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Why isn't it possible to back a bitAsset like bitGold with bitUSD?
Quote from: bitmarley on April 28, 2015, 09:07:31 pmAnother reason is that normally in finance someone who wants to go short GOLD means they want to profit when GOLD falls versus the USD. But in BitShares shorting the bitGOLD(i.e. GOLD/BTS) and does not give the same kind of exposure. It would be good if there was a way to establish an asset whose "Last Price" was a formula instead of a direct price feed. For example: bitGOLDUSD = GOLD/USD. This is the asset that the wider market really wants. At the moment shorting bitAssets means you increase your long exposure to BTS. So if the market trend for BTS is down nobody wants to short. Soon you will be able to have BitGOLD backed by BitUSD.
Another reason is that normally in finance someone who wants to go short GOLD means they want to profit when GOLD falls versus the USD. But in BitShares shorting the bitGOLD(i.e. GOLD/BTS) and does not give the same kind of exposure. It would be good if there was a way to establish an asset whose "Last Price" was a formula instead of a direct price feed. For example: bitGOLDUSD = GOLD/USD. This is the asset that the wider market really wants. At the moment shorting bitAssets means you increase your long exposure to BTS. So if the market trend for BTS is down nobody wants to short.
Quote from: mf-tzo on April 29, 2015, 07:38:40 pmQuote from: bytemaster on April 28, 2015, 09:18:57 pmQuote from: bitmarley on April 28, 2015, 09:07:31 pmAnother reason is that normally in finance someone who wants to go short GOLD means they want to profit when GOLD falls versus the USD. But in BitShares shorting the bitGOLD(i.e. GOLD/BTS) and does not give the same kind of exposure. It would be good if there was a way to establish an asset whose "Last Price" was a formula instead of a direct price feed. For example: bitGOLDUSD = GOLD/USD. This is the asset that the wider market really wants. At the moment shorting bitAssets means you increase your long exposure to BTS. So if the market trend for BTS is down nobody wants to short. Soon you will be able to have BitGOLD backed by BitUSD.I hope that you don't imply that one could create bitGold by shorting BitUSD but rather trade BitGold vs.BitUSD right?Means trade bitUSD to bitGold. BTS is the collateral for the whole system, you cannot create assets without it.
Quote from: bytemaster on April 28, 2015, 09:18:57 pmQuote from: bitmarley on April 28, 2015, 09:07:31 pmAnother reason is that normally in finance someone who wants to go short GOLD means they want to profit when GOLD falls versus the USD. But in BitShares shorting the bitGOLD(i.e. GOLD/BTS) and does not give the same kind of exposure. It would be good if there was a way to establish an asset whose "Last Price" was a formula instead of a direct price feed. For example: bitGOLDUSD = GOLD/USD. This is the asset that the wider market really wants. At the moment shorting bitAssets means you increase your long exposure to BTS. So if the market trend for BTS is down nobody wants to short. Soon you will be able to have BitGOLD backed by BitUSD.I hope that you don't imply that one could create bitGold by shorting BitUSD but rather trade BitGold vs.BitUSD right?
Afaik he is talking about shorting GOLD with USD as collateral ..Is this bad for you?
I wish I had a clue and could trade like this too
Thats what happened in BTS. People who have never been on margin before shorted bitUSD because they were bulish on BTS. But instead BTS went down a lot, and they lost a huge amount of BTS. So they think "this is bullshit", and they get mad, and they sell all their remaining BTS.
Quote from: yellowecho on April 29, 2015, 03:49:55 pmI shorted bitUSD ~20 days ago and now I'm losing my ass. That's probably why no one is shorting.. hell, I might as well just double down my shorts now and give all my BTS away for free at this point.Ditto... I'm screwed
I shorted bitUSD ~20 days ago and now I'm losing my ass. That's probably why no one is shorting.. hell, I might as well just double down my shorts now and give all my BTS away for free at this point.
basically the yield today comes from the interest that has to be payed by SHORTs