to turn this in yet another spirited argument (as I have several of those today already, most of them not only with people smarter than me but in all occasions with people with much better English language skills).
BTW, on a side note, what you are able to do translating and typing in real time while someone is talking is simply amazing!

That said, if you read around my posts... I have very low opinion of the official economic 'science' of the last  75 years or so.
« Last Edit: November 18, 2014, 02:29:41 AM by tonyk2 »

 

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