If I want to realize my BTS profits, I sell BTS and buy BitUSD

But wouldn't that cause an inverse correlation ? What we're seeing is a positive correlation. There might be something to it though because I now remember that there was a 2-week delay between the BTS and BitUSD spikes back in June.

All the same, look at the market now. We have a massive spike in BitAsset liquidity and ALSO a buoyant BTS valuation. That seems to me positively correlated, implying that the BitAsset demand is independent of BTS market demand. BTS is needed anyway to collateralise that liquidity even if itself is also experiencing a sell-off.

The fact that there's BitAsset growth is the significant thing. It doesn't really matter where its coming from because the system is starting to work by virtue of delivering liquidity to complimentary markets:

 • those requiring store of value
 • those requiring pegged trading liquidity

The difference with Tether is that BitUSD is "real money" held on the blockchain so when you hold it it cannot be defaulted on. Tether on the other hand is just a worthless token promise. It's the bank that holds the actual liquidity. Subtle theoretical difference but huge practical one because in one case you could be holding bottle tops for all you know and in the other the real thing backed by real markets.

Hi

I am a long time lurker and holder. I generally keep one eye open for activity in the BTS markets but recently I noticed this huge growth in circulation of the BitAssets - particularly BitUSD and BitCNY. I've been expecting this for a long time (in fact I expected it would happen a couple of years ago and then went to sleep when it didn't).

Now I've woken up again.

I realise that $30 Million is a drop in the ocean (for BitUSD for example) but from a strategic point of view I think this is huge. I've been wracking my brain over 3 things:

1. why it so suddenly took off back in April
2. why it is now accelerating

and

3. why the BTC ratio is not as spikey as it was in June despite a far larger BitAsset growth (requiring proportionally more collateral).

Well 3 is easily explainable by BTC's massive growth against the dollar, so that's fine. My own theory for 2 is that with the Bitfinex/Tether adverse publicity, the advantages of a pure crypto, trustless pegged blockchain asset over a bank-backed one are starting to dawn on the market (lightbulbs going on).

I still have no clue to the suddenness of point 1 though. (By the way BitCNY is the same - off the charts growth in the last month so I didn't bother showing it separately).

*********** Market Observations ***********

There are some very interesting observations to be made from the last 8 months - namely, it's quite beautiful IMO the way that the BTS price perfectly correlates with the BitAsset supply (BitAsset marketcap can be used as a proxy for supply since the dollar price is constant). This indicates that the network and economics of the system is actually working as intended and that BTS isn't just being used as a speculative bottle-top asset like, say, Litecoin is. (That's why I invested in this in the first place).

Second observation is regarding the BTS/BTC ratio. We can see that despite BTC's massive 700% growth since last June, BTS is starting to recover its value even against BTC. What this tells me is that BTS is excellently decoupled in the sense that the more BitUSD et al get used as cash pairs for crypto markets, the better BTS can perform BOTH in times of BTC growth and especially during corrections (when increasing numbers cash out to BitUSD instead of the toxic Tether).

Third observation should be stark and slightly humbling: Tether has a circulating supply of 1.4 billion and is created by a single company, not a real crypto, not trustless and already toxic. The whole point of a blockchain is that you hold what you have in your wallet. i.e. it isn't a promissory note (as Tether is). Meanwhile BitUSD's circulation is approx 30 million. The BitAssets are bound to grow to at least the marketcap of Tether as understanding proliferates IMO.

The implication is a 1400% growth just to that level alone. If we confine the growth to only the USD cash market currently occupied by Tether then that would represent a 46 times growth in BitUSD. Given the close correlation shown in the traces below between BitUSD circulation and BTS dollar price, than would mean BTS at a Bitcoin ratio of 0.022 (currently 0.000042) if BTC were to stay at current $USD exchange rate.

Lets say that BTC grows to $40,000 this year though and BitUSD only captures 10% of the Tether market. That would still represent a doubling of the BTS price in bitcoin and a 460% increase in the BTS dollar price. The reason I'm becoming increasingly bullish now is that the growth in BitAsset circulation seems to be finally taking off after years of laying the groundwork. Confidence in the network, calamities in competing "pseudo pegged-assets" and a general explosion of capital arriving in the sector as a whole seem to have lit the touchpaper.

