How to buy Silver…on the blockchain!!
Investing over the internet has always been risky, you have to trust someone else to deliver the product that you are paying for, and you never really know if they are legit or if they will just run off with your money and “turn off” their website.
Precious metals have been particularly affected by scam cases but blockchain technology can now eliminate the risk of fraud and make buying and selling Gold and Silver 100% secure.
In this post I will try to explain in basic terms how Bitshares platform has made buying commodities possible.
What is Bitshares (BTS)?
BTS is an alternative digital currency system which is used to create market pegged assets for various major global currencies and commodities. One of these market pegged assets is BitSILVER.
BitSILVER
BitSILVER is a digital asset which works like Bitcoin, secured by a peer-to-peer ledger called a blockchain, but the value is tracked by a price feed and backed by 200% collateral.
BitSILVER tokens can be bought from other users (no middle-man) on Bitshares decentralized exchange platform. You can either download their software for windows, linux, mac or use a web version like Open Ledger.
You can transfer your silver tokens to friends or sell them for other currencies like U.S Dollars, Chinese Yuan, Bitcoins and many more. You pay a small fee per transactions of less than 0,01 USD.
Why is BitSILVER safer than the rest?
In addition to the fact that you can invest anonymously, you also do not have to trust your investment to anybody else to look after. Only you can access your funds using your secret key and you can store your digital wallet on your home computer to take full control of your investment.
I like your post.
Beside bitSilver and bitGold, you can buy a lot of bitStuff on Bitshares, only if this stuff can be liquid, such as bitUSD, bitSDR, bitStamp...
Informative post!
Is this backed 100% by physical silver.
No, it's a derivative backed with BTS.
Hey @Chitty
What do you really mean by "the value is tracked by a price feed and backed by 200% collateral."
Thanks for such valuable information.
Hello urbanoid
I can see it is a while since you posted your question so I will try to answer the best I can.
I believe that by "price feed" Chitty refers to how the current price is defined. A feed from other exchanges of the current price of Silver form the basis of the current price for BitSILVER. A 200% collateral probably means that they have 200% of the invested funds set aside to cover losses. It is a way to guarantee that your money is safe with them.
Hope it helps (and correct me if I am wrong)
@ronni