Author [EN] [ZH] [ES] [PT] [IT] [DE] [FR] [NL] [TR] [SR] [AR] [RU] [EN] [ZH] [ES] [PT] [IT] [DE] [FR] [NL] [TR] [SR] [AR] [RU] [EN] [ZH] [ES] [PT] [IT] [DE] [FR] [NL] [TR] [SR] [AR] [RU] Topic: A friend asks and im having a hard time explaining - Why is Bitshares > Bitcoins  (Read 487 times)

0 Members and 1 Guest are viewing this topic.

Offline eagleeye

  • Hero Member
  • *****
  • Posts: 931
    • View Profile

 +5%

Please help.

Offline yellowecho

No offense but you're averaging ~19.5 posts per day and you can't explain how Bitshares is better than Bitcoin?   ???
696c6f766562726f776e696573

Offline donkeypong

  • Hero Member
  • *****
  • Posts: 2331
    • View Profile
If you're having a hard time explaining it yourself, then why not refer your friends to the website and wiki? The website states the case persuasively and provides more than enough info. The wiki shows people exactly how to get started. If, after reviewing it, they still have questions, then they can come here to the forum.

http://bitshares.org

wiki.bitshares.org

Offline tonyk

  • Hero Member
  • *****
  • Posts: 3309
    • View Profile
No offense but you're averaging ~19.5 posts per day and you can't explain how Bitshares is better than Bitcoin?   ???

Do not get too hard on him, he misspelled his forum ID after all.   :)
He was trying to type 'chicken brain' and came out as 'eagle eye'.
Lack of arbitrage is the problem, isn't it. And this 'should' solves it.

Offline eagleeye

  • Hero Member
  • *****
  • Posts: 931
    • View Profile
If you're having a hard time explaining it yourself, then why not refer your friends to the website and wiki? The website states the case persuasively and provides more than enough info. The wiki shows people exactly how to get started. If, after reviewing it, they still have questions, then they can come here to the forum.

http://bitshares.org

wiki.bitshares.org

Did not even know there was a wiki this is very helpful.  Thank you.

To the rest.  Constructive criticism.  Read my posts.  Im sorry I have more free time than you.  My knowledge has allowed me that.  Also my manners have as well.

Offline eagleeye

  • Hero Member
  • *****
  • Posts: 931
    • View Profile
I looked at the wiki.  Not practical. http://wiki.bitshares.org/index.php/What_is_BitShares%3F

"BitShares is a technology supported by next generation entrepreneurs, investors, and developers with a common interest in finding free market solutions by leveraging the power of globally decentralized consensus and decision making. Consensus technology has the power to do for economics what the internet did for information. It can harness the combined power of all humanity to coordinate the discovery and aggregation of real-time knowledge, previously unobtainable. This knowledge can be used to more effectively coordinate the allocation of resources toward their most productive and valuable use."


I understand this.  But no one other than us in this certain crypto .  We need something to say

Bitshares - A currency which has other currencies like the bitUSD under it.  How?   How? being a link.

I need something that is practical to explain to them.
« Last Edit: September 10, 2014, 08:54:57 AM by eagleeye »

Offline yellowecho

I looked at the wiki.  Not practical. http://wiki.bitshares.org/index.php/What_is_BitShares%3F

"BitShares is a technology supported by next generation entrepreneurs, investors, and developers with a common interest in finding free market solutions by leveraging the power of globally decentralized consensus and decision making. Consensus technology has the power to do for economics what the internet did for information. It can harness the combined power of all humanity to coordinate the discovery and aggregation of real-time knowledge, previously unobtainable. This knowledge can be used to more effectively coordinate the allocation of resources toward their most productive and valuable use."


I understand this.  But no one other than us in this certain crypto .  We need something to say

Bitshares - A currency which has other currencies like the bitUSD under it.  How?   How? being a link.

I need something that is practical to explain to them.

