BitShares Forum
Main => General Discussion => Topic started by: toast on September 25, 2014, 07:47:16 pm
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it's beautiful
(http://i.imgur.com/2zAp4z4.png)
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*agreed* ... let's make those climb to 10M$ and the same with GLD ..
see you in 4 months :)
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Is that... $0.30 BTSX I smell on the horizon?
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Nice! Exciting times we have here!
...shame I don't know what "dat peg doe" means!
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+5%
I am impressed... congrats to the devs!
Is that... $0.30 BTSX I smell on the horizon?
You really have to wonder how quickly BTSX will climb if bitUSD/CNY/GLD/SLV all start gaining traction simultaneously.
The positive feedback loop would be quite a ride - a few hundred million or a couple billion in each asset would make $10 BTSX a reality very quickly.
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Nice! Exciting times we have here!
...shame I don't know what "dat peg doe" means!
slang.
dat = that
peg = peg
doe = though
"that peg though."
*insert anything else that sucks here that you might be talking about and contrast it with* that peg though.
The bologna, salami, and turkey was all rotten and moldy, that chicken though... [damn it was delicious]
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Nice! Exciting times we have here!
...shame I don't know what "dat peg doe" means!
slang.
dat = that
peg = peg
doe = though
"...that peg though."
*insert anything else that sucks here that you might be talking about and contrast it with* that peg though.
Thanks,
Good to know, Could not translate the 'doe' part myself.
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Nice! Exciting times we have here!
...shame I don't know what "dat peg doe" means!
slang.
dat = that
peg = peg
doe = though
"that peg though."
*insert anything else that sucks here that you might be talking about and contrast it with* that peg though.
The bologna, salami, and turkey was all rotten and moldy, that chicken though... [damn it was delicious]
Lol...well played, Mr.
+%5
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+5% to the title and...
(http://i.imgur.com/2zAp4z4.png)
+5% +5% to dat
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+5%
I am impressed... congrats to the devs!
Is that... $0.30 BTSX I smell on the horizon?
You really have to wonder how quickly BTSX will climb if bitUSD/CNY/GLD/SLV all start gaining traction simultaneously.
The positive feedback loop would be quite a ride - a few hundred million or a couple billion in each asset would make $10 BTSX a reality very quickly.
These numbers are totally unrealistic. I think over 3-5 years it might be realistic to see $10 but not this year or next.
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+5%
I am impressed... congrats to the devs!
Is that... $0.30 BTSX I smell on the horizon?
You really have to wonder how quickly BTSX will climb if bitUSD/CNY/GLD/SLV all start gaining traction simultaneously.
The positive feedback loop would be quite a ride - a few hundred million or a couple billion in each asset would make $10 BTSX a reality very quickly.
These numbers are totally unrealistic. I think over 3-5 years it might be realistic to see $10 but not this year or next.
If that's the more conservative view than I am all good with that too :).
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+5%
I am impressed... congrats to the devs!
Is that... $0.30 BTSX I smell on the horizon?
You really have to wonder how quickly BTSX will climb if bitUSD/CNY/GLD/SLV all start gaining traction simultaneously.
The positive feedback loop would be quite a ride - a few hundred million or a couple billion in each asset would make $10 BTSX a reality very quickly.
These numbers are totally unrealistic. I think over 3-5 years it might be realistic to see $10 but not this year or next.
Yes, it will take a couple of years for the platform to mature and bitAssets to compile enough of a history for folks to trust the pegging mechanism.
Once bitAsset demand picks up the rise of BTSX is going to be something to watch - $1 -> $10 will be epic.
I'm still plugging $1/BTSX by Q1 2015.... perhaps $10/BTSX by 2016 if all goes well.
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We already have a 1-1 USD peg
https://www.cryptocoinsnews.com/nubits-seeks-to-end-cryptocurrency-volatility-with-usd-peg/
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We already have a 1-1 USD peg
https://www.cryptocoinsnews.com/nubits-seeks-to-end-cryptocurrency-volatility-with-usd-peg/
You might have one...the world... not so much.
https://bitsharestalk.org/index.php?topic=9057.0
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Technology usually speeds up so bitshares going to $10 dollars very fast could happen in 1.5 years or even sooner. If it happens sooner it could be unsustainable.
