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Stakeholder Proposals / 1 million BTS refundable registration fee for delegates
« on: April 13, 2015, 12:00:33 pm »
With nothing else changed, what effect would this have?
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General Discussion / Traders and investors are the most important userbase, not merchants.
« on: April 12, 2015, 11:36:37 pm »
Traders and investors are the real customers, not merchants and shoppers. Merchants and shoppers don't necessarily need to hold bitUSD for a long time to do transactions. Nor do people using bitAssets for remittance purposes. These people hold bitAssets for as short a time as possible. They just want to be in the BTS system to accomplish their transaction. Then they leave the system.
In contrast, traders and investors either:
a) make lots of short term transactions (requiring frequent paying of fees) OR
b) hold their assets for a long period of time (taking those BTS out of circulation and also generating a yield that must be paid in BTS)
But traders are not interested in BitShares. Why? Just compare Bitshares to non-Bitshares trading platforms. Foreseeably, the most popular market-pegged assets will be government currencies, cryptocurrencies, and stocks. In the non-BitShares world, the most popular platforms for trading those assets (Forex markets, cryptocurrency exchanges, and stock brokerages) all have one thing in common: there is borrowing. The less volatile the asset (e.g. government currencies), the more borrowing is allowed. (Because no one is going to trade bitEUR:bitUSD unless they can trade with 20x margin.) The margin levels of course should differ depending on the class of assets traded (e.g. bitEUR:bitUSD should allow for 20x margin but BTS:bitUSD should only allow for .5x margin.)
The ultimate vision for BitShares, which I think we all share is:
Any person anywhere in the world with 100 BTS can hold, trade, borrow, or lend every major asset that exists in the world 24 hours a day, 7 days a week, 365 days a year with zero counter-party risk, virtually no minimum deposit or withdrawal size, low fees, and total privacy.
Trading is the activity that BitShares excels at. We want this to be like a vacation resort; people come into the BitShares system with their $2000 and Bitshares offers so many amazing services that they spend that money playing in the Bitshares system for years while they borrow, lend, daytrade, and invest to their heart's content. Mr. Larimer is a BTS bull so he shorts bitUSD, bitCNY and every other currency into existence in exchange for more BTS. Mr. Bernanke is a stock market bear and offers to short the entire US stock market against his bitUSD offering 0% interest. Ms. Zhang from China wants to buy Berkshire Hathaway but it's not available on the Chinese stock market. Ms. Zhang gets some bitUSD and buys bitBRK from Mr. Bernanke. Mr. Volker risks lending Ms. Zhang some additional bitUSD at 10% annually as long as she is only allowed 3x margin or less and will be automatically margin called if her balance goes too low. Mr. Gates knows something about what bitUSD:bitMSFT will do next week and no one's going to know if he trades it. And Mr. Ackman thinks that the USD:Hong Kong dollar peg will break and the Hong Kong dollar will be worth 30% more after the peg breaks. So Mr. Ackman borrows 50 million dollars worth of bitUSD at 10% per year and buys bitHKD. And he will pay the bitUSD back after the peg breaks or he gives up.
And it goes on and on and on. Are you guys seeing what I'm seeing? BTS will eventually be like like forex, Bitfinex, NASDAQ, Nikkei, and Hang Seng all combined, only better. A one stop shop for trading anything and everything. And then we just make sure there are no clocks on the BTS client and let people waste away in front of their computer screens making trade after trade in complete capitalist ecstasy burning up fees while simultaneously soaking up BTS supply (into bitAssets).
When BitShares can do this, the CPC (cost per customer) that we are so worried about is going to drop to 0 because BTS will be more addictive than World of Warcraft.
tl;dr - Forget about merchants and customers. We need collateralized lending markets to attract forex, cryptocurrency, and equities traders and keep their money in the BitShares system.
EDIT: made my examples more accurate
In contrast, traders and investors either:
a) make lots of short term transactions (requiring frequent paying of fees) OR
b) hold their assets for a long period of time (taking those BTS out of circulation and also generating a yield that must be paid in BTS)
But traders are not interested in BitShares. Why? Just compare Bitshares to non-Bitshares trading platforms. Foreseeably, the most popular market-pegged assets will be government currencies, cryptocurrencies, and stocks. In the non-BitShares world, the most popular platforms for trading those assets (Forex markets, cryptocurrency exchanges, and stock brokerages) all have one thing in common: there is borrowing. The less volatile the asset (e.g. government currencies), the more borrowing is allowed. (Because no one is going to trade bitEUR:bitUSD unless they can trade with 20x margin.) The margin levels of course should differ depending on the class of assets traded (e.g. bitEUR:bitUSD should allow for 20x margin but BTS:bitUSD should only allow for .5x margin.)
The ultimate vision for BitShares, which I think we all share is:
Any person anywhere in the world with 100 BTS can hold, trade, borrow, or lend every major asset that exists in the world 24 hours a day, 7 days a week, 365 days a year with zero counter-party risk, virtually no minimum deposit or withdrawal size, low fees, and total privacy.
