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Messages - Ander

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General Discussion / Re: Video of Inside Bitcoins keynote?
« on: October 07, 2014, 06:48:25 pm »
AFAIK it starts in 3 minutes ..
Maybe I had my time zone calculation off by an hour.

It either just ended or is just starting!

General Discussion / Re: Video of Inside Bitcoins keynote?
« on: October 07, 2014, 06:41:28 pm »
So...did it get recorded?

Burning supply to pay a dividend works well with an asset like BTSX, where you create a fixed amount, and then burn them over time.

But the way that bitUSD is created and destroyed is different.  Opening a new short creates bitUSD.
Closing the short removes the bitUSD.  Every short must be closed within 30 days, so whenever a bitUSD is created, that bitUSD will be destroyed within 30 days.

If you wanted to pay dividends by burning bitUSD then here is what would happen:

* People short, creating 1 million bitUSD.
* 1000 bitUSD are burned for the yield, resulting in 999,000 bitUSD remaining.
* People now need to cover the shorts by buying up 1 million bitUSD, but only 999,000 remain! 

The result is that it is not possible to cover all the shorts.  The price would go to infinity as the short was forced to buy bitUSD that did not exist.

This would be a reverse ponzi. :)  100% of the initial collateral that the shorts used to create bitUSD would be given to the buyers of the bitUSD.  The late adopters would get everything and the ones who originated the bitUSD would lose everything.   Lol!

General Discussion / Re: Bter: bitUSD/USD price
« on: October 07, 2014, 06:12:12 pm »

just figured out that ALL USD markets on bter have pretty low volume .. to sell BTC you need to give away btc for 100$ below the market :\


Guess why NuBits volume was so high this weekend?

It is because people wanted to sell their BTC on bter for USD, but couldnt due to spreads.  But they COULD sell it for NuBits, because the NuBits market maker bot had hundreds of thousands of NuBits on both bid and ask at a very low spread.

So people sold their BTC for NuBits.  Then later when the BTC price dropped and they wanted back in, they traded NuBits back into BTC.  Hedging successful with low slippage!

(At least, this might be the reason.  Its certainly a good explanation).

General Discussion / Re: NuBits
« on: October 07, 2014, 05:50:26 pm »
Regarding the cause of the high NuBits volume:

NuBits is traded on   The NuBits devs maintain a bot which trades NuBits on bter, with a very large supply, and low spread.  There were thousands of bitcoins worth of nubits available on the ask, and hundreds of bitcoin worth on the bid side.  The bot fixed the price of NuBits very close to $1. 

On bter, volume in trading bitcoin into USD or CNY is quite low.  Most trades there are between bitocin and altcoins.    If someone had a large amount of bitcoins on bter during the bitcoin price crash last weekend, and they wanted to hedge their position, they couldnt just sell the bitcoins into cash, wait for what they thought was the bottom, and then buy back.  The spread was too large, and the volumes were too low for this to be possible without massive slippage.

However, due to the NuBits bot, and its low spread and high volume, it WAS possible to sell into cash.  And people did this.  Thousands of BTC worth of volume traded back and forth between BTC and NuBits, with NuBits essentially acting like USD.

This is why NuBits had such high volume.

A market maker bot operating on a small spread, with a large capacity to buy and sell will do a VERY good job at both enforcing a peg, and providing liquidity!   It will be heavily used in the absence of other market makers who are providing liquidity.

I anticipate that there will be a lot of volume in bitUSD as well in the future, once we have a similar market maker bot buying at .995 and selling at 1.005, with hundreds of thousands of bitUSD available on both the bid and ask.

General Discussion / Re: BitAssets ... aren't a killer feature
« on: October 07, 2014, 04:29:14 pm »

+5% The OP is basically arguing against crypto as a concept.

Yes this.

Fiat currencies are an easy to use, centralized system.  If that is what you want, no need for crypto at all, of any form.

General Discussion / Re: NuBits
« on: October 07, 2014, 05:15:14 am »

That is because ALL Nubits is owned by one team.

They sold 100 NBTS,get 100USD CASH.

IF they do not wish to run off with the 100USD CASH AT THE MOMENT,they can easily do whatever liquidity they like .Because everytime they sold a NBTS,

Of course,as long as they do not want to run off ,even after selling 2 Million NBTS and get 2 Million USD eash CASH .

If I make a coin with 100% premine , I can easily do the same trick,as long as I don't run off with the money I sold from the coin.

And ,the team maybe only 1 person ,even after selling some shares in the public,the main power and fund still controls in 1 person.

