Cash banned, NIRP, Smartcoins Opportunity coming...

[abit]

unfortunately current bts whales do not lock collateral to create bitusd and bitassets so obviously there won't be any liquidity coming from small fishes..Some large pockets need to show the example and others will follow..

When bts 1 was released (a couple of months after release) there were 1 mil bitusd were created and bts had a market cap of +$70 - $80 mil..Why the current whales don't just do that again? Now the community is much bigger, people understand better the mechanics etc..

The reason is simple: if you short you will bear risk of margin calls.

Some people said that scotter bought up all bitassets sold by committee and reduced liquidity somehow.. but you also can see how much BTS he put into collateral. https://cryptofresh.com/u/bts-scotter . I remember that he has another account, but can't find it right now.

[mf-tzo]

unfortunately current bts whales do not lock collateral to create bitusd and bitassets so obviously there won't be any liquidity coming from small fishes..Some large pockets need to show the example and others will follow..

When bts 1 was released (a couple of months after release) there were 1 mil bitusd were created and bts had a market cap of +$70 - $80 mil..Why the current whales don't just do that again? Now the community is much bigger, people understand better the mechanics etc..

[CLains]

Get ready.

[yvv]

There is somewhere for those trillions in negative interest rate yielding bank deposits to go... BitUSD.

And how is this going to happen? Where are those $1.4 trillion ramps? Besides, depositing funds to bitshares in bitUSD or in other form does not remove real USD from a bank account. They just change hands.

[Akado]

unless current bts whales lock collateral to short bitusd and bitbtc there will never be any liquidity..Instead they just prefer to either hold them doing nothing or dump them when there is a pump on external exchanges..Some whales need to lead the way in our DEX and give the example..

Tonyk also suggested something like that, with a high amount of collateral (7x more if I'm not mistaken). What if we during that liquidity event, also promote this. Each person creates 10bitUSD with 5x the collateral. Then we do this every month. Someone who understand that makes a tutorial, step by step with pictures (i dont know if it already exists on bitshares docs by xeroc) teaching people how to do it and explaining what happens if they sell, settle, cover debt or whatever, etc.

Imagine we can do something like creating 500 bitUSD a month. That's 6000 at the end of the year. It might not seem much but if we do it, bit by bit,  in the end it can help. Not to mention with time more people join and can participate. It's not much and I kind of doubt we will be able to create 500 a month but with an initiative like that we could "all" set the example and attract more people to do it. More people means more bitUSD. Who knows at the end of 5 years with new users we can get a reasonable number right?

[Pheonike]

http://www.businessinsider.com/summers-time-to-kill-the-100-bill-2016-2

[mf-tzo]

unless current bts whales lock collateral to short bitusd and bitbtc there will never be any liquidity..Instead they just prefer to either hold them doing nothing or dump them when there is a pump on external exchanges..Some whales need to lead the way in our DEX and give the example..

[tbone]

Of the $1.4 trillion in total U.S. currency in circulation, $1.1 trillion is in the form of $100 bills. Eliminate those, and suddenly there is nowhere to hide from those trillions in negative interest rate "yielding" bank deposits.

There is somewhere for those trillions in negative interest rate yielding bank deposits to go... BitUSD.

if BTS can offer reasonably collateralized Smartcoins at close to 1-1 there will be a huge market if Western citizens are forced to use insolvent banks with negative interest rates 'far below 1%'.

Personally I think BitShares should come up with a way to offer Smartcoins at 1-1 and rather than spending a lot of money on periphery development, mainly use dilution if anything to help Smartcoins gain initial traction.

Yes!  Please advance your top 3 ideas that would increase liquidity WITHOUT requiring a complicated, overly costly-to-develop scheme.  We need to get moving on the liquidity front, folks!

[Pheonike]

Exactly, these needs to be the next priority. 

[Empirical1.2]

After Davos this year...

"We should move quickly to a cashless economy so we could introduce negative rates well below 1%"



http://www.zerohedge.com/news/2016-02-10/something-very-disturbing-spotted-morgan-stanley-presentation-slide

Less than a month since Davos, we've seen Euro voting to ban the €500 and a Harvard professor calling for a ban of the $100 bill.
It's also likely gold and silver will be restricted again in such a scenario.

http://www.zerohedge.com/news/2016-02-15/war-paper-currency-begins-ecb-votes-scrap-500-euro-bill

http://www.zerohedge.com/news/2016-02-16/larry-summers-launches-war-us-paper-money-its-time-kill-100-bill

Of the $1.4 trillion in total U.S. currency in circulation, $1.1 trillion is in the form of $100 bills. Eliminate those, and suddenly there is nowhere to hide from those trillions in negative interest rate "yielding" bank deposits.

There is somewhere for those trillions in negative interest rate yielding bank deposits to go... BitUSD.

if BTS can offer reasonably collateralized Smartcoins at close to 1-1 there will be a huge market if Western citizens are forced to use insolvent banks with negative interest rates 'far below 1%'.

Personally I think BitShares should come up with a way to offer Smartcoins at 1-1 and rather than spending a lot of money on periphery development, mainly use dilution if anything to help Smartcoins gain initial traction. This is the big opportunity still imo.

There are a lot of ideas floating around on how to do this - using the reserve pool, creating a BTS bond etc.https://bitsharestalk.org/index.php/topic,21453.0.html

Whatever system we use will be more collateralized than NuBits and Uphold(BitReserve) also won't be able to compete as their customer funds are in centralized banks.