Author Topic: Introduction to BitShares - Video  (Read 13883 times)

0 Members and 1 Guest are viewing this topic.

Offline bytemaster

Re: Introduction to BitShares - Video
« Reply #45 on: February 27, 2014, 02:21:55 am »
The unit and seed 'idea' behind each asset is in the hands of the individuals who create and launch a chain.  I highly recommend they be a specific as possible so the market can operate as efficiently as possible.
For the latest updates checkout my blog: http://bytemaster.bitshares.org
Anything said on these forums does not constitute an intent to create a legal obligation or contract between myself and anyone else.   These are merely my opinions and I reserve the right to change them at any time.

Offline pariah99

  • Full Member
  • ***
  • Posts: 66
  • I'm so meta even this acronym.
    • View Profile
Re: Introduction to BitShares - Video
« Reply #46 on: February 27, 2014, 02:29:13 am »
If the kind of asset the BitAsset is to track is defined fuzzy ("Oil" instead of "Brent Crude as traded on the IntercontinentalExchange") then arbitrageurs and other market participants can not provide a narrow tracking as they don't always know if it is over- or undervalued. Spreads will widen and the BitAsset market will be less liquid.

I'm sure that they will be very specific, since the creators of the chain will have to create some mechanism by which shareholders can redeem their shares for physical assets.  In the case of perfectly fungible assets like stocks and currency, the specificity will already be built in.

e;fb

Offline bytemaster

Re: Introduction to BitShares - Video
« Reply #47 on: February 27, 2014, 02:45:56 am »
If the kind of asset the BitAsset is to track is defined fuzzy ("Oil" instead of "Brent Crude as traded on the IntercontinentalExchange") then arbitrageurs and other market participants can not provide a narrow tracking as they don't always know if it is over- or undervalued. Spreads will widen and the BitAsset market will be less liquid.

I'm sure that they will be very specific, since the creators of the chain will have to create some mechanism by which shareholders can redeem their shares for physical assets.  In the case of perfectly fungible assets like stocks and currency, the specificity will already be built in.

e;fb

No, creators of the chain do not have to create any kind of redemption because a BitAsset could track Unobtainum just fine:
For the latest updates checkout my blog: http://bytemaster.bitshares.org
Anything said on these forums does not constitute an intent to create a legal obligation or contract between myself and anyone else.   These are merely my opinions and I reserve the right to change them at any time.

Offline pariah99

  • Full Member
  • ***
  • Posts: 66
  • I'm so meta even this acronym.
    • View Profile
Re: Introduction to BitShares - Video
« Reply #48 on: February 27, 2014, 03:54:34 am »
Okay, I guess we're splitting hairs here, but tracking would imply that somebody would value it relative to the other assets on the market.  I understand you could theoretically generate a chain for ANYTHING, but I'd wager that unobtainium's value in BTS-X would remain precisely zero (unless you were referring to the cryptocurrency)

That's an interesting experiment.  I should generate a chain of shares in "pariah99's pity/beer fund" and hope for the best... speaking of which, I have to go to a bar now :D

Offline yellowecho

Re: Introduction to BitShares - Video
« Reply #49 on: February 27, 2014, 04:14:59 am »
I should generate a chain of shares in "pariah99's pity/beer fund" and hope for the best... speaking of which, I have to go to a bar now :D

Sure glad I have PTS and AGS so I can get 20% of that action!
696c6f766562726f776e696573

Offline dddddre

  • Newbie
  • *
  • Posts: 7
    • View Profile
Re: Introduction to BitShares - Video
« Reply #50 on: February 27, 2014, 12:48:12 pm »
BitUSD is the equivalent of the old bank notes that promised to pay $1 worth of value on demand.  In the case of the old bank notes, this value was denominated in gold or silver.  In the case of the BitShares DAC this value is $1 worth of equity, aka bitshares.   The BitShares DAC can almost always make good on this promise because when someone comes to redeem a note and is unable to sell it on the market directly the value of the BitUSD in terms of bitshares will rise until the decentralized bank has the authority to call a loan and repurchase the BitUSD. 


Why will the value of bitusd in terms of bitshares rise rather than go down when someone comes to redeem a note and is unable to sell it on the market directly?

Will the Bitshares system freeze 2 usd value of BTS as collateral or 2 bitusd value of BTS as collateral when i borrow 1 bitusd from the system?
pts:PZHNXHZaytYUfoYtHqDWV2TgaB2bwxSJDx

Offline bytemaster

Re: Introduction to BitShares - Video
« Reply #51 on: February 27, 2014, 09:44:33 pm »
BitUSD is the equivalent of the old bank notes that promised to pay $1 worth of value on demand.  In the case of the old bank notes, this value was denominated in gold or silver.  In the case of the BitShares DAC this value is $1 worth of equity, aka bitshares.   The BitShares DAC can almost always make good on this promise because when someone comes to redeem a note and is unable to sell it on the market directly the value of the BitUSD in terms of bitshares will rise until the decentralized bank has the authority to call a loan and repurchase the BitUSD. 


Why will the value of bitusd in terms of bitshares rise rather than go down when someone comes to redeem a note and is unable to sell it on the market directly?

Will the Bitshares system freeze 2 usd value of BTS as collateral or 2 bitusd value of BTS as collateral when i borrow 1 bitusd from the system?

Yes the collateral is frozen, and if the price rises in terms of BTS then a margin call is executed and forces the liquidation of the collateral to buy your BitUSD back.
For the latest updates checkout my blog: http://bytemaster.bitshares.org
Anything said on these forums does not constitute an intent to create a legal obligation or contract between myself and anyone else.   These are merely my opinions and I reserve the right to change them at any time.