Before the median price was introduced, the pegging was doing fine but there was a danger that bitUSD will lose track of the USD and then the whole Bitsharex it will not work.
Now the bitUSD is not in danger of not tracking USD but the market is dead.
I rather preferred the peg to track and in no danger!!! Let see with the GUI changes then I suspect you'll not see that many short out of range, and much more trading happening.
Agree! It seems like peoples' best argument for getting rid of the price feeds is that it was more fun the other way. More fun? Really? If you want fun playing with money you should hit the local casino. Fun doesn't equate to robust financial system.
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This isn't going to create a robust financial system.
I prefer the price feed but you still need to stimulate BitAsset creation around the peg with delayed fees/interest.
A bitUSD currently simply isn't worth 1-1 (system risk + utility friction)it's like trying to sell a $10 umbrella for $20. You now have a queue of people waiting to see if anyone will be dumb enough to overpay for an umbrella. There won't be many customers, except maybe on a very rainy day.
It's like Argentina trying to define the exchange rate for the Peso to the dollar. When you try to force it that way you strangle the market and the free market simply moves to the black market where Peso & dollar holders find the true exchange level. (In our case it will ultimately be a competitor using interest/delayed fees to match buyers with sellers around the peg.)
Interest or delayed fees are required.
Another way to look at is to think of BTSX as a virtual vault.
If the vault is very safe you may pay for the privilege of storing your assets there.
However if the vault is new and risky, with high fees they're going to have to pay you interest to attract your money, we're still at the risky stage now plus there's a 1/2% fee to exchange BitAssets to fiat.
The absolutely fantastic news is we have shorts more than willing to pay amazing interest to attract deposits into BitAssets!!!The question is what is the best way to introduce interest into the system.
(Another analogy... The people storing BitAssets are the customers. BTSX holders are the virtual vault owners. BTSX holders get the reward of the virtual vaults success. All the BitAsset holders get is the riskiest place in the world to store value for the next 3-6 months. They need to be compensated for the risk.)