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General Discussion / Re: Idea: make the blockchain a bond market lender
« on: November 11, 2015, 11:35:22 pm »Not clear to me .. do you propose to use bit USD as collateral for BTS then?
I think we had this discussion already some time ago and agreed that shareholders do not want to have BTS inflated like that .. Besides that, it would be pretty much possible (although, I am not sure about "guaranteed" profits)
If you want to go long USD, you borrow BTS from the bond market, buy it, pay interest on the loan, sell it, give back the BTS + interest, or get margin called. Either way the blockchain gets its BTS back 100% plus profits.
edit: shorts are more tricky, though.
The blockchain doesn't need to profit, people do.
The blockchain needs to facilitate people profiting, or do all the people exist to serve the profit of the blockchain?
Why would people lend if they can't get any interest? If they have to compete with the blockchain itself then they'll just lend on Poloniex. Where will people get 5 or 10% yield from to bring liquidity?
The blockchain could bring liquidity but it would only be temporary, it would be unnatural, and unsustainable.
I agree with this from my perspective as a BitShares user. Interest & Dividends are strong incentives.