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Offline Method-X

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BitUSD volume?
« on: September 30, 2014, 12:36:15 AM »

Why is BitUSD volume so abysmally low the past few days?

http://coinmarketcap.com/assets/bitusd/#markets

Offline jsidhu

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Re: BitUSD volume?
« Reply #1 on: September 30, 2014, 12:42:28 AM »
Why is BitUSD volume so abysmally low the past few days?

http://coinmarketcap.com/assets/bitusd/#markets
IDK but I pulled my shorts for bitUSD because it hit price and I never got filled... so I decided that its not worth it for me to keep checking to see if I got filled.
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Offline starspirit

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Re: BitUSD volume?
« Reply #2 on: September 30, 2014, 01:24:40 AM »
My guess...there's not much reason to trade BitUSD if it is intended to be stable. Also at this stage it seems there is not enough growth in new demand for holders of BitUSD to see much growth in supply, which would need to be facilitated by opening of long/short trades. This suggests the incentives are not high enough to attract longs given the still experimental nature of BitAssets, and that its all new and early days.

I think if there were a market for lending and borrowing of existing BitUSD, allowing interest to be paid from borrowers to lenders, this would give greater ability for trading and opening up of new supply. The reason is that those with a positive view on BTSX and want leverage, who currently can only short BitUSD, must compete for the very limited number of longs willing to open at the feed price. And longs do not have enough incentive yet to do so, and thus limit expansion of the supply. With a lending/shorting market, those lending will find a return in the lending market, and rates can also be locked in, which keeps them simple and transparent. Those shorting will find liquidity there at the interest cost, so both parties are now economically incentivised to open up new positions in the long/short market at the feed price. I suspect the interest rate would be more attractive at that point, possibly 20% pa +.

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Re: BitUSD volume?
« Reply #3 on: September 30, 2014, 01:56:57 AM »
Probably the constant changes to the market engine and GUI and the updates. Give it time. They will come. Right now there is not much incentive to convert to USD. Speaking for myself, I don't have $100,000 plus that I can convert for the yield to be worth while and those who probably do aren't ready to entrust it into the experiment.

Offline pariah99

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Re: BitUSD volume?
« Reply #4 on: September 30, 2014, 01:51:47 PM »
I'm okay with the low volume for now.  I kind of expect it.  I've hedged my position on BTSX by buying into bitUSD the amount that I contributed to AGS to guarantee a return (assuming the peg holds, of which I'm reasonably confident).  In fact, it's better than a simple hedge, since the interest generated on it will make it worth substantially more.

I think that once the backend code gets sorted out and the BTSX marketing engine gets rolling, BTSX will gain more value.  We will see a lot more people securing there gains by buying into bitUSD, and the market will become much more liquid.

 

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