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Offline mf-tzo

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Bitshares X underline value
« on: August 24, 2014, 07:09:28 PM »

Since launching of bitusd will take place soon I just wanted to wrap up a couple of things.

Assuming of course Bitsud=usd

The advantages of holding bitusd vs. USD are clear. Basically someone has all the benefits of cryptocurrencies with the stability of the usd and keeps his savings and assets on a decentralised exchange.

The big question now: Why Bitshares X will be worth billions in the future?
Answer: Increased demand to purchase Bitshares X in order to use the "platform" and keep your assets, currencies saved there and have all the benefits that the platform offers.

Do I miss/misunderstand something?



Offline speedy

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Re: Bitshares X underline value
« Reply #1 on: August 24, 2014, 07:35:44 PM »
You missed out that a big part of the expected price rise is due to more people observing how good the dividends are due to all the burned transaction fees from market trading.

I.e. this digital asset combines usefulness (bitUSD) with great economics (dividends).

Offline xeroc

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Re: Bitshares X underline value
« Reply #2 on: August 24, 2014, 07:38:31 PM »
In short ... btsx are undervalued atm ..
the reason for this is that the unbelievers dont believe .. wait.. they dont understand.. that the peg will hold .. this uncertainty gives the price ..
once they see the peg holds we will eventually see HUGE rises in price .. (not meant as investment advice) ;-)

I see those that understand as insiders!!
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Offline Empirical1

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Re: Bitshares X underline value
« Reply #3 on: August 24, 2014, 08:04:33 PM »

The big question now: Why Bitshares X will be worth billions in the future?
Answer: Increased demand to purchase Bitshares X in order to use the "platform" and keep your assets, currencies saved there and have all the benefits that the platform offers.


I would also say because we have first mover advantage and the 'Bitshares with Bytemaster' advantage  :)

Also imo BTSX can be worth billions very quickly once the market is confident the system as a whole works, just by participants anticipating the future demand you have identified.

Offline Akado

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Re: Bitshares X underline value
« Reply #4 on: August 24, 2014, 08:22:43 PM »
You missed out that a big part of the expected price rise is due to more people observing how good the dividends are due to all the burned transaction fees from market trading.

I.e. this digital asset combines usefulness (bitUSD) with great economics (dividends).

I understand that about btsX but will bitUSD have the same feature? I mean, will parts of its fees be burned and that process work as paying dividends for bitUSD holders?
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Offline Empirical1

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Re: Bitshares X underline value
« Reply #5 on: August 24, 2014, 08:30:16 PM »
You missed out that a big part of the expected price rise is due to more people observing how good the dividends are due to all the burned transaction fees from market trading.

I.e. this digital asset combines usefulness (bitUSD) with great economics (dividends).

I understand that about btsX but will bitUSD have the same feature? I mean, will parts of its fees be burned and that process work as paying dividends for bitUSD holders?

No I don't think so. I think the fees will go to an insurance fund in case there is a collateral problem.
(This is good imo. It is better than BTSX being diluted if there is a collateral problem.)

Has this insurance fund proposal been implemented?

All BitUSD fees collected by network are saved and used in the event that a short runs out of collateral.   If the fees are not enough then the fund will go negative and will slowly pay it back over time.

https://bitsharestalk.org/index.php?topic=7032.msg94712#msg94712

Offline speedy

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Re: Bitshares X underline value
« Reply #6 on: August 24, 2014, 08:31:52 PM »
You missed out that a big part of the expected price rise is due to more people observing how good the dividends are due to all the burned transaction fees from market trading.

I.e. this digital asset combines usefulness (bitUSD) with great economics (dividends).

I understand that about btsX but will bitUSD have the same feature? I mean, will parts of its fees be burned and that process work as paying dividends for bitUSD holders?

Well this thread was about the underlying value of BTSX. bitUSD dont get dividends, but they will get +5% interest when that feature gets enabled.

As I understand it, bitUSD fees are collected into an insurance fund, which is used in the event of the collateral losing value (black swan situation). If I am a holder of bitUSD, am I the one who gets payed in that situation?

Offline santaclause102

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Re: Bitshares X underline value
« Reply #7 on: August 24, 2014, 08:32:38 PM »
Since launching of bitusd will take place soon I just wanted to wrap up a couple of things.

Assuming of course Bitsud=usd

The advantages of holding bitusd vs. USD are clear. Basically someone has all the benefits of cryptocurrencies with the stability of the usd and keeps his savings and assets on a decentralised exchange.

