Please focus on fixing bugs first, give the system time to mature.

Limiting the downside to 90% will inhibit price discovery and free markets.

I believe Bitshares is supposed to operate as a free market, without any outside interference. This scheme will create a feeling of a Bitshares central bank that is monitoring and controlling the system.

What will help the system grow will be making arbitrage easier. If there is easy creation of arbitrage bots and automated market makers, then this should work.

Many financial brokers offer CFD, cash for difference instruments, which operate exactly like the bitassets, except the brokers act as a market maker in them, and uses underlying financial markets to hedge the instruments. If we make hedging easy, then automated market makers and arbitrage bots should fulfill that role.

Apologize for lack of understanding and knowledge, been casually following this forum, and do hold BTSX.

Against this suggestion.

I agree with this too, but i also understand the anxiety that if we miss the opportunity make people believe that 1 bitusd = 1 usd then it might be lost for ever. Is it worth discussing this proposal as a plan b to be implemented only if near parity is not reached by xx/xx/xxxx or if the bitusd falls below xx usd? Just having it in place and tested, ready to go at a moments notice could help them aline.

Quote from: stuartcharles on August 29, 2014, 04:07:07 pm

where does the market account get its funds from?

The market maker bot would have to print XTS.... but the XTS it prints would be effectively locked up in the collateral of someone until they cover.

Is there another way, could existing xts be lent to the market account as a fixed rate bond say  . The interest could be paid from profits.

Quote from: vlight 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.

Why not buy some gold directly?
 

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

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.

good advice, thanks

I think it would be a usefull to make a video explaining how to increase your btsx holding by trading bitusd. This way, if i understand it correct, more people would put their btsx into bitusd when they see a price swing coming instead of returning to another coin.

Im guessing that most crypto holders aren't trained traders and don't understand how to go long or short or even what it means. I think we could increase the supply of bitUSD dramatically with a short video explaining if you think btsx are going up then do this, if you think they are coming down do this. 

Im sure its all explained here, but, theres nothing like a cartoon to make everything clear