46
General Discussion / Re: Will Ethereum swallow us whole come March?
« on: February 15, 2015, 12:02:43 pm »
I'm don't really understand the question. BitShares and Ethereum aren't doing the same thing.
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47
General Discussion / Re: Ethereum has a wikipedia page and we don't
« on: February 13, 2015, 06:48:05 am »
The key is to write about it in very dry, objective, factual language with sources that are non-bitshares/cryptocoinnews-type websites.
48
General Discussion / Re: We are failing selling our products
« on: February 09, 2015, 02:15:26 pm »
Adding liquidity to bitassets is the first step in making them attractive and usable.
Today, your average American can't personally go to a bank and get Chinese paper cash.
Today, your average Chinese can't easily invest in TSLA or AAPL stock.
These things are going to go from difficult-slash-impossible to trivial once the bitasset versions of these things have enough liquidity.
I really like the CFSCOIN initiative. They have a business plan where they can profit from adding liquidity to bitGOLD with trading bots. Hopefully it works. Then just do it for everything else that people conceivably want to trade.
Today, your average American can't personally go to a bank and get Chinese paper cash.
Today, your average Chinese can't easily invest in TSLA or AAPL stock.
These things are going to go from difficult-slash-impossible to trivial once the bitasset versions of these things have enough liquidity.
I really like the CFSCOIN initiative. They have a business plan where they can profit from adding liquidity to bitGOLD with trading bots. Hopefully it works. Then just do it for everything else that people conceivably want to trade.
49
General Discussion / Re: Bitshares African Initiative Part 2: Phase One
« on: February 09, 2015, 01:55:18 pm »
Unfortunately, the business plan is a bit loose. I don't really see how you plan to make money or why your tokens would be valuable. The value proposition for BitShares isn't clear.
50
General Discussion / Re: [ANN] Cryptohedge Financial Services soft launch
« on: February 04, 2015, 05:19:38 pm »
very good idea!
It will certainly help the bitshares project to succeed !
I have already bought some CFSGOLD , but I have to make one question...
Why is the supply 20 CFSGOLD right now and not 10 CFSGOLD? Have you already found a big investor that bought 10 CFSGOLD? Am I missing something?
I had a buyer contact me who was interested in buying 10 bitgold. Since the supply of bitgold already on the books wasn't exhausted I just put up an extra 10 bitgold.Question: Why do you need outside money for this? I assume you've already designed the trading bots. Why not just run them yourselves and take 100% of the earnings instead of giving 70% to CFSGOLD holders? You're not going to need a million dollars to provide liquidity on BTC:bitGOLD.
You're launching with 10-20 CFSGOLD. That's not exactly big money.
Launching with the small amount of BitGold is just to test the funding system. We hope that once BitGold and other assets get started and our hedgebots begin providing a return we can scale CFSGOLD and other CFS assets as reliable, low risk financial products that will appeal to investors outside the bitshares community as well and drive attention and users to bitshares.
Regarding the expected return. I'm actually having a hard time figuring out the best way to model it, because it's impossible for us to predict how much demand there will be for actually trading bitgold on the exchange platforms themselves (rather than buy into bitgold to hold or maybe use it as an on ramp for BTS). Depending on the kind of trading people do we can accomodate it with smaller or larger pools of capital. I'm considering that a better way to offer CFS assets is with a fixed return rather than the current model, because with the current model all CFS asset holders will have their return reduced every time new CFSGOLD is issued.
Is it necessary to issue new CFSGOLD? Just do it Bershire Hathaway style
51
General Discussion / Re: [ANN] Cryptohedge Financial Services soft launch
« on: February 04, 2015, 12:27:06 pm »
Question: Why do you need outside money for this? I assume you've already designed the trading bots. Why not just run them yourselves and take 100% of the earnings instead of giving 70% to CFSGOLD holders? You're not going to need a million dollars to provide liquidity on BTC:bitGOLD.
You're launching with 10-20 CFSGOLD. That's not exactly big money.
You're launching with 10-20 CFSGOLD. That's not exactly big money.
52
General Discussion / Re: Top 1000 richest address of BTS,USD,CNY.
« on: February 04, 2015, 07:53:29 am »
Satoshi briefly became a billionaire when bitcoin sniffed past 1000. Any bets on when BitShares gets its first billionaire?
