Author [EN] [ZH] [ES] [PT] [IT] [DE] [FR] [NL] [TR] [SR] [AR] [RU] [EN] [ZH] [ES] [PT] [IT] [DE] [FR] [NL] [TR] [SR] [AR] [RU] [EN] [ZH] [ES] [PT] [IT] [DE] [FR] [NL] [TR] [SR] [AR] [RU] Topic: Benefits of holding bitusd vs. USD  (Read 1483 times)

0 Members and 1 Guest are viewing this topic.

Offline mf-tzo

  • Hero Member
  • *****
  • Posts: 1705
    • View Profile
Benefits of holding bitusd vs. USD
« on: August 12, 2014, 03:06:47 PM »

Can someone please remind me the benefits. I know there are a lot but I have forgot most of them by now...

I am pretty sure new investors will also want to find out.

Let's keep it simple...

1
2
3
etc...

Offline toast

Re: Benefits of holding bitusd vs. USD
« Reply #1 on: August 12, 2014, 03:10:54 PM »
1) Can't be seized without your consent
2) Send to anyone in the world instantly
3) Private / anonymous
Do not use this post as information for making any important decisions. The only agreements I ever make are informal and non-binding. Take the same precautions as when dealing with a compromised account, scammer, sockpuppet, etc.

Offline xeroc

  • Board Moderator
  • Hero Member
  • *****
  • Posts: 12275
  • ChainSquad GmbH
    • View Profile
    • ChainSquad GmbH
  • BTS: xeroc
  • GitHub: xeroc
Re: Benefits of holding bitusd vs. USD
« Reply #2 on: August 12, 2014, 03:10:57 PM »
- (should be) worth a USD with the advantages of the decetnralized cryptocurrencies ... (no seizure, 'laundering'?, clean (not drug dirty), 'no' change)
Give BitShares a try! Use the http://testnet.bitshares.eu provided by http://bitshares.eu powered by ChainSquad GmbH

Offline tonyk

  • Hero Member
  • *****
  • Posts: 3309
    • View Profile
Re: Benefits of holding bitusd vs. USD
« Reply #3 on: August 12, 2014, 03:12:30 PM »
The answer is  - you have all the benefits of crypto currency with the price stability of a dollar.

Imagine your all your $ being BTC and at the same time whenever you decide you can change them back to USD 1:1;
Lack of arbitrage is the problem, isn't it. And this 'should' solves it.

Offline bytemaster

Re: Benefits of holding bitusd vs. USD
« Reply #4 on: August 12, 2014, 03:18:34 PM »
You can trade against BitGold/Silver/Etc  in ForEx
You can hedge against BTS X volatility without creating taxable events or going through a centralized exchange.
You can pay merchants in BitUSD without having to use a service like BitPay to handle volatility risk.
You can support easier cross-chain-trading with market-pegged assets on both chains.
If you are also holding BXTS holding BitUSD helps support the price of BTSX by generating demand for BitUSD.

For the latest updates checkout my blog: http://bytemaster.bitshares.org
Anything said on these forums does not constitute an intent to create a legal obligation or contract between myself and anyone else.   These are merely my opinions and I reserve the right to change them at any time.

bitbro

  • Guest
Re: Benefits of holding bitusd vs. USD
« Reply #5 on: August 12, 2014, 03:23:50 PM »
Far less cost than current visa/ boa electronic debit system, yes?

Offline mf-tzo

  • Hero Member
  • *****
  • Posts: 1705
    • View Profile
Re: Benefits of holding bitusd vs. USD
« Reply #6 on: August 12, 2014, 03:24:50 PM »
Isn't the most important benefit that by holding Bitusd you hold your $ in a decentralised bank that cannot loan more than its collateral value? The bank cannot therefore bankrupt and no government can shut the system down.

The bank earns profits from transaction fees and the loans that will provide cannot exceed these profits. You avoid a situation where a bank can loan more than it's true value and therefore you avoid a crisis like the one we experienced and still experience whereby banks gave more loans than they supposed to and at some point people realised all together that the asset collaterals that they were holding (i.e houses) were not worthing that much?


Offline bytemaster

Re: Benefits of holding bitusd vs. USD
« Reply #7 on: August 12, 2014, 03:25:08 PM »
Far less cost than current visa/ boa electronic debit system, yes?

