Professional writer who understands all the details

[tonyk]

the price of a bitUSD will always be worth the same as USD even though it's based on supply and demand because if supply or demand of bitUSD changes then that value change will be reflected in the currencies it's being used to trade against. this is a result of general consensus that a bitUSD should be worth the same as a USD.


I am kind of lost...

[toast]

the price of a bitUSD will always be worth the same as USD even though it's based on supply and demand because if supply or demand of bitUSD changes then that value change will be reflected in the currencies it's being used to trade against. this is a result of general consensus that a bitUSD should be worth the same as a USD.

But why is the bolded part true, and why should that cause BitUSD to track USD?

The key is "because everyone is trying to make a profit" and "you can only trade profitably by trading towards consensus". It is like a prediction market.

[tonyk]

I know you are not chono, you are the 'chicken nuggets filled with taco bell nacho cheese. ' guy.

[edit] Seriously now, let see what you have written.

[merockstar]

hmm...

i chose the word conjure as a stylistic liberty, not like im including it in this thing im trying to write.

lets try this one:

the price of a bitUSD will always be worth the same as USD even though it's based on supply and demand because if supply or demand of bitUSD changes then that value change will be reflected in the currencies it's being used to trade against. this is a result of general consensus that a bitUSD should be worth the same as a USD.

is that accurate?

also, tonyk, you realize I'm not chono, right?

[tonyk]

Why people expect that a bitUSD= a USD?I still can not get it

If this will make you stop crying: That is a hypothesis that is being tested.

[chono]

would it be accurate to say that a bitUSD is going to be worth a USD because the price won't be based on supply and demand, supply instead coming from bitUSD being conjured up on a case by case basis when the need for it is created by collateral being deposited, and the price will be determined by the expectation of every bitshares user that a bitUSD= a USD?

The bold text is factually correct, the rest is edit of what you wrote… not sure this is the best way to put it though.

'would it be accurate to say that a bitUSD is going to be worth a USD because the price won't be based on supply and demand, supply instead coming from bitUSD being conjured by collateral being used (), up on a case by case basis, when the need for bitUSD exists, and the price will be determined by the expectation of every bitshares user that a bitUSD= a USD?'

* conjure def. : 'To summon (a devil or spirit) by magical or supernatural power.'

Why people expect that a bitUSD= a USD?I still can not get it

[tonyk]

would it be accurate to say that a bitUSD is going to be worth a USD because the price won't be based on supply and demand, supply instead coming from bitUSD being conjured up on a case by case basis when the need for it is created by collateral being deposited, and the price will be determined by the expectation of every bitshares user that a bitUSD= a USD?

The bold text is factually correct, the rest is edit of what you wrote… not sure this is the best way to put it though.

'would it be accurate to say that a bitUSD is going to be worth a USD because the price won't be based on supply and demand, supply instead coming from bitUSD being conjured by collateral being used (), up on a case by case basis, when the need for bitUSD exists, and the price will be determined by the expectation of every bitshares user that a bitUSD= a USD?'

* conjure def. : 'To summon (a devil or spirit) by magical or supernatural power.'

[toast]

im starting to think this [market pegging bitAsset concept] might be a little over my head

If you get the ‘peg’ the rest is a breeze :)

would it be accurate to say that a bitUSD is going to be worth a USD because the price won't be based on supply and demand, supply instead coming from bitUSD being conjured up on a case by case basis when the need for it is created by collateral being deposited, and the price will be determined by the expectation of every bitshares user that a bitUSD= a USD?

I wouldn't call it "won't be based on supply and demand", but you got the rest right. Supply is generated because people think it is overvalued and so are willing to short and create more to sell. Demand is created when people think it is undervalued and so buy BitUSD to hold or to cover their shorts. If people base their beliefs on the belief that 1BitUSD=1USD in the future then this will push the price towards that direction.

[merockstar]

im starting to think this [market pegging bitAsset concept] might be a little over my head

If you get the ‘peg’ the rest is a breeze :)

would it be accurate to say that a bitUSD is going to be worth a USD because the price won't be based on supply and demand, supply instead coming from bitUSD being conjured up on a case by case basis when the need for it is created by collateral being deposited, and the price will be determined by the expectation of every bitshares user that a bitUSD= a USD?

[tonyk]

im starting to think this [market pegging bitAsset concept] might be a little over my head

If you get the ‘peg’ the rest is a breeze :)

[merockstar]

bitAssets like bitUSD and bitGOLD and what have ya won't be traded on third party exchanges like cryptsy, but will be limited to the exchange built into the BitShares X software, is this correct?

