BitShares XA decentralised bank & exchange which allows the trading of
derivative assets that track the value of real world counterparts.Now real world currencies, commodities and stocks can be tracked in decentralised digital form & held in market-pegged, collateralised, derivative assets which are traded on a blockchain without counterparty risk or trusted price feeds.
The OpportunityGiven the current global financial instability, geopolitical tensions & high levels of government debt, holding sizeable deposits of fiat, stocks or commodities is becoming increasingly risky within the current financial system. Therefore, BitShares X may need very little real-world proving under its belt, before it is seen by some very big players as an appealing hedge for a portion of their portfolio.
Indeed should those centralised risk factors get worse or even materialise - such as significant deposit confiscations - BitShares X will be in a dominant position to displace a large part of a multi-trillion dollar industry virtually overnight.
Target Markets TradersIt should go without saying that the privacy, low costs, freedom from confiscation and other advantages of trading on a blockchain will appeal to many of the hundreds of thousands of traders currently engaged in trading currencies, commodities and stocks all around the world.
In order to support such trading activities, BitShares X introduces TITAN - A brand new privacy feature which allows for fully secure, anonymous transactions, transferred to and from easy to remember user-created, account names.
Bitcoin Retailers and UsersThere are over 30K+ retailers who currently accept Bitcoin as payment; however the vast majority, due to tight retail margins and the relatively high volatility of Bitcoin, transition directly back to fiat via a third party service like BitPay. Many of these retailers may wish to hold a portion of their revenue in Bit-Assets such as BitUSD.
Similarly the thousands of Bitcoin and alt-coin holders may also wish to hold a portion of their fiat earnings or savings in less volatile assets such as BitUSD, BitCNY or BitGold.
Existing Hotspots Places like Ukraine, Venezuela, Argentina, Ghana and many Asian countries have significant capital controls that already restrict the flow of capital and foreign currency. The need for BitShares X to fill a void caused by these restrictions is clear, so it makes sense that there may be rapid adoption in areas like this, as they were also some of the strongest areas of initial Bitcoin adoption.
5% interest p.a. Due to reduced costs and low overheads, BitShares X will be able to vastly undercut real world banks & exchanges with regards to transaction, market, inactivity and margin-call fees, while at the same time being able to pay shareholders dividends of up to 5% p.a.
In a world of extremely low yield and even negative interest rates being seriously discussed in places like the Eurozone, we believe this will be another factor that will make BitShares X extremely appealing to a wider market.
BitShares X runs on a DPOS blockchain that was conceived by Daniel Larimer and has been developed by himself and the same talented team behind BitShares X.
http://bitshares.org/delegated-proof-of-stake/
Potential risks in the current system that could positively affect the rapid adoption of BitShares X http://www.zerohedge.com/news/2014-06-16/fed-prepares-bond-fund-runs-looking-imposing-bond-exit-fees-gateshttp://www.zerohedge.com/news/2013-05-15/these-offshore-tax-havens-may-be-hazardous-your-deposit-confiscation-healthhttp://www.zerohedge.com/news/2014-06-26/nirp-strikes-spain-create-tax-bank-depositshttp://www.zerohedge.com/news/2013-06-07/guest-post-don%E2%80%99t-dismiss-possibility-gold-confiscationhttp://www.zerohedge.com/news/2013-06-11/land-rising-bail-deposit-confiscation-coming-japan-nexthttp://www.zerohedge.com/news/2014-01-29/ira-confiscation-its-happeninghttp://www.zerohedge.com/news/2013-05-05/guest-post-short-history-currency-swaps-and-why-asset-confiscation-inevitableSignificant events just this week (10/07/2014)http://www.zerohedge.com/news/2014-07-10/genius-imf-pronounces-bulgarias-banks-safe-just-2-weeks-bank-runhttp://www.zerohedge.com/news/2014-07-09/germany-blesses-bail-deposit-confiscation-plan-failing-eu-bankshttp://www.zerohedge.com/news/2014-07-09/portugals-largest-bank-misses-bond-payment-bonds-collapsehttp://www.zerohedge.com/news/2014-07-10/new-laws-allow-government-seize-savings-deposits-during-crisisThe Market PegDigital assets should be able to be pegged to their real world counterparts by leveraging the accuracy and efficiency of prediction markets with 'high collateral required' short positions & minimum market depth requirements. Initially BitShares X will focus the trading efforts and market depth on only a few assets until the system has proven robust & secure.
http://wiki.bitshares.org/index.php/Market_Peg
