Author Topic: How is BitUSD going to work?  (Read 13531 times)

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Offline bytemaster

I have deposited a lot and my orders were snapped up.
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Offline toast

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Taxes, privacy, no need to trust external exchange with your funds.

Legally I believe that every time you buy an asset you pay taxes.. so you should be paying taxes every time you buy/sell BitUSD.

There is a market for BitUSD / USD on Bter.... so you know you can cash out if you want to.

https://bter.com/trade/bitusd_usd

OMG THIS IS EPIC!  +5%

Nice.. the price of BitUSD is almost $2?  haha

Exchange will not let me deposit, I have extra I can sell (for a profit...)
Do not use this post as information for making any important decisions. The only agreements I ever make are informal and non-binding. Take the same precautions as when dealing with a compromised account, scammer, sockpuppet, etc.

Offline hughmanwho

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Taxes, privacy, no need to trust external exchange with your funds.

Legally I believe that every time you buy an asset you pay taxes.. so you should be paying taxes every time you buy/sell BitUSD.

There is a market for BitUSD / USD on Bter.... so you know you can cash out if you want to.

https://bter.com/trade/bitusd_usd

OMG THIS IS EPIC!  +5%

Nice.. the price of BitUSD is almost $2?  haha

Offline tonyk

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There is a market for BitUSD / USD on Bter.... so you know you can cash out if you want to.

https://bter.com/trade/bitusd_usd

OMG THIS IS EPIC!  +5%
Lack of arbitrage is the problem, isn't it. And this 'should' solves it.

Offline liondani

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There is a market for BitUSD / USD on Bter.... so you know you can cash out if you want to.

https://bter.com/trade/bitusd_usd




PS It's getting more interesting every minute it's past
« Last Edit: August 26, 2014, 12:37:00 am by liondani »

Offline CLains

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There is a market for BitUSD / USD on Bter.... so you know you can cash out if you want to.

https://bter.com/trade/bitusd_usd

Awesome o/

Offline toast

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maybe I do not get it properly but it is worth a question:

starting point:

I think the current price of BitsharesX is for some reason high/sufficiently high and I am planning to short

assumptions:

I have the possibility to sell bitsharesX on an exchange for USD
I have the possibility to ask BitUsd for BitsharesX on the decentralized exchange within the system
My preference order at this point of time is for obvious reasons USD > BitUSD - acceptance, possibility to buy/sell other coins, etc pp. ( I see that this could potentially change in the future but I think at this point of time this is a rational assumption)

question:

what is the incentive to ask bitusd if the possibility to sell on an exchange exists at this point of time

No incentive, feel free to sell BTSX externally.

is there another reason to ask on the decentralized exchange than to expect decreasing external prices of bitsharesX?

my question was by no means meant confrontative - I am just wondering why the ask side should work - e.g. what the incentive for asking is

You have it right - you buy bitUSD if you want stability or expect external price to decrease
« Last Edit: August 26, 2014, 12:40:14 am by toast »
Do not use this post as information for making any important decisions. The only agreements I ever make are informal and non-binding. Take the same precautions as when dealing with a compromised account, scammer, sockpuppet, etc.

Offline bytemaster

Taxes, privacy, no need to trust external exchange with your funds.
For the latest updates checkout my blog: http://bytemaster.bitshares.org
Anything said on these forums does not constitute an intent to create a legal obligation or contract between myself and anyone else.   These are merely my opinions and I reserve the right to change them at any time.

Offline nakaone

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maybe I do not get it properly but it is worth a question:

starting point:

I think the current price of BitsharesX is for some reason high/sufficiently high and I am planning to short

assumptions:

I have the possibility to sell bitsharesX on an exchange for USD
I have the possibility to ask BitUsd for BitsharesX on the decentralized exchange within the system
My preference order at this point of time is for obvious reasons USD > BitUSD - acceptance, possibility to buy/sell other coins, etc pp. ( I see that this could potentially change in the future but I think at this point of time this is a rational assumption)

question:

what is the incentive to ask bitusd if the possibility to sell on an exchange exists at this point of time

No incentive, feel free to sell BTSX externally.

is there another reason to ask on the decentralized exchange than to expect decreasing external prices of bitsharesX?

my question was by no means meant confrontative - I am just wondering why the ask side should work - e.g. what the incentive for asking is

Offline bytemaster

There is a market for BitUSD / USD on Bter.... so you know you can cash out if you want to.

https://bter.com/trade/bitusd_usd
For the latest updates checkout my blog: http://bytemaster.bitshares.org
Anything said on these forums does not constitute an intent to create a legal obligation or contract between myself and anyone else.   These are merely my opinions and I reserve the right to change them at any time.