53
General Discussion / Re: [ANN] Cryptohedge Financial Services soft launch
« on: February 04, 2015, 06:15:14 am »
Oh, right. You buy your own shorts. And the trading bots are trading bitcoin and bitgold. I definitely read that too fast. So you're exposed to BTS and CFS the company. And your profits are exposed to gold.
54
General Discussion / Re: [ANN] Cryptohedge Financial Services soft launch
« on: February 04, 2015, 05:38:03 am »
So to participate in this you should:
1. Acquire BTS.
2. Use 2/3rds of your BTS to short bitGOLD
3. Use 1/3rd of your BTS to buy your bitGOLD
4. Trade your bitGOLD for CFSGOLD 1:1
Cliffnotes on operations:
The CFS company will make money as it earns up to 1% on the bid:ask spread between bitcoin and CFSGOLD using trading bots on exchanges. 70% of those earnings go back into CFSGOLD, increasing the NAV. So now CFSGOLD might be worth 1.x : 1 with bitGOLD.
At the end of the quarter, the CFS company will offer a full buyback of the CFSGOLD at the 1.x value if you want to cash out.
Note: As you've likely shorted the bitGOLD into existence (due to the lack of available bitGOLD) you have no choice but to expose yourself to BTS. Your exposure to BTS is double that of CFSGOLD at the beginning. So ultimately you should be bullish on both BTS and gold (and the honesty and competence of CFS).
Do I have that right?
With all that said, do you have any wild estimates of how profitable this might be for CFSGOLD holders? Realistically, how much could CFSGOLD be worth if it attained a trade volume similar to say, nubits?
1. Acquire BTS.
2. Use 2/3rds of your BTS to short bitGOLD
3. Use 1/3rd of your BTS to buy your bitGOLD
4. Trade your bitGOLD for CFSGOLD 1:1
Cliffnotes on operations:
The CFS company will make money as it earns up to 1% on the bid:ask spread between bitcoin and CFSGOLD using trading bots on exchanges. 70% of those earnings go back into CFSGOLD, increasing the NAV. So now CFSGOLD might be worth 1.x : 1 with bitGOLD.
At the end of the quarter, the CFS company will offer a full buyback of the CFSGOLD at the 1.x value if you want to cash out.
Note: As you've likely shorted the bitGOLD into existence (due to the lack of available bitGOLD) you have no choice but to expose yourself to BTS. Your exposure to BTS is double that of CFSGOLD at the beginning. So ultimately you should be bullish on both BTS and gold (and the honesty and competence of CFS).
Do I have that right?
With all that said, do you have any wild estimates of how profitable this might be for CFSGOLD holders? Realistically, how much could CFSGOLD be worth if it attained a trade volume similar to say, nubits?
55
Technical Support / How do airdrops of other shares work?
« on: February 04, 2015, 02:00:00 am »
I heard that PLAY and Music may airdrop shares? Why?
56
General Discussion / Re: Does BTS burning represent a form of income for BTS?
« on: January 30, 2015, 09:36:09 pm »I suppose that every bitUSD sold into existence represents bitshares being taken out of supply temporarily. "Frozen," if we're to stay with the chemistry metaphors. I think what trips people up, including myself, is that the profits are indirect. We're not getting profits in USD and distributing it amongst ourselves. We're manipulating the supply of the stock to pay stockholders. The share buyback analogy is complicated and sort of skirts around what's actually happening. This is the business plan as I understand it:
1) Bitshares pays shareholders by increasing shareholder equity.
2) Bitshares increases shareholder equity by increasing the price of BTS.
3) Bitshares increases the price of BTS by enticing people to remove BTS from supply (either burning or freezing it) in exchange for leverage, stability, betting, etc.
4) The more participation there is in these activities, the more BTS that will be removed from supply.
Yep. That's about how it works. Remember there's a finite amount of BTS available for these things -- only what people are willing to put into them, which is of course less than the full market cap because some people just want to sit on their BTS or have decent amounts of BTS readily available for trading, voting or whatever.
So if the demand for these activities exceeds supply, the people who want BitAssets or whatever will start a bidding war for BTS. If the price of BTS goes up and shorts start to win, in the long run they'll have incentive to re-short because their existing short can only win so much.
So we're basically skipping to bitcoin year 2140. Then we're kicking the miners out completely to cut costs (at no disadvantage). Then we're creating a business model where economic activity on our platform fuels share deflation, which in turn increases shareholder purchasing power (even if demand remains flat). This is incredible.
