Author Topic: Introducing: CASH.USD …. where one is worth $1  (Read 2557 times)

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Offline merivercap

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maybe you were right, @merivercap, maybe everything's going to be okay...

Yes I think we have huge untapped potential with the existing platform!  Bytemaster and the developers did a fantastic job with the blockchain design and I think we have almost everything we need to bootstrap a monetary system that fits seamlessly with our existing one!
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Offline merivercap

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great initiative.

I personally would rather bitBTC be the collateral.

Thanks @JonnyBitcoin!

Yes it would be great to also have bitBTC or CASH.BTC be collateral especially if we get the sidechain initiative going.  Imagine we can create over $3 billion+ in monetary liquidity with Bitcoin as collateral!  That kind of liquidity would be useful for countries!  I also imagine we can tweak the core code to allow multiple types of collateral at the same time or if outside the core code somehow bridge CASH.BTC into BTS to satisfy the collateral requirement. 
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Offline JonnyB

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great initiative.

I personally would rather bitBTC be the collateral.
I run the @bitshares twitter handle
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Offline liondani

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Expected trading pairs?

wtf do you mean?

cadastral/solar?
Does this sound good?

Cadastral/btsplus  /  COMPUCEEDS/STEEM


What the f*** abit!!!!????!!!!!


PS with all the insanity going around...this seems like a very down to earth approach imho

have you seen this:

http://www.bitcash.org/

Offline merivercap

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I have to agree with merivercap, this is a well reasoned ... experiment, all based around social consensus AND the collective wisdom of those creating CASH.USD to fund "investments".

If that collective wisdom is accurate and the investments result in added value to the CASH.USD borrower, the transaction will stimulate economic growth. Either way it will stimulate more trading if people are willing to put up the collateral BTS to back their loans.

I think this is a good experiment.  +5% @merivercap for your initiative on this and a well written TLDR (Too Long but DO Read) post.

Great to hear you read the theory part!  :)  Thank you and very happy to have your support @Thom !   
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Offline merivercap

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Expected trading pairs?

Mainly CASH.USD to BTS, but to get there we'll also have a CASH.BTC to BTS market to help port liquidity from Poloniex via bots and help bootstrap the CASH.USD market.

So in summary:
CASH.USD : BTS
CASH.BTC : BTS
CASH.USD : CASH.BTC

This is great because it sets us up for a nice simple exchange as well  :)
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Offline yvv

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It would be cool if we had a proof of real world property ownership on blockchain which has legal power, and could use real estate and other property as a collateral to issue money on blockchain.


Offline Thom

I have to agree with merivercap, this is a well reasoned ... experiment, all based around social consensus AND the collective wisdom of those creating CASH.USD to fund "investments".

If that collective wisdom is accurate and the investments result in added value to the CASH.USD borrower, the transaction will stimulate economic growth. Either way it will stimulate more trading if people are willing to put up the collateral BTS to back their loans.

I think this is a good experiment.  +5% @merivercap for your initiative on this and a well written TLDR (Too Long but DO Read) post.
Injustice anywhere is a threat to justice everywhere - MLK |  Verbaltech2 Witness Reports: https://bitsharestalk.org/index.php/topic,23902.0.html

Offline tonyk

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Expected trading pairs?

wtf do you mean?

cadastral/solar?
Does this sound good?

Cadastral/btsplus  /  COMPUCEEDS/STEEM


What the f*** abit!!!!????!!!!!


PS with all the insanity going around...this seems like a very down to earth approach imho
« Last Edit: April 11, 2016, 09:16:26 am by tonyk »
Lack of arbitrage is the problem, isn't it. And this 'should' solves it.

Offline abit

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Offline merivercap

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SYMBOL: CASH.USD (aka bitCASH.USD)

There now exists a smartcoin CASH.USD that I firmly believe will be commonly exchanged 1:1 with the US dollar.  CASH.USD is defined and henceforth declared to be worth exactly $1 dollar.  The price feed will be the social consensus of what amount of BTS is equivalent to $1 at any given time.  Currently we use witnesses to provide the price feed.  All the parameters are designed to support the social consensus that the value of CASH.USD is equivalent to one dollar.

Differences compared to bitUSD:
-Merchants or CASH.USD holders will not have a price floor guarantee.  If merchants/holders do not have a gateway or buyers that will exchange a CASH.USD 1:1 for a dollar, they may have to exchange it for BTS and may get more than or less than one dollar when selling BTS.   

-User forced-settlement will be disabled to protect CASH.USD creators.  Any user can create CASH.USD and will not be burdened with the uncertainty of being manually force-settled and should be comfortable creating and maintaining a long-term supply of CASH.USD.  Creators of CASH.USD will only be force-settled when they are undercollateralized.

-The maximum short squeeze price is set at 100.1% so that when creators who borrow CASH.USD into existence are margin-called, the force-settlement price will be nearly identical to the price-feed.

Note: CASH.USD is an alternative to bitUSD and is experimental.  The plan is to transfer this smartcoin to the committee in the future if and when it gets enough traction.

