If we inflate the share supply then BTSX is no-longer a dividend yielding asset.

I was always of the opinion that if you have a useful product combined with a decreasing share supply through destroyed transaction fees, then users would naturally be drawn in.

This plan is a U-turn and has already caused a drop in confidence in the system IMHO. The commitment to decreasing share supply should be sacrosanct.

Quote from: bytemaster on October 03, 2014, 05:56:02 pm

Suppose you could pay a *CREDIT CARD BILL* with BitUSD......

Suppose you're using the word "Suppose " just to hide the fact that this is not fictional but something that's happening 

If this is really happening, then why not just disclose who you are discussing with to make this happen? Why all the teasing without any concrete details?

If youve seen those coin drop arcade machines, you know how enticing they can be. They make you think "Just one more coin and Ill win..."

This is a coin drop machine: http://www.youtube.com/watch?v=tnG7fg_SPq8

I think this is a great idea for a DAC. The wallet would have a 3D simulation of a coin drop game, and users can drop their shares in and watch them bounce around. It would cost 1.1 shares for each play of the game - 0.1 for the transaction fee, and 1.0 for the coin dropped into the game. The dividends would be HUGE.

You could also drop BitAssets in such as BitUSD, BitGLD and BitDOGE. They would make the game more interesting and would have the same function as the gimmicky prizes you often see in the real coin games.

3 design issues:

Because user commands have to put into a block which is created every 10 seconds, the game wouldnt be real time. You could setup a scheme whereby the virtual coin pusher begins and ends in "phase" with the block times. This way you submit your command to drop BitUSD into the coin drop at 5/10 through the current block, and you see your coin drop at 5/10 through the next confirmed block. Because of the time delay, its possible that the game might not be as fun.

To validate the blockchain, potentially a lot of expensive physics calculations would have to be done, and they would have to be deterministic. A fixed point physics engine may help here.

What happens when 2 users throw in a coin and win at the same time? How are the winnings divided?

Demand for BitAssets will drive demand for BTSX and the market cap of the BTSX held in collateral will equal 2x or more the value of all bitAssets at all times.

I understood it to be 3x or more - 200% from the shorters, and 100% from BitAsset holders. Isnt that correct?

So has anyone stepped up yet to be the lead developer for a Poker DAC ?

It's not so sad really. Yes, the price of Bitcoin declined but there are preconditions that it will go up. This chart http://mining-profit.com/bitcoin-price-chart shows us that the price did not fall below the level of April 2014. Don`t worry, price must go up.

If the price of BTC ever does go up again, then mining difficulty will increase even more, causing higher electricity costs, forcing miners to sell more, lowering the price again.

Its a death spiral. Bitshares breaks free from it.

So no, the price of BTC is not guaranteed to go up again. Given the alternatives, its now more risky than ever.

Does this mean there will soon be a healthy market for BitUSD -> BitBTC ?

That would be yet another reason for not holding Bitcoin.

Let's say I create a BitAsset called BitOverstock.  Lots of people start shorting BitOverstock into existence creating a big quantity of the asset.  Now many people who would have gone long actual Overstock stock instead choose to buy BitOverstock spreading the demand for Overstock stock over a larger supply and thus depressing the price.

You make a very interesting point. But there are so many places that create "parallel" assets, so BTSX is hardly unique in that respect.

-Banks do it all the time through fractional reserve lending, again spreading out the demand for dollars or whatever.
-Spread betting companies let you take a position without going into the market (theoretically until they hedge).
-Gold trading is almost completely fictional.

Why cant BTSX get in on the game as well?