I think the peg will work well. From regulatory perspective, I'm not sure how it will play out, very gray area. Sounds like I3 has done their homework, but remains to be seen what new rulings may come out of this experiment.
New rulings? No law has been broken and there is nothing to regulate. Fiat isn't being exchanged, there's no actual securities involved, and to regulate this would be like regulating World of Warcraft only more difficult because there is no CEO to go after.
All the regulation will take place at financial institutions. So when you go to cash out into fiat you'll be dealing with banks and will be regulated there. Anything which happens on the blockchain is outside of any governments jurisdiction until it's connected to the real world.
Of course at some point they might be crazy enough to try but there will always be governments which are more sane and delegates can move there.
do you not?
I want to believe. I feel as though I don't know enough about market dynamics to come to any sort of educated conclusion. However, I do know that if this little experiment works out and BitAssets hold their pegs, BTSX is going to skyrocket in value. Solving the volatility issue is the holy grail and (in my opinion) the only thing holding crypto back from achieving new highs.
Not the only thing holding crypto back but a major thing. I think BitUSD is the least interesting BitAsset. Most people don't really need BitUSD because they are happy to use their credit cards.
It's the other more exotic BitAssets which will change the world. When people can trade stocks and have a sort of virtual Forex that is when the game will change. The only thing holding that back is the fact that there is no way to turn these virtual assets into legal assets.
Regulators ultimately determine the rules for legal securities. The crypto ecosystem doesn't have enough regulated entities but suppose for example the Bitcoin ETF company decided to issue a BitAsset called Coin?
That BitAsset would be pegged to Bitcoin just like BitBTC only you cuold send your tokens to them and they'll be turned into stocks? That is what I'm waiting to see personally. I don't think Bitshares is going to replace the NASDAQ or S&P500 but maybe it doesn't have to? Maybe it could be a new way to introduce people to the stock market and let them buy stocks.
This is what Bitshares X is in my opinion:
https://secure.marketwatch.com/game/only we could do it better and let people actually exchange the in game stocks for legal stocks someday. That means Bitshares X is a virtual stock exchange "serious" game.