xeroc, I will do as you suggest when I feel they're ready. First I need tonyk and toast to finish ripping them to shreds so I can put them back together better. I'm also hoping to post them to devtome when the time comes so I hope that won't create a conflict of interest.
EDIT: I was clearly confused when I wrote this. If you're trying to learn from this thread please skip this post.Merockstar
There was a thread ‘The life of a short position’ or something like that.(actually I found 2 useful ones)
https://bitsharestalk.org/index.php?topic=4515.0
https://bitsharestalk.org/index.php?topic=4573.0
Read them and fix what you have written above according to BM/toast/my comments in those threads
. There is only one issue on which we disagree there – I believe my explanation is easier to comprehend *(1) but it really does not matter - just use their explanation -it is more of a choice of selecting how to think about how particular stuff works, the end result is the same. In their explanation the system looks more powerful, so as I said, use their explanation on that.
*(1) Basically BM and toast are people with well above average intelligence (so they have the ability concepts that are 3 or 5 times more complex). For them adding a new extra twist on top of a concept that about 10 to 25 % of the population will never understand is not a problem, as they see nothing too hard there. For me removing this extra layer of complexity, making the whole explanation more concise and logical makes the difference between 25% not getting it and only 10% not getting it. You know the story of the last straw that broke the camel back, right?
The first thread I've gone through like four times, actually, and am about to go through again.
The second thread you linked is new to me though, and may be helpful, I sincerely thank you for digging that up. About to go look through that one.
I feel like every explanation I've seen so far uses an example instead of just saying how it works, so I wanted to make one that avoids examples because to me that kind of clouds things up. The way I see it examples are for after you've wrapped your head around it to reinforce understanding, not for initial learning. Maybe other people disagree but if I think that way there has to be at least a few others who agree.
Regarding the bolded part above, I would love you if you could give specific examples where I'm wrong. I realize that request may be addressed on those threads already, and grant that I've not gone through the second thread you linked yet (kind of excited about that, actually), but who knows, maybe your redundant explanations could help some of that 15% out.
From what I've seen, I would agree BM and toast are friggin geniuses. I don't think of myself as THAT smart, but normally I'm no dummy myself. I don't know why I'm having such a rough time with this concept, but I'm enjoying the challenge.
Additionally:
1. I do not like ‘long against that asset’ use ‘long in that asset’ even better ‘long that asset’
2. How did you come up with this (bolded):
-If the price of the asset/bitAsset falls, then the person doing the shorting has won the bet, and can claim the difference between the new value of the amount of bitAsset that was created and collateral they had put up, closing their position. The remaining collateral is held to sell back to the person who went long and took a loss, in case they choose to claim it.
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-When somebody who has gone long purchases back their collateral using a bitAsset, the bitAsset is destroyed, and their position is closed – Although theoretically possible -there is no collateral for the long position in this system!!!! I,e. change collateral to BTS X if you like this to stay. (also read my first post - the bitAsset might or might not be destroyed!)
1) ah, I was kind of wondering about that myself as I was writing it. I will fix that.
2) point taken about there being no collateral for the long. I will fix that as well. I think you zoned right in on a concern I had while I was writing this. What does happen to the leftover BTS if it doesn't get claimed? does the system shuffle it back onto the exchange?
Or can the person who did the shorting just claim all of it? I feel like that wouldn't really make for a fair bet, but it would guarantee that I'm going to be trying my hand at some shorting when this comes out, if that happens to be the case.
Some people may resent the scathing manner in which you present your criticisms, but I appreciate all the help you're giving me and how prompt you're being about it.
Anyway, I'm off to review that second thread you linked. Maybe it will make everything clear.
When everything's done, I'm thinking about titling it "Everything you wanted to know about BitShares but didn't have the time and patience to dredge through the forums and dig up enough info haphazardly to put all the pieces together"
^--- that was another of my attempts at humor