57
General Discussion / Re: Does BTS burning represent a form of income for BTS?
« on: January 30, 2015, 08:04:18 pm »Real question is: how many years do we estimate it will take for us to become profitable and earn more income than what is being spent on payed delegates?
Well, in 4 years delegate pay will be half what it is today when measured in BTS.
Every BitUSD sold is also a "product sale" provided it is not "returned". After a certain period of time we can count the "minimum BitUSD supply over the past X period of time" as a sale. If it is returned after that we can book it as a "loss".
I suppose that every bitUSD sold into existence represents BTS being taken out of supply temporarily. ("Frozen," if we're to stay with the chemistry metaphors.) I think what trips people up, including myself, is that the profits are indirect. We're not getting profits in USD and distributing it amongst ourselves. We're reducing the supply of the shares to pay shareholders. The share buyback analogy is complicated and sort of skirts around what's actually happening. This is the business plan as I understand it:
1) Bitshares pays shareholders by increasing shareholder equity.
2) Bitshares increases shareholder equity by increasing the price of BTS.
3) Bitshares increases the price of BTS by enticing people to remove BTS from supply (either burning or freezing it) in exchange for leverage, stability, betting, etc.
4) The more participation there is in these activities, the more BTS that will be removed from supply.
5) Given the same demand for participation in these activities measured in USD/EUR/etc., BTS should rise in value measured in USD/EUR/etc.
It's basically doing what Goldfinger was trying to do with gold. Goldfinger broke into Fort Knox to irradiate America's gold, thereby reducing the supply, making his gold worth more. With BTS, we're trying to reduce the supply by offering services that result in the incineration of BTS.
But in order for this to work, we have to assume that
1) The amount of USD/EUR/etc. flowing into BTS tomorrow will be the same or greater than the amount of USD/EUR/etc. flowing into BTS today.
2) The amount flowing out is not increasing relative to what's flowing in.
Burning and freezing BTS is not strictly income. I don't think any accountant could possibly record the burning of BTS as income. At the same time, that burning is extremely likely to result in income through capital gains.
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General Discussion / Re: Does BTS burning represent a form of income for BTS?
« on: January 30, 2015, 06:08:51 pm »Burning BTS is equivalent to income under the assumption that there will be demand for the DAC's services in the future.
First imagine that Apple immediately took any profit from the sale of a macbook and used it to buy back stock.
Now imagine that Apple first pre-sold coupons redeemable for macbooks and bought back stock from the presale.
The key is that someone had to buy the BTS in the first place for it to be redeemable for a service.
I've tried to flesh out the analogy to make sense of it to myself.
So I own 1/10 shares of Apple and Apple is worth $100. $10 shares. And Apple's factory can produce Macbooks at no cost. So Apple pre-sells a voucher that says "Good for 2 Macbooks" for 20 USD. Then Apple takes that 20 USD and buys 2 shares back from other shareholders who want out and Apple burns those two shares. So now there are only 8 shares. I still own 1. So I have 1/8 shares of Apple. Assuming Apple is still worth the same as before ($100), then now my 1/8th is worth $12.50.
But although Apple can make Macbooks for free, it still has some costs. There are bandits and vandals and other evildoers who will destroy the factory unless Apple creates 0.01 shares every year and gives it to a security company.
At the end of the year, Apple sells 2 macbooks, buys 2 shares, burns them, but then creates .01 shares and gives them to the security company.
Now I have 1 out of 8.01 shares and the company is still worth $100.
Apple = BTS
Apple stock = bts
macbooks = transactions on the bitshares blockchain
factory = blockchain
shareholders = bts users
shares from other shareholders = unclaimed bts
voucher = bts (shares in the company and fees are the same thing)
security company = delegates
What do you think?
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General Discussion / Re: BTS price falling ... I would buy more if .....
« on: January 30, 2015, 07:13:23 am »
Every cryptoasset is falling for the simple reason that bitcoin is falling. Forget about decoupling from the 90%+ marketshare leader in the space. This lull is actually a positive. It gives BTS time to develop the software (e.g. light wallet) and do the work that needs to be done to make BTS super-accessible when cryptocurrencies become hot again. This is a precious grace period for the whole space.
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Technical Support / Re: A few questions on voting and the number of BTS users
« on: January 30, 2015, 03:52:28 am »
Thanks for the quick response!
