BitShares Forum

Main => General Discussion => Topic started by: starspirit on October 08, 2014, 02:51:35 am

Title: Can explanation of BitUSD be simplified?
Post by: starspirit on October 08, 2014, 02:51:35 am
It seems to me the simplest explanation of BitUSD is something like this:

BitUSD is a currency that is backed by a network reserve of at least two times the value in BTSX. The reserve is available to support a full monthly buy-back of units no longer demanded.

Much of the marketing material refers to two parties (e.g. Alice and Bob) coming to an agreement (like a derivative) where one takes the risk of BTSX and the other doesn't. This seems somewhat irrelevant to most potential BitUSD users, who may never need to deal with BTSX in any way, and although the principle is similar, is not really an accurate reflection of the mechanics, as there are no individual contracting parties.

To me, the simplified description also highlights an important feature of BitUSD over NuBits, in that shareholders do not hold adequate reserves to support buying back 100% of its NuBits.

[When the material presents BitUSD like a derivative, it becomes very confusing. I've been here for a while and have misunderstood how mechanisms like short-covering or margin calls affect BitUSD owners (they don't). Thanks to members like Troglodactyl and Chuckone pointing these errors out to me.]
Title: Re: Can explanation of BitUSD be simplified?
Post by: toast on October 08, 2014, 03:16:21 am
It helps most people but the people it misleads (bitusd is a standard cfd which is not funfible) are more valuable per person (more likely to start trading)

Sent from my SCH-I535 using Tapatalk

Title: Re: Can explanation of BitUSD be simplified?
Post by: starspirit on October 08, 2014, 03:41:46 am
It helps most people but the people it misleads (bitusd is a standard cfd which is not funfible) are more valuable per person (more likely to start trading)

Sent from my SCH-I535 using Tapatalk
With a standard cfd, I can leverage and get margin calls. I didn't think that was the case here? What aspect do you think is misleading? Not doubting you, just trying to understand.
Title: Re: Can explanation of BitUSD be simplified?
Post by: starspirit on October 08, 2014, 03:43:01 am
It helps most people but the people it misleads (bitusd is a standard cfd which is not funfible) are more valuable per person (more likely to start trading)

Sent from my SCH-I535 using Tapatalk
With a standard cfd, I can leverage and get margin calls. I didn't think that was the case here? What aspect do you think is misleading? Not doubting you, just trying to understand.
To be clear, I'm talking about holders of BitUSD, not the shorts (who are issuers).
Title: Re: Can explanation of BitUSD be simplified?
Post by: Thom on October 08, 2014, 04:44:21 am
Speaking of definitions for BitUSD, I'm aware it is meant to track the real world value of US dollars, but what happens if (when more accurately) the dollar begins to rapidly loose it's remaining value? This could happen through inflation or other world events such as China Russia & Brazil forming an alternative reserve currency. I don't actually think that's very likely, but history has shown time & time again hyper inflation is ultimately the result of governments spending far more than they can take in.

Will BitUSD's value go down with the declining dollar?
Title: Re: Can explanation of BitUSD be simplified?
Post by: toast on October 08, 2014, 04:56:22 am
Going down slowly or quickly are both fine. Usd going up extremely quickly against btsx is the risky scneario.

Sent from my SCH-I535 using Tapatalk

Title: Re: Can explanation of BitUSD be simplified?
Post by: Stan on October 08, 2014, 05:00:53 am
Speaking of definitions for BitUSD, I'm aware it is meant to track the real world value of US dollars, but what happens if (when more accurately) the dollar begins to rapidly loose it's remaining value? This could happen through inflation or other world events such as China Russia & Brazil forming an alternative reserve currency. I don't actually think that's very likely, but history has shown time & time again hyper inflation is ultimately the result of governments spending far more than they can take in.

Will BitUSD's value go down with the declining dollar?

The technical term is "Controlled Flight Into The Ground".  :)
Title: Re: Can explanation of BitUSD be simplified?
Post by: Empirical1.1 on October 08, 2014, 11:25:09 am
I agree we need a simple BitUSD explanation.

