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Messages - bytemaster

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196
Bots should never place orders that consume the book, they should always leave orders on the book.

A smart bot will use automatic timeouts on their orders so that if their network connection goes down their orders will automatically get canceled before the price can move too far.

A bot needs to operate with enough spread that they can resell their inventory and maintain a neutral balance sheet before the market price can change enough to consume the spread.

The MAKER proposal would provide financial incentive for the participants and greatly reduce the risks to the market makers.

We should focus on only one BTS/BITASSET market.  Probably CNY or USD.  Then we should have market making in the CNY/USD market where the risks are lower. 

197
General Discussion / Re: DEX Proposal
« on: January 02, 2016, 04:36:54 pm »
I will set something up because it is apparent that BitShares needs continuous development and maintenance of its core features.

Rather than having one worker proposal, I will define 4 proposals.  Each proposal will be for $7500 per month.  The proposals will be "open ended" without specific tasks assigned beyond "maintaining and enhancing existing features".  This will cover the cost of fixing bugs, improving documentation, adding GUI support for existing features on the blockchain (proposed transactions, white listing, withdraw permissions), improving the API, etc. 

The community can then vote for how much to fund us and we will put in the time proportional to funding. 

Any unfunded time will be spent building our own business on top of bitshares. 

198
General Discussion / Re: Regarding MAS and my Vision
« on: January 02, 2016, 03:32:53 pm »
The so called community is just a group trap for BM, I like the vision. And honestly it is very important for us to know.

I am no different than anyone else in the community. It isn't like the combined effort of the other 95% of stakeholders is doing significantly more for BitShares than what I have personally funded over the past year.  This is not to downplay the efforts of other community members which have also made huge contributions that are even more disproportionate than mine relative to their stake.

The group trap is nothing but a prisoners dilemma where individuals profit more by defecting than by contributing. If everyone defected then everyone would lose, but if no one defected then everyone would profit more. Fortunately, we have many people in the community, myself included, that do contribute to the greater cause despite the group trap.

All I am doing is calling attention to the obvious fact that incentives are not currently aligned. 

199
General Discussion / Regarding MAS and my Vision
« on: January 02, 2016, 12:32:29 am »
Obviously I haven't fully communicated everything there is to know about MAS and why I am excited about it. 

It all boils down to the fact that I need to create a business that I can enter and generate recurring and non-linear income.  Doing worker proposals for BitShares or even work-for-hire is not a business, it is a job.  Selling time for money is not a winning strategy. Even if BitShares stakeholders were able to fund 100% of my time, it wouldn't make sense for me to take that job unless it was part of a larger income generating strategy.  Most people want a job, I want to create a business that generates non-linear income opportunities where there is no upper limit on what I can earn per hour.

In some sense I have a large stake in BTS and anything that grows the value of BTS produces non-linear income for me.  But considering my personal stake in BTS is well under 5% it means my own efforts are diluted by 95%. This a long standing economic issue, a problem known as the group trap: http://www.ultimatefreedomquest.com/group-trap/

Within the realm of a DEX there are several business opportunities I could pursue:

1. Become a licensed money transmitter and host our own wallet.  Under this model I would be competing with OpenLedger and others.
2. Create, Market, and Promote Prediction Markets.  Under this model I would be operating something that could be perceived as gambling. This is a business area that is not safe to enter in the US. 
3. Attempt to become a market maker.  This is not my area of expertise and requires significant capital and liquid markets.
4. Build another business on top of the BitShares network.

I have looked at my own options and concluded that building another business on top of the BitShares network is the most profitable avenue for me.  It may (or may not) be the most profitable for BitShares in the short term.

I also know that I didn't create BitShares so I could work a job I wasn't passionate about.  I created BitShares because I saw that price-stable cryptocurrency was the foundation of something bigger.  The MAS idea is something I came up with long before BitShares and was originally introduced... https://bitcointalk.org/index.php?topic=201297.0   I didn't know it was called a MAS at the time, but I do now.

More information will be coming.   Those who want to see the DEX grow can see it grow by funding work to make it grow and starting businesses that would be profitable because of the DEX.

201
General Discussion / DEX Proposal
« on: December 31, 2015, 01:41:27 am »
A lot of people have expressed interest in having me/CNX focus on the DEX. 

If that is the case, I can create a worker proposal that will fund almost full time DEX development.  It will require about $30K per month to have Val, Ben, James, and I working on the DEX 75% of the time. 

Otherwise we will have to find other ways to make money.

What are your thoughts on such a proposal?  We would focus on API + Bond + Maker.   

203
General Discussion / Re: Why I like Ethereum [BLOG POST]
« on: December 30, 2015, 05:00:16 pm »
"I would actively support a FBA to integrate the Ethereum VM into BitShares. Done properly this would have significant advantages over the current Ethereum blockchain. I would make the following minor modifications to the EVM’s implementation"

Do you have a rough estimate on time and labor?

@toast and @Rune may be better qualified to make these estimates.  I would guess we could get something like this done for around $50,000.  In this case, I think I would prefer to have someone more experienced with Eth take the lead and I will help with the design.

204
General Discussion / Re: Why Vision Matters Blog Post
« on: December 30, 2015, 04:58:02 pm »
@Akado - I will never drop the goal and requirement of profitability.  Profit is the key to sustainability which was outlined in my vision.  Everything I do is focused on PROFIT, but I want to make doing the RIGHT THING profitable.  If we make helping others profitable then it will help us help more people. 

