[Bitshares] bitUSD discussion

[ChuckOne]

source https://nxtforum.org/general-discussion/bitshares-the-great-satan-on-the-blockchain/

Kinda like how a $100 bill is worth $100 just because everybody believes it to be so? Exactly.

The power of bitUSD is that it does not have a fixed supply. The BTSX network "prints" as much bitUSD as is necessary to keep the price of bitUSD below that of fiatUSD, and destroys as much as necessary to keep the price above that of fiatUSD. Hence, the price of bitUSD can be neither above nor below that of fiatUSD.

It's very simple: fixed supply = variable price, and fixed price = variable supply.

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The Federal Reserve controls the USD supply.

Replace "Federal Reserve" with "DAC" and add "bit" to "USD"...

The DAC controls the bitUSD supply.

CONGRATULATIONS! YOU'VE JUST INVENTED FEDERAL RESERVE 2.0!

That's the goal. Now what if you had a chance to purchase shares in the Fed in 1920?

Sent from my SCH-S720C using Tapatalk 2

Bitshares is self-admittedly an attempt to recreate a central banking scheme in crypto form.  Bitshares' DPoS is a centralized consensus system that relies upon a set number of nodes achieving consensus.

In practice BitShares isn't a distributed system, it is more like coordinated synchronized time shared centralized system.  -bytemaster

These 101 delegates are responsible for including transactions on the bitshares network.  Now think about this.  The DAC attempts to set monetary policy for the "bit assets" depending on the market price.  If there are more sellers, the DAC destroys bit assets.  If there are more buyers, the DAC prints more bit assets.  So, whoever controls the transactions included on the blockchain controls the DAC or monetary policy that the DAC enacts on the entire network.  Who controls the transactions included on the blockchain?  The 101 delegates.

How does the Federal Reserve set the monetary policy for the US dollar?

Federal Reserve monetary policy is decided by the FOMC (Federal Open Market Committee).  What is the FOMC?

It is this Federal Reserve committee which makes key decisions about interest rates and the growth of the United States money supply. -Wikipedia

The Federal Reserve achieves consensus on its monetary policy via a committee made up of delegates.

Bitshares = "Federal Reserve 2.0"
Bitshares' delegates = FOMC

[ChuckOne]

Actually, I do not speculate on things like those but regarding the recent upsurge of the trust in BitShares I am curious about the opinion and insights of others.

I mean how could anybody in the crypto community would want to mirror the FED?

I cannot believe that to be true.

[bitcoinpaul]

Who's the user biophil?

[StanLarimer]

Actually, I do not speculate on things like those but regarding the recent upsurge of the trust in BitShares I am curious about the opinion and insights of others.

I mean how could anybody in the crypto community would want to mirror the FED?

I cannot believe that to be true.

Precisely.  Anyone who has done their homework and spent any time at all on bitsharestalk.org over the past year knows that BitShares is the antidote to the Federal Reserve's 100+ years of economic atrocities.   

But do yourselves a favor and study before you decide if this is the Next Big Thing or not. 

"Knowledge and Understanding is the ultimate Proof of Work." 

[toast]

this is hilarious, please don't stop

[ChuckOne]

Actually, I do not speculate on things like those but regarding the recent upsurge of the trust in BitShares I am curious about the opinion and insights of others.

I mean how could anybody in the crypto community would want to mirror the FED?

I cannot believe that to be true.

Precisely.  Anyone who has done their homework and spent any time at all on bitsharestalk.org over the past year knows that BitShares is the antidote to the Federal Reserve's 100+ years of economic atrocities.   

But do yourselves a favor and study before you decide if this is the Next Big Thing or not. 

"Knowledge and Understanding is the ultimate Proof of Work." 

I am not sure if it is an antidote or just a replacement that changes nothing.

Not sure if you read http://invictus-innovations.com/bitshares-as-dac-bank/

But fractional reserve lending is about robbing the wealth of others. I am not sure if that is in the best interest of the crypto community.

[toast]

Actually, I do not speculate on things like those but regarding the recent upsurge of the trust in BitShares I am curious about the opinion and insights of others.

I mean how could anybody in the crypto community would want to mirror the FED?

I cannot believe that to be true.

Precisely.  Anyone who has done their homework and spent any time at all on bitsharestalk.org over the past year knows that BitShares is the antidote to the Federal Reserve's 100+ years of economic atrocities.   

But do yourselves a favor and study before you decide if this is the Next Big Thing or not. 

"Knowledge and Understanding is the ultimate Proof of Work." 

I am not sure if it is an antidote or just a replacement that changes nothing.

Not sure if you read http://invictus-innovations.com/bitshares-as-dac-bank/

But fractional reserve lending is about robbing the wealth of others. I am not sure if that is in the best interest of the crypto community.

Except it's 150%+ reserve, not fractional reserve.
Does that change how you feel?

[Brilliantrocket]

This is a fucking travesty. What kind of degenerate scum would support this blatantly regressive scheme?

[toast]

These 101 delegates are responsible for including transactions on the bitshares network.  Now think about this.  The DAC attempts to set monetary policy for the "bit assets" depending on the market price.  If there are more sellers, the DAC destroys bit assets.  If there are more buyers, the DAC prints more bit assets.  So, whoever controls the transactions included on the blockchain controls the DAC or monetary policy that the DAC enacts on the entire network.  Who controls the transactions included on the blockchain?  The 101 delegates.

