BitShares Forum

Main => General Discussion => Topic started by: toast on September 30, 2014, 08:46:24 pm

Title: BIPs as a BitAsset
Post by: toast on September 30, 2014, 08:46:24 pm

Worried about greedy shareholders inflating your stake?

Hedge with BitBIP - tracks 1 billionth of the current share supply.

The price feed is determined completely by the state of the chain and so this "feed" could even be built in.

Brilliant!?

Title: Re: BIPs as a BitAsset
Post by: bytemaster on September 30, 2014, 08:55:06 pm

This wouldn't work because shorts can only lose.  It is impossible for BitBIPS to fall in value relative to BTSX.

Title: Re: BIPs as a BitAsset
Post by: toast on September 30, 2014, 09:00:19 pm

Quote from: bytemaster on September 30, 2014, 08:55:06 pm

This wouldn't work because shorts can only lose.  It is impossible for BitBIPS to fall in value relative to BTSX.

?? They fall in value continuously unless shareholders inflate

Title: Re: BIPs as a BitAsset
Post by: emski on September 30, 2014, 09:02:05 pm

Quote from: bytemaster on September 30, 2014, 08:55:06 pm

This wouldn't work because shorts can only lose.  It is impossible for BitBIPS to fall in value relative to BTSX.

You can always give some fixed instant bonus to shorts. So you pay 3% to peg your BTSX to a bitBIPS.

Title: Re: BIPs as a BitAsset
Post by: toast on September 30, 2014, 09:05:30 pm

Am I crazy? These are bips. Nobody wants to go long unless they think the number of shares will increase. *Everybody* wants to short.

Title: Re: BIPs as a BitAsset
Post by: bytemaster on September 30, 2014, 09:10:00 pm

Quote from: toast on September 30, 2014, 09:05:30 pm

Am I crazy? These are bips. Nobody wants to go long unless they think the number of shares will increase. *Everybody* wants to short.

Unless there is inflation caused by raising capital... say 10% per year like BTC where the funds went to grow the infrastructure. 

Title: Re: BIPs as a BitAsset
Post by: Frodo on September 30, 2014, 09:26:22 pm

As dilution will be pretty predictable for longer periods of time (depends a bit on the model but I assume that it will be a rather stable rate) the market is going to be extremely illiquid at most times.

Title: Re: BIPs as a BitAsset
Post by: bitcoinerS on September 30, 2014, 11:01:48 pm

@Frodo
You look like my evil twin :)

Title: Re: BIPs as a BitAsset
Post by: tonyk on September 30, 2014, 11:07:11 pm

This is one of those crazy days...

I will be willing to go long bips...


Now how should we implement the volatility index?


*the name is clear off course:

bitVOLxx