What is the advantage of purchasing BITUSD? Will the value of 1 BITUSD always be at least 1.00 usd? Can 1 BIT USD double or tipple in price as well or is it always the same value as 1 usd dollar ...if so whats the point ?
Theres like 50k usd being put into BitCNY so something must be there..
great question, esp since i'm brainstorming a startup venture to market and sell bitUSD to the public. here are the advantages i've documented so far (would love anyone else to chime in here):
1) bitUSD earns a much higher than banking interest rate, currently ~5.5%
2) bitUSD moves funds to the blockchain instead of keeping them in the traditional financial system
3) You get all the benefits of a crypto asset: near instantaneous transactions, negligible transaction costs, no capital controls
4) bitUSD can be easily traded for most popular crypto currencies and assets using services like shapeshift.io
5) bitUSD is also a short on BTS, so you can take a negative bet on BTS if you think the price will keep going down (i don't)
so, you're not going to hold bitUSD to speculate on it ever being worth more than 1 USD (which it does actually fluctuation btw, but within +/- 10% of the peg), but you'd do it to park funds into crypto and earn a way above average interest rate on your savings.