Still wrapping my head around this. One aspect I don't understand is how to turn BitGold into physical gold...
Say I have 1oz gold. I want to turn it into BitGold.
I sell my 1oz gold for the equivalent value of Bitshares. Someone gets my gold. I get the Bitshares. Bitshares then collateralize my BitGold. So now someone shorting BitGold has my Bitshares. I now have their BitGold.
So far so good?
So the Bitgold supply should equal the gold sold into the system. How is this BitGold created from a short side of my long BitGold buy?
I hold that BitGold, and get dividends. Dividends come from processing fees, mining inflation, and forced margin call fees... and/or inactivity fees.
How are those dividends divided up among assets? I imagine they are all calculated based on the Bitshares value collateralize the BitGold?
Now I want my physical gold.
I sell my BitGold and get Bitshares. I then have to sell those Bitshares to a physical gold dealer to get my Gold?
Am I missing anything?
P.S. This is just way too cool if it all works.