Trading is the activity that BitShares excels at. We want this to be like a vacation resort; people come into the BitShares system with their $2000 and Bitshares offers so many amazing services that they spend that money playing in the Bitshares system for years while they borrow, lend, daytrade, and invest to their heart's content. Mr. Larimer is a BTS bull so he shorts bitUSD, bitCNY and every other currency into existence in exchange for more BTS. Mr. Bernanke is a stock market bear and offers to short the entire US stock market against his bitUSD offering 0% interest. Ms. Zhang from China wants to buy Berkshire Hathaway but it's not available on the Chinese stock market. Ms. Zhang gets some bitUSD and buys bitBRK from Mr. Bernanke. Mr. Volker risks lending Ms. Zhang some additional bitUSD at 10% annually as long as she is only allowed 3x margin or less and will be automatically margin called if her balance goes too low. Mr. Gates knows something about what bitUSD:bitMSFT will do next week and no one's going to know if he trades it. And Mr. Ackman thinks that the USD:Hong Kong dollar peg will break and the Hong Kong dollar will be worth 30% more after the peg breaks. So Mr. Ackman borrows 50 million dollars worth of bitUSD at 10% per year and buys bitHKD. And he will pay the bitUSD back after the peg breaks or he gives up.
And it goes on and on and on. Are you guys seeing what I'm seeing? BTS will eventually be like like forex, Bitfinex, NASDAQ, Nikkei, and Hang Seng all combined, only better. A one stop shop for trading anything and everything. And then we just make sure there are no clocks on the BTS client and let people waste away in front of their computer screens making trade after trade in complete capitalist ecstasy burning up fees while simultaneously soaking up BTS supply (into bitAssets).
When BitShares can do this, the CPC (cost per customer) that we are so worried about is going to drop to 0 because BTS will be more addictive than World of Warcraft.
tl;dr - Forget about merchants and customers. We need collateralized lending markets to attract forex, cryptocurrency, and equities traders and keep their money in the BitShares system.
EDIT: made my examples more accurate
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Meta / Trading subforum (board 8.0) disappeared from list
« on: April 04, 2015, 01:05:16 pm »
Although it's still accessible. Please re-add it when you get a chance.
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General Discussion / Trader's perspective: Being forced to cover every 30 days is unacceptable
« on: March 28, 2015, 04:32:17 pm »
People need to be able to borrow any asset from others and pay interest. Then they can pursue whatever trading strategy they want. No one knows what can happen in 30 days. If you're trading with a long-term strategy, then you don't care about a 30 day movement. But if they're forced to cover every 30 days, then many people will be unwilling to trade.
Lending/borrowing markets are planned for BTS, right? BTS should try to emulate Bitfinex and other successful trading platforms as much as possible. They have already done the research and gotten the feedback on what traders want.
Lending/borrowing markets are planned for BTS, right? BTS should try to emulate Bitfinex and other successful trading platforms as much as possible. They have already done the research and gotten the feedback on what traders want.
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General Discussion / Negative yield can motivate people to short new assets
« on: March 06, 2015, 07:47:32 am »
I actually want to use BitShares to buy Tesla stock. This is not a hypothetical. I think TSLA can go up 10x-20x in the coming years. I've wondered "When will I be able to buy meaningful qualities of bitTSLA?" At this pace of bitAsset development, maybe it will take 10+ years. How can I motivate people to short TSLA stock faster than that? The answer is probably to pay them.
My idea is that there should be negative yield. Let bidders offer a yield to encourage people to short-sell assets into existence. So if I want to buy TSLA and there's no one selling TSLA, I put in a bid for 10 shares with -10% interest at the feed price. Some of my BTS is locked up as collateral to pay the interest. I pay an annualized 10% per year but I think TSLA is going to double this year I don't mind.
Without a negative yield, I need to wait for someone who is bearish on TSLA:BTS to come along. By offering 10% annualized interest (which is normal on Bitfinex and other lending platforms during times of low liquidity), I can attract many more people to offer TSLA.
You may be wondering "Why would someone pay 10% to own bitTSLA when they can buy TSLA from an online broker?" I can think of a few examples:
1) A Chinese investor cannot easily buy TSLA so he will pay 10% per year to easily access it through BTS for a short-term trade.
2) A TSLA insider knows of good news that will soon be released, but will get caught insider trading if he or any of his family/friends trades on that information. Trade it on BTS and the SEC won't know.
3) Avoid capital gains taxes.
My idea is that there should be negative yield. Let bidders offer a yield to encourage people to short-sell assets into existence. So if I want to buy TSLA and there's no one selling TSLA, I put in a bid for 10 shares with -10% interest at the feed price. Some of my BTS is locked up as collateral to pay the interest. I pay an annualized 10% per year but I think TSLA is going to double this year I don't mind.
