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General Discussion / Re: BitUSD Trading Guide
« on: August 19, 2014, 03:59:11 pm »
BitUSD has been seeded with the consensus that the value of one BitUSD should be equal to the value of one US dollar. Therefore, unless something happens to change this consensus the most profitable trade to make is to buy BitUSD when it is under 1 USD and sell BitUSD when it is over 1 USD. If you trade against this then you are predicting others will do the same and as far as I know there is no rationale for any other price.
Not that I'd change it in the guide.
I'm not hot with this stuff, but from my perspective a BitUSD may be worth less than a USD in the beginning to me, because of system risk, lack of utility and the cost+effort of converting via a centralised exchange to say real USD for example.
I think once the system has proved robust, it has more utility, it's other advantages, as well as if traditional banking risk factors increase. A BitUSD may be worth more than a normal USD to me.
Is that irrational. Is that not how it works?