16
General Discussion / Bitshares price just flash crashed down to 0.00000169 on poloniex
« on: February 28, 2017, 03:20:13 pm »
Show Posts
This section allows you to view all posts made by this member. Note that you can only see posts made in areas you currently have access to.
17
General Discussion / Lost accounts holding BitUSD bad. Lost accounts with collateral positions good.
« on: February 25, 2017, 06:10:18 pm »
"Lost coins only make everyone else’s coins worth slightly more. Think of it as a donation to everyone." Satoshi Nakamoto
Above is one of Satoshi famous quotes about people losing bitcoin.
But bitshares is different and I think the following is true
Lost wallets that hold bitshares make everyone else's bitshares worth slightly more.
Lost wallets that have open collateral positions are probably a good thing for liquidity.
Lost wallets holding BitAssets are bad for liquidity
If there are more lost bitUSD than lost BitUSD collateral positions then it is impossible to close all the collateral positions. This could create a situation where the demand for bitUSD is higher than supply.
We need the opposite situation for liquidity. We need the supply of BitUSD to be higher than demand. (remember theres always demand below face value because of the ability to force settle for profit)
This leads me to believe we should create an account that creates a bunch of BitUSD then lose the keys on purpose. This would be akin to the base money (M1 supply) that Central banks create.
This would help solve the problem of kickstarting trust in those who would like to create BitUSD but are currently afraid due to lack of BitUSD supply near the market price.
This is complex stuff to get your head around but I've tried to write it concisely as possible.
Above is one of Satoshi famous quotes about people losing bitcoin.
But bitshares is different and I think the following is true
Lost wallets that hold bitshares make everyone else's bitshares worth slightly more.
Lost wallets that have open collateral positions are probably a good thing for liquidity.
Lost wallets holding BitAssets are bad for liquidity
If there are more lost bitUSD than lost BitUSD collateral positions then it is impossible to close all the collateral positions. This could create a situation where the demand for bitUSD is higher than supply.
We need the opposite situation for liquidity. We need the supply of BitUSD to be higher than demand. (remember theres always demand below face value because of the ability to force settle for profit)
This leads me to believe we should create an account that creates a bunch of BitUSD then lose the keys on purpose. This would be akin to the base money (M1 supply) that Central banks create.
This would help solve the problem of kickstarting trust in those who would like to create BitUSD but are currently afraid due to lack of BitUSD supply near the market price.
This is complex stuff to get your head around but I've tried to write it concisely as possible.
18
General Discussion / Liquidity, Liquidity, Liquidity
« on: February 01, 2017, 06:20:23 pm »
Bitshares is superior to other exchanges because it uses BitUSD which has no human liability and is decentralised.
But this advantage means little if our BitUSD is not available to buy in quantity near the peg.
A liquid asset is cash on hand or an asset that can be readily converted to cash. An asset that can readily be converted into cash is similar to cash itself because the asset can be sold with little impact on its value.
We need to make BitUSD a liquid asset. But how?
1.) Focus on BitUSD
We must concentrate trading activity on BitUSD.
There is no point trying to make all our smartcoins liquid assets at the same time as this spreads trades thinly across many markets.
The number of trade tabs on Openledgers GUI has been reduced which is great but the OBITS one still needs to be removed.
2.) Simplify borrowing of BitUSD
Make it more intuitive to borrow BitUSD by adding borrow as an action next to the BitUSD. (update: @svk has now implemented this)
3.) BitUSD:OPEN.USDT market
The best way to show people BitUSD is worth 1 USD is to create a market where BitUSD trades against a bearer asset that is worth 1 USD. That would be USDT (see www.tether.to)
Bearer asset = Doesn't need to be kept in a named account.
I am trying to kick start the BitUSD:OPEN.USDT market with $1000 buy and sell walls and a 6% spread. Please take advantage of them or add some orders yourself. This market pair is easy for anyone to be a market maker in because both assets have the same face value meaning you don't have to trust bot software because orders don't need updating
4.) Maker / Taker model.
This is a model that incentivises people to put up orders for other people to take.
if you take orders off the orderbook you pay more. If you make orders on the order book you pay less. (trade fees)
I personally think at this stage the maker taker model won't help much and will be a lot of effort to implement. there is lower hanging fruit to be had first.
5.)Bots
Bots are bits of software that do automated trading, most trades that happen in the world today are done by bots. These bots are configured by their human owners to do stuff like abitrage or market making. These are essential to liquidity on the dex and their importance is underestimated .
