The following is an excerpt from chat in the ProtoShare's IRC:
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Wild0wnes: i've watches all of them twice and i still can't explain it
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Wild0wnes: reminds me of the days when i was trying to understand bitcoin
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Preturd: hm...
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Preturd: well it seems like when you boil it down
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Preturd: the ONLY thing we need to know
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Preturd: is that the BlockChain provides a decentralized, yet predictable and transparent means of enforcing the rules that would ultimately fall victim to crime syndicates in a centralized system
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Preturd: thereby routing corruption of the system without firing a shot...but instead through simple adoption of a better, less corrupt and Free-Market-Driven technology.
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Preturd: very interesting
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Preturd: the question to me though is....does one buy a stock using bitshares? are they first converted to dollars or other "sovereign" fiat?
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Preturd: and if so...all shares must still have a price based on different denominations of bitshares
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Wild0wnes: yeah the part i still don't get is the HOW the shorting guarentees the price of a bitUSD stays at 1:1
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Wild0wnes: bitUSD = USD
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Wild0wnes: i understand people are supposed to short it if its above and long it if its low but i still don't understand what guarentee that it would be a good oportunity to go long
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Preturd: @wild0wnes i am of the belief that everything will be priced in BitCoin...the new World Reserve currency
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Wild0wnes: i believe its independant of bitcoin.... only based on it
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Preturd: but that is the ONLY place they show BitShares at work...so i am wondering if it is only a mechanism for shorting stocks (and currencies)
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Wild0wnes: well the bitshares i get (kinda)
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Wild0wnes: its the bitUSD i don't
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Wild0wnes: how they can create a "stock" that everyone is supposed to go long when its worth less than a buck a share
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Wild0wnes: above "stock" i'm talking about is the bitUSD (and i'm sure bitYEN and others to come later)
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Wild0wnes: well the bitshares i get (kinda)
These are pretty important questions because nublets are going to need to learn the specific details of how this technology works. This is a good primer, but we could probably use a little more depth in this:
http://www.youtube.com/watch?v=5BV55IrZi7g especially with regard to the denomination of BitShares Converted to other currencies...
Looking forward to hearing from the community with regard to this.