Just point them to the Reddit AMA that MeTHoDx moderated:
http://www.reddit.com/r/BitcoinMarkets/comments/2ftfti/bitshares_x_ama_trade_btc_derivatives_on_the/

Quote
TL;DR

It’s the first decentralized exchange that allows users to trade derivatives pegged to real world assets. These assets are known as “BitAssets”. This allows traders to “move into fiat” without actually moving into fiat and still avoid the volatility of BTC or any other crypto. Starting this Wednesday, all BitAssets will pay interest generated from exchange transaction fees. This could be as much at 10%.

Introduction to BitShares X

BitShares X is an experiment to test the economic theory behind a new kind of prediction market. This experiment creates a decentralized bank and exchange that uses a decentralized transaction ledger secured by DPOS to create fungible digital assets that are market-pegged to the value of anything from dollars, to gold, to gallons of gasoline. Like all DACs, BitShares X has shares that can be transferred between users in the same way as Bitcoin. What makes BitShares X special is that it also implements a business model similar to existing banks or brokerages.

BitShares X can create BitUSD by lending it into existence backed by collateral in the same way that the banking system lends dollars into existence today. Whereas your bank uses your house as collateral, BitShares X uses BTSX as collateral. If the value of the collateral falls relative to BitUSD then BitShares X will automatically cover your loan by selling the BTSX held as collateral for BitUSD and giving the borrower the BTSX is left over.

The reason someone borrows BitUSD is for the purpose of executing a short sell of BitUSD relative to BTSX. This works in the same manner as shorting a stock. First, you borrow the stock, then you sell it at todays high prices. If all goes well then you can buy it back tomorrow for less than you paid today, pay off your loan, and keep the profit. However, if things go against you then you will have to pay more to buy back the stock than you sold it for in the first place and thus take a loss.

BitUSD is created when two people taking opposite positions can agree to a price and the only price at which two people will agree is the current market price of USD in BTSX otherwise one individual will start out losing money. The mechanics of the market peg are very similar to the mechanics of a prediction market. Once the market has reached a consensus that BitUSD should be valued the same as a real US Dollar no one will be able to trade against that consensus without losing money. Thus the value of BitUSD today is based upon the prediction of what market participants will value BitUSD at in the future. There is only one rational way to speculate, that the consensus will hold, and that creates a self-enforcing market peg. With BitShares X all short positions (those borrowing BitUSD) must start out with enough BTSX as collateral to purchase 2x the USD borrowed. Margin calls are executed when the value of the collateral falls to 1.5x the amount borrowed. This gives the market ample opportunity to cover the short position and pay off the loan before there is insufficient collateral. In the event that the market is forced to execute a margin call, a 5% fee will be assessed. This should encourage participants to be pro-active in maintaining sufficient margin.

In the rare event that the value of BTSX falls by more than 50% in less than an hour resulting in insufficient collateral, 100% of the collateral will be used to cover as much BitUSD as possible leaving some BitUSD uncovered. The result of this price movement is that some BitUSD will be in circulation without any backing which may or may not impact the market peg of BitUSD to USD. We have two hypothesis as to the market response in this event: in one case the BitUSD will start trading at a discount proportional to the surplus BitUSD in circulation, in the other case the market expectation of a peg to USD will override any surplus supply and BitUSD will continue trading as before. This would be similar to how the dollar did not see an immediate fall to 0 value despite being removed from the gold standard.

And show them the comparison chart:


That should be enough to get them going.

Quote
To the rest.  Constructive criticism.  Read my posts.  Im sorry I have more free time than you.  My knowledge has allowed me that.  Also my manners have as well.

I honestly didn't mean to offend; your presence and contributions are appreciated.  But if I was to give you some friendly criticism, I'd say that you could be using your free time more effectively by reading and learning more about BitsharesX and what differentiates it from Bitcoin and other competitors and focusing that energy.  Your posts are more valuable to the community when you're fully educated.  :)
696c6f766562726f776e696573

Offline GaltReport

If you're having a hard time explaining it yourself, then why not refer your friends to the website and wiki? The website states the case persuasively and provides more than enough info. The wiki shows people exactly how to get started. If, after reviewing it, they still have questions, then they can come here to the forum.

http://bitshares.org

wiki.bitshares.org

Did not even know there was a wiki this is very helpful.  Thank you.