Also total FUD, the delegates do not dictate the supply of BitUSD, the traders do. Delegates are only used for the consensus protocol, if they exclude transactions to try to skew the peg then at best they can lose money and get fired...

[PilotofBTC]

Where is the fractional lending? Perhaps I am missing it?

You can borrow bitUSD against XTS (BTSX?). You can only borrow up to 50% of your collateral (XTS) and if the value of the collateral drops the loan (short) is covered.

[Anders]

BitSharesX is at the third position now and is skyrocketing: http://coinmarketcap.com/

I must learn more about BitSharesX! It's something about short and long investments.

[instacalm]

ChuckOne I seriously facepalmed when I read this topic, is this the new indirect NXT promotion derived from lack of BTS understanding? Not cool

[Indemnified]

Where is the fractional lending? Perhaps I am missing it?

You can borrow bitUSD against XTS (BTSX?). You can only borrow up to 50% of your collateral (XTS) and if the value of the collateral drops the loan (short) is covered.

There is no fractional reserve. OP is posting without any knowledge of how BitsharesX is intended to work. In fact, the experiment is attempting to accomplish exactly the opposite of what OP is suggesting.

Two of the major memes at their website are:

The revolution will not be centralized.

and

Andrew Jackson's "I killed the bank"

[FandangledGizmo]

Is that the same ChuckOne who was posting in the ethereum Bitshares collaboration thread?

https://bitsharestalk.org/index.php?topic=6990.msg95311#msg95311

Pretty hysterical if it is

Reeks of desperation.

NXT tried to do a similar full on anti-marketing campaign with Ethereum I think. (Which I'm not an investor in at all.)

Basically anyone that's not NXT is evil

[ChuckOne]

ChuckOne I seriously facepalmed when I read this topic, is this the new NXT promotion derived from lack of BTS understanding? Not cool

This is the way to understand why we would endorse a system where humans can control the money supply? It will definitely get misused.

This thread is about elucidation of people (and me) to learn what are the properties and the limits of such system and are there dangers to be known by investors.


Statements such as:

The Federal Reserve controls the USD supply.

Replace "Federal Reserve" with "DAC" and add "bit" to "USD"...

The DAC controls the bitUSD supply.

CONGRATULATIONS! YOU'VE JUST INVENTED FEDERAL RESERVE 2.0!

That's the goal. Now what if you had a chance to purchase shares in the Fed in 1920?

Sent from my SCH-S720C using Tapatalk 2

do not inspire confidence, I have to say. They rather tell me that people endorsing this system do have intentions I am not willing to share.

They do not want to change the status quo but rather repeat history and pull out money from people.


As usual I am concerned, so the best way out I know is asking.

[ChuckOne]

Is that the same ChuckOne who was posting in the ethereum Bitshares collaboration thread?

https://bitsharestalk.org/index.php?topic=6990.msg95311#msg95311

Yes, he is.

Pretty hysterical if it is

Reeks of desperation.

NXT tried to do a similar full on anti-marketing campaign with Ethereum I think. (Which I'm not an investor in at all.)

Basically anyone that's not NXT is evil

I do not think that. Why do you think we would want cooperation? Cooperation is only possible between peers with the same intentions. And that is what I am going to question here.

If the intentions are good, we are alright. If not, I got problems to endorse a cooperation.

[TaunSew]

4/5+ of biTshares' volume comes from Chinese exchanges. 

http://coinmarketcap.com/currencies/bitshares-x/#markets

Actually it's less than that if we look at top 5 (Poloniex is only $14K versus $2+ million).  Practically all the Bitshare trading is done on Chinese exchanges which are alleged to engage in manipulation.

[FandangledGizmo]

4/5+ of biTshares' volume comes from Chinese exchanges. 

http://coinmarketcap.com/currencies/bitshares-x/#markets

Actually it's less than that if we look at top 5 (Poloniex is only $14K versus $2+ million).  Practically all the Bitshare trading is done on Chinese exchanges which are alleged to engage in manipulation.

How Big is the NXT Chinese community on your forums?
Maybe you should look at ours...
https://bitsharestalk.org/index.php?board=4.0

Btc38 also has an English site, so I've traded on there myself, including BTSX/CNY because of volumes.

You NXT guys are awesome

[TaunSew]

4/5+ of biTshares' volume comes from Chinese exchanges.  

http://coinmarketcap.com/currencies/bitshares-x/#markets

Actually it's less than that if we look at top 5 (Poloniex is only $14K versus $2+ million).  Practically all the Bitshare trading is done on Chinese exchanges which are alleged to engage in manipulation.

How Big is the NXT Chinese community on your forums?
Maybe you should look at ours...
https://bitsharestalk.org/index.php?board=4.0

Btc38 also has an English site, so I've traded on there myself, including BTSX/CNY because of volumes.

You NXT guys are awesome

That wasn't really my point.  I know that most of NXT volume is Chinese too but not to the same extent.  Maybe only $10K - $15K is non-Chinese volume as of today at $57K volume.

When the Chinese are spending like $2+ million volume on Bitshares (while non-Chinese is like $10K-$15K), it makes us wonder if this is all manipulation or a lot of future Chinese bagholders.

[toast]

Statements such as:

...

do not inspire confidence, I have to say. They rather tell me that people endorsing this system do have intentions I am not willing to share.

They do not want to change the status quo but rather repeat history and pull out money from people.


As usual I am concerned, so the best way out I know is asking.

"they" here is a random pumping zealot, not a member of the team