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Offline bigcat

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Although pegging is supposed to keep the value at 1:1, there is always a feeling that bit asset is not as valuable as real asset. Reasoning as follows. Feed price should be a good indication of current market price of bitshares. At external markets, when you sell at bitshares at market price, most likely you'll expect to sell at lower than feed price. On the other hand, if you buy bitshares at market price, you'll have to pay more than feed price. However, at the internal market, almost for sure you can sell bitshares at or higher than feed price. Of course, when you buy bitshares, you'll have to pay much higher than the feed price. Obviously there is difference between bit asset and real asset. Although it's hard to say how much difference there is, it is not hard to see that bit asset is actually cheaper.
One possible solution is to lower the feed price by maybe 1%. The disallows the guarantee of selling of bitshare at feed price, therefore increases the value of bit assets.

Offline Rune

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Re: There is always a feeling that bit asset is cheaper than real asset
« Reply #1 on: December 21, 2014, 04:42:50 PM »
This is not a problem of the peg, it's a "problem" with the spreads. As liquidity increases, the spreads will become lower. Over time all price discovery and BTS trading will likely happen with bitassets, and gateway assets will only be traded with their corresponding bitassets. At that point the bitasset spread will be observed directly on the gateway-asset:bitasset markets. It'll never be 0, but it will be close.

Offline matt608

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Re: There is always a feeling that bit asset is cheaper than real asset
« Reply #2 on: December 21, 2014, 04:53:32 PM »
I sometimes have the opposite feeling, that bitUSD is more shiny than and old farty USD, but that's just me lol.

Offline islandking

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Re: There is always a feeling that bit asset is cheaper than real asset
« Reply #3 on: December 21, 2014, 05:11:11 PM »
I sometimes have the opposite feeling, that bitUSD is more shiny than and old farty USD, but that's just me lol.

Its possible that the bitassets could carry a premium over the real asset because bitshares offers a yield.
I've been working on a new electronic cash system that's fully peer-to-peer, with no trusted third party. - Satoshi

Offline matt608

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Re: There is always a feeling that bit asset is cheaper than real asset
« Reply #4 on: December 21, 2014, 05:29:03 PM »
I sometimes have the opposite feeling, that bitUSD is more shiny than and old farty USD, but that's just me lol.

Its possible that the bitassets could carry a premium over the real asset because bitshares offers a yield.

+ better transferability (if the other person can receive it, as in global, can send it to a name rather than a bank account) + privacy.

merockstar

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Re: There is always a feeling that bit asset is cheaper than real asset
« Reply #5 on: December 21, 2014, 05:31:03 PM »
This is not a problem of the peg, it's a "problem" with the spreads. As liquidity increases, the spreads will become lower. Over time all price discovery and BTS trading will likely happen with bitassets, and gateway assets will only be traded with their corresponding bitassets. At that point the bitasset spread will be observed directly on the gateway-asset:bitasset markets. It'll never be 0, but it will be close.

yes this. as more and more people pile into the network the peg will become closer to 1:1 on all the exchanges from having people buying low to sell high and vice versa. just need more volume.

Offline islandking

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Re: There is always a feeling that bit asset is cheaper than real asset
« Reply #6 on: December 21, 2014, 08:03:19 PM »
I sometimes have the opposite feeling, that bitUSD is more shiny than and old farty USD, but that's just me lol.

Its possible that the bitassets could carry a premium over the real asset because bitshares offers a yield.

+ better transferability (if the other person can receive it, as in global, can send it to a name rather than a bank account) + privacy.

 +5% Some other good points Matt.
I've been working on a new electronic cash system that's fully peer-to-peer, with no trusted third party. - Satoshi

Offline Gentso1

Re: There is always a feeling that bit asset is cheaper than real asset
« Reply #7 on: December 22, 2014, 03:41:09 PM »
I sometimes have the opposite feeling, that bitUSD is more shiny than and old farty USD, but that's just me lol.

Its possible that the bitassets could carry a premium over the real asset because bitshares offers a yield.

+ better transferability (if the other person can receive it, as in global, can send it to a name rather than a bank account) + privacy.

 +5% Some other good points Matt.

I think this will be true but it will take time. As gateways are added and liquidity is applied, their are many advantages to bit asset's vs their real world counterparts.

 

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