All to play for !

Is this correct ?

Hi

Reading the description of this blockchain model, it's doing exactly what Bitshares is - leveraging base collateral to produce pegged assets. Is there any difference from the Bitshares model ? I can't see any.

https://www.forbes.com/sites/rogeraitken/2017/05/19/disruptive-blockchain-backed-salt-loans-platform-in-launch-to-leverage-bitcoin-assets/#5531b69727cc

It is succeeding, the product is built. It works.  Now it's simply a matter of attracting more business to start using it.  Stan's is already on that, and any of us can do that too if we like...

Many thanks. Glad to hear it !

THAT SAID, I must also confess I'm learning a lot about the details of Dash Amanda won't tell you about in Dash Detailed. The shady origins of Dash's early days. The premine, the coinjoin algorithm at the heart of Dash's "privacy". Of course a major weakness with Dash is that it's based on Bitcoin. A smart business move to get Dash off the ground but not a very good long term strategy.

Actually Amanda has OFTEN talked about this in Dash Detailed and these facts have all been in the public domain for years.

Far from being "shady" Dash's origins are just about the most discussed phenomenon in crypto after the identity of Satoshi Nakamoto so I can only assume you've been hiding under a rock during that time.

In addition to that, it's now one of the best distributed cryptos around, partly because it's 3 years old and partly because it's now had 4 major pumps and selloffs during which potential 'exiters' have done plenty of profit taking. The founder is thought to hold around 3% of the coins supply at most. Triple or quadruple that if you like and he's still outnumbered many times in terms of node voting.

Regarding "privacy", lets just examine that for a moment. Dash has very definite and well defined monetary model. That is that it is a deflationary base asset bearer token modelled after a mined commodity just like bitcoin. Being unbacked, it does not use encryption as this would obfuscate the blockchain and detract from its symmetric transparency. (I use the word 'symmetric' to mean that the same blockchain attributes are visible to everyone regardless of whether they are a keyholder or not, as opposed to an encrypted blockchain where the sender has one view and the receiver another).

Against this background, Dash uses a mixing algorithm to erase transaction history. In other words its privacy algo is modelled on cash which consolidates in a cash drawer and is then dispersed in different denominations than it arrived.

There is nothing deficient about this approach and in fact it's the optimal privacy algorithm for a cryptocurrency which is maximising value and authenticity since it doesn't need recourse to any 'hiding'. In addition to this the theoretical chance of tracing a particular anonymised balance back to its sources is negligible.

There has been a lot of nonsense written about Dash over the years, most of it by people with axes to grind. People should do their own research - as I did when I invested. If they don't like the instamine, no problem - invest in something else. But it's pre-history and the biggest holders at in the early days were buyers not miners.

See this for more debunking: https://www.youtube.com/watch?v=mzqGf_ak_2I

Sorry for the off-topic post. Believe it or not, I am a Bitshares holder going back years and am a great fan of Bitshares. I came back here to find out what's going on with this project but the first thing I read is posts about Dash which I'm sick of debunking. I'd appreciate if someone could spent as much effort filling me in on Bitshares as I have to do debunking nonsense about Dash.

I think BitShares will pass it in value thanks to BitAssets, it won't be the crypto reserve currency though as BitShares is a crypto-equity. So I think there is a market for a crypto-currency Bitcoin replacement too.

I'm quite fascinated to see how the BitAssets thing goes.

It kind of blew my mind when I first discovered it to think of the vast potential. In particular, the capacity that BitAssests have for capitalising BTS indirectly. At the same time, I've got this cynical, kind of "too good to be true" notion bubbling in the back of my mind, so I think I have my feet on the ground about it.

My point about bitcoin isn't that nothing else could surpass it in marketcap, but rather that all alts wlil continue to be priced in BTC which gives it enormous status. For example, oil is a huge market that dwarfs the marketcap of the US dollar, but the dollar is still *the* reserve currency (well, in theory - rapidly diminishing).

I don't know if you stumbled across my other thread where I worked through a notional real world macro-economic application of the BitUSD concept....

https://bitsharestalk.org/index.php?topic=11784.0

EDIT: oops ! I just realised we're already corresponding over on that thread !