Benefits of holding bitusd vs. USD

[tonyk]

If you are also holding BXTS holding BitUSD helps support the price of BTSX by generating demand for BitUSD.

Holding BitUSD though would be a bet for a decreasing BTS X price wouldn't it?

Actually if you are also holding BTSX it is not a bet against BTSX.
And you are trusting in the peg between them. You can call it betting/believing in the peg!

[santaclause102]

If you are also holding BXTS holding BitUSD helps support the price of BTSX by generating demand for BitUSD.

Holding BitUSD though would be a bet for a decreasing BTS X price wouldn't it?

[Brent.Allsop]

1) Can't be seized without your consent

BitUSD can be seized or at least heavily taxed, when the federal reserve prints more of it, which they do quite a lot of these days to keep lots of inflation going to fund wars and such.  Nobody can do that with Btsx, at least mostly, although I think the amount of Btsx should be at least somewhat flexible, in an amplified wisdom of the crowd canonization like process.

Now that there are non inflating currencies like Bitcoin and even better BitsharesX, the next time the world economy goes south, everyone could quickly bail from USD, for investments like Bitshares or any of the other crypto currencies.  During the last GREAT recession, everyone in the world was forced to invest in USD, because that was the only option as EVERYTHING was falling in value at once.  Everyone is realizing that at times like that, Bitshares will be a far more reliable investment (exploding in value when the economy goes south, unlike all other investments), and not subject to the huge taxation of the government printing so much more of it.  That could really damage the USD, and cause major major hyper inflation of both USD and BitUSD.

Or am I thinking wrong?

Brent Allsop

[luckybit]

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...

It's useful for paying salaries to US citizens who expect to get paid in USD and who don't appreciate volatility. It's also very good for bounties.

[soniq]

+5%

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

+5% +5%

P.S. Forum moderators, this post could/should be stickied and/or condensed and shared on websites and marketing material

[GaltReport]

 +5%

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

[tonyk]

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?

[bytemaster]

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.

[bitbro]

This should get published into a comparison chart type of thing.. Although the market peg needs to work first....

[Riverhead]

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.

[toast]

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

[bitbro]

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%?

[bytemaster]

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

About $0.01 per transaction.

[mf-tzo]

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?

[bitbro]

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