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QuoteAlso imagine a bitUSD(whatever local currency you need) debit card
Working on this
What would happen if bitassets were only able to be shorted with bitusd? This would increase bitusd supply which strengthen its peg.
keyID will crush this
`Whilst I share your expectation that we have only just started, that still doesnt answer the point that a 400% bull run makes a 50% crash very likely, and not a "black swan" scenario.
Apologies, my post could have been clearer.
When assets bubble and crash it is because value flows into and then out of the asset.
With BTSX it is a one way trip. Value enters via BTSX and flows to cryptives backed by BTSX.
So when BTSX 'crashes' the value flows to bitUSD, bitCNY etc. rather than to fiat, BTC, etc.
This, combined with the very high mobility of crypto-equity (crypto-value?) may result in sustained absorbtion of a vast amount of capital that never leaves the system.
Ie. BTSX just keeps going up. And up. And up.
At least that's what I'd like to see...
Sorry but this is assumes that most BTSX trading takes place on the X exchange, which is not the case. And its not a satisfying answer for someone who is not yet convinced by BTSX.
if BTSX -> bitAsset trading occurs on external exchanges (ie. Bter BTSX -> bitUSD) the traded value is still retained in the Bitshares ecosystem.
Certainly if BTSX -> notbitAsset trading occurs on external exchanges (ie. Bter BTSX -> BTC) value leaves the ecosystem.
What I am plugging is that going forward there will be less and less motivation to move value outside of the ecosystem.
ie. why trade BTSX for BTC when you can trade BTSX for bitBTC (faster transfers, TITAN, etc.) or bitBTC5 (faster transfers, TITAN, ROI).
All of this retained value will ultimately be reflected in the market cap of BTSX.
Kind of a Hotel California scenario.
You have to realize the significance of first mover advantage.
Look at bitcoin and then litecoin. Litecoin being no better mousetrap never gained more than 10% of bitcoin.
This will be the same for bitshares as long as the system is good.
I think Bitshares is different. You're forgetting about BitBTC which basically is Bitcoin but pays interest.
Anyone rational would sell all their Bitcoins for BitBTC immediately. Why would you hold Bitcoins when you can hold BitBTC and receive interest? Give me one reason.
BitBTC does NOT pay interest
