How is BitUSD going to work?

[bytemaster]

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

[toast]

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! 

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

Exchange will not let me deposit, I have extra I can sell (for a profit...)

[hughmanwho]

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! 

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

[tonyk]

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! 

[liondani]

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

[CLains]

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/

[toast]

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

[bytemaster]

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

[nakaone]

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

[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

[toast]

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.

[nakaone]

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

[luckybit]

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.

[toast]

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!

[hughmanwho]

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!

[tonyk]

The person shorting bitUSD into the system creates it when they short, but that person doesn't get the bitUSD, the system matches it up with somebody else who wants to buy it, and the person shorting gets the btsx from selling it (which they can use to later buy bitUSD for less btsx to cover their short, and get their collateral back).

That makes a little bit more sense.  Well, I guess we'll see what happens.

And that is the moment when you become the buyer in the famous pizza for BTC deal... Good story to tell, thou the kids would have enjoyed the money more than the story...

[hughmanwho]

The person shorting bitUSD into the system creates it when they short, but that person doesn't get the bitUSD, the system matches it up with somebody else who wants to buy it, and the person shorting gets the btsx from selling it (which they can use to later buy bitUSD for less btsx to cover their short, and get their collateral back).

That makes a little bit more sense.  Well, I guess we'll see what happens.

[merockstar]

You can't short BTSX to buy BitUSD, only the other way around. Buyers of BitUSD are only people that think it will work and would prefer exposure to BitUSD over exposure to BTSX, whether it is because they are short BTSX (but not actually shorting on collateral since you can't do that) or because they want stability.

So maybe I'm misunderstanding, how do you get BitUSD in the first place.. you have to purchase it using BTSX or short BitUSD in terms of BTSX, right?

You just buy the for whatever - USD, BTC or at the BTSX exchange for BTSX.(they start at that exchange initially if that is the question)

Wait.. I thought the whole way that BitUSD is introduced into the system is by shorting BTSX for USD?

Back to the original reason I posted this, how does the initial distribution of BitUSD work?

The person shorting bitUSD into the system creates it when they short, but that person doesn't get the bitUSD, the system matches it up with somebody else who wants to buy it, and the person shorting gets the btsx from selling it (which they can use to later buy bitUSD for less btsx to cover their short, and get their collateral back).

[toast]

You can't short BTSX to buy BitUSD, only the other way around. Buyers of BitUSD are only people that think it will work and would prefer exposure to BitUSD over exposure to BTSX, whether it is because they are short BTSX (but not actually shorting on collateral since you can't do that) or because they want stability.

So maybe I'm misunderstanding, how do you get BitUSD in the first place.. you have to purchase it using BTSX or short BitUSD in terms of BTSX, right?

You just buy the for whatever - USD, BTC or at the BTSX exchange for BTSX.(they start at that exchange initially if that is the question)

Wait.. I thought the whole way that BitUSD is introduced into the system is by shorting BTSX for USD?

Back to the original reason I posted this, how does the initial distribution of BitUSD work?

I think we're just getting our terms backwards, when I say "short USD" I mean you think USD is going down. So "Short BitUSD for BTSX" means some owners of BTSX think BTSX will go up against BitUSD. My original point was this helps the peg significantly because you can think of the market peg as only BTSX holders competing against each other (if this guy doesn't buy back USD at this price then you can bet at least one other short out there will).

[tonyk]

Somebody holding BTSX shorts bitUSD; Somebody buys said bitUSD;


Probably you are getting confused what shorting means:
'You provide 2x collateral (BTSX) and your position is -1 bitUSD'

[hughmanwho]

You can't short BTSX to buy BitUSD, only the other way around. Buyers of BitUSD are only people that think it will work and would prefer exposure to BitUSD over exposure to BTSX, whether it is because they are short BTSX (but not actually shorting on collateral since you can't do that) or because they want stability.

So maybe I'm misunderstanding, how do you get BitUSD in the first place.. you have to purchase it using BTSX or short BitUSD in terms of BTSX, right?

