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Is Bitshares worse for crypto than Comex is for gold?

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smiley35:
To add on to what phoenix is said, don't forget that we are on the verge of decentralized exchanges. Mastercoin, Colored coins, Bitshares itself. Why would we follow bitbtc when we can just look at the value of the real thing.

phoenix:
I don't think there's any need to start praying that it's a total flop. First of all, the prices on the Bitshares exchange don't give the price of BTC directly, they tell you the market price of BitBTC. Then, there's a separate exchange rate between BitBTC and BTC. So even if the price of BitBTC is directly manipulated by some large entity, the exchange rate of BitBTC to BTC will still be able to keep the exchange rate between Bitshares an BTC the same. If the price of BitBTC goes up relative to Bitshares, then either it will take fewer BitBTC to buy a Bitcoin, or the value of Bitshares will fall relative to BTC. Either way, the exchange rate will remain stable.

Empirical1:
Hi, I woke up in a cold sweat last night, as I said in a previous post I'm a newbie to bitshares, can you please explain how my following train of thought is wrong...

People take the price for gold from the Comex which we all know is a scam because Comex owns and trades very little of the underlying asset, gold. It allows nefarious actors to manipulate and suppress the gold price by taking massive Comex short positions even though in the real world they would have no hope of getting enough of the underlying to cover that position.

So how did the 'Majority' become dumb enough to trust the Comex price? Is it the same way they may become dumb enough to trust the Bitshares price?

Right now as a Bitshares video points out, BTC's value is different on all exchanges, depending on many factors. So it would be very useful if there a way to derive a true decentralized value for BTC? Wallah! Bitshares!

At first Bitshares will give an accurate price for BTC that reflects available information, so in a short time people will start to trust that the best idea of BTC price is derived from bitshares and not from a particular centralized exchange.

However people are taking long/short positions on BTC via bitshares without owning the underlying BTC?  So pretty soon nefarious actors, (Gov and traditional banks) will be able to influence and suppress the BTC price by taking massive positions. And by then even if the core BTC community knows the bitshare price is a sham (like Comex) there will be enough mainstream BTC adopters that still believe bitshares is a fair reflection of available BTC information.

Should we be praying for the future of cryptos and humanity that bitshares fails spectacularly?  :-\

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