Parameters:
MSSR: 100.1%
MCR: 175%
No forced settlement
Witnesses provide price-feed 

TLDR Theory:
All fiat dollars are treated the same even when they are distinctly different.  Just think about the the qualitative difference between coinage, checkbook money, federal reserve notes, and digital dollars from Venmo/Square Cash/Paypal.  The reason such varied forms of money are treated as equivalent is because there is a social consensus of dollar equivalence.  Without a social consensus, digital dollars may be traded for more than a dollar for its convenience, and coinage less than checkbook money for its inconvenience.  However most everyone treats any form of the dollar the same. 

Banks create checkbook money, the dominant part of M1 money supply, out of thin air and allow this money to circulate in the economy.  Usually banks use real estate assets as collateral to make monetary assets.  These monetary assets aka debt-money aka checkbook money  are merely accounting entries, but they are treated the same as federal reserve notes (green paper dollars in your wallet) or coins.  Again there are distinct qualitative differences between checkbook money, federal reserve notes & coins.  The current Bitshares system functions precisely the same way as banks, but instead of real estate, BTS is used as collateral.  (Read more here: http://bit.ly/1TmWL2J )

Banks create debt/checkbook money that are defined to be dollars, and the real estate collateral that backs this money can fluctuate in value.  As long as the real estate value is greater than the value of the money banks create, banks are not concerned.  In the Bitshares ecosystem, members can create an equivalent type of debt/checkbook money on the blockchain when they create CASH.USD (or borrow CASH.USD) into existence using BTS.  Hence there should be no difference between the checkbook money banks create in the current banking system compared to the CASH.USD that members create on the Bitshares system as long as the social consensus defines both types of debt-money to be valued as dollars. 

What if someone trades CASH.USD for something other than a dollar?  In a free market someone can trade three quarters for one federal reserve note or a one dollar check, but that doesn’t mean trading three quarters for a dollar is part of the social consensus nor should a number of bad trades dictate what the social consensus is.  Hence as long as there is no external reason or design parameter that would lead one to believe CASH.USD is worth anything other than a dollar there will be a social consensus that it is.  The current CASH.USD design should support this reasoning.

Currently governments reserve monetary creation and liquidity for the banking monopoly.   What if we all had that power?  For example a person who has a $500,000 home can decide to create a $250,000 loan on it and treat that loan as money in his/her community.  If he/she splits the $250,000 into 2,500 Ben Franklins and circulates them around his/her community the person  just created monetary liquidity from a previously illiquid real estate asset.    In the Bitshares ecosystem we all now have the power to create our own dollar-based money from BTS collateral and use it as we wish!  That’s actually how money works in the modern economy.  CASH.USD can very well be money in the new blockchain economy and if it is, cheers for the future.

Why create CASH.USD and how do I do it?

- One reason to create CASH.USD is to help the Bitshares ecosystem become more useful and get CASH.USD to circulate in the economy.  If that’s your reason that’s great!  You can create CASH.USD, sell it for dollars and put those dollars in a bank.  You can help the ecosystem without incurring much risk at all.   People can use CASH.USD to store value or purchase goods and services without worrying about a bank or government limiting or freezing their account!

- You can also just spend the CASH.USD you create to buy goods and services and pay it back later on.  It’s like having a credit card or equity-line on your BTS collateral. 

- You can use CASH.USD to buy other investments such as stocks, bonds, gold, real estate and more.  (Warning: Remember you are creating a loan and leverage with CASH.USD so if you use it for speculative activities and the value of your  investments go down you still have to pay back CASH.USD so you’re adding risk with your new investments!)

- You can also use CASH.USD to buy more BTS!
( Warning: As above you are creating a loan and leverage so if the value of BTS goes down the value of your BTS collateral goes down you may have to sell your BTS at the price feed.  The upside of leverage is that if BTS goes up you will magnify your gains, but the downside is if BTS goes down you will magnify your losses.  You are adding risk when you buy additional BTS!)   

- If you are comfortable with the concepts above and understand the risks you can go to your OL web wallet, go to Explore -> Assets and search for CASH.USD.  Click the Trade button on the right.  Then on the upper left side of the screen click ‘Borrow CASH.USD’, enter an amount and create your monetary liquidity and do with it what you want!  You may want to start with at least three times the collateral in BTS to begin with.

Obligatory Disclaimer
[ Warning: While CASH.USD may be valued at one dollar, it is not government-issued and is not legal tender.  It is a blockchain asset.  There are no guarantees or FDIC insurance.  Before taking action, please consider all risks and uncertainties including and not limited to: technological, investment & legal.   The above is purely educational and informational and does not constitute advice.  You are purely at your own discretion and free will.    The government will not protect you.  Please be aware Bitshares is an experiment albeit currently much smaller than the Federal Reserve Board experiment of quantitative easing ….and PS ..welcome to the future! ]

If you have any questions ..1 ...2….3 … go...
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