Author Topic: Earn 5% on your BitUSD Now with BitShares X  (Read 9024 times)

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merockstar

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pretend btsx and bitUSD blows up and the vast majority of people use it.

would that make much higher returns possible through a market peg?

bitUSD1000 or even bitUSD10000?

No one would short at interest rates that high...

point taken.

what if the supply were introduced and regulated artificially, or by delegates?

Offline bytemaster

pretend btsx and bitUSD blows up and the vast majority of people use it.

would that make much higher returns possible through a market peg?

bitUSD1000 or even bitUSD10000?

No one would short at interest rates that high...
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.

merockstar

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pretend btsx and bitUSD blows up and the vast majority of people use it.

would that make much higher returns possible through a market peg?

bitUSD1000 or even bitUSD10000?

Offline santaclause102

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BItUSD interest isn't tied to growth of BTSX.  That's where the misunderstanding was.

A BitAsset can be defined in terms of any clear consensus point.  By default we have BitUSD which is consensus tied to the dollar.  We can also define it to be any easily calculated (unambiguous) equation relative to a well defined value.   IE:  a weighted basket of commodities, or an interest bearing bond.  Think "Bit30YearTreasuries"
I have two assumptions:
(1) There will be a demand for different BitUSDs (BitUSD-5, BitUSD0, BitUSD5 (= BitUSD 5 %), BitUSD10, BitUSD100 etc.).
(2) shorting BitUSD is going long BTSX and going long BitUSD (buying BitUSD) is going short BTSX.

Therefore...
If BTS X is believed to grow much for sure then many will want to go short BitUSD and the demand for going long BitUSD will be small. Therefore the BitUSD shorters have to offer the BitUSD long positions much interest so there is enough demand for BitUSD long positions to meet the BitUSD short positions.
If BTSX is doubted to grow much or if the growth of BTSX is doubted at all many will want to go long BitUSD and woun't be able to get much interest....

Conclusion:
Depending on the growth potential of BTS X the demand for BitUSD long and short positions will vary. Therefore, depending on the growth potential of BTSX, sometimes BitUSD0 and sometimes BitUSD50 will be what traders will agree on to trade.
Is this the problem you call "liquidity problem" (either not enough BitUSD shorters OR long positions)?

Offline xeroc

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how will the bitAssets ''appear'' or be distributed, if they are? I mean, the first time we buy them, we will buy them from who/what? Which entity so to speak, will sell them to whoever is buying? Im confused about that. Maybe i missed some explanation about it
There is no 'distribution' the bitAssets. They are created by the market once people start to trade them.
Read about the market_peg over here:
http://wiki.bitshares.org/index.php/Market_Peg
http://wiki.bitshares.org/index.php/Bitshares_X#There_is_no_real_Gold_backing_BitGold._How_does_it_have_any_value_at_all_then.3F

Offline Akado

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how will the bitAssets ''appear'' or be distributed, if they are? I mean, the first time we buy them, we will buy them from who/what? Which entity so to speak, will sell them to whoever is buying? Im confused about that. Maybe i missed some explanation about it
https://metaexchange.info | Bitcoin<->Altcoin exchange | Instant | Safe | Low spreads

Offline luckybit

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For the record, I don't like this idea.  I think there are ways of doing interest paying bonds but I don't think this is it.  I hope we don't push this or advertise it anytime soon.

"Holding this asset would appreciate at 5% based upon consensus alone"
If you are suggesting this doesn't require changes to the code, just a different asset name, than I don't think it works.

Why not advertise it? It would encourage people to save in BitUSD5.
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Offline Agent86

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For the record, I don't like this idea.  I think there are ways of doing interest paying bonds but I don't think this is it.  I hope we don't push this or advertise it anytime soon.

"Holding this asset would appreciate at 5% based upon consensus alone"
If you are suggesting this doesn't require changes to the code, just a different asset name, than I don't think it works.

Offline santaclause102

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BItUSD interest isn't tied to growth of BTSX.  That's where the misunderstanding was.