To the rest.  Constructive criticism.  Read my posts. Im sorry I have more free time than you.  My knowledge has allowed me that.  Also my manners have as well.

Just curious, what knowledge is it that you have that has given you so much free time?

Offline donkeypong

  • Hero Member
  • *****
  • Posts: 2331
    • View Profile
If you're having a hard time explaining it yourself, then why not refer your friends to the website and wiki? The website states the case persuasively and provides more than enough info. The wiki shows people exactly how to get started. If, after reviewing it, they still have questions, then they can come here to the forum.

http://bitshares.org

wiki.bitshares.org

Did not even know there was a wiki this is very helpful.  Thank you.

To the rest.  Constructive criticism.  Read my posts. Im sorry I have more free time than you.  My knowledge has allowed me that.  Also my manners have as well.

Just curious, what knowledge is it that you have that has given you so much free time?

You missed the manners part. Miss Manners would not approve.

Offline eagleeye

  • Hero Member
  • *****
  • Posts: 931
    • View Profile
If you're having a hard time explaining it yourself, then why not refer your friends to the website and wiki? The website states the case persuasively and provides more than enough info. The wiki shows people exactly how to get started. If, after reviewing it, they still have questions, then they can come here to the forum.

http://bitshares.org

wiki.bitshares.org

Did not even know there was a wiki this is very helpful.  Thank you.

To the rest.  Constructive criticism.  Read my posts. Im sorry I have more free time than you.  My knowledge has allowed me that.  Also my manners have as well.

Just curious, what knowledge is it that you have that has given you so much free time?

My knowledge of finance, experience in finance.
My knowledge in websites, experience in website development.

Offline theoretical


- BTSX backs BitUSD, which lets you have accounts denominated in BitUSD that produce yield.
- Bitcoin operates at a loss; newly created coins are continually diluting all Bitcoin holders' value.  BTSX operates at a profit; part of transaction fees are destroyed (burned) which continually boosts all BTSX holders' value.
- Bitcoin mining today requires using large amounts of electricity and has become centralized to those who can afford expensive ASIC chips.  BTSX delegate system is much more environmentally friendly.
BTS- theoretical / PTS- PZxpdC8RqWsdU3pVJeobZY7JFKVPfNpy5z / BTC- 1NfGejohzoVGffAD1CnCRgo9vApjCU2viY / the delegate formerly known as drltc / Nothing said on these forums is intended to be legally binding / All opinions are my own unless otherwise noted / Take action due to my posts at your own risk

Offline FuLl

  • Full Member
  • ***
  • Posts: 96
    • View Profile
Here's a good interview which talks about the benefits of BitSharesX vs. others.
http://masterprotocoleducation.org/david-johnston-talks-about-mastercoin-and-metacoins-on-lets-talk-bitcoin/

Offline eagleeye

  • Hero Member
  • *****
  • Posts: 931
    • View Profile
I looked at the wiki.  Not practical. http://wiki.bitshares.org/index.php/What_is_BitShares%3F

"BitShares is a technology supported by next generation entrepreneurs, investors, and developers with a common interest in finding free market solutions by leveraging the power of globally decentralized consensus and decision making. Consensus technology has the power to do for economics what the internet did for information. It can harness the combined power of all humanity to coordinate the discovery and aggregation of real-time knowledge, previously unobtainable. This knowledge can be used to more effectively coordinate the allocation of resources toward their most productive and valuable use."


I understand this.  But no one other than us in this certain crypto .  We need something to say

Bitshares - A currency which has other currencies like the bitUSD under it.  How?   How? being a link.

I need something that is practical to explain to them.

