Bitcoin vs. BitUSD by BitShares

[FandangledGizmo]

- Bitcoin has >$1 million of selling pressure a day in new coins coming from miners.
- Most Bitcoin merchants don't hold BTC due to volatility and their tight margins, so the more utility BTC gains and the more purchases are made the more selling pressure is created.

So the higher in price and the more popular Bitcoin becomes the less it is able to sustain itself as selling pressure from the miners and retailers grows proportionally. So except during intermittent bouts of popularity the graph of BTC may well like LiteCoin and other POW generally trend south..

BitShares has BitAssets which hold the value of real world currencies and commodities.

- BitUSD by BitShares has the stability & mirrors the value of real USD so merchants are inclined to hold it http://whatisbitusd.com/
- To make BitUSD secure, 300% of BTS collateral is required to create it.

The result is unlike Bitcoin as BitUSD (& other BitAssets) grows in utility, BTS demand will experience rapid growth.

BitShares 1.0 is coming soon...

[tokeweed]

why not have a bitUSD/BTC trading pair for people who do not want to hold fiat but want to speculate on BTC's volatility...?

[SBOSS]

What we need is a BitBitcoin 

[FandangledGizmo]

What we need is a BitBitcoin  

http://bitsharesblocks.com/assets

There is a BitBTC on BitShares. It's only got a $20 000 CAP though. The advantage is BitBTC earns you interest, it has 10 second transaction times and you can trade in and out of it within the BitShares wallet/client when you're more bullish on BTC than BTS and the nice thing is the value doesn't actually leave BTS when you do that.

However as BitBTC mirrors Bitcoin it's long term fate will be the same as Bitcoins.

Personally I'm trying a little BitSilver. I like that I have a decentralised asset that mirrors the value of silver, pays me interest and that I can send/access anywhere in the world. My Phyzz silver is in a vault that I have to pay storage on, is not quick to access and you never know may be confiscated/seized etc. when SHTF  

These BitAssets haven't really been promoted yet, as they want to make sure they have a hassle and bug free client, as well as mobile clients etc. So you will see a big push with the release of BitShares 1.0 soon.

[nomoreheroes7]

Seriously, BitAssets are gonna be huge. Everything FandangledGizmo said is 100% accurate. When that turning point comes and people begin to realize the significance of a stable, high-interest yielding, fully decentralized currency...watch out.

Can't wait for 1.0.

[Shuai]

why not have a bitUSD/BTC trading pair for people who do not want to hold fiat but want to speculate on BTC's volatility...?

With gatewayd ANYONE will be able to set up an instant gateway that allows you to convert bitcoin to bitUSD and back. You don't even need a website for this, all you need is a bitcoin node, a bitshares node, capital in both currencies and an exchange rate feed and spread. Then anyone sending bitcoin to your address will get bitUSD in return, and anyone sending bitUSD to your address gets bitcoin in return (bitshares and bitcoin addresses are compatible).

If you want to do more careful trading then you can use a bitcoin -> bitBTC gateway. This is like depositing your bitcoin into a centralized exchange, and allows you to access the high speed trading enginge that bitshares runs on (DPOS). Then you can trade bitBTC for bitUSD, bitCNY, or bitGOLD. You can also buy shares in some of the few legit user issued assets we have listed, such as BTSBOTS. If you want your money back into real bitcoin, you just convert it to bitBTC and send it through a bitBTC -> bitcoin gateway. Even though the user experience is just like a regular exchange, it's all done on the blockchain and you are never exposed to counterparty risk.

[Pheonike]

When gateways become fully enabled through Bitshares volume and liquidity are when increase dramatically!

[biophil]

why not have a bitUSD/BTC trading pair for people who do not want to hold fiat but want to speculate on BTC's volatility...?

With gatewayd ANYONE will be able to set up an instant gateway that allows you to convert bitcoin to bitUSD and back. You don't even need a website for this, all you need is a bitcoin node, a bitshares node, capital in both currencies and an exchange rate feed and spread. Then anyone sending bitcoin to your address will get bitUSD in return, and anyone sending bitUSD to your address gets bitcoin in return (bitshares and bitcoin addresses are compatible).

If you want to do more careful trading then you can use a bitcoin -> bitBTC gateway. This is like depositing your bitcoin into a centralized exchange, and allows you to access the high speed trading enginge that bitshares runs on (DPOS). Then you can trade bitBTC for bitUSD, bitCNY, or bitGOLD. You can also buy shares in some of the few legit user issued assets we have listed, such as BTSBOTS. If you want your money back into real bitcoin, you just convert it to bitBTC and send it through a bitBTC -> bitcoin gateway. Even though the user experience is just like a regular exchange, it's all done on the blockchain and you are never exposed to counterparty risk.

It's not decentralized, but there is such a pair on Bter: https://bter.com/trade/btc_bitusd

I've seen at least two independent market-maker algorithms running on that pair lately. There's been a little discussion on bitsharestalk.org about getting market-maker bots running on centralized exchanges to jump-start trading volume.