bitGold

[JoeyD]

No don't confuse me any further, don't add seasonal value to Bob'sMattressGold and make it global or hemisphere dependent. I'm still having trouble wrapping my head around the idea of trading in the value of something, instead of trading the something itself.

[Troglodactyl]

BitGoxGold, BitKitcoGold, BitBob'sMattressGold, etc. would all be different assets that should reflect market participants' trust in Gox, Kitco, Bob, etc.

I'm taking special note of the "should" in that quote. I take it that the social consensus is that BitBob'sMattressGold would be 1:1 interchangeable with real Bob'sMattressGold should Bob ever want to trade the comfort of his physical version for some of the advantages of its digital representative.

Yes, I would think so, but the market at large (apart from Bob) is unlikely to value either BitBob'sMattressGold or Bob'sMattressGold very highly or consistently, unless Bob has a truly impeccable reputation.

[JoeyD]

BitGoxGold, BitKitcoGold, BitBob'sMattressGold, etc. would all be different assets that should reflect market participants' trust in Gox, Kitco, Bob, etc.

I'm taking special note of the "should" in that quote. I take it that the social consensus is that BitBob'sMattressGold would be 1:1 interchangeable with real Bob'sMattressGold should Bob ever want to trade the comfort of his physical version for some of the advantages of its digital representative.

[CWEvans]

Sorry for sounding uneducated, but I'm new to this type of trading. What's preventing the chosen price-standard to start leading a life on it's own? How will bitgold for example track gold, without becoming goxgold? Or will the prospect of losing ones collateral be enough of a safeguard for people not getting a raw deal?

BitGoxGold, BitKitcoGold, BitBob'sMattressGold, etc. would all be different assets that should reflect market participants' trust in Gox, Kitco, Bob, etc.

[JoeyD]

Sorry for sounding uneducated, but I'm new to this type of trading. What's preventing the chosen price-standard to start leading a life on it's own? How will bitgold for example track gold, without becoming goxgold? Or will the prospect of losing ones collateral be enough of a safeguard for people not getting a raw deal?

[toast]

[T]he whole idea behind BTS X is to establish price ratios without having an external price feed using just a prediction-market-like mechanism.

Backed assets issued with BitShares Me probably will be a bit easier for people to visualize. They will be essentially warehouse receipts.

BitAssets most likely will be issued to track the 'usual suspect' assets first, including USD, EUR, XAU, XAG, CNY, JPY, etc. Once people are used to those, it will be fun to see how the market prices BitUnobtainium, BitVaporware, and BitNothing.

BitNot$100

I'll bet it tracks $100

[CWEvans]

[T]he whole idea behind BTS X is to establish price ratios without having an external price feed using just a prediction-market-like mechanism.

Backed assets issued with BitShares Me probably will be a bit easier for people to visualize. They will be essentially warehouse receipts.

BitAssets most likely will be issued to track the 'usual suspect' assets first, including USD, EUR, XAU, XAG, CNY, JPY, etc. Once people are used to those, it will be fun to see how the market prices BitUnobtainium, BitVaporware, and BitNothing.

[toast]

I had a similar question. What mechanism is used to determine the price for use in bitgold etcetera? Is for example the price of gold versus bitcoin taken from some price-index average or is it something decided on by the majority on the network?

I'd be interested to know how those exchange rates get fed into the system, for short- and long-positions to be evaluated. Could be that this has already been answered, but I can't remember if an official plan or decision on that matter has already been made.

You should read the whitepaper, the whole idea behind BTS X is to establish price ratios without having an external price feed using just a prediction-market-like mechanism.

Is 1 bitGold to represent 1oz of gold?

Whatever the chain launcher decides (actually whatever the market decides). So it's reasonable to assume 1 oz since that's what most price tickers for gold use.

[NewMine]

I had a similar question. What mechanism is used to determine the price for use in bitgold etcetera? Is for example the price of gold versus bitcoin taken from some price-index average or is it something decided on by the majority on the network?

I'd be interested to know how those exchange rates get fed into the system, for short- and long-positions to be evaluated. Could be that this has already been answered, but I can't remember if an official plan or decision on that matter has already been made.

Is 1 bitGold to represent 1oz of gold?

[bytemaster]

I had a similar question. What mechanism is used to determine the price for use in bitgold etcetera? Is for example the price of gold versus bitcoin taken from some price-index average or is it something decided on by the majority on the network?

I'd be interested to know how those exchange rates get fed into the system, for short- and long-positions to be evaluated. Could be that this has already been answered, but I can't remember if an official plan or decision on that matter has already been made.

The price is set via the market as bids and asks take opposite sides.


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[JoeyD]

I had a similar question. What mechanism is used to determine the price for use in bitgold etcetera? Is for example the price of gold versus bitcoin taken from some price-index average or is it something decided on by the majority on the network?

I'd be interested to know how those exchange rates get fed into the system, for short- and long-positions to be evaluated. Could be that this has already been answered, but I can't remember if an official plan or decision on that matter has already been made.

[Markus]

This might be an obvious question but what is Bitgold meant to be valued at, Troy ounce?

Yes, in all commodities we need to know what are the measures, or I guess they will be implied by the price?

The unit and seed 'idea' behind each asset is in the hands of the individuals who create and launch a chain.  I highly recommend they be a specific as possible so the market can operate as efficiently as possible.

[G1ng3rBr34dM4n]

That said, gold is my "anti-catastrophe" value store, I hold it in the event something so bad that internet connectivity is at the back of my mind happens

bitgold < gold
bitusd > usd

 

[betax]

This might be an obvious question but what is Bitgold meant to be valued at, Troy ounce?

Yes, in all commodities we need to know what are the measures, or I guess they will be implied by the price?

[biophil]

Can the gold bar in your basement be unexpectedly replaced (without your consent) with an equivalent number of XTS?

This will not happen with BitGold. There are no margin calls on long positions.

And furthermore the network NEVER replaces your assets without your consent. It only takes stuff you *willingly* put into collateral in order to go short on another asset.

Right. Of course. I will go hang my head in shame for my previous misunderstanding of margin calls...

Seriously, I think the explanation of margin calls I put in the FAQ was wrong. Gonna go do a little revision.