Author Topic: Why no one is shorting bitassets?  (Read 10769 times)

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Offline xeroc

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Why isn't it possible to back a bitAsset like bitGold with bitUSD?



Another reason is that normally in finance someone who wants to go short GOLD means they want to profit when GOLD falls versus the USD. But in BitShares shorting the bitGOLD(i.e. GOLD/BTS) and does not give the same kind of exposure. It would be good if there was a way to establish an asset whose "Last Price" was a formula instead of a direct price feed. For example: bitGOLDUSD = GOLD/USD. This is the asset that the wider market really wants. At the moment shorting bitAssets means you increase your long exposure to BTS. So if the market trend for BTS is down nobody wants to short.
Soon you will be able to have BitGOLD backed by BitUSD.

Xeldal

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Another reason is that normally in finance someone who wants to go short GOLD means they want to profit when GOLD falls versus the USD. But in BitShares shorting the bitGOLD(i.e. GOLD/BTS) and does not give the same kind of exposure. It would be good if there was a way to establish an asset whose "Last Price" was a formula instead of a direct price feed. For example: bitGOLDUSD = GOLD/USD. This is the asset that the wider market really wants. At the moment shorting bitAssets means you increase your long exposure to BTS. So if the market trend for BTS is down nobody wants to short.
Soon you will be able to have BitGOLD backed by BitUSD.

I hope that you don't imply that one could create bitGold by shorting BitUSD but rather trade BitGold vs.BitUSD right?

Means trade bitUSD to bitGold. 

BTS is the collateral for the whole system, you cannot create assets without it.

You can already trade bitUSD:bitGold, so I don't think that's what he means.

Offline starspirit

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Another reason is that normally in finance someone who wants to go short GOLD means they want to profit when GOLD falls versus the USD. But in BitShares shorting the bitGOLD(i.e. GOLD/BTS) and does not give the same kind of exposure. It would be good if there was a way to establish an asset whose "Last Price" was a formula instead of a direct price feed. For example: bitGOLDUSD = GOLD/USD. This is the asset that the wider market really wants. At the moment shorting bitAssets means you increase your long exposure to BTS. So if the market trend for BTS is down nobody wants to short.
Soon you will be able to have BitGOLD backed by BitUSD.

I hope that you don't imply that one could create bitGold by shorting BitUSD but rather trade BitGold vs.BitUSD right?

Means trade bitUSD to bitGold. 

BTS is the collateral for the whole system, you cannot create assets without it.

Why isn't it possible to back a bitAsset like bitGold with bitUSD?

Offline Ander

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Another reason is that normally in finance someone who wants to go short GOLD means they want to profit when GOLD falls versus the USD. But in BitShares shorting the bitGOLD(i.e. GOLD/BTS) and does not give the same kind of exposure. It would be good if there was a way to establish an asset whose "Last Price" was a formula instead of a direct price feed. For example: bitGOLDUSD = GOLD/USD. This is the asset that the wider market really wants. At the moment shorting bitAssets means you increase your long exposure to BTS. So if the market trend for BTS is down nobody wants to short.
Soon you will be able to have BitGOLD backed by BitUSD.

I hope that you don't imply that one could create bitGold by shorting BitUSD but rather trade BitGold vs.BitUSD right?

Means trade bitUSD to bitGold. 

BTS is the collateral for the whole system, you cannot create assets without it.
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Offline xeroc

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In order to short gold with usd you will need bts as collater to short usd in the first place .. don't you?!!

:P

Offline mf-tzo

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Afaik he is talking about shorting GOLD with USD as collateral ..
Is this bad for you?

If that is the case what would be the purpose of BTS? Just the internal token of the exchange like XRP? To me the value of BTS comes from creating bitassets by short selling. If I can short sell a bitasset to create another bitasset then why would I ever need BTS?

I am sure I am again missing something so please elaborate..

Offline xeroc

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Afaik he is talking about shorting GOLD with USD as collateral ..
Is this bad for you?

Offline mf-tzo

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Another reason is that normally in finance someone who wants to go short GOLD means they want to profit when GOLD falls versus the USD. But in BitShares shorting the bitGOLD(i.e. GOLD/BTS) and does not give the same kind of exposure. It would be good if there was a way to establish an asset whose "Last Price" was a formula instead of a direct price feed. For example: bitGOLDUSD = GOLD/USD. This is the asset that the wider market really wants. At the moment shorting bitAssets means you increase your long exposure to BTS. So if the market trend for BTS is down nobody wants to short.
Soon you will be able to have BitGOLD backed by BitUSD.

I hope that you don't imply that one could create bitGold by shorting BitUSD but rather trade BitGold vs.BitUSD right?

Tuck Fheman

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I wish I had a clue and could trade like this too  :-\

buy high, sell low, works for me, i think, let me ask ander.

all i know is, avoid any tab that doesn't say buy or sell and use each of those two tabs in equal amounts. if in doubt, consult fontas.

Tuck Fheman

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Thats what happened in BTS.  People who have never been on margin before shorted bitUSD because they were bulish on BTS.  But instead BTS went down a lot, and they lost a huge amount of BTS.  So they think "this is bullshit", and they get mad, and they sell all their remaining BTS.


Offline liondani

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Ask bm if he will change it immediately...

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Offline yellowecho

I shorted bitUSD ~20 days ago and now I'm losing my ass. :-\  That's probably why no one is shorting.. hell, I might as well just double down my shorts now and give all my BTS away for free at this point.

Ditto... I'm screwed

The 30 day forced short really fucks the shorter.  It's understandable why people are pissed off.. this needs to be fixed immediately.
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Offline lil_jay890

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I shorted bitUSD ~20 days ago and now I'm losing my ass. :-\  That's probably why no one is shorting.. hell, I might as well just double down my shorts now and give all my BTS away for free at this point.

Ditto... I'm screwed

Offline yellowecho

I shorted bitUSD ~20 days ago and now I'm losing my ass. :-\  That's probably why no one is shorting.. hell, I might as well just double down my shorts now and give all my BTS away for free at this point.
« Last Edit: April 29, 2015, 03:51:28 pm by yellowecho »
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Offline bitmarley

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basically the yield today comes from the interest that has to be payed by SHORTs


Why do shorts offer to pay a yield? Why not short and offer zero pct? How did the yield get to 5% especially in the current climate where ppl are asking why there aren't enough shorts?