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RE: From BTS:USD to BTS:BitUSD What Does This Mean?
bitUSD is not only pegged. It is also backed by BTS collateral. User issued assets are a different type of token on bitshares platform.
bitUSD is a smart token and it is not 'issued' by a specific user. It is shorted into existence by any user, by locking at least 1.75x worth of BTS as collateral. It is veeery different than tether in this sense.
it is not 'issued' by a specific user...It is veeery different than tether in this sense.
Thank you for this helpful input. I don't usually equate crypto with collateral benefits; but, this certainly raises an awareness, and level of confidence. Worth noting, the article mentioned similar warnings about the developer of Tether doing a huge money "grab".
Again, many thanks! Thus far, I haven't withdrawn any earnings for tangible cash. I have this pseudo 'FUD' that when it comes time to exchange the crypto for fiat, all assets will be down for maintenance; and no bank transactions will be allowed. Had I not had this maintenance experience with STEEM and OpenLedger for weeks on end; I might not be so 'nervous'. Now, of course, this is clearly unfounded, as people are not shy about being duped. The discussions would be abundant.
Again, many thanks!
Peace.