Author Topic: BitUSD vs CoinoUSD  (Read 7493 times)

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Offline liondani

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Problem of course is that it's centralized.

I guess no comments are needed..

Offline Empirical1.1

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Who holds this USD that coinoUSD is backed by?

That's what I want to know.

It's probably a centralised entity like Realcoin where you have to trust CoinoUSD won't do a runner and know that if .gov doesn't like it they can just seize their backing dollars/assets or target them through their banking partners.

CoinoUSD will probably be backed by centralised seizable collateral but BitUSD is backed by decentralised unseizable collateral.



Offline Gentso1

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couple questions
How are coinoUSD created?
Who holds this USD that coinoUSD is backed by?
You say you can take coinoUSD and cash out to bank account, how exactly do you do this?



Offline tonyk

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I'm assuming you guys know with BitUSD, basically people short BTSX to create BitUSD out of thin air, and other can buy or sell them.  Problem is it's fluctuated from anywhere between $0.71 and $0.999 (or $2 upon opening).  It has some potential as a prediction market.. but those are swings of 30%, it's certainly not stable enough for a merchant to decide to store his money in that form.  And personally, I'd be afraid of a bank run.

CoinoUSD is an assset, run on the Nxt asset exchange that is backed by actual dollars.  At any point in time, you can take a CoinoUSD asset and send it to your CoinoUSD account, which will allow you to cash out and end up with an actual dollar bill sitting in your bank account.  Because they hold on to USD to back CoinoUSD, no worry of a bank run.  Problem of course is that it's centralized.

So, question is what do you guys think about BitUSD vs CoinoUSD?

IOU's gateways/assets are coming to BTSX soon (I hope) so...
Lack of arbitrage is the problem, isn't it. And this 'should' solves it.

Offline bytemaster

I'm assuming you guys know with BitUSD, basically people short BTSX to create BitUSD out of thin air, and other can buy or sell them.  Problem is it's fluctuated from anywhere between $0.71 and $0.999 (or $2 upon opening).  It has some potential as a prediction market.. but those are swings of 30%, it's certainly not stable enough for a merchant to decide to store his money in that form.  And personally, I'd be afraid of a bank run.

CoinoUSD is an assset, run on the Nxt asset exchange that is backed by actual dollars.  At any point in time, you can take a CoinoUSD asset and send it to your CoinoUSD account, which will allow you to cash out and end up with an actual dollar bill sitting in your bank account.  Because they hold on to USD to back CoinoUSD, no worry of a bank run.  Problem of course is that it's centralized.

So, question is what do you guys think about BitUSD vs CoinoUSD?

I would love to see CoinoUSD issued as a user issued asset on BTSX and trade against BitUSD :)

Personally with CoinoUSD I would be afraid of a bankrun + government shutdown, etc.    BitUSD has different risks and the market will eventually price them accordingly.

Here is the interesting thing... the risk for BitUSD is only the "spread" and over time that will narrow.   The "volatility" you state was at launch and prior to restrictions on shorting being introduced.  Give it time to mature before you judge it.
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Offline hughmanwho

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I'm assuming you guys know with BitUSD, basically people short BTSX to create BitUSD out of thin air, and other can buy or sell them.  Problem is it's fluctuated from anywhere between $0.71 and $0.999 (or $2 upon opening).  It has some potential as a prediction market.. but those are swings of 30%, it's certainly not stable enough for a merchant to decide to store his money in that form.  And personally, I'd be afraid of a bank run.

CoinoUSD is an assset, run on the Nxt asset exchange that is backed by actual dollars.  At any point in time, you can take a CoinoUSD asset and send it to your CoinoUSD account, which will allow you to cash out and end up with an actual dollar bill sitting in your bank account.  Because they hold on to USD to back CoinoUSD, no worry of a bank run.  Problem of course is that it's centralized.
More details: https://coinomat.com/coinousd.php

So, question is what do you guys think about BitUSD vs CoinoUSD?
« Last Edit: September 05, 2014, 05:54:34 pm by hughmanwho »