BitShare investing/trading

[phoenix]

I find the benefits of holding BitUSD or any other BitAsset over simply holding onto BitShares rather confusing.

By this I mean; if I assume the value of BitShares will appreciate over time against fiat: would it be better to buy long on a particular BitAsset, or simply hold onto the BitShares.

I understand the benefits of buying BitAssets in order to speculate.

For this aspect of Bitshares, the advantage of holding a Bitasset instead of Bitshares is that whenever you buy long on a Bitasset, someone else has to short the same Bitasset. They give up their dividends on the collateral they used on the Bitasset, and the people who bought long get to collect those extra dividends.

As for how to get the maximum value from Bitshares in the first few months, my best advice is to pay attention to the final plans for Bitshares. Bytemaster has suggested several plans for Bitshares, from a six month waiting period for mining rewards to mature, to proof of stake instead of proof of work mining. Not all of these plans will actually be implemented, but you should keep an eye on them. Then, when Bitshares are about to be released, you should look at what's actually going to be used, and make your own market predictions from there.

[MrJeans]

I find the benefits of holding BitUSD or any other BitAsset over simply holding onto BitShares rather confusing.

By this I mean; if I assume the value of BitShares will appreciate over time against fiat: would it be better to buy long on a particular BitAsset, or simply hold onto the BitShares.

I understand the benefits of buying BitAssets in order to speculate.

[MrJeans]

Let me know if this should be moved elsewhere.

What would be the best way to get the most out of ones BitShares during the early stages of BitShares?

If I hold my BitShares, I will get more dividends (from half of mining and transaction fees). But the dividends would not be enough to keep up with the inflation of new BitShares entering the system (through mining).

Thus my purchasing power will not increase over time and may infact decrease.

And I also assume supply of BitShares will be high at the start.

Given the above what would be the best way for an early adopter to make the most of BitShares when it first comes out?

Would it be to hold BitShares and collect dividends and hope for high capital appreciation against fiat? Or buy BitUSD and collect dividends from your bitUSD through the BitShares you have used to back up the BitUSD?

I find the benefits of holding BitUSD or any other BitAsset over simply holding onto BitShares rather confusing.