You just buy the for whatever - USD, BTC or at the BTSX exchange for BTSX.(they start at that exchange initially if that is the question)

Wait.. I thought the whole way that BitUSD is introduced into the system is by shorting BTSX for USD?

Back to the original reason I posted this, how does the initial distribution of BitUSD work?

[tonyk]

As a prediction market.. maybe it's worth something if enough people all decide to agree it's worth 1 USD.. I'm skeptical though.

That's the point though. The only people who matter for deciding its price are the shorts who are already in the system, wants BTSX to go up, and agree with each to value it at 1 USD. Everyone else is just along for the ride.

Well... it you are shorting BTSX to buy BitUSD.. then you would only do that if you believe that BTSX will go down relative to USD...  which I didn't even think of before but that might cause a volume problem.  Because if you don't believe in BTSX.. you aren't going to buy BTSX in the first place, meaning you won't then proceed to buy BitUSD.

Read your own words above man. Do not come with one after the other  - wrong arguments from the NXT forum*. I read them all day anyway. Read your own words - I believe you are just one small step from getting it.

Post worth reading there btw:

nxtforum.org/index.php?topic=4716.msg90190#msg90190

You can't short BTSX to buy BitUSD, only the other way around. Buyers of BitUSD are only people that think it will work and would prefer exposure to BitUSD over exposure to BTSX, whether it is because they are short BTSX (but not actually shorting on collateral since you can't do that) or because they want stability.

So maybe I'm misunderstanding, how do you get BitUSD in the first place.. you have to purchase it using BTSX or short BitUSD in terms of BTSX, right?

You just buy the for whatever - USD, BTC or at the BTSX exchange for BTSX.(they start at that exchange initially if that is the question)

[hughmanwho]

You can't short BTSX to buy BitUSD, only the other way around. Buyers of BitUSD are only people that think it will work and would prefer exposure to BitUSD over exposure to BTSX, whether it is because they are short BTSX (but not actually shorting on collateral since you can't do that) or because they want stability.

So maybe I'm misunderstanding, how do you get BitUSD in the first place.. you have to purchase it using BTSX or short BitUSD in terms of BTSX, right?

[toast]

As a prediction market.. maybe it's worth something if enough people all decide to agree it's worth 1 USD.. I'm skeptical though.

That's the point though. The only people who matter for deciding its price are the shorts who are already in the system, wants BTSX to go up, and agree with each to value it at 1 USD. Everyone else is just along for the ride.

Well... it you are shorting BTSX to buy BitUSD.. then you would only do that if you believe that BTSX will go down relative to USD...  which I didn't even think of before but that might cause a volume problem.  Because if you don't believe in BTSX.. you aren't going to buy BTSX in the first place, meaning you won't then proceed to buy BitUSD.

You can't short BTSX to buy BitUSD, only the other way around. Buyers of BitUSD are only people that think it will work and would prefer exposure to BitUSD over exposure to BTSX, whether it is because they are short BTSX (but not actually shorting on collateral since you can't do that) or because they want stability.

[hughmanwho]

As a prediction market.. maybe it's worth something if enough people all decide to agree it's worth 1 USD.. I'm skeptical though.

That's the point though. The only people who matter for deciding its price are the shorts who are already in the system, wants BTSX to go up, and agree with each to value it at 1 USD. Everyone else is just along for the ride.

Well... it you are shorting BTSX to buy BitUSD.. then you would only do that if you believe that BTSX will go down relative to USD...  which I didn't even think of before but that might cause a volume problem.  Because if you don't believe in BTSX.. you aren't going to buy BTSX in the first place, meaning you won't then proceed to buy BitUSD.

[toast]

As a prediction market.. maybe it's worth something if enough people all decide to agree it's worth 1 USD.. I'm skeptical though.

That's the point though. The only people who matter for deciding its price are the shorts who are already in the system, wants BTSX to go up, and agree with each to value it at 1 USD. Everyone else is just along for the ride.

