Topic: Protoshares - Unusual Marketing (Read 1097 times)
Any more reading material on protoshares being a scam?
https://bitsharestalk.org/index.php?topic=1890.0
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There has been an incredible amount of innovation over the past 2 months since we launched PTS and the ideas are scattered around the forum in many different threads. This thread is to bring it all home to one place and summarize what has changed over the past 2 months.
1) BitShares will no longer be mined nor will it use Proof of Work, instead it will use Consensus + Proof of Stake
1) BitShares will no longer be mined nor will it use Proof of Work, instead it will use Consensus + Proof of Stake
Anyone notice how the scam has developed even further? Now they are asking for 10 PTS for 1 MMC. What a joke!
The problem is that there are provisions to convert PTS to MMC, through the pre-mine but they already know only a few illogical traders will convert, rather than sell PTS and buy MMC at a lower price!
So, this implies that the extra MMC created in the pre-mine goes directly to the founder.
As for bitshares, that will never happen. It's just part of the scam. It's Banners Brokers all over again.
The problem is that there are provisions to convert PTS to MMC, through the pre-mine but they already know only a few illogical traders will convert, rather than sell PTS and buy MMC at a lower price!
So, this implies that the extra MMC created in the pre-mine goes directly to the founder.
As for bitshares, that will never happen. It's just part of the scam. It's Banners Brokers all over again.
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Lets go back to the world of DACs and consider how a decentralized bank can lend dollars into existence just like their centralized counterparts. First the bank must identify someone who would like to borrow dollars as it is the collateral behind the borrowers promise to repay that backs the value of the dollars. Just like real banks, BitShares requires collateral for the loan and the only collateral BitShares has the ability to foreclose upon is its own equity. When you borrow money for a house the bank usually requires at least 20% down to protect the bank in the event your house loses value. In the case of the BitShares DAC the bank requires a 50% downpayment.
Someone wishing to borrow $100 dollars from the BitShares DAC must find $200 worth of equity (bitshares) to back the loan. Lets assume they have mined $200 worth of equity, they can mortgage this equity and receive 100 BitUSD in exchange for a lean on their equity that can only be cleared by paying back 100 BitUSD.
Someone wishing to borrow $100 dollars from the BitShares DAC must find $200 worth of equity (bitshares) to back the loan. Lets assume they have mined $200 worth of equity, they can mortgage this equity and receive 100 BitUSD in exchange for a lean on their equity that can only be cleared by paying back 100 BitUSD.
You know what is really funny about what is written above? If you have that equity in the first place and is it liquid, why wouldn't you just sell the bitshares and receive real cash rather than putting up equity, and then having to pay interest? It's not like a house where you benefit from holding the house rather than selling it, if you hold bitshares and bitcoins, they are basically similiar things. You don't get extra utility from holding one or the other.
No offence but wasn't the core premise of bitcoin to get rid of fractional reserve banking. Is it not implicit in the "note attached to the genesis block" The Times 03/Jan/2009 Chancellor on brink of second bailout for banks. The idea we shouldn't be bailing out banks, the idea is that this can only occur if there is a fractional system. You can't bail out something and retain the same amount of currency and the only exception seems to be an entity like the G7 when they are in the mood to forgive loans, but that clearly isn't a bailout. Debt facilities fractional reserve banking, otherwise you could only lend out what you have...
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The BitShares DAC can almost always make good on this promise because when someone comes to redeem a note and is unable to sell it on the market directly the value of the BitUSD in terms of bitshares will rise until the decentralized bank has the authority to call a loan and repurchase the BitUSD.
Why would it be able to do that? Doesn't the market set the price of BitUSD and BitBTC? Otherwise how do we get the USD/BTC price that is mentioned in the video. It would have to deviate from that price in order for this to work, otherwise there would be an arbitrage opportunity and the BitUSD price won't move due to arbitrageurs pushing the price back down.
Feel free to add any further comments.
Looks like bitshares will flop, but protoshares still has something going for it. The total supply will be very low.
I guess no one is actually interested in the commenting about the bitshares component.
I guess no one is actually interested in the commenting about the bitshares component.
Protoshares Unusually Tricky Marketing
http://www.youtube.com/watch?v=DnNPX8wc1tc
Has anyone noticed that there are some inconsistencies in their marketing material. For example, USD/BTC is already a transparent price on each exchange. Just because you open another exchange doesn't mean that the price will converge to anything near that price. In fact most people already use a weighted average of the current exchanges. Furthermore, it mentions that BTC/USD would be devoid of any manipulation. What market isn't? If there was manipulation, wouldn't it be possible to manipulate bitshares as well? The argument is faulty.