Any coder can create a bot and let others use the software. @xeroc created a bot in python that is available here:https://github.com/xeroc/stakemachine
But if you're not a developer you can use this web based bot system created by @alt www.btsbots.com
If thats too hard for you see point number 3.) again.
https://bitsharestalk.org/index.php/topic,23457.0.html
6.) Distribute BitUSD
Getting even small amounts of bitUSD in to users hands familiarises them with it and even if they dump it thats still adding trades to the market.
The idea of getting more bitusd out there is a good one and has been discussed many times on this forum. Who to and how is the tricky bit.
As a dividend to shareholders or Lifetime Members: https://bitsharestalk.org/index.php/topic,23706.msg301767.html#msg301767
To pay worker proposals and witnesses: https://bitsharestalk.org/index.php/topic,23028.0.html
Just create Bitusd using from the reserve pool via a worker proposal and then sell at peg: https://bitsharestalk.org/index.php/topic,22935.0.html
But this advantage means little if our BitUSD is not available to buy in quantity near the peg.
A liquid asset is cash on hand or an asset that can be readily converted to cash. An asset that can readily be converted into cash is similar to cash itself because the asset can be sold with little impact on its value.
We need to make BitUSD a liquid asset. But how?
1.) Focus on BitUSD
We must concentrate trading activity on BitUSD.
There is no point trying to make all our smartcoins liquid assets at the same time as this spreads trades thinly across many markets.
The number of trade tabs on Openledgers GUI has been reduced which is great but the OBITS one still needs to be removed.
2.) Simplify borrowing of BitUSD
Make it more intuitive to borrow BitUSD by adding borrow as an action next to the BitUSD. (update: @svk has now implemented this)
3.) BitUSD:OPEN.USDT market
The best way to show people BitUSD is worth 1 USD is to create a market where BitUSD trades against a bearer asset that is worth 1 USD. That would be USDT (see www.tether.to)
Bearer asset = Doesn't need to be kept in a named account.
I am trying to kick start the BitUSD:OPEN.USDT market with $1000 buy and sell walls and a 6% spread. Please take advantage of them or add some orders yourself. This market pair is easy for anyone to be a market maker in because both assets have the same face value meaning you don't have to trust bot software because orders don't need updating
4.) Maker / Taker model.
This is a model that incentivises people to put up orders for other people to take.
if you take orders off the orderbook you pay more. If you make orders on the order book you pay less. (trade fees)
I personally think at this stage the maker taker model won't help much and will be a lot of effort to implement. there is lower hanging fruit to be had first.
5.)Bots
Bots are bits of software that do automated trading, most trades that happen in the world today are done by bots. These bots are configured by their human owners to do stuff like abitrage or market making. These are essential to liquidity on the dex and their importance is underestimated .
Any coder can create a bot and let others use the software. @xeroc created a bot in python that is available here:https://github.com/xeroc/stakemachine
But if you're not a developer you can use this web based bot system created by @alt www.btsbots.com
If thats too hard for you see point number 3.) again.
https://bitsharestalk.org/index.php/topic,23457.0.html
6.) Distribute BitUSD
Getting even small amounts of bitUSD in to users hands familiarises them with it and even if they dump it thats still adding trades to the market.
The idea of getting more bitusd out there is a good one and has been discussed many times on this forum. Who to and how is the tricky bit.
As a dividend to shareholders or Lifetime Members: https://bitsharestalk.org/index.php/topic,23706.msg301767.html#msg301767
To pay worker proposals and witnesses: https://bitsharestalk.org/index.php/topic,23028.0.html
Just create Bitusd using from the reserve pool via a worker proposal and then sell at peg: https://bitsharestalk.org/index.php/topic,22935.0.html
19
General Discussion / A blockchain inside a blockchain?
« on: January 25, 2017, 06:46:45 pm »
Bitshares can handle a theorectical 100k transactions per second.
Bitcoin has approx 5 tx per second resulting in 1 mb added to the btc blockchain every 10 mins (per block)
Bitshares currently have witnesses who feed in external price data from the real world such as the the BTC:USD price and the GOLD:USD price.
If we got witnesses to feed in every new bitcoin tx and block on into the bitshares blockchain what advantages would this give us?
If a full trustworthy copy of the bitcoin blockchain was being fed into the bitshares blockchain in realtime what doors would this open for innovation?
yes it would bloat our blockchain a lot but could any advantages outweigh the disadvantages?
Isn't one of the biggest barriers to sidechains that different chains do not know each others states?
This is just a thought i had and thought it was worth mentioning in case someone else can think of why it might be useful.
