I expect there will always be a premium with a volatility proportional to BTS volatility.
That is the idea and expected
This is fundamentally worse than the same volatility centered around parity.
I am not an economist, but why is this FUNDAMENTALLY worse? Does it not depend
on the perspective? For a merchant it is better since he can be sure that he
will be able to redeem AT LEAST at parity.
For bitUSD long, it is a wash since if they pay with bitUSD.
Only people outside BTS wanting to move into BTS need to pay a premium to enter