Author Topic: New idea: Negative interest rates to encourage borrowing and spending of an MPA  (Read 5214 times)

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Offline yvv

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You didn't fix it, you suggested an alternative. lower collateral requirements might incentivise shorters but it would make BitUSD less safe.

Less safe, but probably still safe enough to not worry. It all depends on details of implementation. Who said that safety threshold is at MCR=1.75? Why not 1.5? Still far above 1.

At the moment, there are only two MPAs with relatively big supply - bitUSD and bitCNY. What about decreasing MCR for these two in small decrements, e.g. 0.05 every 6 months? Both bitUSD and bitCNY survived latest big price decrease, after hard fork it would be even safer.

 +5% I would support such gradual decrease, after black swan revival is online.

Offline R

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https://bitsharestalk.org/index.php/topic,24158.msg309598.html#msg309598

Not a new idea, but I like the idea.

Effectively, shorters will experience debt destruction whilst holders experience the slow deflation of holdings.

I believe that such a proposal will have a one-sided market, with an over abundance of sellers (shorters) and a lack of buyers.

HERTZ style assets have the best of both worlds, both appreciation and deprecation.

Offline lafona

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I believe that such a proposal will have a one-sided market, with an over abundance of sellers (shorters) and a lack of buyers.


I think in some cases it would be better to have an overabundance of sellers than buyers. Particularly for businesses which expect to buy and sell quickly(traders, remittances).
BTS Witnesses: delegate-1.lafona     Witness Thread: https://bitsharestalk.org/index.php/topic,21569.msg280911/topicseen.html#msg280911
MUSE Witness: lafona

Offline Crypto Kong

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would you buy something that you KNOW is guaranteed to be less worth tomorrow?

me neither.
Your missing the point. You wouldn’t buy it, but you would definitely sell it if you were holding. Therefore people will borrow to sell it to make a profit. This is the theory.


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Offline Crypto Kong

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https://bitsharestalk.org/index.php/topic,24158.msg309598.html#msg309598

Not a new idea, but I like the idea.

Effectively, shorters will experience debt destruction whilst holders experience the slow deflation of holdings.

I believe that such a proposal will have a one-sided market, with an over abundance of sellers (shorters) and a lack of buyers.

HERTZ style assets have the best of both worlds, both appreciation and deprecation.
In theory if it’s opposite to the hero coin a balance should be achievable as they cancel each other out


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