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Offline stuartcharles

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why is bitUSD trading at a discount?
« on: August 29, 2014, 10:32:07 AM »

I dont think the bitUSD is trading at a discount because of lack of confidence. My guess is that it reflects the volatility in btsx. The market is saying "I think btsx could go up by 33% before i could get my BTSX out of bitusd and back into pure BTSX"

Its because, one, the market is bullish on BTSX and ,two, traders/investors don't know how to or don't believe its possible to get BTSX in and out of bitUSD quickly enough to react to the BTSX market volatility.

I dont understand if the problem is down to the BitUSD market not being fluid enough or people not understanding how to use the platform. Either way bitusd will get closer and closer to parity as the market becomes more fluid and traders/investors become more educated.

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Re: why is bitUSD trading at a discount?
« Reply #1 on: August 29, 2014, 11:17:27 AM »
Plus .. lots of users experience crash issues with the wallet ..

Besides that i tend to agree ... its still to early for a conclusion
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Offline carpet ride

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Re: why is bitUSD trading at a discount?
« Reply #2 on: August 29, 2014, 11:22:24 AM »
I dont think the bitUSD is trading at a discount because of lack of confidence. My guess is that it reflects the volatility in btsx. The market is saying "I think btsx could go up by 33% before i could get my BTSX out of bitusd and back into pure BTSX"

Its because, one, the market is bullish on BTSX and ,two, traders/investors don't know how to or don't believe its possible to get BTSX in and out of bitUSD quickly enough to react to the BTSX market volatility.

I dont understand if the problem is down to the BitUSD market not being fluid enough or people not understanding how to use the platform. Either way bitusd will get closer and closer to parity as the market becomes more fluid and traders/investors become more educated.

Until there is widespread retail use or a large enough market to see bitUSD as a volatility shelter, we may not truly know..
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Offline stuartcharles

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Re: why is bitUSD trading at a discount?
« Reply #3 on: August 29, 2014, 11:24:30 AM »
Plus .. lots of users experience crash issues with the wallet ..

Besides that i tend to agree ... its still to early for a conclusion

True, i hadn't thought about the wallets crashing definitely another reason people wont move things about too much.

Agreed too early for a conclusion but it certainly looks very promising. One side of me says "i can't wait till..." and the other side says "just enjoy the ride"

Offline progmac

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Re: why is bitUSD trading at a discount?
« Reply #4 on: August 29, 2014, 11:39:51 AM »
i was going to try buying bitusd from within the app yesterday. it was crashing all over the place (os x). so i moved on to other things. I'm sure there are a lot of people like me.
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Re: why is bitUSD trading at a discount?
« Reply #5 on: August 29, 2014, 11:41:08 AM »
at least the market functionality works almost flawlessly for most users!
Blockchain seems fine, fast and secure ... that is good .. very good
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Offline vlight

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Re: why is bitUSD trading at a discount?
« Reply #6 on: August 29, 2014, 11:54:35 AM »
I'm still undecided whether real BitUSD price is really 1:1 with USD. What if we are wrong and the real price of BitUSD will always be lower than USD? What if it will stay constant at say 0.95*USD ? I mean, everyone here expects that it 'must' be 1:1 and devs even try to force this upon the market. But only the market knows real ratio. imho

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Re: why is bitUSD trading at a discount?
« Reply #7 on: August 29, 2014, 11:56:40 AM »
True .. but there is no rational reason (at least to me) that the bitusd is worth LESS than the usd... any explanation?
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Offline biophil

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Re: why is bitUSD trading at a discount?
« Reply #8 on: August 29, 2014, 12:08:05 PM »
True .. but there is no rational reason (at least to me) that the bitusd is worth LESS than the usd... any explanation?

I think there are a number of ways to look at it, but my favorite is this: the price of BitUSD is a combination of the price of USD and the short-term expectation of the price movement of BTSX. If people think there's a good chance the price of BTSX will rise quickly in the short-term, they'd rather short bitUSD than buy it. This is rational! If bitUSD is trading at a 20% discount but you think BTSX will double in value in the next two days (like it did earlier in the week), your expected profit by shorting bitUSD is more than your expected profit by buying bitUSD and supporting the peg. It's something like a tragedy of the commons.

This could be a problem - it means that when BTSX is low-volatility, we should expect to see a tighter peg, but that volatility in BTSX should cause fluctuations in the peg.

Offline vlight

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Re: why is bitUSD trading at a discount?
« Reply #9 on: August 29, 2014, 12:11:44 PM »
If I want to buy a laptop on Amazon, should i use my credit card or the BitUSD ? If i want to buy beer at local shop, should i use cash, credit card or BitUSD?  Which is more convenient?

Besides, USD is just a fiat money, which i personally have low incentive to own in crypto world. I would better buy BitGLD for more stable store of value, long term anyway.

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Re: why is bitUSD trading at a discount?
« Reply #10 on: August 29, 2014, 12:52:56 PM »
If I want to buy a laptop on Amazon, should i use my credit card or the BitUSD ? If i want to buy beer at local shop, should i use cash, credit card or BitUSD?  Which is more convenient?

Besides, USD is just a fiat money, which i personally have low incentive to own in crypto world. I would better buy BitGLD for more stable store of value, long term anyway.


Why not buy some gold directly?
 :)

Offline vlight

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Re: why is bitUSD trading at a discount?
« Reply #11 on: August 29, 2014, 01:20:02 PM »
If I want to buy a laptop on Amazon, should i use my credit card or the BitUSD ? If i want to buy beer at local shop, should i use cash, credit card or BitUSD?  Which is more convenient?

Besides, USD is just a fiat money, which i personally have low incentive to own in crypto world. I would better buy BitGLD for more stable store of value, long term anyway.


Why not buy some gold directly?
 :)

https://bitsharestalk.org/index.php?topic=3553.0 :D

Offline stuartcharles

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Re: why is bitUSD trading at a discount?
« Reply #12 on: August 29, 2014, 03:48:04 PM »
If I want to buy a laptop on Amazon, should i use my credit card or the BitUSD ? If i want to buy beer at local shop, should i use cash, credit card or BitUSD?  Which is more convenient?

Besides, USD is just a fiat money, which i personally have low incentive to own in crypto world. I would better buy BitGLD for more stable store of value, long term anyway.


Why not buy some gold directly?
 :)

you can't stick a kilo of gold on a flash drive  ;)

Offline bitmarket

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Re: why is bitUSD trading at a discount?
« Reply #13 on: August 29, 2014, 06:00:36 PM »
True .. but there is no rational reason (at least to me) that the bitusd is worth LESS than the usd... any explanation?

Number of place I can spend USD = millions
number of places I can spend bitUSD = 0
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why is bitUSD trading at a discount?
« Reply #14 on: August 29, 2014, 06:03:45 PM »
True .. but there is no rational reason (at least to me) that the bitusd is worth LESS than the usd... any explanation?

Number of place I can spend USD = millions
number of places I can spend bitUSD = 0
and that's why we should have opened the bitGold market first


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