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Offline bitmeat

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BitUSD supply
« on: April 29, 2015, 07:53:09 PM »

What's with the drastic drops in BitUSD supply? http://www.bitsharesblocks.com/asset/info?asset=USD


Offline bitmeat

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Re: BitUSD supply
« Reply #1 on: April 29, 2015, 07:54:07 PM »
Multiply the BitUSD supply by 3x and that's your realistic BTS market cap. Quite disturbing BTS is currently worth $300K if you take out all the speculation.

Offline Ander

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Re: BitUSD supply
« Reply #2 on: April 29, 2015, 09:12:46 PM »
Whats up is that people converted to BTS during the crash, which is absolutely what they should do.  And those short bitUSD (thus long BTS on margin) were forced to cover due to margin calls.


The fact that bitAsset supplies must shrink as BTS market cap drops is exactly the thing that makes it not a ponzi.  This is why BTS is better than Nubits - because supply of bitAssets decreases when demand goes away (instead of the value of bitUSD just going to 0).



Also, the idea "3x bitUSD market cap = BTS value" is not accurate.  The BTS market cap relative to bitAsset market cap only shows the potential for how much bitAssets could be created/supported at that time.   Back before bitAssets even existed, BTS had a market cap.  The lack of bitAssets didnt imply the cap should be 0.

Bitcoin has no bitAssets.  This does not mean that bitcoin is worth 0.
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Offline yellowecho

Re: BitUSD supply
« Reply #3 on: April 29, 2015, 09:48:33 PM »
BitUSD is created when shorts match longs.. no shorts means no BitUSD.. and no one is shorting right now because the market is fucked>:(
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Offline jsidhu

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Re: BitUSD supply
« Reply #4 on: April 29, 2015, 10:05:21 PM »
I shorted at 250 with 200% collateral.. whats my margin call at roughly?
« Last Edit: April 29, 2015, 10:10:47 PM by jsidhu »
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Offline liondani

Re: BitUSD supply
« Reply #5 on: April 29, 2015, 10:08:39 PM »
Whats up is that people converted to BTS during the crash, which is absolutely what they should do.  And those short bitUSD (thus long BTS on margin) were forced to cover due to margin calls.


The fact that bitAsset supplies must shrink as BTS market cap drops is exactly the thing that makes it not a ponzi.  This is why BTS is better than Nubits - because supply of bitAssets decreases when demand goes away (instead of the value of bitUSD just going to 0).



Also, the idea "3x bitUSD market cap = BTS value" is not accurate.  The BTS market cap relative to bitAsset market cap only shows the potential for how much bitAssets could be created/supported at that time.   Back before bitAssets even existed, BTS had a market cap.  The lack of bitAssets didnt imply the cap should be 0.

Bitcoin has no bitAssets.  This does not mean that bitcoin is worth 0.

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Offline Troglodactyl

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Re: BitUSD supply
« Reply #6 on: April 29, 2015, 10:34:18 PM »
Whats up is that people converted to BTS during the crash, which is absolutely what they should do.  And those short bitUSD (thus long BTS on margin) were forced to cover due to margin calls.


The fact that bitAsset supplies must shrink as BTS market cap drops is exactly the thing that makes it not a ponzi.  This is why BTS is better than Nubits - because supply of bitAssets decreases when demand goes away (instead of the value of bitUSD just going to 0).



Also, the idea "3x bitUSD market cap = BTS value" is not accurate.  The BTS market cap relative to bitAsset market cap only shows the potential for how much bitAssets could be created/supported at that time.   Back before bitAssets even existed, BTS had a market cap.  The lack of bitAssets didnt imply the cap should be 0.

Bitcoin has no bitAssets.  This does not mean that bitcoin is worth 0.

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Indeed.  He has it backwards, [Market cap] / [Margin call ratio] is the maximum BitAsset total that can be fully backed.

Offline vlight

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Re: BitUSD supply
« Reply #7 on: April 29, 2015, 10:47:09 PM »
Multiply the BitUSD supply by 3x and that's your realistic BTS market cap. Quite disturbing BTS is currently worth $300K if you take out all the speculation.

You forgot other BitAssets.

Offline Ander

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Re: BitUSD supply
« Reply #8 on: April 29, 2015, 10:56:28 PM »
I shorted at 250 with 200% collateral.. whats my margin call at roughly?

You are much braver than I am.  As much as I believe in BTS I will never short a bitAsset.  My investing mentality is not correct for leverage, I buy and hold things I believe in no matter what. 

I hope it works out for all current bitAsset shorts!  Its sad that so many have been hurt the past several months because the bears beat us.
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Offline fuzzy

Re: BitUSD supply
« Reply #9 on: April 29, 2015, 10:58:09 PM »
I shorted at 250 with 200% collateral.. whats my margin call at roughly?

You are much braver than I am.  As much as I believe in BTS I will never short a bitAsset.  My investing mentality is not correct for leverage, I buy and hold things I believe in no matter what. 

I hope it works out for all current bitAsset shorts!  Its sad that so many have been hurt the past several months because the bears beat us.

Is this normal or do you feel the market is unfair to shorts due to the current requirements?
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Offline mf-tzo

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Re: BitUSD supply
« Reply #10 on: April 29, 2015, 10:59:42 PM »
at least BTS has an utility..creating bitassets that track real assets. What is the utility of Doge,LTC, PPC and any other cryptocoin out there? Why do these even exist? because people and a lot of merchants will use them in the future? lol...

There should only be bitcoin (for now), Ripple and maybe some other bitcoin 2 projects..maybe..

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Offline bitmeat

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Re: BitUSD supply
« Reply #11 on: April 29, 2015, 11:00:28 PM »
Like I said take out the speculation, once BTS is an entirely mature product, it's main utilization would be around providing collateral. From that perspective I think 3x the market cap of all BitAssets is fair.

It is ludicrous to think of this valuation before it's mature. So apologies if I gave the impression of a real value.

I meant we need more BitAssets demand that will drive price up.

Offline Ander

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Re: BitUSD supply
« Reply #12 on: April 30, 2015, 04:13:31 AM »
When bts is fully mature its valuation will also be based on the fees it generates.
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Offline bitmeat

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Re: BitUSD supply
« Reply #13 on: April 30, 2015, 04:14:58 AM »
When bts is fully mature its valuation will also be based on the fees it generates.

I think it just needs heavy marketing / integration. The point I was trying to make is that no matter how good BTS is, if there is no demand for BitUSD, it won't take off.

Offline starspirit

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Re: BitUSD supply
« Reply #14 on: April 30, 2015, 05:54:40 AM »
The market cap of BTS is determined by the market's subjective expectations of what future value it can accrue for the benefit of its owners. It has little direct relationship with the value of bitAssets, except that it imposes a limit on how much bitAsset can be produced.

 

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