Here's the thing about it being a bubble.. what can customers currently do with it other than speculate or buy BitUSD?  That makes it a bubble.  Maybe a bubble within the stealth phase in the long run.. but a bubble none the less.

Anything you can do with BitShares, you can do with Nxt.. except you can also do far more with Nxt, you can actually buy/sell stuff with Nxt.. some stores accept it, there are many websites all over powered by Nxt and using Nxt for business, it's all over the place and has a lot of community support and has for a while.  Some big name payment processors are going to be adding it soon, they have a Point of Sale payment system coming out soon.  The Nxt marketplace just launched.  Except granted DPOS is quite cool.. still not as cool as Nxt's upcoming Instant Transaction system.. it's actually going to be much more decentralized Instant Transactions unlike DPOS, but granted that sounds like it's a long way away and until implemented, doesn't do much for Nxt.  Nxt has much more of a network effect going for it.

I'm comparing it to Nxt because BitShares is currently much like Nxt was in December of last year and both are POS and attract similiar crowds.  It'd been in development for a few months and had a lot of potential and we all assumed that everyone else must see the same potential we did.  But guess what, they didn't and never do.  If they couldn't use it right now to do anything, then why buy it right now.. why not wait for the excitement to die down and see if it was actually going to have staying power. Granted FUD about the 'unfair' distribution didn't help, but Nxt is still just as revolutionary as BTSX, if not more as it figured out much of this stuff first.

But Bitshares has it's own brand of FUD people are spreading about it being centralized due to DPOS.. which is partially true given you can vote for multiple delegates.  And if someone manages to get 51% of the delegates, they can simply choose to stop including transactions that allow holders to choose different delegates and suddenly BTSX is dead.  Which is easier and cheaper when you only have to get 50 delegates by convincing people to vote for them without needing to actually buy 51% of the stake.  I definitely suspect that something like that will start being used to try to scare people from BTSX and it will affect price.

I'm not trying to scare people just be realistic.. be aware that it is risky and odds are that the second phase of the first bubble will break soon.  This whole talk of BTSX being revolutionary is part of the 'New Paradigm' that comes will all bubbles.  Don't lose half your life savings because you invest it all in now realizing that BTSX has long term potential, then the price halves.. or more.  Wait until after the price halves so you can buy twice as much!  Just please, download the Nxt wallet found at nxt.org.. and tell me that you really think that BitShares has Nxt beat feature wise.  BTSX has some improvements and features that Nxt has been slow to implement.  I'm not saying switch to Nxt either.. just try to remove emotions and not lose too much money, especially if you're a little guy who can't afford to lose too much.

Oh and yes, SuperNet might be centralized currently, I think currencies are held via multi-sig.. I think that control of it will be gradually more and more decentralized as the Multi-Gateway is expanded and more currencies are added to MGW.  Which is a really cool project by itself.. you can trade Nxt and BTC in a decentralized fashion!

What do you think the peak will be?

It is possible I'm wrong but I've just seen it so many times before that I do believe it's a bubble.

Pure guess, 85 to 90 million.  Odds are it'll be a little bit lower than the first peak.

I do agree that a couple years from now another order of magnitude or two seems likely.

Media attention: Coinmarketcap.com which every single person interested in Crypto follows.  Price starts going up and people rush in to see why and get in before it's too late.   Then they spend all the money they are willing to spend and prices crashes soon after because buying support is gone, selling support is increased because price is increased and people are trying to lock in profits. It has happened to countless other cryptos.

BitYield?

No I don't think crypto-currency is a bubble.. I think it was.. look at Bitcoin and a few others that all spiked at some point and I think that BTSX is in one currently.

And keep in mind that most people who buy crypto don't follow every in and out, and most probably know that BTSX has instant transactions and maybe that BitUSD exists.. but even there, I went to a alt coin conference and nobody could figure out why BTSX's price was rising so quickly, people just don't have time to follow every little improvement or problem with a coin.

Keep in mind that BTSX will crash first before going back up again.. just warning you this is the 'return to normal' found in any bubble.



BTSX has some great technology but it simply hasn't had as much time to acquire as many users, and trust me it'll crash soon.  I'd give it one or two days before we hit the second peak.  I'd recommend you sell some soon if you are in it for the money, then buy back in a month or so.  Don't say I didn't warn you!

Agreed decentralized version beats centralized version.  And I am very skeptical, I wouldn't touch for a long time to come but I really do hope it works, then nxt can take the idea, tweak it and make it our own

As I understand though, when shorting, you take twice the amount that you are paying for the asset and put up some collateral, right?

So what happens if it the price falls to the point where you don't have the assets to cover the loss?  Is is automatically revoked?

Let's say that the price of BTSX halves, does that mean that all those BitUSD suddenly disappear?  I'm probably misunderstanding how shorting works.

I would love to see CoinoUSD issued as a user issued asset on BTSX and trade against BitUSD

Personally with CoinoUSD I would be afraid of a bankrun + government shutdown, etc.    BitUSD has different risks and the market will eventually price them accordingly.

Here is the interesting thing... the risk for BitUSD is only the "spread" and over time that will narrow.   The "volatility" you state was at launch and prior to restrictions on shorting being introduced.  Give it time to mature before you judge it.

Either that.. or BTSX is in a little bit of a bubble at the moment, volume will drop as speculators get bored and move to the next coin, and the spread will increase and it'll fall apart.  Couple other potential risks.

What shorting restrictions were removed?

We'll see.. would be really cool to have decentralized fiat in crypto.  I just happen to be very skeptical.

I don't see any reason that CoinoUSD should have problems with this asset, it's not like they are offering unlicensed stock.  If buying/selling BTC is legal, no reason CoinoUSD shouldn't be.  All Coinomat is saying is that they are willing to buy your CoinoUSD from you for $1 and sell it to you for $1.  I definitely think this will be more stable than BitUSD.

couple questions
How are coinoUSD created?
Who holds this USD that coinoUSD is backed by?
You say you can take coinoUSD and cash out to bank account, how exactly do you do this?

Run by coinomat.com
You give them USD, via bank transfer, and they give you CoinoUSD in return.
If you want to cash out, you give them back your CoinUSD, and they give you $1 per 1 CoinoUSD asset.

More details: https://coinomat.com/coinousd.php

I would recommend selling right around not.. it is possible that BTSX with experience a second peak to the bubble..  but either way, odds are that a month or two from now, BTSX will be going for at least half the price.

I'm not trying to insult BTSX but look at most other alt coins for comparison, this bubble isn't done popping yet.

Taxes, privacy, no need to trust external exchange with your funds.

Legally I believe that every time you buy an asset you pay taxes.. so you should be paying taxes every time you buy/sell BitUSD.

Quote from: bytemaster on August 26, 2014, 12:29:40 am

There is a market for BitUSD / USD on Bter.... so you know you can cash out if you want to.

https://bter.com/trade/bitusd_usd

OMG THIS IS EPIC! 

Nice.. the price of BitUSD is almost $2?  haha