I think it will be quite a popular coin

Want to sell me all your bitshares so that you can go buy more of it?

Wow.  This sounds like a DAC that needs to be created!

Um, no.

Did you not hear about what happened to e-gold?

No inactivity fee.

Honestly I think we should remove all references to inactivity fees.

I have had conversations with two different people online in the past couple days where their reason for not buying BTSX was basically "There is a 5% fee each year, which means that if I make less than 5% yield I am losing money!". 

Quote from: Ander on September 27, 2014, 01:49:24 am

I started researching the altcoins.

Out of curiosity, did anything else apart from Bitshares that you researched impress you?

I initially bought 5 different altcoins, but now I've sold them all to buy more BTSX.

Made some money on DOGE at least.

Nearly there. The BTSX is burnt by the delegates who burn a percentage of their pay per block which reduces supply.

Are there any other ways that BTSX gets burned?  Thanks!

Thanks Oldman.


So a bitUSD "should" be worth $1. 
When market forces push the value to 1.01 or .99, market making bots step in and equalize the balance.


When the demand for bitUSD becomes VERY LARGE, and overwhelms the trading bots, the price might go to 1.02 or 1.05 or something.  Then, people use their BTSX as collateral to create more bitUSD and sell it until it equalized back to $1.  Therefore, when there is high demand for bitUSD, more bitUSD is created.  As long as the market cap of BTSX is of sufficient size relative to the demand for bitUSD, this works.


When the demand for bitUSD greatly DECREASES, the price might drop to .95 or whatever.  Then, people who have existing shorts take the opportunity to cover the shorts, which takes bitUSD out of existence!  They do this until the price goes back up to $1. 



So it seems that the price of bitusd cannot go far away form $1.  If it goes too high, lots more bitUSD appears to fulfill demand.  If it goes too low, bitUSD is destroyed.  So the price of bitUSD cannot go to zero.  But the quantity of bitUSD in existence could go to 0, if demand dried up.




Comparing this to Nubits.  Both Nubits and bitUSD are created when demand increases.
However, when bitUSD demand disappears, the bitUSD is REMOVED.  (People cover shorts and the bitUSD goes away).
When Nubits demand disappears, the interest rate on Nubits is raised.  (And raised, and raised), until holders are encouraged to 'park' Nubits instead of sell it.  HOWEVER, in the future when the parking is over, the Nubits are back, WITH INTEREST.  Now you have even more Nubits in existence.   If demand is still low, then interest rates must go up more! 


To summarize:
* If there is no demand for bitUSD, all bitUSD will disappear.  The shorts will be covered and the holders will get some amount of money a bit below $1 for them and then they wont exist anymore. 
* If there is no demand for Nubits, then Nubits become the zimbabwe dollar.  More and more of them are created( due to the interest) the price drops, and the interest rate on them increases.

(Note: I am wrong about Nubits if the Nushares holders can/will actually remove Nubits from existence by buying them.  If that is the case then they are similar to bitUSD).


Am I correct about all that?  Thanks!