[tonyk]

@hughmanwho I don't see how you say a cryptocurrency can have value in and of itself but then also say that it can't be used as backing collateral for a prediction market because it is like making value out of nothing

It's different, BTC, Nxt, BTS to some extend, are currencies themselves.  Let me put it this way, theoretically BitUSD will have some value if enough people decide to pay the same amount for it as they will for USD.. odds are that most people won't be willing to do that.  Afterall, you can't buy anything with BitUSD, you can with USD.  Therefore USD clearly has more value for years to come.  As a prediction market.. maybe it's worth something if enough people all decide to agree it's worth 1 USD.. I'm skeptical though.

And just to be clear, to some extent, I'm playing devil's advocate here.  Once the current bubble pops, I may buy some BTS myself, but in my mind, clearly there are issues with BitUSD.

Read you own words couple of times... you might , just might, change your mind!
2c

[hughmanwho]

Hi hughmanwho

You of all people should know what are the risk when a central entity is holding the money, right?

Do not worry too much - this is just a theory. You do not have to 'believe' in it. After all people still refuse to believe in certain theories and instead believe that god created man out of mud.


BTW, there are better solutions before defaulting to 'trusting somebody with the money'. Just so you know.

I do realize that.  I don't see a way around that though, short of the government deciding to create their own competing crypto and any bank branch can take fiat and redeem it for crypto and vice versa.  Of course there is still an issue of whether that can be done trustlessly.. I guess not.

Like I said, we'll see if it works.. I hope it does, I just don't see it happening though.

In my robbery of fiat example, are you suggesting that everyone could be convinced that even though this asset is no longer backed by USD, everyone would just agree to pretend it is anyway?  I see that as the same thing.

@hughmanwho I don't see how you say a cryptocurrency can have value in and of itself but then also say that it can't be used as backing collateral for a prediction market because it is like making value out of nothing

It's different, BTC, Nxt, BTS to some extend, are currencies themselves.  Let me put it this way, theoretically BitUSD will have some value if enough people decide to pay the same amount for it as they will for USD.. odds are that most people won't be willing to do that.  Afterall, you can't buy anything with BitUSD, you can with USD.  Therefore USD clearly has more value for years to come.  As a prediction market.. maybe it's worth something if enough people all decide to agree it's worth 1 USD.. I'm skeptical though.

And just to be clear, to some extent, I'm playing devil's advocate here.  Once the current bubble pops, I may buy some BTS myself, but in my mind, clearly there are issues with BitUSD.

[toast]

@hughmanwho I don't see how you say a cryptocurrency can have value in and of itself but then also say that it can't be used as backing collateral for a prediction market because it is like making value out of nothing

Sent from my SCH-I535 using Tapatalk

[tonyk]

Hi hughmanwho

You of all people should know what are the risk when a central entity is holding the money, right?

Do not worry too much - this is just a theory. You do not have to 'believe' in it. After all people still refuse to believe in certain theories and instead believe that god created man out of mud.


BTW, there are better solutions before defaulting to 'trusting somebody with the money'. Just so you know.

[hughmanwho]

Let's take Google. The share price of Google is supposed to be their book value plus some fudging for revenue, growth potential, etc. It's why share-price/book is a key stat that tries to guess how much intangible value pushing the price above or below book is correct.

Yes but owning a piece of Google stock means that you have voting rights in the company, it means that if Google were to ever be sold(not going to happen any time soon..), you'd earn a percentage of the sale.  You actually own a piece of google.  Otherwise, the stock would be valueless.

The way I, and I think most rationale investors will see BitUSD is like this, a few companies are planning on issuing NxtUSD assets on the Nxt AE any day now.  They will hold on to USD to back every asset.  This means 1 NxtUSD = $1 because at any time you can give back the NxtUSD and they'll give you USD in the process.  Now imagine that they got robbed or someone emptied the bank account and ran away.  Now the USD backing NxtUSD is missing.. surely you can't still say that NxtUSD is worth $1 is you can't redeem it for a dollar, right?  This is exactly what BitUSD is going to be, except you're starting off with a pre-robbed bank.