Offline toast

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maybe I do not get it properly but it is worth a question:

starting point:

I think the current price of BitsharesX is for some reason high/sufficiently high and I am planning to short

assumptions:

I have the possibility to sell bitsharesX on an exchange for USD
I have the possibility to ask BitUsd for BitsharesX on the decentralized exchange within the system
My preference order at this point of time is for obvious reasons USD > BitUSD - acceptance, possibility to buy/sell other coins, etc pp. ( I see that this could potentially change in the future but I think at this point of time this is a rational assumption)

question:

what is the incentive to ask bitusd if the possibility to sell on an exchange exists at this point of time

No incentive, feel free to sell BTSX externally.
Do not use this post as information for making any important decisions. The only agreements I ever make are informal and non-binding. Take the same precautions as when dealing with a compromised account, scammer, sockpuppet, etc.

Offline nakaone

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maybe I do not get it properly but it is worth a question:

starting point:

I think the current price of BitsharesX is for some reason high/sufficiently high and I am planning to short

assumptions:

- I have the possibility to sell bitsharesX on an exchange for USD

- I have the possibility to ask BitUsd for BitsharesX on the decentralized exchange within the system
- My preference order at this point of time is for obvious reasons USD > BitUSD - acceptance, possibility to buy/sell other coins, etc pp. ( I see that this could potentially change in the future but I think at this point of time this is a rational assumption)
- I am neither a believer nor a sceptic that the system works

question:

what is the incentive to ask bitusd if the possibility to sell on an exchange exists at this point of time
« Last Edit: August 26, 2014, 12:27:06 am by nakaone »

Offline luckybit

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So here's the idea, similar to how BitUSD works, why not create another asset that constantly increases in value relative to itself.

Let's call it BitDouble.  For example, marketpeg it so that today it's value is 1 BTSX which is , then have the market agree that every year it's value goes up by 100%.  So next year, it's worth 2 BTSX, following year it's worth 4 BTSX, 8 BTSX, 16 BTSX, etc.

At any point in time, anyone can buy into BitDouble and be guaranteed to double their money one year from now.

Or for that matter.. BitTriple or BitQuadraple would be pretty awesome investments.

If market pegging to USD works.. I don't see any reason this one wouldn't, right?  Same idea, have the market arbitrarily decide on a floating value at a certain point in time.

Just discovered how to make sure everyone in the world gets rich!

That is actually the idea behind the interest on BitAssets thread:  https://bitsharestalk.org/index.php?topic=6964.0

The short answer for your case:  Nobody will be willing to short!

Whales might not short but people who don't have a lot of BTSX might. Overall though it's a delicate balance because it's like ying and yang.
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Offline toast

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So here's the idea, similar to how BitUSD works, why not create another asset that constantly increases in value relative to itself.

Let's call it BitDouble.  For example, marketpeg it so that today it's value is 1 BTSX which is , then have the market agree that every year it's value goes up by 100%.  So next year, it's worth 2 BTSX, following year it's worth 4 BTSX, 8 BTSX, 16 BTSX, etc.

At any point in time, anyone can buy into BitDouble and be guaranteed to double their money one year from now.

Or for that matter.. BitTriple or BitQuadraple would be pretty awesome investments.

If market pegging to USD works.. I don't see any reason this one wouldn't, right?  Same idea, have the market arbitrarily decide on a floating value at a certain point in time.

Just discovered how to make sure everyone in the world gets rich!

That is actually the idea behind the interest on BitAssets thread:  https://bitsharestalk.org/index.php?topic=6964.0

The short answer for your case:  Nobody will be willing to short!
Do not use this post as information for making any important decisions. The only agreements I ever make are informal and non-binding. Take the same precautions as when dealing with a compromised account, scammer, sockpuppet, etc.

Offline hughmanwho

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So here's the idea, similar to how BitUSD works, why not create another asset that constantly increases in value relative to itself.

Let's call it BitDouble.  For example, marketpeg it so that today it's value is 1 BTSX which is , then have the market agree that every year it's value goes up by 100%.  So next year, it's worth 2 BTSX, following year it's worth 4 BTSX, 8 BTSX, 16 BTSX, etc.

At any point in time, anyone can buy into BitDouble and be guaranteed to double their money one year from now.

Or for that matter.. BitTriple or BitQuadraple would be pretty awesome investments.

If market pegging to USD works.. I don't see any reason this one wouldn't, right?  Same idea, have the market arbitrarily decide on a floating value at a certain point in time.

Just discovered how to make sure everyone in the world gets rich!