Bitcoin has approx 5 tx per second resulting in 1 mb added to the btc blockchain every 10 mins (per block)
Bitshares currently have witnesses who feed in external price data from the real world such as the the BTC:USD price and the GOLD:USD price.
If we got witnesses to feed in every new bitcoin tx and block on into the bitshares blockchain what advantages would this give us?
If a full trustworthy copy of the bitcoin blockchain was being fed into the bitshares blockchain in realtime what doors would this open for innovation?
yes it would bloat our blockchain a lot but could any advantages outweigh the disadvantages?
Isn't one of the biggest barriers to sidechains that different chains do not know each others states?
This is just a thought i had and thought it was worth mentioning in case someone else can think of why it might be useful.
21
General Discussion / What R3 think of our bitassets / smartcoins
« on: November 26, 2016, 11:52:53 pm »
R3 say our smartcoin design could maybe work but suggest pooled collateral instead of individual collateral for the smart contract.
they also say that using an altcoin as collateral won't be good enough due to inherent volatility and liquidity.
worth a read http://www.r3cev.com/blog/2016/8/24/stablecoins
I tend to agree that altcoins are a shitty form of collateral and only something with the depth and liquidity of bitcoin make sense.
This is why the having a bitcoin sidechain will be such a huge step forward.
they also say that using an altcoin as collateral won't be good enough due to inherent volatility and liquidity.
worth a read http://www.r3cev.com/blog/2016/8/24/stablecoins
I tend to agree that altcoins are a shitty form of collateral and only something with the depth and liquidity of bitcoin make sense.
This is why the having a bitcoin sidechain will be such a huge step forward.
22
General Discussion / Withdraw BitUSD to your bank account.
« on: November 23, 2016, 07:55:55 pm »
I've made a quick video showing how to withdraw BitUSD to you bank account via uphold.com
https://youtu.be/IFs-iFJ8Y3Y
I cut this video a bit short as it displayed some of my bank details. but you just withdraw to USD bank account at 0% fee and have to wait 1-3 days
Obviously you have to pay upholds conversion fee of 0.45% and whatever blocktrades charges to convert BitUSD to BTC.
https://youtu.be/IFs-iFJ8Y3Y
I cut this video a bit short as it displayed some of my bank details. but you just withdraw to USD bank account at 0% fee and have to wait 1-3 days
Obviously you have to pay upholds conversion fee of 0.45% and whatever blocktrades charges to convert BitUSD to BTC.
23
General Discussion / Changes I think Openledger needs
« on: November 21, 2016, 11:23:53 am »
1. Brand Clarity
Openledger.info is not the best domain name. It should be openledger.com also it should link directly to the dex not to a site explaining all the other ico projects ccedk is involved in.
Theres currently 4 domains involved and its messy. ccedk.com, openledger.info, obits.io, bitshares.openledger.info
Info about Openledger/obits should be contained within the dex under a separate header menu tab called home.
2. UIAs
It is confusing to have both TRADE.X and OPEN.X available as coin deposit options. Only Openledger UIAs should be available.
Poloniex doesn't offer BITSTAMP.X as a gateway and why would it??
The deposit/withdraw page should be more like poloniex with just a list of cryptocoins supported by OL and deposit and withdraw options next to each. (no drop down menus)
Also Obits shouldn't be listed as one of the trade tabs on the exchange page. BTC, USD and BTS are plenty.
3. Login to Openledger
The current method gaining access to and operating a bitshares account maybe technically great but it is just not user friendly.
Nearly every service on the web lets you sign in with a username an password. This is the system people know and understand instinctively and you can't change it if you want people to use your service. This idea has been around for over a year now but theres been no progress on it, I don't know if it is a front end or backend job but it is essential to attracting and retaining users.
4. Market Making
Openledgers UIA offerings are great but theres no liquidity on them. You need market making/ arbitrage bots that can copy the order books from other exchanges and provide liquidity. @alt has a MM bot that could help with this.
5. Account Page
Simplify the account page, I suggest.
- Display all open orders on the account page.
- Remove the vertical menu. Or toggle it as closed by default.
Openledger.info is not the best domain name. It should be openledger.com also it should link directly to the dex not to a site explaining all the other ico projects ccedk is involved in.
Theres currently 4 domains involved and its messy. ccedk.com, openledger.info, obits.io, bitshares.openledger.info
Info about Openledger/obits should be contained within the dex under a separate header menu tab called home.
2. UIAs
It is confusing to have both TRADE.X and OPEN.X available as coin deposit options. Only Openledger UIAs should be available.
Poloniex doesn't offer BITSTAMP.X as a gateway and why would it??
