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Main => General Discussion => Topic started by: logicalgrackle on December 29, 2014, 04:46:42 am

Title: How Currency Works Now: An introduction to pegged assets for Bitcoin fans
Post by: logicalgrackle on December 29, 2014, 04:46:42 am

I plan on submitting this article to /r/Bitcoin and other sites tomorrow morning (UTC-8). I'd love your feedback.

http://logicalgrackle.com/how-currency-works-now.html

Title: Re: How Currency Works Now: An introduction to pegged assets for Bitcoin fans
Post by: toast on December 29, 2014, 04:47:56 am

You might wish to mention vitalik's stablecoin ideas and maybe nubits too, so that it is not such a shameless bitshares plug. But of course make it so the reader infers ours is the best ;)

Title: Re: How Currency Works Now: An introduction to pegged assets for Bitcoin fans
Post by: cass on December 29, 2014, 04:55:43 am

 +5%

Title: Re: How Currency Works Now: An introduction to pegged assets for Bitcoin fans
Post by: cn-members on December 29, 2014, 10:54:34 am

I read though this article and I think it is great! Moreover, I think you can also address 2 things in it:
1. bitUSD and bitCNY are not just stablecoins. Besides having price stability, bitUSD and bitCNY also have yields for holders (not for issuers in nubits). This could be a good reason why people would choose bitUSD/CNY over other stablecoins (i.e., additional values).

2. In the final section of this article:

Quote

Customers will buy stablecoins when they need them, and merchants can sell them upon receipt until they trust them.

In my opinoin, people would buy bitcoins when they need them, and store in stablecoins for the rest of time. It is because bitcoin has price volatility and stablecoins like  bitUSD/CNY have yields. Therefore, bitcoin is only 'a method of transmitting money', as Warren Buffett said, and stablecoins are meant to be kept for longer times.