Without a negative yield, I need to wait for someone who is bearish on TSLA:BTS to come along. By offering 10% annualized interest (which is normal on Bitfinex and other lending platforms during times of low liquidity), I can attract many more people to offer TSLA.
You may be wondering "Why would someone pay 10% to own bitTSLA when they can buy TSLA from an online broker?" I can think of a few examples:
1) A Chinese investor cannot easily buy TSLA so he will pay 10% per year to easily access it through BTS for a short-term trade.
2) A TSLA insider knows of good news that will soon be released, but will get caught insider trading if he or any of his family/friends trades on that information. Trade it on BTS and the SEC won't know.
3) Avoid capital gains taxes.
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Technical Support / How do airdrops of other shares work?
« on: February 04, 2015, 02:00:00 am »
I heard that PLAY and Music may airdrop shares? Why?
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Technical Support / A few questions on voting and the number of BTS users
« on: January 30, 2015, 02:21:07 am »
1. I can only see the percentage of votes on bitsharesblocks. Is there anywhere that I can see the raw number?
2. What bitshares are eligible for voting? Can collateralized bitshares vote? If I short bitUSD and receive collateral from a bitUSD buyer, can I change the votes of those bitshares?
3. According to this poast, there are 6000 distinct balances associated with account registrations. Given that one can register multiple accounts. Can this information can this data tell us anything about the number of users? Are there any current estimates of the # of bitshares holders?
2. What bitshares are eligible for voting? Can collateralized bitshares vote? If I short bitUSD and receive collateral from a bitUSD buyer, can I change the votes of those bitshares?
3. According to this poast, there are 6000 distinct balances associated with account registrations. Given that one can register multiple accounts. Can this information can this data tell us anything about the number of users? Are there any current estimates of the # of bitshares holders?
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Stakeholder Proposals / The Endgame of Delegate Work is Specialization, Quantification, and Verification
« on: January 28, 2015, 02:37:55 pm »
An example
Specialization: One delegate group is responsible for translation of all brochures, wiki articles, important bytemaster blog posts, and other information into the world's major languages (Chinese, Spanish, French, Arabic, Japanese)
Quantification: The goal is to for the shareholders to pay a top-end rate per character, or per word (whatever industry standard is) for the highest-quality work.
Verification: Every day, the group copy and pastes the text that they've translated and uploads it to the delegate work verification website or a simple Dropbox account where we (the shareholders) can all look at the work and verify that it's not shoddy Google Translate text. The shareholders are more than capable of voluntarily verifying that it's high quality work.
This wishy-washy "promotion" stuff can't last because we (the shareholders) can't be there with each delegate to see that they are handing out fliers, or giving presentations, or setting up newbies with clients, or doing any of the stuff that they claim that they are doing. If delegates want to specialize in promotion, then figure out a way to quantify it.
For example, if you have a Japanese group that is specializing in promotion, then BTS holders can pay you a certain amount per meetup session. One session in Tokyo/Osaka/Fukuoka/Hokkaido will have a budget of 50,000 yen each. We expect 4 meetups for the month. Then you upload screenshots of the advertisements and the pictures of the meetups or a recording of the meetup and then everyone can verify than the work was done.
It doesn't matter what you're doing. If you're coding, then we want to see lines of code. And we have shareholders that are more than capable of verifying that the lines of code are legitimate.
And if people are NOT doing what we're paying them to do, then they get voted out. Within days or 1 week if necessary.
This is the endgame. The sooner we set the SQV system up, the better.
Specialization: One delegate group is responsible for translation of all brochures, wiki articles, important bytemaster blog posts, and other information into the world's major languages (Chinese, Spanish, French, Arabic, Japanese)
Quantification: The goal is to for the shareholders to pay a top-end rate per character, or per word (whatever industry standard is) for the highest-quality work.
Verification: Every day, the group copy and pastes the text that they've translated and uploads it to the delegate work verification website or a simple Dropbox account where we (the shareholders) can all look at the work and verify that it's not shoddy Google Translate text. The shareholders are more than capable of voluntarily verifying that it's high quality work.
This wishy-washy "promotion" stuff can't last because we (the shareholders) can't be there with each delegate to see that they are handing out fliers, or giving presentations, or setting up newbies with clients, or doing any of the stuff that they claim that they are doing. If delegates want to specialize in promotion, then figure out a way to quantify it.
For example, if you have a Japanese group that is specializing in promotion, then BTS holders can pay you a certain amount per meetup session. One session in Tokyo/Osaka/Fukuoka/Hokkaido will have a budget of 50,000 yen each. We expect 4 meetups for the month. Then you upload screenshots of the advertisements and the pictures of the meetups or a recording of the meetup and then everyone can verify than the work was done.
It doesn't matter what you're doing. If you're coding, then we want to see lines of code. And we have shareholders that are more than capable of verifying that the lines of code are legitimate.
And if people are NOT doing what we're paying them to do, then they get voted out. Within days or 1 week if necessary.
This is the endgame. The sooner we set the SQV system up, the better.
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