The deposit/withdraw page should be more like poloniex with just a list of cryptocoins supported by OL and deposit and withdraw options next to each. (no drop down menus)
Also Obits shouldn't be listed as one of the trade tabs on the exchange page. BTC, USD and BTS are plenty.
3. Login to Openledger
The current method gaining access to and operating a bitshares account maybe technically great but it is just not user friendly.
Nearly every service on the web lets you sign in with a username an password. This is the system people know and understand instinctively and you can't change it if you want people to use your service. This idea has been around for over a year now but theres been no progress on it, I don't know if it is a front end or backend job but it is essential to attracting and retaining users.
4. Market Making
Openledgers UIA offerings are great but theres no liquidity on them. You need market making/ arbitrage bots that can copy the order books from other exchanges and provide liquidity. @alt has a MM bot that could help with this.
5. Account Page
Simplify the account page, I suggest.
- Display all open orders on the account page.
- Remove the vertical menu. Or toggle it as closed by default.
24
General Discussion / Another cryptonomex spin off?
« on: November 05, 2016, 01:32:42 am »
What is Stan Larimer referring to in this steemit post? Is it yet another graphene chain? Does it compete with bitshares or steemit?
https://steemit.com/bitshares/@Stan/the-fourth-guy-fawkes-day-in-bitshares-steemit-history
https://steemit.com/bitshares/@Stan/the-fourth-guy-fawkes-day-in-bitshares-steemit-history
25
General Discussion / Facebook ad campaign results:
« on: September 15, 2016, 09:45:08 am »
Please read the details on steemit: JonnyBitcoin[/member]/results-from-bitshares-facebook-ad-campaign]https://steemit.com/bitshares/@JonnyBitcoin/results-from-bitshares-facebook-ad-campaign
26
General Discussion / telegram channel issue.
« on: August 28, 2016, 03:26:27 pm »
After the bitshares telegram group got turned into a supergroup, I couldn't find it and still can't anyone else got this issue?
27
General Discussion / Why Steem might actually make sense as a Smartcoin
« on: August 21, 2016, 07:17:37 pm »
I'm going to assume you already understand how bts smartcoins work in this post. AKA bitassets AKA MPAs
I think creating BitSteem would make alot of sense as a smartcoin.
Firstly because of the natural synergys between the bitshares and steemit users but more importantly this would be a bit asset that many people would actually want to short.
Whales with vested SP might want to hedge their large positions by shorting steem.
Someone who wanted to power down their SP over 2 years could be guaranteed a fixed payout if shorted correctly
When people call Steem a scam you can suggest they put their money where their mouth is and short it.
The issue with BitUSD, BitGold, etc is it is only created when theres a trader willing to short it into existence so the supply has been limited so far.
I think there would be a good supply and decent liquidity of BitSteem because of an appetite to short from traders.
I've also posted this on steemit if you wanna give me some upvote love:
https://steemit.com/bitshares/@JonnyBitcoin/why-steem-might-actually-make-sense-as-a-smartcoin
I think creating BitSteem would make alot of sense as a smartcoin.
Firstly because of the natural synergys between the bitshares and steemit users but more importantly this would be a bit asset that many people would actually want to short.
Whales with vested SP might want to hedge their large positions by shorting steem.
Someone who wanted to power down their SP over 2 years could be guaranteed a fixed payout if shorted correctly
When people call Steem a scam you can suggest they put their money where their mouth is and short it.
The issue with BitUSD, BitGold, etc is it is only created when theres a trader willing to short it into existence so the supply has been limited so far.
I think there would be a good supply and decent liquidity of BitSteem because of an appetite to short from traders.
I've also posted this on steemit if you wanna give me some upvote love:
https://steemit.com/bitshares/@JonnyBitcoin/why-steem-might-actually-make-sense-as-a-smartcoin
28
General Discussion / Steem dollar is more liquid than BitUSD. We should copy it's key feature.
« on: August 16, 2016, 08:35:37 pm »
BitUSD 0.8 BTC buy wall / 1.3 BTC sell wall
Steem Backed dollar 50 BTC buy wall / 30BTC sell wall
There are a lot more Steem dollars around than BitUSD and they are much more liquid.
The key reason is because the Steem blockchain creates the Steem dollars autonomously and distributes them.
The Bitshares blockchain only creates and distributes BTS but relies on traders to create the BitUSD.
If the Bitshares blockchain paid our witnesses and workers in BitUSD instead of BTS it would have the following effects.
- Reduce selling pressure on BTS
- Create a large supply of BitUSD
- Create liquidity and confidence for traders to short even more BitUSD in to existence.