The big question now: Why Bitshares X will be worth billions in the future?
Answer: Increased demand to purchase Bitshares X in order to use the "platform" and keep your assets, currencies saved there and have all the benefits that the platform offers.

Do I miss/misunderstand something?
You are right about that. BTSX is needed to buy BitUSD as well as to short BitUSD.

Offline biophil

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Re: Bitshares X underline value
« Reply #8 on: August 24, 2014, 09:13:38 PM »
I feel like everybody is missing the crucial reason why BTSX will be worth so much. The reason is simple: bitAssets are backed by at least 1.5 times their value in shares of BTSX, so the market cap of BTSX will always be at least 1.5 times greater than the total market cap of all bitAssets.

You could think of it like this: every time someone creates 1 bitUSD, they put up $2 worth of BTSX as collateral. This collateral is unspendable until the bitUSD loan is repaid, so those shares of BTSX have effectively been removed from the share supply. It's as though they've been temporarily burned, Whig reduces the overall supply of BTSX, driving up the per-share price.

Make sense? BTSX is valuable because its value is more or less proportional to bitAsset demand.

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Offline santaclause102

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Re: Bitshares X underline value
« Reply #9 on: August 24, 2014, 09:18:26 PM »
I feel like everybody is missing the crucial reason why BTSX will be worth so much. The reason is simple: bitAssets are backed by at least 1.5 times their value in shares of BTSX, so the market cap of BTSX will always be at least 1.5 times greater than the total market cap of all bitAssets.

You could think of it like this: every time someone creates 1 bitUSD, they put up $2 worth of BTSX as collateral. This collateral is unspendable until the bitUSD loan is repaid, so those shares of BTSX have effectively been removed from the share supply. It's as though they've been temporarily burned, Whig reduces the overall supply of BTSX, driving up the per-share price.

Make sense? BTSX is valuable because its value is more or less proportional to bitAsset demand.

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Exactly

Offline speedy

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Re: Bitshares X underline value
« Reply #10 on: August 24, 2014, 09:55:14 PM »
I feel like everybody is missing the crucial reason why BTSX will be worth so much. The reason is simple: bitAssets are backed by at least 1.5 times their value in shares of BTSX, so the market cap of BTSX will always be at least 1.5 times greater than the total market cap of all bitAssets.

You could think of it like this: every time someone creates 1 bitUSD, they put up $2 worth of BTSX as collateral. This collateral is unspendable until the bitUSD loan is repaid, so those shares of BTSX have effectively been removed from the share supply. It's as though they've been temporarily burned, Whig reduces the overall supply of BTSX, driving up the per-share price.

Make sense? BTSX is valuable because its value is more or less proportional to bitAsset demand.

Sent from my SCH-S720C using Tapatalk 2

Great point!

Offline mf-tzo

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Re: Bitshares X underline value
« Reply #11 on: August 24, 2014, 10:28:22 PM »
Quote
I feel like everybody is missing the crucial reason why BTSX will be worth so much. The reason is simple: bitAssets are backed by at least 1.5 times their value in shares of BTSX, so the market cap of BTSX will always be at least 1.5 times greater than the total market cap of all bitAssets.

You could think of it like this: every time someone creates 1 bitUSD, they put up $2 worth of BTSX as collateral. This collateral is unspendable until the bitUSD loan is repaid, so those shares of BTSX have effectively been removed from the share supply. It's as though they've been temporarily burned, Whig reduces the overall supply of BTSX, driving up the per-share price.

Make sense? BTSX is valuable because its value is more or less proportional to bitAsset demand.

Ok maybe I shouldn't have started this discussion yet ...BitsharesX are way undervalued when we hit billions market cap by the end of next year...and I don't have much yet and after my summer holidays I don't have anymore money to invest for my early retirement

Admins, feel free to delete it... :)


Offline mf-tzo

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Re: Bitshares X underline value
« Reply #13 on: August 25, 2014, 02:53:28 PM »
No seriously... Delete the thread... Most people haven't realized yet that this is the end of Bitcoin and the beginning of a new financial era.

And to be honest it was about time... I see that in the near future SWIFT payments will belong to history, assets and currencies transferred worldwide with a click of a button, new financial revolution and BM holding the Nobel price for economics!

Offline santaclause102

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Re: Bitshares X underline value
« Reply #14 on: August 25, 2014, 02:55:39 PM »
why delete it then?

 

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