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Offline Method-X

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BitSharesX: Explain It Like I'm Five (my attempt)
« on: August 30, 2014, 10:36:35 PM »

I started a blog called nullstreet.com -- I intend to center it around DACs. This is my 2nd post.

BitSharesX = A decentralized exchange for trading derivatives (called BitAssets).
BTSX = Shares of BitSharesX. Functions the same as the "coins" you're used to.
BitAsset = A derivative of a real world asset. Is derived from BTSX.
BitUSD = A BitUSD is a BitAsset. It's value is pegged to the value of 1 (real) USD.

The goal of BitSharesX is to eliminate the volatility associated with bitcoin and all other altcoins. Cryptocurrencies cannot be used as money because they are too volatile. Bitcoin can swing in value as much as 20% in a day, making it unlikely any normal person would use it as money or to store value. "BitAssets" exist within the BitSharesX exchange and were devised as a way to offer all the benefits of a cryptocurrency with the stability of a real world asset (USD, gold, EUR, CNY, etc). This can be accomplished through the use of derivatives. Let me explain...

A BitAsset is "pegged" to the value of a real world asset like USD, gold or CNY. To maintain this peg, the value of the BitAsset dynamically changes as the value of both the real world asset changes and as the value of BTSX changes. If 1 USD = 10 BTSX, 1 BitUSD = 10 BTSX. If we wake up tomorrow and BTSX has gone up in value and 1 USD = 9 BTSX, 1 BitUSD would = 9 BTSX.

Think of BitAssets (BitUSD, BitGLD, BitCNY) as a cryptocurrency that "holds" a bunch of BTSX shares inside of it -- if either the asset or BTSX change in value, the number of BTSX inside the BitAsset change to always equal the value of the real world asset.

Here's a visual representation:

« Last Edit: August 30, 2014, 11:05:42 PM by MeTHoDx »

Offline vegolino

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Re: BitSharesX: Explain It Like I'm Five (my attempt)
« Reply #1 on: August 30, 2014, 10:49:40 PM »
Short but understanding  introduction. Love visual representation  +5%

Thank you  :)
« Last Edit: August 30, 2014, 10:51:25 PM by aloha »

Offline James212

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Re: BitSharesX: Explain It Like I'm Five (my attempt)
« Reply #2 on: August 30, 2014, 11:02:04 PM »
 +5%   Great job!  Love the way you make it simple.  This will be very useful when mass adoption starts. 

I've book marked your site  :)
« Last Edit: August 30, 2014, 11:03:35 PM by James212 »
BTS: theangelwaveproject

Offline CLains

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Re: BitSharesX: Explain It Like I'm Five (my attempt)
« Reply #3 on: August 30, 2014, 11:13:35 PM »
I like these cups. In BitShares X your cup is always half full!
Vote for BTS-2 witness: spectral (1.6.30)

Follow https://steemit.com/@clains

Offline Method-X

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Re: BitSharesX: Explain It Like I'm Five (my attempt)
« Reply #4 on: August 31, 2014, 03:48:31 AM »
Glad you guys like it. I know the market dynamics go way beyond this simplistic explanation but I think it does a good job quickly getting the general idea across.

Offline nodata

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Re: BitSharesX: Explain It Like I'm Five (my attempt)
« Reply #5 on: August 31, 2014, 05:02:01 AM »
visual representation A+

but for the text explanation, please ELI4


once you get it fine-tuned you should post it in

http://www.reddit.com/r/BitShares
and xpost it to
http://www.reddit.com/r/explainlikeimfive

Good job :)

Offline Cryptofreakoutlaw31

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Re: BitSharesX: Explain It Like I'm Five (my attempt)
« Reply #6 on: August 31, 2014, 05:51:26 AM »
Even though I had a basic idea and understanding of Bitshares X, this is an excellent explanation IMO.  It makes sense to me.  I feel that this visual explanation of Bitassets and Bitshares X will help people, such as myself, who are new to Bitshares X and the idea of Bitassets (BitUSD, BiyCNY, BitBTC, etc.).    Thank you for making the huge effort to break it down into easy to understand visuals and explanations. 


Offline _draven

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Re: BitSharesX: Explain It Like I'm Five (my attempt)
« Reply #8 on: September 01, 2014, 06:28:47 PM »
 +5%

 

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