Bitcoin Forum

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I'm just reading up on the wiki now, (total newbie to all latest bts news) -

Market peg
"BitShares introduces this unique concept by leveraging the accuracy and efficiency of predictions markets to create a new class of crypto-currencies that are pegged to the value of "

If i read that right, there is no 'prediction market' per se,  bitassets such as bitgold is equivalent to the price of say 1 troy oz of gold on the expectation the market will gravitate towards valueing it that way? - why could the same thing not be done on equivalent DeX's, using counterparty assets instead, for instance?

The difference is that in case the DeX assets there is a centralized counterparty. With bitassets your counterparty is the whole market respectively the whole other side (bitUSD long positions for example if you are short bitUSD).

Just following up on this as it will be interesting on Wednesday when interest is added to BitUSD.
https://bitsharestalk.org/index.php?topic=8520.0


Also, based on all the feedback it appears the market peg is working albeit with training wheels.
https://bitsharestalk.org/index.php?topic=8358.0


This has been one cool experiment to watch.

 8)
bts >btc

Interest on bitassets will be awesome.  You will be able to short bitUSD, buy your own short, hold onto it to collect interest, and then cover your short. 

What I really can't wait to get going is bitGLD though.  I might just go long on that.  Hopefully there's enough volume in bitGLD to pay a decent interest rate.

Can I buy BTC with USD at bitshares system?

You can buy bitBTC with bitUSD.  There is not yet enough volume on that trading pair to really make it fun though. 

bitBTC is a crypto asset that tracks the value of btc, its not btc...

How far from the USD has the BitUSD gone until now?

If you mean exchange rate, you can look here: https://bter.com/trade/BITUSD_USD

I'm reading up on Bitshares and they say they have market pegged assets that are linked to USD and Gold (BitUSD and BitGold)

They say it holds a stable price and fluctuates somehow to make sure you still have that exact value. What I'm assuming they mean is that if you have 100 BitUSD that is equal to $100 USD. And if BitUSD dropped in value to say $90, your bitUSD will fluctuate to 110 or something to compensate the change. So the coins/asset are the #'s that are actually moving not the value.

Now the question I have is say if you have 1000 BitUSD and you want to cash out to USD. Who is going to be the one giving you actual dollars? Sure if you put in $1000 USD and purchased 1000 BitUSD. Say if you wanted to sell that 1000BitUSD now, who is going to buy that back from u at $1000?

This is what I'm confused about on the Market Pegged Assets.

I don't think so. If I understand it correctly,  1 BitUSD is backed by enough Bitshares to equal $1. Someone has locked up 3 times as many bitshares as would be needed to collateralize the BitUSD, so assuming there isn't a quick and devastating crash in bitshares, there should be enough collateral to make you whole. So 100 BitUSD would always be worth $100 and would not fluctuate.

At least until there are gateways available, no one will give you USD for it. If you decide to cash in your BitUSD what you will actually get is enough bitshares to equal the value of USD at the time you decide to cash in. You would then need to sell your bitshares on an exchange to get actual USD.

Which means that Bitcoin bulls can hop on and off the Bitcoin elevator by switching between BitBTC and BitUSD as the bitcoin price cycles.  No need to be exposed to the price of BitShares itself unless you want to be.

The switch takes ten seconds and costs a fraction of a cent, so you can trade exposure to Bitcoin or dollars or euros or yuan or gold or silver in a heartbeat.

You can spend them to other users in any of these forms without leaving the BitShares exchange, and thus are never exposed to being Goxed or high exchange spreads or certain confiscatory taxes.

Cash out to fiat only when you need fiat.  Otherwise stay isolated from the risks of the global financial system while tracking whatever asset is appreciating against the others at any given instant.

So, while you can spend these "smart currencies" like you spend bitcoin, they are first and foremost intended to be a very fast, affordable, and safe way to trade and store your wealth in a basket of currencies whose weighted mix you can adjust as often as you like.

And they pay a small yield while you hold them!