Just point them to the Reddit AMA that MeTHoDx moderated:
http://www.reddit.com/r/BitcoinMarkets/comments/2ftfti/bitshares_x_ama_trade_btc_derivatives_on_the/

Quote
TL;DR

It’s the first decentralized exchange that allows users to trade derivatives pegged to real world assets. These assets are known as “BitAssets”. This allows traders to “move into fiat” without actually moving into fiat and still avoid the volatility of BTC or any other crypto. Starting this Wednesday, all BitAssets will pay interest generated from exchange transaction fees. This could be as much at 10%.

Introduction to BitShares X

BitShares X is an experiment to test the economic theory behind a new kind of prediction market. This experiment creates a decentralized bank and exchange that uses a decentralized transaction ledger secured by DPOS to create fungible digital assets that are market-pegged to the value of anything from dollars, to gold, to gallons of gasoline. Like all DACs, BitShares X has shares that can be transferred between users in the same way as Bitcoin. What makes BitShares X special is that it also implements a business model similar to existing banks or brokerages.

BitShares X can create BitUSD by lending it into existence backed by collateral in the same way that the banking system lends dollars into existence today. Whereas your bank uses your house as collateral, BitShares X uses BTSX as collateral. If the value of the collateral falls relative to BitUSD then BitShares X will automatically cover your loan by selling the BTSX held as collateral for BitUSD and giving the borrower the BTSX is left over.

The reason someone borrows BitUSD is for the purpose of executing a short sell of BitUSD relative to BTSX. This works in the same manner as shorting a stock. First, you borrow the stock, then you sell it at todays high prices. If all goes well then you can buy it back tomorrow for less than you paid today, pay off your loan, and keep the profit. However, if things go against you then you will have to pay more to buy back the stock than you sold it for in the first place and thus take a loss.

BitUSD is created when two people taking opposite positions can agree to a price and the only price at which two people will agree is the current market price of USD in BTSX otherwise one individual will start out losing money. The mechanics of the market peg are very similar to the mechanics of a prediction market. Once the market has reached a consensus that BitUSD should be valued the same as a real US Dollar no one will be able to trade against that consensus without losing money. Thus the value of BitUSD today is based upon the prediction of what market participants will value BitUSD at in the future. There is only one rational way to speculate, that the consensus will hold, and that creates a self-enforcing market peg. With BitShares X all short positions (those borrowing BitUSD) must start out with enough BTSX as collateral to purchase 2x the USD borrowed. Margin calls are executed when the value of the collateral falls to 1.5x the amount borrowed. This gives the market ample opportunity to cover the short position and pay off the loan before there is insufficient collateral. In the event that the market is forced to execute a margin call, a 5% fee will be assessed. This should encourage participants to be pro-active in maintaining sufficient margin.

In the rare event that the value of BTSX falls by more than 50% in less than an hour resulting in insufficient collateral, 100% of the collateral will be used to cover as much BitUSD as possible leaving some BitUSD uncovered. The result of this price movement is that some BitUSD will be in circulation without any backing which may or may not impact the market peg of BitUSD to USD. We have two hypothesis as to the market response in this event: in one case the BitUSD will start trading at a discount proportional to the surplus BitUSD in circulation, in the other case the market expectation of a peg to USD will override any surplus supply and BitUSD will continue trading as before. This would be similar to how the dollar did not see an immediate fall to 0 value despite being removed from the gold standard.

And show them the comparison chart:


That should be enough to get them going.

Quote
To the rest.  Constructive criticism.  Read my posts.  Im sorry I have more free time than you.  My knowledge has allowed me that.  Also my manners have as well.

I honestly didn't mean to offend; your presence and contributions are appreciated.  But if I was to give you some friendly criticism, I'd say that you could be using your free time more effectively by reading and learning more about BitsharesX and what differentiates it from Bitcoin and other competitors and focusing that energy.  Your posts are more valuable to the community when you're fully educated.  :)

Great yellowecho.  Will point them this direction.

 

Google+