I'm going to give you the benefit of the doubt and assume you are currently drunk in vegas, and that is the reason why this post doesnt make sense, has fractured sentences, and cannot manage to place commas or periods correctly at the end of words, with spaces after them.

I'm pretty sure that crazy rants against NuBits like this are not what we need on this forum.  What we need is intelligent discussion about how we can make bitUSD the best it can be, so that we can beat our competitors.

General Discussion / Re: Video of Inside Bitcoins keynote?
« on: October 07, 2014, 05:10:31 am »
Even if all we can get is audio, someone needs to make sure to record it.

General Discussion / Re: NuBits
« on: October 06, 2014, 11:19:25 pm »
But the main issue to adoption in my view is complexity. It requires a BTSX wallet (and BTSX as collateral) to access and hold BitUSD. Its a multi-step process. And trading it requires a knowledge of some quite complicated (and constantly shifting) rules to understand the market dynamic, at least until enough history means people can just default to trusting it.

Listen to the most recent podcast:

Bytemaster describes a potential future system where the average person could use bitUSD without all this complexity, without owning BTSX.  They use bitUSD the way they use a credit or debit card, and all of the complexity is handled by the payment processor. 

This, or something like it, is what we need to happen to have widespread bitUSD adoption. 

General Discussion / Re: NuBits
« on: October 06, 2014, 09:51:38 pm »

Also, NuBit volume is the result of bots trading. It's not organic.

I dont think that matters.

When bitUSD is up and running well, almost all of the trading in it will be bots as well.  (market maker bots, etc). 

Its still volume.

General Discussion / Re: NuBits
« on: October 06, 2014, 08:48:58 pm »
Bitshares requires bag holders as well. If everyone decides to get out of BitUSD what next? How well will it "track" the price?

The answer to this is why bitUSD works better than NuBits.

If everyone wants out of bitUSD, the price will go below $1, and shorts will cover and the bitUSD that people wish to sell will *be destroyed*.  Those bitUSD will no longer exist.  There will not be a new bagholder who bought them at .98 now looking to sell at .95, and another bagholder at .95 looking to sell at .90, and so on down to 0 value.

Instead, the bitUSD that everyone was desperate to get rid of will be GONE, the supply contracting until demand and supply are again equal! 

Then, if in the future, demand for bitUSD increases again, more can be created.

This is why bitUSD >> NuBits.  You cant destroy the NuBits.  You can merely offer the bagholder a larger and larger and larger interest rate in order to 'park' the NuBits for a while.  But once it is done being parked, the original NuBits PLUS the interest are back, looking to be sold. 

Of course, FOR NOW, there is a lot of demand for NuBits and not much for bitUSD.  Which is the problem that we must remedy.

General Discussion / Re: NuBits
« on: October 06, 2014, 08:31:59 pm »

Reality is NBT so far works better than BitUSD, when it comes to liquidity. Can you buy/sell 1000 BTC worth of BitUSD without pushing the market? No.

Straw man argument.  You can't argue against the potential wet bag of shit Ponzi scheme that is NuScam

So...we just say over and over that NuBits is a scam.

Plenty of other people say bitUSD is a scam and the peg wont work. 

How are we different?

We need to bring technical arguments to these discussions to demonstrate why bitUSD is better.
We need to have more market volume in bitUSD, to show that it is the superior choice. 

We dont need to circlejerk and repeat 'nubits is a scam' over and over whenever anyone talks about it.  Having our heads in the sand and just 'believing' in BTSX isnt going to accomplish anything.  This isnt a religion.

General Discussion / Re: NuBits
« on: October 06, 2014, 08:28:35 pm »
Reality is NBT so far works better than BitUSD, when it comes to liquidity. Can you buy/sell 1000 BTC worth of BitUSD without pushing the market? No.

Yes, this is true for now.  NuBits is way ahead of us at present in terms of market volume / adoption.

We need two things:
* Bug fixes / stable code base (bytemaster is working on this constantly).
* Marketing to drive demand for bitUSD.  (OpenBazaar?  Referral Campaign?  etc).

General Discussion / Re: Video of Inside Bitcoins keynote?
« on: October 06, 2014, 08:23:36 pm »
We definitely need a video of the keynote.  I cant wait to watch it.

General Discussion / Re: How much is a new user worth?
« on: October 06, 2014, 07:26:52 pm »
Thats good news.  Now we just need someone to do the coding work to allow OpenBazaar to use bitUSD.

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