Author Topic: If you believe in BTS, why are you not providing liquidity?  (Read 2700 times)

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Offline bitmeat

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My assumption is that BTS holders believe in the project, otherwise they would sell it / hedge it. At the moment it is impossible to obtain decent size of BitUSD, and I think that hurts the project's reputation. I'm curious what may be the reason for this, and why are stakeholders not willing to assume some of the risk in the name of the project's success?

Offline xeroc

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Re: If you believe in BTS, why are you not providing liquidity?
« Reply #1 on: July 06, 2015, 01:29:51 pm »
I am short bitUSD and bitEUR ..
option 3 is not really bad assuming as a short you are already bull .. you can ride the price and set back to get you buy-close order be filled eventually ...
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Offline bitmeat

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Re: If you believe in BTS, why are you not providing liquidity?
« Reply #2 on: July 06, 2015, 01:48:01 pm »
I am short bitUSD and bitEUR ..
option 3 is not really bad assuming as a short you are already bull .. you can ride the price and set back to get you buy-close order be filled eventually ...

You could get margin called with option 3, before you have the chance to cover (due to lack of liquidity).

Offline Erlich Bachman

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Re: If you believe in BTS, why are you not providing liquidity?
« Reply #3 on: July 06, 2015, 01:54:24 pm »
I asked the same thing yesterday:

https://bitsharestalk.org/index.php/topic,17395.0.html

It looks like most people don't have the patience to sync the client.  I can see that.  So when 2.0 launches, and you can sign up for BitShares and short BitUSD all within 5 minutes, then a whole new market will open up.  That's why I started that last thread.  if 50% of current BTS owners are not even taking advantage of the additional derivative leverage provided by bitcoin2.0 then it's going to be obvious.
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Offline 天籁

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Re: If you believe in BTS, why are you not providing liquidity?
« Reply #4 on: July 06, 2015, 01:57:54 pm »
200% collateral rate is needed to achieve an equilibrium market.

Offline bitmeat

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Re: If you believe in BTS, why are you not providing liquidity?
« Reply #5 on: July 06, 2015, 02:04:13 pm »
I asked the same thing yesterday:

https://bitsharestalk.org/index.php/topic,17395.0.html

It looks like most people don't have the patience to sync the client.  I can see that.  So when 2.0 launches, and you can sign up for BitShares and short BitUSD all within 5 minutes, then a whole new market will open up.  That's why I started that last thread.  if 50% of current BTS owners are not even taking advantage of the additional derivative leverage provided by bitcoin2.0 then it's going to be obvious.

Good call, I'll add that option to the poll. Feel free to change your vote.

Offline bitmeat

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Re: If you believe in BTS, why are you not providing liquidity?
« Reply #6 on: July 06, 2015, 02:14:50 pm »
200% collateral rate is needed to achieve an equilibrium market.

I'm not sure that's the main reason for lack of liquidity. Hopefully will be addressed in BTS 2.0

Offline Riverhead

Re: If you believe in BTS, why are you not providing liquidity?
« Reply #7 on: July 06, 2015, 02:15:54 pm »

There is certainly a chicken and the egg problem with liquidity. I am a big purchaser of bitUSD for use with the Metaexchange.info pair (usually around $1k/day in volume that I need to buy off the DEX). I have about 400k BTS tied up in expired bitGold shorts. I would love to short more bitUSD but until the Gold settles out I can't. Since no one is selling or shorting Gold my options are to short to myself again (during a BTS spike) or wait for my turn in the big pile of Gold that needs to be bought via the expired short.

Once liquidity improves liquidity will improve? Hopefully 2.0 will resolve the stalled markets.

Offline fav

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Re: If you believe in BTS, why are you not providing liquidity?
« Reply #8 on: July 06, 2015, 02:20:09 pm »
honestly - I need someone to explain the process in easy words / pictures. also I need to know the risks before I consider a move

Offline BunkerChainLabs-DataSecurityNode

Re: If you believe in BTS, why are you not providing liquidity?
« Reply #9 on: July 06, 2015, 02:31:49 pm »
I have had little trouble buying bitUSD from the DEX or anywhere else daily. Though it often takes me a good 5-6 transactions to get the amount I need. I am pretty sure everyone has gone into a holding pattern for the 'better' bitassets to come in 2.0.
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Offline bitmeat

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Re: If you believe in BTS, why are you not providing liquidity?
« Reply #10 on: July 06, 2015, 03:00:29 pm »
I have had little trouble buying bitUSD from the DEX or anywhere else daily. Though it often takes me a good 5-6 transactions to get the amount I need. I am pretty sure everyone has gone into a holding pattern for the 'better' bitassets to come in 2.0.

Really? Are you talking about 5 BitUSD or 5,000 BitUSD?

Offline BunkerChainLabs-DataSecurityNode

Re: If you believe in BTS, why are you not providing liquidity?
« Reply #11 on: July 06, 2015, 03:11:37 pm »
I have had little trouble buying bitUSD from the DEX or anywhere else daily. Though it often takes me a good 5-6 transactions to get the amount I need. I am pretty sure everyone has gone into a holding pattern for the 'better' bitassets to come in 2.0.

Really? Are you talking about 5 BitUSD or 5,000 BitUSD?

Generally a few hundred.
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Offline onceuponatime

Re: If you believe in BTS, why are you not providing liquidity?
« Reply #12 on: July 06, 2015, 03:47:25 pm »
I tied up a big proportion of my BTS by donating to the Moonstone project because I thought at the time that what BitShares needed was an easy to use wallet  . So now I am left without enough collateral to do any serious shorting, and without the ability to have much voting power for the delegated of my choice (especially Bunkermining and Kencode).

Offline EstefanTT

Re: If you believe in BTS, why are you not providing liquidity?
« Reply #13 on: July 06, 2015, 04:19:33 pm »
I didn't completely understand how margin calls worked when I short two months ago. I didn't realise that I only have one month to make profits. As I'm here for three long run, I shorted big thinking I will cover in months or years. Then I've been forced to cover loosing a big chunck of my bts.

It's entirely my fault to not be more informed. I'm not a trader and all of it it's a bit confusding.

I would be more than happy to short again but I fear no having understand everything I need before do it again. 
I also need to read more about the transition of shorts in bts 2.0.

I'm sure I'm not the only one here for the long run and still having all my bankroll in bts. That's not making sense.

There is probably a lot of person in the same position as I am.

Maybe if someone with a good understanding could make a post with a simple and complete explanation on why/how to short. The risks and what will happenned in the transition to 2.0, ... That could potentially make a big difference !

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Offline Erlich Bachman

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Re: If you believe in BTS, why are you not providing liquidity?
« Reply #14 on: July 06, 2015, 04:41:11 pm »
Shorting is simple.

If the buy wall is at 154 and the sell wall is at 156

Place a buy order for 500 BitUSD at 155 (don't hit confirm)

Place a short order for 500 BitUSD at 155 (don't hit confirm)

Now hit confirm on both orders and wait for them to fill each other

sell your BitUSD and you are now short.

Do this every 30 days to roll your position over.

Because so many people got burned on the 30 day rule expiring on them, they are gun shy.  But when the 2.0 launches, then everybody will be doing it, because it will be easier, so by then it will be too late to short at these prices.
« Last Edit: July 06, 2015, 04:57:48 pm by Erlich Bachman »
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