Currently the BitUSD on coinmarketcap links to the market peg wiki http://wiki.bitshares.org/index.php/Market_Peg  but I think it should link to a webpage that looks more like the 'How Can NuBits be used' part of this webpage, https://nubits.com/ but that also describes briefly and clearly how BitUSD is backed. Hmm and maybe even very briefly why other systems like NuBits are a ponzi. 

Edit: Maybe besides a download wallet also a buy BitUSD link that takes you to bter BitUSD trading page? (Once we add more liquidity to it of course.)

Also would be great if it was in the form of a graphic we could just post on forums etc. too.

Title: Re: Can explanation of BitUSD be simplified?
Post by: Method-X on October 08, 2014, 12:25:02 pm
I agree we need a simple BitUSD explanation.

Currently the BitUSD on coinmarketcap links to the market peg wiki http://wiki.bitshares.org/index.php/Market_Peg  but I think it should link to a webpage that looks more like the 'How Can NuBits be used' part of this webpage, https://nubits.com/ but that also describes briefly and clearly how BitUSD is backed. Hmm and maybe even very briefly why other systems like NuBits are a ponzi. 

Edit: Maybe besides a download wallet also a buy BitUSD link that takes you to bter BitUSD trading page? (Once we add more liquidity to it of course.)

Also would be great if it was in the form of a graphic we could just post on forums etc. too.

I'm working on a simple explanation site similar to NuBits. Will be done this week.
Title: Re: Can explanation of BitUSD be simplified?
Post by: Rune on October 08, 2014, 01:05:56 pm
I agree we need a simple BitUSD explanation.

Currently the BitUSD on coinmarketcap links to the market peg wiki http://wiki.bitshares.org/index.php/Market_Peg  but I think it should link to a webpage that looks more like the 'How Can NuBits be used' part of this webpage, https://nubits.com/ but that also describes briefly and clearly how BitUSD is backed. Hmm and maybe even very briefly why other systems like NuBits are a ponzi. 

Edit: Maybe besides a download wallet also a buy BitUSD link that takes you to bter BitUSD trading page? (Once we add more liquidity to it of course.)

Also would be great if it was in the form of a graphic we could just post on forums etc. too.

I'm working on a simple explanation site similar to NuBits. Will be done this week.

What I would love to see would be a blockchain.info style wallet service and short introduction at bitusd.com or bitusd.info. Just checked both domains and they are parked.
Title: Re: Can explanation of BitUSD be simplified?
Post by: Empirical1.1 on October 08, 2014, 01:09:55 pm
I agree we need a simple BitUSD explanation.

Currently the BitUSD on coinmarketcap links to the market peg wiki http://wiki.bitshares.org/index.php/Market_Peg  but I think it should link to a webpage that looks more like the 'How Can NuBits be used' part of this webpage, https://nubits.com/ but that also describes briefly and clearly how BitUSD is backed. Hmm and maybe even very briefly why other systems like NuBits are a ponzi. 

Edit: Maybe besides a download wallet also a buy BitUSD link that takes you to bter BitUSD trading page? (Once we add more liquidity to it of course.)

Also would be great if it was in the form of a graphic we could just post on forums etc. too.

I'm working on a simple explanation site similar to NuBits. Will be done this week.

Fantastic  +5%  +5%
Title: Re: Can explanation of BitUSD be simplified?
Post by: Mysto on October 09, 2014, 04:47:14 am
I agree we need a simple BitUSD explanation.

Currently the BitUSD on coinmarketcap links to the market peg wiki http://wiki.bitshares.org/index.php/Market_Peg  but I think it should link to a webpage that looks more like the 'How Can NuBits be used' part of this webpage, https://nubits.com/ but that also describes briefly and clearly how BitUSD is backed. Hmm and maybe even very briefly why other systems like NuBits are a ponzi. 

Edit: Maybe besides a download wallet also a buy BitUSD link that takes you to bter BitUSD trading page? (Once we add more liquidity to it of course.)

Also would be great if it was in the form of a graphic we could just post on forums etc. too.

I'm working on a simple explanation site similar to NuBits. Will be done this week.

Cool!