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It's much better to register your public key with KH 0.7.0 if you can. The web form link is best only used if you previously registered a public key with 0.7.0 and now you want to change that public key. I'll dig up the web form link, in case KH-based registration isn't working for you and PM you.
.045 / .9 => 5%
If you only paid 90 cents for it and the interest rate didn't change then you would only be able to sell your 1.05 BitUSD for $0.945 and thus your return would still be 5%
Why 5%? In differing financial climates, would there be a need to alter this rate? For example, if the prevailing growth rate is 10% year on year as in some countries, then 5% might seem low.
The market will automatically adjust the premium/discount on the BitAsset based upon whether or not the interest rate is currently too high or too low. In reality it will already function as a "base rate" because if we set the interest rate to 0% then the BitAsset would literally be like holding cash and would then be discounted relative to BankUSD which paid interest.
BitUSD should trade like a 30 year treasury earning a fixed 5%. It will go up and down in value as the current interest rate changes. While the current interest rate is 'stable' its value will also be stable. Which means as long as the interest rate doesn't change while you hold your BitUSD position you will earn 5%.
Hmmm.. My brain is struggling with this a little, but, if 1 bitusd was worth 90 cent because the market valued it at that for whatever reason. I then invest in 1 btusd at a cost of 90 cents which happens to be the equivalent of 100 bitshares. Then my dividend would be 5 bitshares which is still 5% and is not affected by the fact that 1 bitusd is worth less than 1 usd.
What am i missing?
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