About $0.01 per transaction.
For the latest updates checkout my blog: http://bytemaster.bitshares.org
Anything said on these forums does not constitute an intent to create a legal obligation or contract between myself and anyone else.   These are merely my opinions and I reserve the right to change them at any time.

bitbro

  • Guest
Re: Benefits of holding bitusd vs. USD
« Reply #8 on: August 12, 2014, 03:26:08 PM »

Far less cost than current visa/ boa electronic debit system, yes?

About $0.01 per transaction.

Compared to how much in the visa/boa debit system? $1.00 per transaction? Or 1%?

Offline toast

Re: Benefits of holding bitusd vs. USD
« Reply #9 on: August 12, 2014, 03:27:55 PM »
Isn't the most important benefit that by holding Bitusd you hold your $ in a decentralised bank that cannot loan more than its collateral value? The bank cannot therefore bankrupt and no government can shut the system down.

The bank earns profits from transaction fees and the loans that will provide cannot exceed these profits. You avoid a situation where a bank can loan more than it's true value and therefore you avoid a crisis like the one we experienced and still experience whereby banks gave more loans than they supposed to and at some point people realised all together that the asset collaterals that they were holding (i.e houses) were not worthing that much?



Not really... Real banks can always make good on $ value because of real-life FDIC. That is more of an argument for why BTSX might be better than BoA stock
Do not use this post as information for making any important decisions. The only agreements I ever make are informal and non-binding. Take the same precautions as when dealing with a compromised account, scammer, sockpuppet, etc.

Offline Riverhead

Re: Benefits of holding bitusd vs. USD
« Reply #10 on: August 12, 2014, 03:31:52 PM »
You can pay merchants in BitUSD without having to use a service like BitPay to handle volatility risk.


Hmm.  Danger Will Robinson. I guess this isn't any different than a merchant accepting BTC.  Though the 1:1 pegged nature of bitUSD might wrinkle some regulators noses with regards to which currency is fiat, taxable, MINTABLE, etc.
« Last Edit: August 12, 2014, 03:35:40 PM by Riverhead »

bitbro

  • Guest
Re: Benefits of holding bitusd vs. USD
« Reply #11 on: August 12, 2014, 03:32:51 PM »
This should get published into a comparison chart type of thing.. Although the market peg needs to work first....

Offline bytemaster

Re: Benefits of holding bitusd vs. USD
« Reply #12 on: August 12, 2014, 03:36:15 PM »

Far less cost than current visa/ boa electronic debit system, yes?

About $0.01 per transaction.

Compared to how much in the visa/boa debit system? $1.00 per transaction? Or 1%?

Depends upon your volume and a ton of other factors.  For Dwolla it was $0.25 for checking account payments.

For Paypal....
If the fee is passed to you, it is 2.9% plus $0.30 USD of the amount you receive. For example, if you are sent $100.00 USD by credit card, the fee would be $3.20 USD ($2.90 + $0.30). This fee also applies if you click Request Money on the PayPal website and request money from friends and family.

For the latest updates checkout my blog: http://bytemaster.bitshares.org
Anything said on these forums does not constitute an intent to create a legal obligation or contract between myself and anyone else.   These are merely my opinions and I reserve the right to change them at any time.

Offline tonyk

  • Hero Member
  • *****
  • Posts: 3309
    • View Profile
Re: Benefits of holding bitusd vs. USD
« Reply #13 on: August 12, 2014, 04:18:46 PM »
Isn't the most important benefit that by holding Bitusd you hold your $ in a decentralised bank that cannot loan more than its collateral value? The bank cannot therefore bankrupt and no government can shut the system down.

The bank earns profits from transaction fees and the loans that will provide cannot exceed these profits. You avoid a situation where a bank can loan more than it's true value and therefore you avoid a crisis like the one we experienced and still experience whereby banks gave more loans than they supposed to and at some point people realised all together that the asset collaterals that they were holding (i.e houses) were not worthing that much?

It is an attempt to find the lesser evil... during a period of extreme market conditions.
Do you prefer the company to stop offering the product all together or is it better to just decrease companies market value by 0.1% or 1%, by taking the losses?
Lack of arbitrage is the problem, isn't it. And this 'should' solves it.

Offline GaltReport

Re: Benefits of holding bitusd vs. USD
« Reply #14 on: August 12, 2014, 04:23:24 PM »
 +5%

Great thread.  I think It's all starting to sink in!!

 

Google+