Author Topic: BitUSD as collateral  (Read 3879 times)

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Offline MrJeans

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Instead of only allowing bisharesX shares to be used as collateral would there be value in allowing users to purchase bitAssets and use those as collateral to short other bitAssets?

If someone can purchase some bitUSD and then use that to short bitGOLD they would be able to leverage up on bitUSD and be able to short bitGOLD without having to worry too much about fluctuations in the value of bitsharesX shares.

The value of bitsharesX shares may fluctuate wildly (like bitcoin) in its early years making it difficult to trade. If users can use a more stable asset to take short positions this may encourage the behavior. The average FOREX or commodities trader should be able to switch their trading to bitsharesX without having to gain a huge understanding of bitsharesX shares and having to constantly monitor its value.

If we can use bitAssets as collaterol users can leverage up on any asset and short other assets while not having to worry about value fluctuations on bitsharesX shares (the price of which wont be pegged to anything in the way bitAssets are).

Or am I missing something completely?
« Last Edit: March 03, 2014, 01:40:31 pm by MrJeans »