I started a blog called
nullstreet.com -- I intend to center it around DACs. This is my 2nd post.
BitSharesX = A decentralized exchange for trading derivatives (called BitAssets).
BTSX = Shares of BitSharesX. Functions the same as the "coins" you're used to.
BitAsset = A derivative of a real world asset. Is derived from BTSX.
BitUSD = A BitUSD is a BitAsset. It's value is pegged to the value of 1 (real) USD.
The goal of BitSharesX is to eliminate the volatility associated with bitcoin and all other altcoins. Cryptocurrencies cannot be used as money because they are too volatile. Bitcoin can swing in value as much as 20% in a day, making it unlikely any normal person would use it as money or to store value. "BitAssets" exist within the BitSharesX exchange and were devised as a way to offer all the benefits of a cryptocurrency with the stability of a real world asset (USD, gold, EUR, CNY, etc). This can be accomplished through the use of derivatives. Let me explain...
A BitAsset is "pegged" to the value of a real world asset like USD, gold or CNY. To maintain this peg, the value of the BitAsset dynamically changes as the value of both the real world asset changes and as the value of BTSX changes. If 1 USD = 10 BTSX, 1 BitUSD = 10 BTSX. If we wake up tomorrow and BTSX has gone up in value and 1 USD = 9 BTSX, 1 BitUSD would = 9 BTSX.
Think of BitAssets (BitUSD, BitGLD, BitCNY) as a cryptocurrency that "holds" a bunch of BTSX shares inside of it -- if either the asset or BTSX change in value, the number of BTSX inside the BitAsset change to always equal the value of the real world asset.
Here's a visual representation: