!!! Stupid Questions Thread !!!

[liondani]

would it be better that the system quit/cancel automaticaly market orders that are for example more than 4 months old, since it could be trapped collateral from users they could not cancel their orders due the current buggy software (?)

[Method-X]

So basically this is the best thing ever? If I can be the test sample as a layman // the future average user...this is incredible.

I can put some savings stash in bitUSD and convert to physical fiat if I ever wanted to and be gaining 5-10% per year?

Yup. Since the exchange is decentralized and autonomous, most fees are given to BitAsset holders. So the actual interest rate is variable and could potentially be more than 10% depending on trading activity.

[Riverhead]

So basically this is the best thing ever? If I can be the test sample as a layman // the future average user...this is incredible.

I can put some savings stash in bitUSD and convert to physical fiat if I ever wanted to and be gaining 5-10% per year?

It is a great experiment, like Bitcoin, so gauge your risk tolerance accordingly. That said, yes, this could be pretty great. I suspect at some point it'll snowball enough momentum that most people will use it because that's where the action is (yes, that is circular logic but it works in this case like Facebook or Twitter). BitSharesX doesn't have to convince everyone, just enough to create a sustainable marketplace.

[feedthemcake]

Question:

If I have btc and I happy with the value of approximately 480.00 +/- USD per btc, can I purchase BTSX > then transfer BTSX to my wallet > then purchase BitUSD and store the value in the exchange and retain my approximately 480.00 USD? Rather than sell my BTC on coinbase or elsewhere and convert it to fiat and store it in a bank?  What are the advantages or disadvantages if this is how it would work.

Thanks!

Absolutely! On Bter.com you can actually move directly from BTC -> BitUSD.

If you can't trade directly from BTC to BitUSD, like you said, you can go from BTC -> BTSX -> move to wallet/exchange app -> trade to BitUSD.

Your $480 will be "locked in" even if BTSX goes down in value.

I don't know if you've heard about the announcement but starting this Wednesday, holders of BitUSD (and any other BitAsset) will be paid interest on their holdings. You'll be sheltered from the volatility of cryptocurrencies and you'll still be making about 5 - 10% interest per year. So moving your BTC into BitUSD will be considerably more profitable than keeping it on an exchange or in a local bank.

BitGLD and BitSLV will launch in the near future so putting your funds in gold and silver will be another option for you to consider.

So basically this is the best thing ever? If I can be the test sample as a layman // the future average user...this is incredible.

I can put some savings stash in bitUSD and convert to physical fiat if I ever wanted to and be gaining 5-10% per year?

[Method-X]

Question:

If I have btc and I happy with the value of approximately 480.00 +/- USD per btc, can I purchase BTSX > then transfer BTSX to my wallet > then purchase BitUSD and store the value in the exchange and retain my approximately 480.00 USD? Rather than sell my BTC on coinbase or elsewhere and convert it to fiat and store it in a bank?  What are the advantages or disadvantages if this is how it would work.

Thanks!

Absolutely! On Bter.com you can actually move directly from BTC -> BitUSD.

If you can't trade directly from BTC to BitUSD, like you said, you can go from BTC -> BTSX -> move to wallet/exchange app -> trade to BitUSD.

Your $480 will be "locked in" even if BTSX goes down in value.

I don't know if you've heard about the announcement but starting this Wednesday, holders of BitUSD (and any other BitAsset) will be paid interest on their holdings. You'll be sheltered from the volatility of cryptocurrencies and you'll still be making about 5 - 10% interest per year. So moving your BTC into BitUSD will be considerably more profitable than keeping it on an exchange or in a local bank.

BitGLD and BitSLV will launch in the near future so putting your funds in gold and silver will be another option for you to consider.

[feedthemcake]

Question:

If I have btc and I happy with the value of approximately 480.00 +/- USD per btc, can I purchase BTSX > then transfer BTSX to my wallet > then purchase BitUSD and store the value in the exchange and retain my approximately 480.00 USD? Rather than sell my BTC on coinbase or elsewhere and convert it to fiat and store it in a bank?  What are the advantages or disadvantages if this is how it would work.

Thanks!

[Riverhead]

I originally posted this in the bitUSD interest announcement but it's better suited here .

Why not just buy bitUSD on the open market so your BTSX isn't held up?

Going short/long at the same time is equivalent to holding BTSX with an option to double your stake at todays prices at any time.

I'm clearly missing something here. Someone help me fill in the blanks.

1) I short 100 bitUSD which at current $0.031 peg(ish) would be ~3225.82 BTSX
2) Someone takes the other side so now there's an extra 100 bitUSD supply and I have about 6451.61 BTSX tied up in collateral
3) Fast forward to Dec. 1st, 2014 when BTSX/bitUSD is 1/1 (   Hush, it's my hypothetical example)
4) I buy 100 bitUSD for 100 BTSX and cover my order, releasing the 6451.61 BTSX back into my account.

Is it the case that of the 6451.61 BTSX half of it came from selling the original 100 bitUSD and therefore is profit (minus the 100 BTSX I had to spend to buy the bitUSD to cover)?

If I bought my own short wouldn't I just be breaking even?

[xeroc]

Thanks for your reply.  I am a bit confused about your statement above.  Do you mean that if I add to my balance (send BTSX to my wallet) that the wallet will need to re-sync the next time it is on-line before those transactions show up?

In some POS schemes such as Peercoin you can MINT new coins into existence .. these are then added to you account.
BTSX uses a different security scheme and does not mint new coins ..

if you transfer btsx from an exchange or an other account to your account .. you will of course need to first synchronize to the network again .. that's the same with bitcoin ...

[James212]

Question:  Do I have to keep my balance on-line constantly in order to received "credit" for my balance or to be able to have my votes count or can I hold my wallet off-line?

however you balance does not increase automatically as in some other POS schemes such as peercoin,NXT,mintcoin etc...

Thanks for your reply.  I am a bit confused about your statement above.  Do you mean that if I add to my balance (send BTSX to my wallet) that the wallet will need to re-sync the next time it is on-line before those transactions show up?

[xeroc]

Question:  Do I have to keep my balance on-line constantly in order to received "credit" for my balance or to be able to have my votes count or can I hold my wallet off-line?

you can hold your wallet offline ... your votes become active upon you 'vote' transcation (button press) ...
however you balance does not increase automatically as in some other POS schemes such as peercoin,NXT,mintcoin etc...

in a few weeks the devs will implement some kind of reward/interest system (name not set yet) for bitAssets ..those will also accumulate "offline" ..

[James212]

Question:  Do I have to keep my balance on-line constantly in order to received "credit" for my balance or to be able to have my votes count or can I hold my wallet off-line?

[Riverhead]

How is that different from what I said?

Basically to make a profit shorting bitUSD you have to believe BTSX is over valued. Since you're "borrowing" the BTSX and selling them for bitUSD in the hopes of being able to buy them back later for less.

Doh. Ya, I got it backwards. Fixed

[xeroc]

How is that different from what I said?

Basically to make a profit shorting bitUSD you have to believe BTSX is over valued. Since you're "borrowing" the BTSX and selling them for bitUSD in the hopes of being able to buy them back later for less.

[Riverhead]

How exactly do I go about shorting bitUSD?  Can anyone give me an example of ideal conditions that will earn profit?

When we were in the bubble the pushed the marketcap to $100MM USD that would have been the ideal time to short some bitUSD. Of course most bubbles are only recognizable in retrospect though many claim to be able to recognize them.

Basically to make a profit shorting bitUSD you have to believe BTSX is over valued. Since you're "borrowing" the BTSX and selling them for bitUSD in the hopes of being able to buy them back later for less.

I found this useful: http://bclund.com/2011/08/08/how-to-explain-short-selling-to-a-non-trader-like-your-mother/

not true .. if you are shorting bitUSD .. than you are betting that one BTSX will buy you more bitUSD in future .. so the bitUSD / BTSX price should fall to make a profit

How is that different from what I said?

[xeroc]

How exactly do I go about shorting bitUSD?  Can anyone give me an example of ideal conditions that will earn profit?

When we were in the bubble the pushed the marketcap to $100MM USD that would have been the ideal time to short some bitUSD. Of course most bubbles are only recognizable in retrospect though many claim to be able to recognize them.

Basically to make a profit shorting bitUSD you have to believe BTSX is over valued. Since you're "borrowing" the BTSX and selling them for bitUSD in the hopes of being able to buy them back later for less.

I found this useful: http://bclund.com/2011/08/08/how-to-explain-short-selling-to-a-non-trader-like-your-mother/

not true .. if you are shorting bitUSD .. than you are betting that one BTSX will buy you more bitUSD in future .. so the bitUSD / BTSX price should fall to make a profit

in btsx ... the bitUSD is the good and btsx is the currency