Does anybody know what bitUSD will trade for against USD?
Are the bitUSD more valuable, because they earn interest?
Does bitUSD have negative tax implications?
Any guesses? I mostly want to know because I am trying to see if I have discovered a solution to compel organic (and unstoppable) ADOPTION + GROWTH.
BitUSD should trade within +/- 5% of USD if I had to guess.
Initial version will not pay interest.
Looking into the future, assuming BitUSD is paying interest as originally planned,
There is reason to assume it will be more valuable than dollars
I think that is understood.
If that was consistent a decentralized gateway could serve the community by providing fiat for bitAssets, and also capturing a gain (if this is true this gain COULD be used creatively, at least more creatively than OLD WORLD model of pocketing it).
Could a gateway pull something like that off though? Theoretically? Efficiently buy bitAssets at their nominal price and make a profit?
Just looking for gaping holes in this theory.
Quote from: etherbroker on April 03, 2014, 08:17:38 AM
Looking into the future, assuming BitUSD is paying interest as originally planned,
There is reason to assume it will be more valuable than dollars
I think that is understood.
If that was consistent a decentralized gateway could serve the community by providing fiat for bitAssets, and also capturing a gain (if this is true this gain COULD be used creatively, at least more creatively than OLD WORLD model of pocketing it).
Could a gateway pull something like that off though? Theoretically? Efficiently buy bitAssets at their nominal price and make a profit?
Just looking for gaping holes in this theory.
Look at it like this: if I can make a profit exchanging bitassets for realassets at the nominal price, that will pull the values of the two closer together. If I can do it, so can anybody else, and competition will drive the difference between the prices to 0.
Sent from my SCH-S720C using Tapatalk 2
Quote from: biophil on April 03, 2014, 02:53:57 PM
Quote from: etherbroker on April 03, 2014, 08:17:38 AM
Looking into the future, assuming BitUSD is paying interest as originally planned,
There is reason to assume it will be more valuable than dollars
I think that is understood.
If that was consistent a decentralized gateway could serve the community by providing fiat for bitAssets, and also capturing a gain (if this is true this gain COULD be used creatively, at least more creatively than OLD WORLD model of pocketing it).
Could a gateway pull something like that off though? Theoretically? Efficiently buy bitAssets at their nominal price and make a profit?
Just looking for gaping holes in this theory.
Look at it like this: if I can make a profit exchanging bitassets for realassets at the nominal price, that will pull the values of the two closer together. If I can do it, so can anybody else, and competition will drive the difference between the prices to 0.
Sent from my SCH-S720C using Tapatalk 2
No, not 0. A gateway would have to be centralized and regulated which means there will likely be a pretty high fee.
I could be wrong but that is what I would expect due to the high costs of setting a gateway up.