Author Topic: bitUSD Being Pegged to the USD Is A Bad Thing Because...  (Read 2238 times)

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Offline btstip

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Hey fuzzy, here are the results of your tips...
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Offline fuzzy

Fistbumps for people who just seem to like helping new community members understand...and community members who are not afraid to ask.  Hell yeh.  Hell yeh.   8)

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Offline MarketingMonk

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Offline xeroc

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We should reinitiate the discussion about how to run the NASDAQ, SHANGHAI , NIKKEI etc .. indeces ..

Offline karnal

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We could create a new market pegged asset that tracks the SDR (Special Drawing Rights) ... @Rune is doing this with his dai on ethereum and I like the idea of tracking a basket of several currencies (btw .. CNY just recently became part of this basket)

Vaguely related, but any updates on bitNASDAQ, bitNYSE, bitSP500 etc?

10/10 would invest in bitUSD:SP500

Offline xeroc

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We could create a new market pegged asset that tracks the SDR (Special Drawing Rights) ... @Rune is doing this with his dai on ethereum and I like the idea of tracking a basket of several currencies (btw .. CNY just recently became part of this basket)

Offline yvv

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bitGold and bitSilver are much more risky investments right now than bitUSD, since liquidity is tiny.

Offline lil_jay890

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If a bitUSD always equals 1 USD, what happens when the purchasing power of the 1 USD declines?

What if inflation stays around 2% per year?
What happens if the USD experiences hyperinflation?

Don't dollar pegged assets like bitUSD automatically inherit these problems?

Yep they do since they will always be closely correlated to the underlying asset (USD).

If hyperinflation hits, your bts will be worth many more bitusd hence worth many more dollars.  That's trading and the beauty of bitassets.

If your afraid of losing value during hyperinflation but also don't want to be exposed to bts but still want a decentralized investment, buy bitgold or bitsilver.

Offline yvv

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Market pegged assets are supposed to follow the index of underlying asset regardless if it goes up or down. It is their essential property.

Offline MarketingMonk

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If a bitUSD always equals 1 USD, what happens when the purchasing power of the 1 USD declines?

What if inflation stays around 2% per year?
What happens if the USD experiences hyperinflation?

Don't dollar pegged assets like bitUSD automatically inherit these problems?