I was wondering if they stated where the counterparty risk lies .. because I just cannot see it .. what's so obvious that I cannot see it?
Bitshares also carries counterparty risk, though.Do they say where? I can't see it? Am I blind?
I guess they mean the risk of systematic failure (e.g. software bug -> btsx falls extremely rapidly -> bitassets (partly) uncovered) BM has addressed before. This is my version https://bitsharestalk.org/index.php?topic=9725.msg127611#msg127611
I'd be glad if anyone could confirm / correct me here.
It is right to say that there is no such thing as a derivative that has no risk. If you want no additional risk hold the underlying itself (e.g. physical gold).
But it is right to say that bitassets have no counterparty risk if "counterparty risk" is used like it is used normally (narrow definition): With BitGLD (and other bit assets) there is no risk that a single counter party could loose funds or not have them in the first place.