Thanks, I'm looking forward to some feedback.

Here's my first crack at USD to PTS

http://joelooney.org/ptsforusd/

Check this out http://www.cubespawn.com/ 

Quote from: Geneko on January 16, 2014, 04:47:36 pm

Quote from: wasthatawolf on January 16, 2014, 04:37:09 pm

Another attempt to work this out logically...

What gives BitUSD a specific value in USD?

BitUSD is a contract with a fixed USD value backed by a promise to pay that corresponding USD value in BitShares.  The Bitshares network then provides a mechanism to ensure that all BitUSD is fully collateralized or that promise to pay is exercised. This leads to the next question, what gives a BitShare a specific USD value? 

Bitshares themselves can be traded on a cryptocurrency exchange for USD in the same way Bitcoin is bought and sold for USD on Bitstamp or Mt. Gox.  Bitshares have value because, like Bitcoin, they facilitate participation in the BitShares network while also providing equity in the network.

I think this is simplest explanation so far.

1 PTS for wasthatawolf

Awesome!  Here's my PTS address: PYDhxRmdd8YQdYLD757s7robuvafFdMARi

More like an ETF?  This analogy might make more sense using BitGold:


BitGold is pegged to the price of gold much like the SPDR Gold Trust ETF (GLD) is pegged to the price of gold. 

A share of BitGold is valued in BTS on BitShares X while a share of GLD is valued in USD on the NYSE.

Buying BitUSD within BitShares X is like buying part of an index fund that tracks the USD value of a share(s) of the stock exchange itself (BTS).

This is what is so new about BitShares BEX. It is supposed to be like a future contact with infinite maturity. There is no payout at the end of term because there is no end of term.  It is assumed that all market participants will acknowledge that a certain BitAsset's fair value is what its name implies. This could work because there is no central authority issuing otherwise worthless certificates in unlimited amounts (as for example any other kind of traded certificate) but instead longs and shorts always have to agree on a price to create it in the first place - or to destroy it.  It doesn't even look like a duck nor sound like a duck, yet it's price will be that of a duck.

Great explanation!  I've been reading about Bitshares since early November and I think I've finally connected most of the dots in my head after reading this thread.  I've found that explaining Bitshares (and Bitcoin) is easiest when comparing it to something that people already understand.

Maybe we need an open analogy bounty.  All good analogies could then be used in any future marketing campaigns.  Not only could this lead to good marketing material but it would help encourage people on these boards to think about these concepts in new, creative ways.

I see your points and I understand that the system as it exists now is something that has been developed and refined over time based on past experience.

Maybe I'm completely off base, I just think the bounty process, especially for large projects, in and of itself creates wasted effort.  Let's use the III website as an example.  Going through that bounty thread there are at least two submissions that look promising, super3 and itnom.  Two talented web developers/web dev teams.

How is it not a waste of time and effort for them both to be working on the same thing?  Only one site can get the bounty so the other is putting in all that effort for naught. 

Maybe my solution won't work (I'm not that vested in it as it only just came to me this AM, so I'm not offended that you're trying to rip it apart ), but there must be a better way to leverage the talent that appears on these boards so that work isn't duplicated.  The number one goal with my original suggestion was to maximize efficiency.