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Messages - benbogart

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General Discussion / Re: bitUSD - USD - open.USD => what's the difference
« on: January 10, 2018, 01:50:08 am »
Quote from: Customminer on January 04, 2018, 09:51:26 pm
bitUSD == USD (Just different ways of referring to it).

Open.USD is real FIAT USD deposited into OpenLedger's bank & issued to the user in return. bitUSD have 2 times the amount of collateral than Open.USD & the collateral is provable on the blockchain.
This seems at odds with everything I have read so far.  I believe bitUSD is not USD, but instead a contract that is backed by the equity used to short positions.  In otherwords its an asset that has the same value as BTC backed by BitShares.  Its value should be close to USD but apparently isn't always.  To me USD means actual green bills or at least something I can exchange easily for actual green bills. 

open.USD seems more like USD to me in this case because it can be easily exchanged for USD.  Am I misunderstanding this?

Quote from: Troglodactyl on January 10, 2018, 12:49:04 am
Open.USD involves counterparty risk, so it trades at a discount to bitUSD since bitUSD is decentralized and collateralized.

Thank you @Troglodactyl .  This makes sense.

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General Discussion / Re: bitUSD - USD - open.USD => what's the difference
« on: January 09, 2018, 03:43:46 am »
I have these questions too, specifically:

1) if both these currencies are 100% (or more) backed but currency, why does open.BTC trade at .9 to bitBTC?  Does that mean if I wanted to withdraw using open ledger I would loose 10% of the value of my currency?

2) conversely if I transfer BTC into bitShares through openledger would it be theoretically worth 10% more than its value in bitBTC, but with no way to withdraw?

Clarification on the price variance of these pegged currencies would be helpful since they seem to vary significantly from each other.  I'm sure I'm just missing some important detail ;)

Thanks.

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