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General Discussion / Re: Possible use case: bitUSD backend for centralized exchange
« on: October 29, 2014, 09:24:00 am »
Nice idea
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The minute somebody can make a "trezor" like security for the bitassets this thing will explode. Until then people will always prefer keeping their money under the mattress than online.
In Greece most wealthy people don't keep their money in local banks anymore...Seriously almost everyone has a vault in their house. I am very confident that if those people can keep their funds in a usb stick securely from an online attack then I can sell the biteur concept to anyone.
Whenever I mention to someone about biteur or bitusd and I explain them the logic and how it works the first thing they ask me is about security.
If we were to dilute in order to pay a higher interest rate, that would make Bitshares look like a scam to me. A ponzi, taking the funds of new investors (those who bought diluted shares) and paying it as interest to old investors.
This is exactly what we dont want to do, imo.
We need to increase real, legitimate, sustainable demand for bitUSD. Which is hopefully what the coming marketing campaign will do.
Maybe worth registering bitusd.com.ar? Wikipedia says it can only be done by an argentine residant.
They don't need to know anything about bitshares, just how to buy and sell bitUSD and store it in a bitUSD only wallet as a savings account (not developed yet). Presumably there needs to be an 'on ramp' for argentine Pesos (ARS) and a bitUSD/ARS market in the back end? How about a localbitusd style website as well?
I'll have a sub-page for http://whatisbitusd.com translated into Spanish.
There are plenty of available channels and networks in Argentina. I can help facilitate anything in the region.
Excellent! Was it you who added me to Skype? So many people have added me recently I've lost track. My apologies.
Yes.
The first thing we would need is everything translated into Spanish.
It has emerged Invictus is right in the firing line of a SEC investigation in crypto IPOs. People are putting their money in BitUSD in the expectation that this news will cause the price of BitsharesX to fall without crashing it completely.
Who are you waiting for?
This is a decentralized industry.
Anyone with the vision and skills should grab a niche and get going.
You clearly have both.
I understand what you're saying. I'm an independently wealthy serial entrepreneur with too much time on my hands and an obsession with BitShares, why not just go do it? The problem is, I'm already spending too much time on this as it is (according to my girlfriend who now lovingly refers to BitShares as BitShits ) and bootstrapping network effect in the aforementioned niches will require [small] seed capital (not to mention a significant time commitment). Posting on these forums in the hopes my ideas get through to the Invictus hivemind is just about the best thing I can do right now. I'm open to suggestions.
How dumping BTSX get you profits from shorting bitusd?
My understanding is that if BTSX are dumped their price to usd will fall, so someone shorting bitusd (expecting usd to fall vs. BTSX) will lose.
Oh right yes I'm mistaken.
Someone with a large position is quite bullish about the future value of BTS...
So the big shorting action increasing bitUSD market cap is just because someone thinks BTSX will rise? But someone had to buy that bitUSD didn't they. And those people must think BTSX will go down so they buy bitUSD to protect themselves. So overall is increase in bitUSD market cap just means people are hedging, placing their bets within the system, not necessarily that any new money is entering?
Until there are on/off-ramps from fiat to bitUSD, each bitUSD created from shorts must be bought using BTSX on the Bitshares-X trading platform. So my understanding would be that any matched short definitely doesn't mean new money came in. The only way to have new money coming in the ecosystem would be through BTSX on the centralized exchanges. I'm no market expert, but that would be my interpretation.
How dumping BTSX get you profits from shorting bitusd?
My understanding is that if BTSX are dumped their price to usd will fall, so someone shorting bitusd (expecting usd to fall vs. BTSX) will lose.
Oh right yes I'm mistaken.
Someone with a large position is quite bullish about the future value of BTS...
How dumping BTSX get you profits from shorting bitusd?
My understanding is that if BTSX are dumped their price to usd will fall, so someone shorting bitusd (expecting usd to fall vs. BTSX) will lose.
There was some huge shorting action yesterday that more than tripled the current supply of bitUSD.
http://bitsharesblocks.com/blocks/block?id=858831
PS. I'm not sure about the price ratios etc of asset transactions after all the recent changes to shorting mechanics, I'm gonna have to go over them and make sure everything is still correct. Anyway the short answer is lots of shorting happened, so market cap went up.