Author Topic: why bts lack users????????  (Read 6314 times)

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Offline tonyk

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Re: why bts lack users????????
« Reply #45 on: January 23, 2016, 04:28:16 am »
I don't bet unless the odds are in my favor and you sound pretty confident so Im sure I could lose this one.  Maybe you know some backdoor hack to do that, in which case it would be an attack that would render the whole thing useless until fixed.

I am coming at this from an end user perspective, which is the most important perspective.  Explain to me this: 

I get the following message when trying to create 1 bitcoin at a 1:1 collateral ratio (128,972 bts to 1 btc):  Collateral ratio is too low, position will be margin called instantly.

...

It is not a hack.... it is how the system is supposed to/ is working.

1.You just short what you can short aka about 1/1.925 BTC worth of bitBTC per 1 BTC worth of collateral (prices as per feed).
2. you sell those bitBTC and increase you collateral with the BTS received from those sells.
3. Go back to step 1.

You end up with about 1 bitBTC shorted  for each 1 btc worth of bts you have started the process.(minus fees)
[NB I find my own explanations, very easy to grasp... unfortunately on more occasions than not, the people on the receiving end of those kind of do not agree... if this is the case read puppies eli5 above (same thing different words)]

And not to derail this thread I believe that there are no people willing to short bitWhatever (aka go longer BTS) because no one is ready to put his money on the line believes bts is going anywhere higher. Because of this  we have enormous spreads on almost all bitAssets.  Because of this there are no customers interested in this product. Cause our 'smart coins are...well 5 to 20% above the 1:1 ratio to the underlying.

And for all of this the fault goes to the leader.... who while seemingly able to do whatever he choses with BTS, he not only totally controls the project's direction but finds the greatest pleasure in starting to go after the great new pipe dream of his, whenever his previous dream is somewhere about 50 to 75% finished.

[edit]Better put thoughts of mine on the same issues here: https://bitsharestalk.org/index.php/topic,21111.msg273775.html#msg273775
« Last Edit: January 23, 2016, 05:21:01 am by tonyk »
Lack of arbitrage is the problem, isn't it. And this 'should' solves it.

Offline morpheus

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Re: why bts lack users????????
« Reply #46 on: January 23, 2016, 06:33:09 am »
Short .5 bts then sell that, then use those funds to short .3 bts then sell them then use those funds to short the last .2.  Btc price is so high this would net more than 1 btc short.

When you create an asset you not only get the short position you also get the asset.

[member=11011]tonyk[/member]

Ok, I knew there was a technicality in there somewhere, but nobody is realistically going to string together a series of trades just to eventually get to a 1:1 ratio, getting eaten up with fees on the way there.  This won't fly with the end user. 

From a single trade perspective (the end user perspective), you are still here:


Offline puppies

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Re: why bts lack users????????
« Reply #47 on: January 23, 2016, 07:56:36 am »
They don't have to string together a series a trades.  If I borrow 1btc from the network at 2x collateral, and then sell that btc into the market I should recover at least half of my collateral.  Although it took an initial outlay of twice the bts, I only have 1 btc worth of bts tied up as collateral.  Until my sell goes through I am not short and no funds are risked.  I can close my borrow position at any time. 

https://metaexchange.info | Bitcoin<->Altcoin exchange | Instant | Safe | Low spreads

Offline morpheus

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Re: why bts lack users????????
« Reply #48 on: January 23, 2016, 03:37:35 pm »
They don't have to string together a series a trades.  If I borrow 1btc from the network at 2x collateral, and then sell that btc into the market I should recover at least half of my collateral.  Although it took an initial outlay of twice the bts, I only have 1 btc worth of bts tied up as collateral.  Until my sell goes through I am not short and no funds are risked.  I can close my borrow position at any time.

I get what you are saying but you still need 2x collateral to enter such a position and your max gain is capped at less than 100% while your max loss is still 100%.  Also, to get a 90% gain on the position, you need a 1000% rise in the btc/bts pair.  It just doesn't make sense from a risk/reward perspective.  A lending market will fix this. 

Offline bizzyb

Re: why bts lack users????????
« Reply #49 on: January 23, 2016, 04:37:28 pm »
Yep, all goes to confirm outsiders of BTS have no clue what any of you are talking about :)

Keep BTS as beautifully complicated and totally incomprehensible as you want under the surface.

On the surface - Play the cute dumb blonde that is easy to understand & get on with.
Attractive.
Approachable.
Friendly.
Easy ;)

For crypto to have a future we have to be inclusive.

We are getting people into crypto "without them knowing"
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The worlds first crypto backed till receipt discount coupon - all the end user needs to know is they get a discount when using our CoinPons at nearly 100 stores, they don't need to know their payment helps support MUE and increase it's price.

Offline xiahui135

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Re: why bts lack users????????
« Reply #50 on: January 24, 2016, 03:27:16 pm »
There is no new feature for NEM or ETH, but the price have bening growing 3 times.
We need some time and hard work to prove the system and the community is reliable. That is the reason.