Notice the USD dollar is increasing relative to other major world currencies. Will lift peoples price to buy at. The peg will work naturally as water splashes back and forth in a bath tub.
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One thing I struggle with in the crypto-space is the seeming cognitive gap with the amount of liquidity sloshing around the markets.
Folks seem to think that BTSX hitting $10/BTSX or a $20bn market cap is crazy.
$20bn is pocket change in the context of the Forex or Equity markets.
With a proper front-end bitUSD could compete with Treasury notes.
bitGLD/SLV could attract hundreds of billions of wealth.
bitOIL and other commodities could provide highly liquid hedging on an institutional level.
People don't realize how valuable a commodities exchange that is decentralized/trustless/cheap and open for business 24/7 world wide will be.
bitAssets could open a new world of investing to millions of folks that don't even have a bank account... but have a pre-paid smart phone.
And remittances? bitCurrencies can be transferred faster and easier (TITAN) than BTC.
Those folks in the Philippines everyone keeps yammering about? They don't get BTC. But they will instantly get bitUSD. Dollars in, dollars out.
How about remittances to India? They don't get BTC. But damn, bitGLD will do the trick.
Some day a crypto-platform will become the first trillion dollar crypto market; and even that is relatively small potatoes.
So don't hesitate to dream big!
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What is the mechanism which maintains the peg of bitUSD to be equal to 1 USD?
Is it just "we called it bitUSD therefore people think its worth $1 and therefore they will buy when it is lower and short when it is higher?". Or is there more to the peg than this?
Why will bitGLD equal the price of gold? Because people believe it will (and run market maker bots to fix it there)? Or are there also additional mechanisms which will give incentives to buy when it is below gold price, or sell if it is above?
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What is the mechanism which maintains the peg of bitUSD to be equal to 1 USD?
Is it just "we called it bitUSD therefore people think its worth $1 and therefore they will buy when it is lower and short when it is higher?". Or is there more to the peg than this?
Why will bitGLD equal the price of gold? Because people believe it will (and run market maker bots to fix it there)? Or are there also additional mechanisms which will give incentives to buy when it is below gold price, or sell if it is above?
This plus training wheels in the form of price feeds to bootstrap immature/illiquid assets.
MM bots are inbound and will strengthen the pegs/provide liquidity.
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Thanks Oldman.
So a bitUSD "should" be worth $1.
When market forces push the value to 1.01 or .99, market making bots step in and equalize the balance.
When the demand for bitUSD becomes VERY LARGE, and overwhelms the trading bots, the price might go to 1.02 or 1.05 or something. Then, people use their BTSX as collateral to create more bitUSD and sell it until it equalized back to $1. Therefore, when there is high demand for bitUSD, more bitUSD is created. As long as the market cap of BTSX is of sufficient size relative to the demand for bitUSD, this works.
When the demand for bitUSD greatly DECREASES, the price might drop to .95 or whatever. Then, people who have existing shorts take the opportunity to cover the shorts, which takes bitUSD out of existence! They do this until the price goes back up to $1.
So it seems that the price of bitusd cannot go far away form $1. If it goes too high, lots more bitUSD appears to fulfill demand. If it goes too low, bitUSD is destroyed. So the price of bitUSD cannot go to zero. But the quantity of bitUSD in existence could go to 0, if demand dried up.
Comparing this to Nubits. Both Nubits and bitUSD are created when demand increases.
However, when bitUSD demand disappears, the bitUSD is REMOVED. (People cover shorts and the bitUSD goes away).
When Nubits demand disappears, the interest rate on Nubits is raised. (And raised, and raised), until holders are encouraged to 'park' Nubits instead of sell it. HOWEVER, in the future when the parking is over, the Nubits are back, WITH INTEREST. Now you have even more Nubits in existence. If demand is still low, then interest rates must go up more!
To summarize:
* If there is no demand for bitUSD, all bitUSD will disappear. The shorts will be covered and the holders will get some amount of money a bit below $1 for them and then they wont exist anymore.
