For 1 BitUSD to be created a short has to post $2 worth of BTS as collateral. As trades are happening fairly frequently, BitUSD is on average backed by a few hundred percent of BTS as collateral.I dont know why people want short 1 BITUSD with 2$ worth of BTS as collateral. If they have 2$ worth of BTS and think the price will fall, they can just sell BTS to 2USD, why short for 1BITUSD?
This is much better than banks which work on a fractional reserve and only have like 5-10% of collateral to back up your deposits.
For 1 BitUSD to be created a short has to post $2 worth of BTS as collateral. As trades are happening fairly frequently, BitUSD is on average backed by a few hundred percent of BTS as collateral.I dont know why people want short 1 BITUSD with 2$ worth of BTS as collateral. If they have 2$ worth of BTS and think the price will fall, they can just sell BTS to 2USD, why short for 1BITUSD?
This is much better than banks which work on a fractional reserve and only have like 5-10% of collateral to back up your deposits.
Yes, U are right. My brain was stuckedFor 1 BitUSD to be created a short has to post $2 worth of BTS as collateral. As trades are happening fairly frequently, BitUSD is on average backed by a few hundred percent of BTS as collateral.I dont know why people want short 1 BITUSD with 2$ worth of BTS as collateral. If they have 2$ worth of BTS and think the price will fall, they can just sell BTS to 2USD, why short for 1BITUSD?
This is m :Duch better than banks which work on a fractional reserve and only have like 5-10% of collateral to back up your deposits.
You short when the price of USD falls (the price of BTS goes up). If you sold right away that would be the opposite of what you want.