You guys are using fancy words and trying to justify it but what it really all comes down is that you are trying to convince people that nothing has value.  This isn't like a crypto that is a currency in and of itself and USD isn't great but at least there is a limited supply.

I do like that the currency is created via shorting but still the way I see it going is this: I just don't see it having $1 in value as no one will be willing to pay more than $1 for it, and those who short it will be doing it because they believe it'll go up to one dollar and are in it for the money.. so maybe it'll have a value of $0.95.. and stay around that value.. until people realize the value is actually $0.95.. so people will only be willing to short if it goes down to $0.90...  same thing and it goes down to $0.85..  then people realize it doesn't work and it collapses.

There is something to the idea, and though I am very skeptical, I hope it works.  All I'm saying is.. be very cautious when it comes to these 'market-pegged' assets, you short too much and you could lose a lot of money in the process.

[luckybit]

So.. I'm very skeptical about BitUSD, BitGLD, etc.

How is the initial distribution of BitUSD going to occur?  Also, is there a fixed supply?  If so then is supply and demand forced to match price?

Too much demand and price goes higher than USD/BTS price, and people start dumping?

When funding allows we need some professional (visual style) videos which humorously explain how BitUSD works. We also need short videos which explain the basics of going long, going short, covering, and so on.

Bitshares has an extremely steep learning curve.

[Riverhead]

The way I've been thinking about why it will work, and I'm posting this more to have it corrected or validated, is to compare to what day traders do now.

Let's take Google. The share price of Google is supposed to be their book value plus some fudging for revenue, growth potential, etc. It's why share-price/book is a key stat that tries to guess how much intangible value pushing the price above or below book is correct.

Now let's take two day traders:

Trader A looks at the price of Google and says, "$400? Heck no.  They're about to be regulated out of existence and Amazon is releasing Amazon Search soon. I think it's worth $80" so they short.

Trader B thinks Trader A is off his rocker. The Google pipeline looks awesome and the stock will easily reach $600 by the end of the year. He bids long $500.

And so the game goes on. The big take away from this is neither have even the slightest interest in gaining a controlling stake in Google. It could be the worth of fiddle sticks for all they care.  The important thing is one person thinks it's worth more than the other and the market transactions tend toward a consensus of the intangible value above/below book.

Call them Google Shares or bitGoogle, it doesn't matter. It's not like if you had a Google share you could walk into Google HQ and start scarfing down the free food. The share really only has demand, and therefore value, because someone else thinks they can sell it for more later.

[oco101]

no backing .. just pegging .. you can also called it a consensus that a bitUSD is worth a USD ..

basically the engine (market) honor those that trade towards the consensus .. thats it .. feedback loop keeps the bitUSD where it belongs .. to 1USD ... or close to (that's the experiment)

It's worth experimenting I guess.. I sort of see it similar to the USD going off the gold standard but still claiming it is..  I definitely feel like it's valuable will never be worth 1 USD, because clearly USD is worth more..

idk, I'm not going to touch it for a year or so.. if it stabilizes, awesome!

When USD went off the gold standard, it meant that is was not backed by gold. This is not the case with bitAsset and this is the beauty of it  they will always be backed as long as BTSX has value of corse . Now BTSX value is 55 millions $ so you have a lot of backing and this is only the beginning. 
Your gold is btsx, so you can look at it this way : your bitUSD will be backed by BTSX and the price will be pegged to a USD. As long btsx has value your bitAssets will be baked . Now the only question remaining is if the market peg will function as is it is supposed too. But even if it is not working there is a backup plan. 

[xeroc]

It's worth experimenting I guess.. I sort of see it similar to the USD going off the gold standard but still claiming it is..  I definitely feel like it's valuable will never be worth 1 USD, because clearly USD is worth more..

idk, I'm not going to touch it for a year or so.. if it stabilizes, awesome!