207
General Discussion / STEALTH / Confidential Milestones
« on: December 30, 2015, 03:05:13 pm »
Based upon the current acceptance and low rejection rate of the STEALTH worker proposal, I hereby express my opinion that it has been accepted by the blockchain and that a hardfork has been authorized that will do the following:

1. Create a fee backed asset that will receive 80% of all fees paid for confidential transactions
2. Create a management account controlled by the 5 largest holders of this FBA who will have authority to set the fee
3. Issue 100% of this asset to Onceuponatime for is funding and promotion of the feature. He is bringing $45,000 in CASH to the table to build this without having to sell BTS.

I have set milestones in terms of dollars and time.  The milestones for this work will be as follows.

Milestone 1 - HARDFORK CODE COMPLETE
$5000 to implement the hardworking changes requested. These changes will be complete around January 15th, but the hard fork will not take effect until the end of February.

Milestone 2 - TRANSACTION SIGNING COMPLETE
$10,000 to implement the crypto in javascript and prove we can build and sign transactions. These changes will be complete by the end of January.

Milestone 3 - WALLET COMPLETE
$10,000 to implement the wallet code to track stealth balances and save it, this work should be done by  Feb 14th.

Milestone 4 - GUI COMPLETE
$20,000 to implement the GUI changes necessary to expose this to the user. This should be done by the end of February.  This milestone should show continuous progress with most of the GUI elements being put in place in January and then tested/integrated with being developed as part of Milestone 3.   
 
All of these tasks will commence in parallel as Ben and I work on the hard fork, James works on the javascript, and Valentine works on the GUI.   

While we are working on this Michael, SVK, and Xeroc will continue improving the API, GUI, and Docs for the DEX. 

208
General Discussion / Re: 2016 Vision Blog Post
« on: December 30, 2015, 02:37:48 pm »
Government IS force.

Bingo.

Depends upon how you define terms.  Remove force from government but retain the ability to have an ordered, peaceful society that appears to be "governed" from the outside and what do you have? 

So we can either attempt to scare people with new terms by "taking away the government they believe deep down they need" *OR* we can say "keep your government, I just want to take away its right to use violence".

The problem with government isn't that it uses violence, but that the people believe it has the right to.  Take away the belief of the people and it is little more than organized crime.  If we tell people we can achieve everything "good" the government does without using violence then they are receptive. 

209
General Discussion / Re: Why Vision Matters Blog Post
« on: December 30, 2015, 02:31:57 pm »
That 240M valuation of exchange market is so stupid. OMG you worked in exchange for years and this calculation is what you have? Bitcoin has value because of freedom activitist? You can't be more stupid, seriously can't. Ur own market research told you "change the world" is easier to sell? Stupidity will laugh at you. You are too over.

To be fair, I was asking the question and making rough estimates based only on volume and a valuation of 20x profits. If coinbase was valued at 400M all by itself that tells me that the market is pricing in a lot of speculative value about future volume and probably using lower multiples.

Bitcoin has value because of network effect and speculators. It had network effect first!  Speculators second.  I was around with Bitcoin in the beginning and so I know how it got started and the type of people who were early adopters and why. 

I am not attempting to sell "change the world", I am attempting to sell a MAS to the target market of gofundme.

Obviously I haven't communicated everything I have in mind.  It is a VISION for a better world.

210
General Discussion / Re: Why Vision Matters Blog Post
« on: December 30, 2015, 01:31:34 am »
The DEX is "done" except for perhaps the MAKER proposal which isn't even necessary.  SVK and CASS are working on improving the User Interface of the DEX.  Michael is working on improving the API to be similar to poloniex. 

The key to bootstrapping any exchange is having UNIQUE assets to trade.  This is something that FBA and new business models will have.

I haven't forgotten the DEX, it is a critical component. I have just learned through experience that selling a DEX is a hard niche market.

Banking partners are telling all blockchain companies the same thing: "we don't want your chain, we want our own".   Anyone holding out for banking partners getting on board any existing public chain in a meaningful way needs a wakeup call.   

BitShares needs to provide VALUE to the average joe.  A DEX doesn't provide that value on its own.  A bond market doesn't provide that value on its own. 

Selling people "peace of mind" and an opportunity to "change the world" and "fight the empire" and "fight Obamacare" is a much easier sell in my own market research.

Please, someone tell me the market value of Poloniex.. how much is their exchange worth?  How much is BitStamp worth?  BitFinex?    The combined revenue of all crypto currency exchanges is less than $25 million per year.  If we assume these exchanges operate with a 50% profit margin then that means $12 million per year in profit.  Based upon a 5% dividend, this would put the combined value of all exchanges in the cryptocurrency space at  $240M dollars and my guess is that is very high.

So if BitShares grew to become the only exchange in the entire market it would be worth at most 24x its current valuation. 

Bitcoin is valued because of the COMMUNITY of freedom activists that are using it and promoting it.  It has no revenue based valuation.  A DEX doesn't inspire a community following like Bitcoin has.   

Lets gain some perspective before calling for the DEX to be "finished" as if that will magically make BTS grow in value 10x. 

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