Author Topic: One for the Ages!  (Read 1099 times)

0 Members and 1 Guest are viewing this topic.

Offline onceuponatime

I've already forwarded it to all my contacts.

Offline tonyk

  • Hero Member
  • *****
  • Posts: 3308
    • View Profile

I just do not want to post 20 pluses.

I just say 'Waw, That is how I wanted to say it!'

Lack of arbitrage is the problem, isn't it. And this 'should' solves it.

Offline tonyk

  • Hero Member
  • *****
  • Posts: 3308
    • View Profile
 author=bytemaster link=topic=752258.msg8508399#msg8508399 date=1408859704


The biggest problem here is that Average Joe (regarding financial instruments) does simply not understand what you mean by short, long, margin call, Nash equilibrium, contract of difference, peg, a short covers, settlement premium, etc. etc. and now we got Average Joe relying on somebody who, first, is able to understand all of that, AND second, is even able to change the bitUSD supply.


Those two observations lead to the question what is this bitUSD asset about and where is the difference to the current monetary system we have? Because as it seems (or at least the perception is) that financial investors, speculators and banksters are misusing the current system in order enrich themselves just because they can and understand the system; whereas Average Joe does not.


Am I correct that if bitUSD is really peggable by the USD, it would allow to build an economy around that cryptocurrency much faster than with Bitcoin or Nxt because merchants can be sure to have stable prices?


The average Joe isn't going to be able to understand the system any more than they understand the current banking system or even bitcoin.  At the end of the day most people have to watch it work and then learn to trust it.   While there is some value in trying to explain it to the average Joe in simple terms, much is lost in translation and that is really beyond the point of this particular thread.

I think that if someone wishes to "attack" the idea BitUSD but lacks the background to know the terms used, then they also lack the standing to publicly criticize and declare a scam, fraud, or broken system.   I do not like to hide behind fancy language and have taken great effort to explain it in simple terms in many places.   Unfortunately the simple explanations are never "complete, accurate, and authoritative".

The primary difference between BitUSD and the FED is that it is market driven and all IOUs are collateralized 200%.   In the case of the Fed they can print up $2 trillion dollars without having any collateral.  BTSX would require collateral worth $4 trillion dollars to exist.   The next difference is transparency.   Another difference is the complete lack of "price fixing".



« Last Edit: August 24, 2014, 06:26:14 am by TheOnion »
Lack of arbitrage is the problem, isn't it. And this 'should' solves it.