- Easier to understand how much worker proposals are being paid /asking for
- Workers would know how many dollars they were getting paid each month.
- We wouldn't be increasing the current inflation rate of BTS from what it is now
This proposal was the result of a long discussion here: https://bitsharestalk.org/index.php/topic,22935.0.html
Ultimately this would need a hard fork, money for development and shareholder consensus.
Please keep on topic and concise with any replies.
Steem Backed dollar 50 BTC buy wall / 30BTC sell wall
There are a lot more Steem dollars around than BitUSD and they are much more liquid.
The key reason is because the Steem blockchain creates the Steem dollars autonomously and distributes them.
The Bitshares blockchain only creates and distributes BTS but relies on traders to create the BitUSD.
If the Bitshares blockchain paid our witnesses and workers in BitUSD instead of BTS it would have the following effects.
- Reduce selling pressure on BTS
- Create a large supply of BitUSD
- Create liquidity and confidence for traders to short even more BitUSD in to existence.
- Easier to understand how much worker proposals are being paid /asking for
- Workers would know how many dollars they were getting paid each month.
- We wouldn't be increasing the current inflation rate of BTS from what it is now
This proposal was the result of a long discussion here: https://bitsharestalk.org/index.php/topic,22935.0.html
Ultimately this would need a hard fork, money for development and shareholder consensus.
Please keep on topic and concise with any replies.
29
General Discussion / Pay for bitshares ads on facebook by upvoting this steemit post.
« on: August 16, 2016, 01:53:36 pm »
See post for details
JonnyBitcoin[/member]/bitshares-adverts-on-facebook-flash-fundraiser]https://steemit.com/bitshares/@JonnyBitcoin/bitshares-adverts-on-facebook-flash-fundraiser
JonnyBitcoin[/member]/bitshares-adverts-on-facebook-flash-fundraiser]https://steemit.com/bitshares/@JonnyBitcoin/bitshares-adverts-on-facebook-flash-fundraiser
30
General Discussion / BitUSD needs liquidity for those that want to buy it.
« on: July 29, 2016, 10:40:12 am »
After almost a year it's clear to me that the current system where speculators are expected to short BitUSD into existence will not create the large supply of BitUSD needed to make bitshares successful.
All bitassets have this same issue but we should on concentrate BitUSD or maybe BitCNY first.
We can learn from Steem backed dollars (SBD) which are backed by even more collateral than BitUSD but are created in an autonomous way by the system and not by traders.
I believe Bitshares needs an autonomous solution for creating a supply of BitUSD so that it is always available to buy and without a huge markup against USD.
This would require a hard fork and community consensus.
The easier option is to get the committee to create a worker proposal where all the received funds are used to create BitUSD and sell it to anyone who wants it.
I propose the committee make a worker proposal called (BitUSD liquidity) for 100k BTS per week which is used solely to create $2000 bitUSD every week.
This will all be sold to the highest bidder each week.
It is important to note that even though the committee will receiving 100k BTS each week for creating BitUSD there will not be an increase in the overall supply of BTS available to the public. Also the increase in supply of BITUSD will be 100% offset with the BTS used to buy it. This means dilution is not an issue at all unless the committee goes rogue and attempts to spend these funds on anything other than the creation of bitUSD.
This isn't the first time this idea has been suggested but I think now is the time to try it and if the community doesn't like it they don't have to support this worker proposal but I would like to see the committee propose it so it can be voted on.
All bitassets have this same issue but we should on concentrate BitUSD or maybe BitCNY first.
We can learn from Steem backed dollars (SBD) which are backed by even more collateral than BitUSD but are created in an autonomous way by the system and not by traders.
I believe Bitshares needs an autonomous solution for creating a supply of BitUSD so that it is always available to buy and without a huge markup against USD.
This would require a hard fork and community consensus.
The easier option is to get the committee to create a worker proposal where all the received funds are used to create BitUSD and sell it to anyone who wants it.
I propose the committee make a worker proposal called (BitUSD liquidity) for 100k BTS per week which is used solely to create $2000 bitUSD every week.
This will all be sold to the highest bidder each week.
It is important to note that even though the committee will receiving 100k BTS each week for creating BitUSD there will not be an increase in the overall supply of BTS available to the public. Also the increase in supply of BITUSD will be 100% offset with the BTS used to buy it. This means dilution is not an issue at all unless the committee goes rogue and attempts to spend these funds on anything other than the creation of bitUSD.
This isn't the first time this idea has been suggested but I think now is the time to try it and if the community doesn't like it they don't have to support this worker proposal but I would like to see the committee propose it so it can be voted on.
