Topic: Gold collapsing. Bitcoin UP. - page 858. (Read 2032266 times)

Fixed it for you.

Similar to how this was supposed to always be redeemable for real gold?



...that is, until the guys in charge of the gold vault said they weren't gonna do that anymore.

For one thing if a Satoshi goes to $100 per, then it's certain the decimal point will be moved another eight places to the right long beforehand and your shares can be re-issued.

bitBTC is not backed by btsx... you can buy bitBTC without btsx and get back out after earning interest... if you want to "short" bitBTC you need collateral in btsx to ensure you have sufficient margin to cover a loss.

Like i said it is the closest you are going to get.  You will always be able to exchange one bitgld for one ounce of real gold.

It's not gold backed. All BitAssets are backed by BTSX.

At the endgame it will allow to speculate and hedge without counterparty risk. People will also be able to earn interests on their savings while having their purchasing power store in any asset of the economy they wish, without counterparty risk. But yeah, it's just a fad.

What..

 

This is the financial equivalent of people playing fantasy football and mistaking themselves for athletes.

Nice summary Sidhujag

Bitshares in a nutshell:  take GLD, SLV, ect and replicate that on a decentralized, collateralized market.  The bitshares guys keep harping on bitusd but the real killer app IMO is bitgld, which tracks the price of gold and actually pays interest in gold.  For those who want a decentralized, trustless, gold backed digital currency, this is the best you are going to get without having the real thing, which obviously cant be sent over a communications channel.  In fact, any asset can be turned into a currency such as bitoil.  Of course it is still in the very early experimental stages.

Bitsharesx is an eco system... that allows you to create assets, some are backed by a peg and some are not.. freely traded. The ones backed by a peg (costing about 300k btsx right now) are meant to be tracked via a feed fed in through the delegates, which gets itself around security issues of POS (Delegate-POS is the algo name). Which Larimer/Buterin seem to agree is the best one moving forward away from POW.

Anyways one of these assets backed by pegs is the bitUSD which is meant to track USD so a price feed is fed in(how many USD each BTSX is worth on an average of exchange price feeds) so to keep bitUSD trading at roughly $1, and thus people can trade btsx for bitUSD and vice versa knowing that they are essentially going to and from USD because you will be able to trade bitUSD back to USD at some time (for legal reasons this was left out until third parties come along and offer this service which are regulated as money transmitters). Another one is bitBTC which tracks BTC... so you can go to and from BTC to BTSX.. same way as going from USD to BTSX and back.. however BTC <--> BTSX. The idea is that many businesses can use bitUSD to offer services to customers and be able to transfer these bitUSD across the chain quickly and efficiently without having to pay fees , and use the built-in bitshares privacy features for annonymous transactions etc etc you get the picture...

There are 101 oracles (and more lining up as backups incase of some going down) doing this feeding and yet it is a more decentralized model than bitcoin (in the way of large concentrated mining pools). These oracles or delegates get paid to sign blocks as a job. Because of this there is incentive to provide this service.. as it is profitable to do so at these prices. In order to become a delegate you must set up a delegate as yourself and get voted to become an official bitshares delegate.. people have to beleive in you and there is an in-chain voting mechanism used to figure out who are qualified to become delegates based on popularity of votes (there are obvious safe-gaurds to avoid people from getting them selves voted in easier).

It is meant to work in conjuction of a currency as bitUSD is doing.. and bitBTC... it is not meant to work as a currency itself as the chain is used for mor ethan just a tx ledger for payments (breaking satoshi's golden rule)... however if thought about in another way that it works in partership with bit coin.. in that bitcoin may be used as a currency and bitshares may be used to issue assets/stocks/companies that operate within clearly defined rules without corruption then it makes sense on where to draw lines between bitcoin and bitshares... and IMO it is aptly named in that regard.. bitshares for share issuance and bitcoin for coin transactions and spending.

You might ask why would I transfer my BTC to bitBTC? Well the incentive is that you get paid interest by holding, through a decentralized solution. If you hold atleast a few months then it is in the range of 10-15% per year right now.. better than any bank. It is the only true form of interest payment for bitcoins because you hold your keys.. while all other solutions cause you to send BTC to someone else thus the keys controlling your coins change... in this method you hold your bitBTC keys the same way you hold your BTC keys and essentially earn interest over time... the interest is accumulated fees that people who "short" bitUSD and other assets pay.. you can go long and short bitUSD and other assets just like any other market... market makers and arb bots do this to make money off the spreads and liquidity.. and the holders of the assets win by collecting fees.

Other fees that are paid are used to burn coins to reduce the total overall supply so anyone holding anything in btsx will become more valuable over time.

Yet another fad? Why do people care? I look at coinmarketcap and everything below Bitcoin is a joke.

impressive

http://www.vox.com/xpress/2014/9/25/6843509/income-distribution-recoveries-pavlina-tcherneva

my my..

Derivates built out of thin air.

I agree that separating the currency from the ledger makes no sense.  Suppose Bitcoin (the ledger) was separated from bitcoin (the unit of account).  All we would have left is a messaging protocol susceptible to spam and no way to maintain the currency.  Granted this  protocol would have a permanent public record with cryptographic proof of ownership of messages but some sort of spam prevention would have to be implemented such as hashcash, allowing proof of work to creep back in. 

Further, how do you control the supply of currency or specific currency attributes in a decentralized manner?  I suppose proponents of this separation would like to keep centralized control over the unit of account but that, of course has proven to be a failure because the very memory of "who owes who" and "who owns what" becomes corrupt and distorted when the supply of a currency is manipulated by a central entity.  It's hard to see how this separation would even work for digital assets.

I can explain how Open-Transactions is going to do it...

I think, they use their own crypto BTSX, XCP as currency. -> Company shares are backed by BTSX.

So who can explain how Bitshares or Counterparty is going to issue shares on the Blockchain?

Will a company issuing 1M shares attach these permanently to 1M Satoshi's? How does the market trade an independent value for the shares if a Satoshi goes to $100 per or if a tx free goes to $100 per?

It is a decent way to begin marketing it to the masses though.

Most people can't comprehend why we would need a new currency. Oh..we can trade "stuff" on this ledger, cheaper. bitcoin the blockchain has value