Consensus Markets

[GaltReport]

Good Idea.   +5%

[luckybit]

What is a "consensus market" (BitAssets).

Every "quick / 30-second" explanation of BitUSD I have seen just explains what shorting means. To anyone who already knows what it means and is confused about "ok but why does 1 USD = 1 BitUSD" there is no "quick" answer, except maybe a link to wiki.bitshares.org. Right now the closest thing to a name for the thing that makes BitAssets possible is "market peg" but it does not describe the system or asset class.

Let's start calling "BitAsset markets"  -->  "consensus markets"

Please help collect threads that are about "consensus markets" and not "trading mechanics"

The original whitepaper called them polymorphic digital assets. I think that is the best technical description. But that is more a scholarly description than something everyone would make sense of.

We need to make it simple enough that even a teenager with no trading experience can understand. I've settled on calling them market simulations and market pegged simulated assets. It simulates the buying power and we don't need to go into detail how it does it.

Consensus markets is a pretty good term as well. It's more precise than simulated market because it has enough detail to explain how it works. I think simulated market is better for legal reasons though because it's distinguished from the real markets.

[AsymmetricInformation]

As one of the authors of the wikipedia article on Schelling Focal points, I'm afraid I have to ask that people stop linking to it as an explanation for BitUSD, as the logic of that argument is greatly flawed. A small sample of reasoning for this is already on the forums: https://bitsharestalk.org/index.php?topic=3553.msg46514#msg46514

However, you may instead link to this: http://en.wikipedia.org/wiki/Battle_of_the_sexes_(game_theory) which contains a game very similar to BitAssets if one pursues the Correlated Equilibrium mentioned in P3 of the Equilibrium Analysis section. The "commonly observed randomizing device" would of course be the publicly available exchange rate.

This model of BitAssets is probably the best one...I'm sorry to say (in my opinion) most of the other attempts at explaining BitAssets are nonsense. Note that this model isn't complete, as it does not include the margin call (which, I have been persuaded, is a weak point in the BitAsset scheme). It also doesn't address DPoS, front-running, market manipulation, etc. of course.

[bitmeat]

That is a pretty good idea .. now that we obviously showed that the peg hodls we can go over to consensus .. .I like it! +5%

The peg isn't holding (yet), in fact it's laughable, we have $5M in volume trading BTSX/BTC, however the system has only created less than $200K in BitUSD. Furthermore right now there aren't even $10K BitUSD buyers at reasonable prices on the BTSX blockchain.

My guess is people are still learning how it works, but once they get it, it should work itself out.

Again, promote participation in this at the very least: https://bter.com/trade/btc_bitusd

[bitmeat]

There is no liquidity and BitUSD buyers.

We need to put a big giant link to this somewhere, so the system will self-correct in no time, once there are more market participants:

https://bter.com/trade/btc_bitusd

People don't need to know anything about the peg to know that this should closely follow BTC/USD prices.

[bitbro]

+5% to the parent classification title!!!


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[xeroc]

That is a pretty good idea .. now that we obviously showed that the peg hodls we can go over to consensus .. .I like it! +5%

[toast]

What is a "consensus market" (BitAssets).

Every "quick / 30-second" explanation of BitUSD I have seen just explains what shorting means. To anyone who already knows what it means and is confused about "ok but why does 1 USD = 1 BitUSD" there is no "quick" answer, except maybe a link to wiki.bitshares.org. Right now the closest thing to a name for the thing that makes BitAssets possible is "market peg" but it does not describe the system or asset class.

Let's start calling "BitAsset markets"  -->  "consensus markets"

Please help collect threads that are about "consensus markets" and not "trading mechanics"