bitUSD CRAZY expensive on blocktrades

[liondani]

I shorted a bunch of Bit USD near the end of August beginning of September during the run up. I'm debating whether I should buy them back on the old blockchain or just lets the shorts carry over to the new blockchain. I mean technically they will expire but I've noticed that when they expire, I'm not really 'forced' to cover. I essentially can cover myself by buying BitUSD whenever I feel like it. So, it seems to make sense to buy Bit USD cheaper and expend less BTS. Just wondering if I'm missing something here. I agree that the process is a little confusing.

on bts2.0 you will find easy bitUSD close to 1 USD to "close" your today positions... Liquidity will be much better.... and the new mechanics guaranteed it.
We are talking about more than 20% premium right now! So even the margin call to happens it need a +20% decline from the standard 33%(?) totaling a 50% total decline to trigger a margin call! How possible is this guys?
The only negative I can think about it is that the shorters will not have enough BTS1.0 shares   (cause they will be locked on collateral) to dump them post snapshot since bts1.0 will be worthless after couple of hours/days...
But i doubt the majority of bts1.0 holders will  manage to sell their "worthless" bts1.0 shares before a 80% flash-decline happens immediately after the snapshot.... (i suppose only the "elite" will be successfully do it on time)

[inarizushi]

Come on guys, shorting is working very well, and has no reason not to in Bitshares 2.0, don't be shy. When you short your money is in good, automated trustless hands  .
But you should try shorting with some little amounts first in order to get the feel of it. Importantly, shorts over the price feed *seem* to short a wrong amount of BitAssets : you don't short the number you ask for shorting, because the collateral put is based on price feed, and when you short over price feed, there is not enough collateral to guarantee the number of bitAssets you write down. That still works however, but look at the collateral amount rather than the bitAssets amount.

You can short over price feed and so have some free money even if BTS don't climb... at the condition that the peg will hold one day, which he'll very probably do in 2.0. Even now, I'm quite confident that the peg mechanism is not bad. Shorters have not much risk except margin call, which is hopefully unlikely now.

And you can have a 30% premium on BitBTC now !!

[dannotestein]

You can check the pegs at http://bitdeposit.org/ it's kind of ridiculous but I think, like other people already mentioned, bitUSD is dead till 2.0 is launched.

Actually blocktrades is offering a much better rate for BTC->BitUSD than bitdeposit is quoting, apparently. I just checked it and they're offering 91.09 BitUSD/BTC, whereas blocktrades is offering 172.96 BitUSD/BTC.

For the record, we're currently charging 1% above our "replacement rate" for the BitUSD, so we're not making much of a profit on this market pair (especially as it's an extremely low volume pair). We offer the pair more as a service than as an actual profit vehicle.

Actually, rate on bitdeposit seems to gyrate quite a bit, just saw it jump to 110, then back to 90.6. Says they get their rates from shapeshift, but no idea how shapeshift should be shifting their rates so fast right now, maybe they should be called priceshift :-)

[dannotestein]

You can check the pegs at http://bitdeposit.org/ it's kind of ridiculous but I think, like other people already mentioned, bitUSD is dead till 2.0 is launched.

Actually blocktrades is offering a much better rate for BTC->BitUSD than bitdeposit is quoting, apparently. I just checked it and they're offering 91.09 BitUSD/BTC, whereas blocktrades is offering 172.96 BitUSD/BTC.

For the record, we're currently charging 1% above our "replacement rate" for the BitUSD, so we're not making much of a profit on this market pair (especially as it's an extremely low volume pair). We offer the pair more as a service than as an actual profit vehicle.

[wmbutler]

I shorted a bunch of Bit USD near the end of August beginning of September during the run up. I'm debating whether I should buy them back on the old blockchain or just lets the shorts carry over to the new blockchain. I mean technically they will expire but I've noticed that when they expire, I'm not really 'forced' to cover. I essentially can cover myself by buying BitUSD whenever I feel like it. So, it seems to make sense to buy Bit USD cheaper and expend less BTS. Just wondering if I'm missing something here. I agree that the process is a little confusing.

[nomoreheroes7]

I would've shorted BitUSD a few weeks ago, but given how confusing it all is and the monster break from the peg and the uncertainty with whether shorts will transfer well to BTS 2.0....just didn't feel worth the risk to me. I imagine many others feel the same way, which is why there's so little BitUSD liquidity. I hope this all comes across a lot more streamlined/understandable in 2.0.

[Akado]

Price (BTS/bitUSD)  Amount (bitUSD)  Amount (BTS)  Collateral (BTS)    Interest rate (%)
204.918    653.169    100,000.00    200,000.000    0.000
209.336    1,306.339    200,000.00    400,000.000    0.000

I was seeing small amounts with 20k collateral and then I suddenly see those. Never traded but might actually try to short a bit of bitusd to see how things work.

So what happens if someone shorts at Bid price? for example, at the moment I see


BIDS (Buy bitUSD) Amount(bitUSD)    Amount(BTS)    Price(BTS/bitUSD)
55.552    10,000.00    180.010
1,000.000    180,000.00    180.000

so 180bts per bitusd which is around 0,0055(5) per bts. That is currently cheaper than what we see on Polo for example at 0.006686. So, what happens if someone shorted at that price and the order got instantaneously filled? Would they get cheaper bts? Then they could just arbitrage with the exchanges, rinse and repeat. But that seems just too easy so I'm sure I'm missing something loll. Could someone educate me here? I'm a complete noob at this. Maybe that doesn't work because the peg isn't right and bitUSD is at $1,40?

[tonyk]

Chapter #17 - "Grateful Investors [read all BTS investors] want no profit"


...kind of sad when you think about it!


and waiting for my money to hit the wallet...also ready to take loans at ridiculous  interest rates...just make an offer in PM.

[liondani]

Dont buy bitusd youre throwing your money away right now ;P

That means if you do the opposite, aka. selling bitUSD you are getting free money...
But how to sell when you don't have bitUSDs? Hmmm the answer is easy.... create them by  SHORTING bitUSD on the bts internal exchange !!!   

PS-TIP: But be careful and short them with a price limit @ the price they are buying them 

[Ander]

Here is the conversion I just did:

9/20/2015, 9:53:25 PM   0.53 BTC   80.2418 BitUSD

Here is the message on coinbase about how much BTC was worth when I sent it:

You've successfully sent 0.5300 BTC (worth $123.12 USD)

$80 BitUSD cost me $123 worth of BTC... thats a $53 spread.

Thoughts?

Maybe its because the bitUSD peg is broken right now and its like $1.40?  Dont buy bitusd youre throwing your money away right now ;P

[BunkerChainLabs-DataSecurityNode]

You can check the pegs at http://bitdeposit.org/ it's kind of ridiculous but I think, like other people already mentioned, bitUSD is dead till 2.0 is launched.

Yeah.. question is why though? What is causing this?

[Akado]

You can check the pegs at http://bitdeposit.org/ it's kind of ridiculous but I think, like other people already mentioned, bitUSD is dead till 2.0 is launched.

[BunkerChainLabs-DataSecurityNode]

Here is the conversion I just did:

9/20/2015, 9:53:25 PM   0.53 BTC   80.2418 BitUSD

Here is the message on coinbase about how much BTC was worth when I sent it:

You've successfully sent 0.5300 BTC (worth $123.12 USD)

$80 BitUSD cost me $123 worth of BTC... thats a $53 spread.

Thoughts?