* If there is no demand for Nubits, then Nubits become the zimbabwe dollar. More and more of them are created( due to the interest) the price drops, and the interest rate on them increases.
(Note: I am wrong about Nubits if the Nushares holders can/will actually remove Nubits from existence by buying them. If that is the case then they are similar to bitUSD).
Am I correct about all that? Thanks!
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You've pretty much nailed bitUSD; unfortunately I am not well versed on the Nubits mechanics and will leave that to others.
The one feature of bitUSD not mentioned is yield.
The transaction fees generated from market making etc. are paid out to bitUSD holders.
Time is needed to determine the rate, which will vary with transaction volume, but current estimates are north of inflation (say 3%) and perhaps substantially higher.
Hence my comment about Tbills.
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Right, bitUSD holders get interest from the trading fees. And transactions in it also help BTSX holders as well by paying a dividend (burning BTSX?)
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Right, bitUSD holders get interest from the trading fees. And transactions in it also help BTSX holders as well by paying a dividend (burning BTSX?)
Nearly there. The BTSX is burnt by the delegates who burn a percentage of their pay per block which reduces supply.
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Nearly there. The BTSX is burnt by the delegates who burn a percentage of their pay per block which reduces supply.
Are there any other ways that BTSX gets burned? Thanks!
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You can do manualy using a console command .. that however burns YOUR stake .. wouldnt recommend ;)
Besides that there is burning in ask/bid overlap and maybe in inactivity fee .. search the forum for "fee flow" and "gfx" and you will find a graphic
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Besides that there is burning in ask/bid overlap and maybe in inactivity fee .. search the forum for "fee flow" and "gfx" and you will find a graphic
Hmm...I didn't realize overlap was burnt. I thought it was stored off as network fees and paid to delegates...
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You also got NuBits (and the potential primary issue) right.
Not that I think it's deal-breaking. If it weren't for fragmentation I'd advocate for launching a BTSX clone with that model. Something about how in the long run we're all dead.
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Besides that there is burning in ask/bid overlap and maybe in inactivity fee .. search the forum for "fee flow" and "gfx" and you will find a graphic
Hmm...I didn't realize overlap was burnt. I thought it was stored off as network fees and paid to delegates...
I should stop posting in the night when lying in bed .. you are ABSOLUTLY CORRECT. overlap goes to the reserve fund (a.k.a. yield)
(http://www.bitshares.org/infogfx/feeflow/btsx-feeflow.png)
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Besides that there is burning in ask/bid overlap and maybe in inactivity fee .. search the forum for "fee flow" and "gfx" and you will find a graphic
Hmm...I didn't realize overlap was burnt. I thought it was stored off as network fees and paid to delegates...
I should stop posting in the night when lying in bed .. you are ABSOLUTLY CORRECT. overlap goes to the reserve fund (a.k.a. yield)
(http://www.bitshares.org/infogfx/feeflow/btsx-feeflow.png)
should focus on positives first then negatives.. btsx rises since supply is burned over time AND its a way to get bitusd AND benefits of cryptocurrency (ledger, dacs, anonymity, decentralization) while bitusd holders earn interest those are the key points to emphasize
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... and all of this with 10 secs block time
... and secure transactions with TITAN
... and user-issued assets
... and proof-of-stake voting for delegates
... and random seed each 10 secs
... and and and ...
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capture non crypto ppl first
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There is no longer an inactivity fee, right?
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There is no longer an inactivity fee, right?
there has never been any ... its not implemented and may never be ... not sure about the latest decision .. don't think any decision was made final already
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No inactivity fee.
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No inactivity fee.
Honestly I think we should remove all references to inactivity fees.
I have had conversations with two different people online in the past couple days where their reason for not buying BTSX was basically "There is a 5% fee each year, which means that if I make less than 5% yield I am losing money!".
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No inactivity fee.
New too me .. good to know ..
I'll ask cass to remove it from the fee flow gfx
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Lol. There would have been a 5 cent transaction fee that they would wAnt to do anyway to compound their yield.
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No inactivity fee.
New too me .. good to know ..
I'll ask cass to remove it from the fee flow gfx
will update asap