I sure cannot tell anyone how to invest but I can point you towards some info material in order to understand the market peg and why the bitUSD WILL be worth 1 USD.

http://wiki.bitshares.org/index.php/Market_Peg

[hughmanwho]

no backing .. just pegging .. you can also called it a consensus that a bitUSD is worth a USD ..

basically the engine (market) honor those that trade towards the consensus .. thats it .. feedback loop keeps the bitUSD where it belongs .. to 1USD ... or close to (that's the experiment)

It's worth experimenting I guess.. I sort of see it similar to the USD going off the gold standard but still claiming it is..  I definitely feel like it's valuable will never be worth 1 USD, because clearly USD is worth more..

idk, I'm not going to touch it for a year or so.. if it stabilizes,

[unsoindovo]

That snapshots will be taken from btsx ..

perfect!!!

thank you for confirm it...

no ETA yet for snapshot date?

Snapshots will be in future for different economics approaches etc, but in general it will just be Bitshares X from here forward.

if it is so, for several months we have only 2 chain
1) PTS/AGS
2) BTSX

and all block chine snapshot will be taken from there

[gamey]

That snapshots will be taken from btsx ..

perfect!!!

thank you for confirm it...

no ETA yet for snapshot date?

Snapshots will be in future for different economics approaches etc, but in general it will just be Bitshares X from here forward.

[xeroc]

That snapshots will be taken from btsx ..

perfect!!!

thank you for confirm it...

no ETA yet for snapshot date?

to clarify: these snapshots are for products within the Banking&Exchange ecosystem ... all other ecosystems (DNS,Play,Vote,Music,...) WILL snapshot from PTS/AGS

No additional chain announced within BitSharesX. I am sure the devs need to make sure that X works well before they are planning other chains. Give them a few months

[unsoindovo]

That snapshots will be taken from btsx ..

perfect!!!

thank you for confirm it...

no ETA yet for snapshot date?

[xeroc]

That snapshots will be taken from btsx ..

[unsoindovo]

So.. I'm very skeptical about BitUSD, BitGLD, etc.

How is the initial distribution of BitUSD going to occur?  Also, is there a fixed supply?  If so then is supply and demand forced to match price?

Too much demand and price goes higher than USD/BTS price, and people start dumping?

just a simple question..

for BitUSD, BitGLD, BitOil an other PEG DAC will be taken another snapshot?
if yes, the snapshot will be taken to bitShare-PTS / or bitShare AGS-X blockchain?
the next snapshot is already planned?

thank you guys!!!

[mf-tzo]

Bitcoin was and is still an experiment! Bitusd to be usd is just the normal thing to follow...

[xeroc]

I've seen this one: http://wiki.bitshares.org/index.php/Market_Peg

I did like BTS's idea for shorting assets though: http://www.devtome.com/doku.php?id=bitshares_-_market_pegging

The basic idea though is that we are just creating an asset out of thin air though and whether it's shorting or buying or selling or whatever.. we're just saying, why don't we all agree that's equal to a dollar?  But it's not actually backed by any dollars..

no backing .. just pegging .. you can also called it a consensus that a bitUSD is worth a USD ..

basically the engine (market) honor those that trade towards the consensus .. thats it .. feedback loop keeps the bitUSD where it belongs .. to 1USD ... or close to (that's the experiment)

[hughmanwho]

I've seen this one: http://wiki.bitshares.org/index.php/Market_Peg

I did like BTS's idea for shorting assets though: http://www.devtome.com/doku.php?id=bitshares_-_market_pegging

The basic idea though is that we are just creating an asset out of thin air though and whether it's shorting or buying or selling or whatever.. we're just saying, why don't we all agree that's equal to a dollar?  But it's not actually backed by any dollars..

[xeroc]

check out
http://wiki.bitshares.org/index.php/Market_Peg

It's going to be much more fancy

[merockstar]

http://www.devtome.com/doku.php?id=bitshares_-_market_pegging

[hughmanwho]

So.. I'm very skeptical about BitUSD, BitGLD, etc.

How is the initial distribution of BitUSD going to occur?  Also, is there a fixed supply?  If so then is supply and demand forced to match price?

Too much demand and price goes higher than USD/BTS price, and people start dumping?