To determine money supply quantity in decentralized manner?

Started by bitcrab, November 23, 2013, 02:12:36 PM

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bytemaster

#2
November 23, 2013, 05:06:49 PM
Yes we are aware if this.   Good explanation


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bitcrab

#1
November 23, 2013, 02:12:36 PM Last Edit: November 23, 2013, 05:47:32 PM by giantcrab
Bitcoin is issued in decentralized manner, however the quantity of BTC is fixed, we can say that the money supply quantity of BTC is determined centrally. However, when BitUSD is created via selling short, how much BitUSD exist in the market depend on the finished short selling quantity. What we can expect is that when the demand to BitUSD arise, more BitUSD will be created by the selling short transaction. And when the demand to BitUSD drop,more BiUSD will be repurchased to cover the short position and then the total quantity of BitUSD will drop. In this sense we can say that the supply quantity of BitUSD is determined in a decentralized manner.this is a new property of cypto-currency that brought by Bitshares.

Not sure whether the designers of Bitshares are aware of this, but seems this is really the case.
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