Looks a lot like the same marketing style of Banners Brokers... BB talk up the prospect of earning advertising revenue and then overstate the earning prospects and the actual benefit which they provide to advertisers and consumers.
http://www.listenonrepeat.com/watch/?v=gIAsHkU72B
http://www.youtube.com/watch?v=gIAsHkU72Bc
Note it has been severely restricted on youtube, so a listenonrepeat link is included for your viewing pleasure and to avoid a nasty signup to Google+.
Furthermore, it really isn't a prediction market if no one decides to follow the prices. In fact the best prediction market is one exchange such as BTC-China going up in price and then the others following soon after. That's an efficient market. Bitshares provides no means to confirm any of it's theories.
We must all hang together, and we already do, with the current system. Why create a prediction market where it is devoid of any true meaning. You can take a look at the bets on earthquake insurance. It is no where near the correct price because not many people know when it's going to happen. A similar comparison can be made with predicting the bitcoin price, as the price rises dramatically at first, but that first prediction is very hard, it's like predicting the first shock of an earthquake rather than the aftershocks. The aftershocks are more likely a consequence of the actual earthquake, in relation to bitcoin pricing the aftershocks are the momentum that continues to push up the price after the initial shock. Another bigger problem is why would you speculate on a secondary market rather than the actual market where you can influence the actual price rather than playing with a phony ETF like option. Remember ETFs track closely but are not the actual prices. Worst of all, there is no theory to why bitshares would track anywhere near the actual prices.
Prices are only accurate and effective in trade for a specific time. Otherwise why wouldn't people create a prediction market, i.e. not a futures market, but a prediction market for agriculture. It doesn't work, the actual tool is broken.
Discuss. By pointing out the flaws of the system, we are colloborating rather than keeping the flaws hidden and laughing behind our backs.
Apparently by people power, bitcoin's block size has now been cleared for an increase in the near future. Let's see if we can't fix the concept of bitshares before it is finally launched.
http://www.youtube.com/watch?v=DnNPX8wc1tc
Has anyone noticed that there are some inconsistencies in their marketing material. For example, USD/BTC is already a transparent price on each exchange. Just because you open another exchange doesn't mean that the price will converge to anything near that price. In fact most people already use a weighted average of the current exchanges. Furthermore, it mentions that BTC/USD would be devoid of any manipulation. What market isn't? If there was manipulation, wouldn't it be possible to manipulate bitshares as well? The argument is faulty.
Looks a lot like the same marketing style of Banners Brokers... BB talk up the prospect of earning advertising revenue and then overstate the earning prospects and the actual benefit which they provide to advertisers and consumers.
http://www.listenonrepeat.com/watch/?v=gIAsHkU72B
http://www.youtube.com/watch?v=gIAsHkU72Bc
Note it has been severely restricted on youtube, so a listenonrepeat link is included for your viewing pleasure and to avoid a nasty signup to Google+.
Furthermore, it really isn't a prediction market if no one decides to follow the prices. In fact the best prediction market is one exchange such as BTC-China going up in price and then the others following soon after. That's an efficient market. Bitshares provides no means to confirm any of it's theories.
We must all hang together, and we already do, with the current system. Why create a prediction market where it is devoid of any true meaning. You can take a look at the bets on earthquake insurance. It is no where near the correct price because not many people know when it's going to happen. A similar comparison can be made with predicting the bitcoin price, as the price rises dramatically at first, but that first prediction is very hard, it's like predicting the first shock of an earthquake rather than the aftershocks. The aftershocks are more likely a consequence of the actual earthquake, in relation to bitcoin pricing the aftershocks are the momentum that continues to push up the price after the initial shock. Another bigger problem is why would you speculate on a secondary market rather than the actual market where you can influence the actual price rather than playing with a phony ETF like option. Remember ETFs track closely but are not the actual prices. Worst of all, there is no theory to why bitshares would track anywhere near the actual prices.
Prices are only accurate and effective in trade for a specific time. Otherwise why wouldn't people create a prediction market, i.e. not a futures market, but a prediction market for agriculture. It doesn't work, the actual tool is broken.
Discuss. By pointing out the flaws of the system, we are colloborating rather than keeping the flaws hidden and laughing behind our backs.
Apparently by people power, bitcoin's block size has now been cleared for an increase in the near future. Let's see if we can't fix the concept of bitshares before it is finally launched.
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