I originally posted this in the bitUSD interest announcement but it's better suited here .

Quote from: bytemaster on September 07, 2014, 07:22:28 pm

Quote from: Riverhead on September 07, 2014, 07:21:07 pm

Why not just buy bitUSD on the open market so your BTSX isn't held up?

Going short/long at the same time is equivalent to holding BTSX with an option to double your stake at todays prices at any time.

I'm clearly missing something here. Someone help me fill in the blanks.

1) I short 100 bitUSD which at current $0.031 peg(ish) would be ~3225.82 BTSX
2) Someone takes the other side so now there's an extra 100 bitUSD supply and I have about 6451.61 BTSX tied up in collateral
3) Fast forward to Dec. 1st, 2014 when BTSX/bitUSD is 1/1 (   Hush, it's my hypothetical example)
4) I buy 100 bitUSD for 100 BTSX and cover my order, releasing the 6451.61 BTSX back into my account.

Is it the case that of the 6451.61 BTSX half of it came from selling the original 100 bitUSD and therefore is profit (minus the 100 BTSX I had to spend to buy the bitUSD to cover)?

If I bought my own short wouldn't I just be breaking even?

Hi guys,

I just would like to say that I have same problem of understanding this, specially this statement

"Going short/long at the same time is equivalent to holding BTSX with an option to double your stake at todays prices at any time."

The way I understand this statement is if I have 100000BTSX and split it 50% in BTSX short and 50% buy bitUSD long then in some time in the future I should be able to double my original 100000BTSX. It would be really great if somebody who has better understanding of  this to try to explain it to some of us who don't get it.

Regards 

Thanks xeroc, your answers are very helpful to me. I use to keep my wallet back up on my laptop and usb, but now it is going to be only usb. I know about Trezor as I bought one, but in meantime I sold all of my bitcoins and replaced them with BTSX. 
 Something like Trezor would be great for BTSX.
Regards
aloha 

My apologies guys I have not seen it before. I have locked poll.

I think it's better for the one asking the question to say something like:
"I'm a beginner at linux, how do I use github?"

Rather than requiring people to go through an extra step to declare their level of experience before asking a question, what if the forum had a "beginners" sub-forum under "technical support"? This way someone could feel comfortable asking a more basic question there.

aloha maqifrnswa,

Your question is fine, but how many people know what github is, how many people know  what seeds are. All I am saying if beginner has a question and we can see it is beginner than we can adjust our answer and our language to suit the person who is asking.
Answering beginner in the way so he/she does not have to spend another hour on google trying to understand an answer.
I think beginners sub-forum is fine as well. We need a lot of new people to join Bitshares Revolution, but we need to be prepared to help them in a way that is understandable to them. Simple explanation without a lot of technical words which are hard to understand. Sometimes beginner  can explain something that he knows better to other beginner than expert. But if somebody have a question and I see next to their name that they are experts than there is no point for me as a beginner to try to help them. I am not asking anybody to declare anything they do not feel comfortable, but please try to see this from the point of complete beginner.

aloha 

I like Riverhead idea to make it fun, but 6 levels may be to many. I would propose 3 levels plus developer level so 4 in total. This is mainly to help people to communicate better with each others, specially beginners which have simple questions which do not require developers to get involved. Quiz may be good idea, but it may scare of beginners.
 So based on Riverhead idea I would propose following levels: 4) Developer, 3) I dream in Binary, 2) Friends call me for IT support 1) Homer Simpson.
I think there must be some better and funnier names which could be acceptable to all so please feel free to share them 

Good idea .. but honestly .. can you tell how good your "IT knowledge" is on a scale from 1 to 7?

 Unfortunately I can it is 1  , where 1 is the lowest.

Thanks bytemaster 

Sorry I have one more question.
When will the system act on my short of 33.8761 if the market goes in the opposite direction, BTSX loose value against USD?