A BitAsset can be defined in terms of any clear consensus point.  By default we have BitUSD which is consensus tied to the dollar.  We can also define it to be any easily calculated (unambiguous) equation relative to a well defined value.   IE:  a weighted basket of commodities, or an interest bearing bond.  Think "Bit30YearTreasuries"
I have two assumptions:
(1) There will be a demand for different BitUSDs (BitUSD-5, BitUSD0, BitUSD5 (= BitUSD 5 %), BitUSD10, BitUSD100 etc.).
(2) shorting BitUSD is going long BTSX and going long BitUSD (buying BitUSD) is going short BTSX.

Therefore...
If BTS X is believed to grow much for sure then many will want to go short BitUSD and the demand for going long BitUSD will be small. Therefore the BitUSD shorters have to offer the BitUSD long positions much interest so there is enough demand for BitUSD long positions to meet the BitUSD short positions.
If BTSX is doubted to grow much or if the growth of BTSX is doubted at all many will want to go long BitUSD and woun't be able to get much interest....

Conclusion:
Depending on the growth potential of BTS X the demand for BitUSD long and short positions will vary. Therefore, depending on the growth potential of BTSX, sometimes BitUSD0 and sometimes BitUSD50 will be what traders will agree on to trade.
« Last Edit: August 21, 2014, 08:30:49 pm by delulo »

Offline bytemaster

What is the frequency in which interest is paid to bitUSD holders?

In this system the 5% is simply in appreciation relative to USD.   IE:   In one year 1 BitUSD5 will be worth 1.05 BitUSD.   The nice thing about this approach is that instead of income you get capital gains!
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 hamiltino

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What is the frequency in which interest is paid to bitUSD holders?

Offline bytemaster

BItUSD interest isn't tied to growth of BTSX.  That's where the misunderstanding was.

A BitAsset can be defined in terms of any clear consensus point.  By default we have BitUSD which is consensus tied to the dollar.  We can also define it to be any easily calculated (unambiguous) equation relative to a well defined value.   IE:  a weighted basket of commodities, or an interest bearing bond.  Think "Bit30YearTreasuries"   

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 santaclause102

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Thanks toast for the reply but I don't get it yet.

The question to me is: If the interest rate on BitUSD is variable and depends on the growth potential of BTS X then we have two assets BitUSD and BTSX but the BitUSD is not always worth 1 USD because: If BTS X is believed to grow much for sure per year then many will want to go short BitUSD and those that go long BitUSD will get much interest on their BitUSD. If BTSX is doubted to grow much or if the growth of BTSX is doubted at all many will want to go long BitUSD and woun't be able to get much interest.

Where is the flaw in my argument?
Any answer to this?

Offline santaclause102

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Thanks toast for the reply but I don't get it yet.

The question to me is: If the interest rate on BitUSD is variable and depends on the growth potential of BTS X then we have two assets BitUSD and BTSX but the BitUSD is not always worth 1 USD because: If BTS X is believed to grow much for sure per year then many will want to go short BitUSD and those that go long BitUSD will get much interest on their BitUSD. If BTSX is doubted to grow much or if the growth of BTSX is doubted at all many will want to go long BitUSD and woun't be able to get much interest.

Where is the flaw in my argument?
« Last Edit: August 19, 2014, 09:44:37 am by delulo »

Offline Gentso1

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I believe that the one thing Bitshres eco system lacks is complexity.
It is so flat learning curve that in order to make it intriguing for every newcomer we need to add up everyday. Mass adoption will easily follow if everybody comes to Bitshares and do not finds the whole concept boring and lacking new ideas. If there is nothing progressive, innovative, experimental and groundbreaking they will simply leave. Actually if only a couple of groundbreaking innovations happen at the time of their visit they may leave and never return.

 The market peg is a Giant experiment in itself... DPOS TITAN a bunch other DACs...and that is for people already following the projects


Leave it for 3-6 mo. after we have working peg... will you?
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