Nothing prevents them from being traded... So they will probably/hopefully be traded.

Some 3rd parties will exchange USD for bitUSD…

im starting to think this [market pegging bitAsset concept] might be a little over my head

ok here it says:

• Then he gave Jane a note good for 20 bitcoins minus $10 worth of bitcoins at any time she wanted to cash out.

20 ... dollars worth of bitcoins? is that a typo?

[tonyk]

bitAssets like bitUSD and bitGOLD and what have ya won't be traded on third party exchanges like cryptsy, but will be limited to the exchange built into the BitShares X software, is this correct?

Nothing prevents them from being traded... So they will probably/hopefully be traded.

Some 3rd parties (BTER, Cryptsy, JPMorgan Chase???)  will exchange USD for bitUSD…

[merockstar]

stupid question to check understanding:

bitAssets like bitUSD and bitGOLD and what have ya won't be traded on third party exchanges like cryptsy, but will be limited to the exchange built into the BitShares X software, is this correct?

Idk why I'm having such a hard time with this... okay, maybe I do but don't wanna confront the answer to that question

[merockstar]

exactly what i needed stan, thanks. third (maybe final) draft of that section coming soon.

up next, market pegging, if I can manage to wrap my head around it (working on it).

[Stan]

but also Stan should weigh in with what sort of support I3 can offer new DAC devs

It is our duty, nay, our glorious mission, to support DAC developers every way we can to grow the industry and produce value for holders of any of the BitShares family of DACs. 

What BitShares can do to help will vary with what a developer needs and our available funding reserves - which get replenished every time a new DAC is launched that honors AGS-donated PTS.  So, if reserves are fully committed a some point in time, just wait till the next successful DAC launch generates the resources to start whatever next project is at the top of the queue.  Then work to get your project to the top of that queue.

Bring us your business plan and win the hearts and minds of our community and you could win our support in incubating your new company.  What’s that include? Well, there are many things BitShares could provide depending upon the nature of the help your new startup may need. For example:

• A stipend/grant to work on your idea full time for a period long enough to get it up and running.
• Legal help to set up your company in its chosen favorable jurisdiction.
• Fully equipped office space in our incubator at the Virginia Tech Corporate Research Center.
• Forum and web site support while you build you own base of supporters.
• Crypto-savvy legal, accounting, financial and tax support.
• Use of our trusted escrow services while you are building your own reputation.
• Consulting with Dan “bytemaster” Larimer and our team of innovators.
• Help with finding opportunities to speak at a major conference.
• Promotional support integrated with our own global marketing campaign.

Here are some of the evaluation criteria that might apply. What others have we missed?

Business model. How does your DAC make money for its shareholders?
Technical approach. What are the underlying technologies you will use?
Regulatory environment. Have you selected a favorable legal jurisdiction?
Team Qualifications. Does your proposed company have what it takes to succeed?
Diversity. Does your company bring participation from other regions of the globe.
Popularity. How much donation-backed grass-roots support do you have?

Here's how to get started:

• Start a discussion thread in our forum where you explain your idea to everyone.
• Commit to honor the BitShares Social Consensus as your first posting there.
• Explain your qualifications, resources and the kind of start-up help you are seeking.
• Attend a Mumble session with bytemaster to discuss your ideas.

Then work to build support for your project as the next one BitShares chooses to sponsor.  Delegates will play a key role in this activity, since some of them may choose to use their "smart spigots" to contribute to your grass-roots funding war chest.  Supporting popular developers is a great way for BitShares Delegates to stay elected.  (And it helps to decentralize funding decisions throughout the BitShares community.)

BitShares is also ready to partner with third party developers who may not need any of the above, but still want to work with this community.  FreeTrade's Lotto Shares DAC is such an example.  He has honored the BitShares Social Consensus and asked for no assistance.   But we are happy to assist any way that we can.  For example, we have reached out to discuss a joint marketing promotion with him if and when he thinks the time is right.

So, you see, there is a full spectrum of ways to use the BitShares community as a launch platform for your new DACs.  There will be times, like May-June 2014, when we must focus all our energies on getting a specific product launched.  There will be other times, like March-April 2014, when BitShares will focus more energies on launching new products (and new developers!) 

So the key is to get your idea to be well-known and well-loved before the next round of resources become available as the current round is launched.

Remember, the primary purpose of BitShares is to build a decentralized community of developers who will then build and release and operate and support all kinds of insanely great DACs.  BitShares doesn't build DACs, it builds DAC developers and the tools and resources they need to be successful.