Bullish on BitShares: BitCNY on AEX and BitUSD > USDT
A few months ago, when Tether dissolved their relationship with their auditing firm, social media started to talk about the ticking time bomb that is USDT. So I decided to contribute, not by adding to the FUD but by providing a solution that has existed since BEFORE Tether was even a thing; One of @dan Larimer's first innovations, the BitUSD.
Here is that article: https://steemit.com/bitshares/@cob/the-iron-is-hot-for-bitshares-a-look-into-bitusd
Today I'd like to bring up something else that makes me bullish on BitShares: the BitCNY.
As far as I know Tether only focuses on the pegging it's value to the United States Dollar. This is great, being the world reserve currency at the moment but there is a lot of trading volume coming out of China and there is no "CNYT".
This leaves the market wide open for the BitCNY to come in, and it did. On the https://www.aex.com exchange.
As some of you may already know, Tether is a centralized company that promises to back every USDT with an actual US Dollar. There is a single point of failure in Tether. I would have made this last sentence in bright red with danger signs all around it but I respect you all too much for that. I'm sure you realize the danger of having one company being behind all the "stable" assets currently in use on the many many crypto markets and exchanges.
If or when Tether implodes, the entire crypto market will suffer greatly. It might be the closest thing we get resembling the MtGox catastrophe of 2014. Those that will be hurt the most are those that have some wealth parked in USDT. Those that are holding BitShares Market Pegged assets on the other hand might even gain from the catastrophe.
I foresee the chinese traders as the least affected since they use the BitCNY. They will be LUCKY that Tether didn't offer a stable coin in their native currency!
Thoughts?
It's ridiculous how Bitshares is one of the most developed least known cryptocurrency in existence. Hopefully you and the community will resolve this issue. Keep spreading infos bro.
@traiain I know right? It's one of my faves
It's definitely in my top as well. Another cool thing it's that the value of Bitshares comes from real utility and not from hype. 👍👍
BitCNY as base pair on AEX is great news for BTS, markets yet to adjust to it. I think the next pump could be wild since no other crypto project has so many actual use cases and companies building around. HODLLL
what companies building around it (I'm curious)? more than Ethereum, EOS, Stellar, ...?
I agree that BTS is probably a good hedge for a big market crash and/or crash in tether .....
However, since your last post for example, you surely noticed that Bitshares has still continued to drop rather heavily ..... it seems the traders look at Bitshares and see a rather dead project whose lead has long moved on to other things, most markedly his current project (EOS) that will supposedly do everything Bitshares can do and more better, and thus value EOS way higher already (despite it not being actually working yet).
Similarly they maybe don't see Bitshares' stablecoins gaining any significant traction despite being around for such a long time already, and so look forward to the myriad new stablecoins (e.g. DAI) coming out now as better bets ...
And similarly Bitshares' DEX, once somewhat unique and ahead of the ball, has now been around a long time without gaining much market share (and without more volume such DEXes [besides Bancor] don't really work very well), and is now facing a host of new + upcoming DEX competitors with more noise around them (and some of which have overtaken it already in volume).
Going forward, it's hard to see what will change this, or what could actually reverse the trend and prove the market wrong - Bitshares hasn't been growing in usage either for quite some time (it's a long way off its peaks, significantly moreso even than other blockchains), so maybe the market is right that it's better to bet on other future things - what Dan is working on now and other Stablecoins + DEXes etc - and that maybe they are what'll be bigger going forward?
I do agree that BTS appears very cheap .... however it also appears to have many markings of a classic 'value trap', so I would be cautious with allocating too large a portion of my portfolio into it ....
I actually agree with everything here!
I still see some upside in the next bull run. But think it will be displaced by newer DEXs. I would hope a new DEX would want to share drop a % of their tokens to the BTS holders in order to get them to support it and bring in their input and experience.
How stable has BItUSD been during past market crashes ?
BitUSD and BitCNY price actually goes up (about 10% more than the USD or CNY) when everything is down... Great to edge some purchasing power and buy the dip. I love it;
Very good thinking @dmesquita .
Great question, you can check its chart. https://coinmarketcap.com/currencies/bitusd/
There have been a few very short lived swings in turbulent times. But the price always comes back near the 1USD peg.
Volume helps a lot and volume has just recently begun going up in the last few months.
Interesting, I did not know about BitCNY.
I think you're right about the looming implosion of Thether and it's implications, I also think it might be necessary and good ultimately. It could be a trigger to clean up properly all the bad actors and scams that are still around.
Owk I am new to the crypto world but this is very impressive . For a centralised company to chose to back decentralized systems, that's plain amazing
Now this is the problem we have with this. What can we do about it?
Switch to using BitUSD instead. It has no counter party. Each BitUSD is fully collateralized by a minimum of 1.75$ worth of BTS.
There's no need for human auditors since the BitShares blockchain is the auditor! You can see the collateral with your own eyes.
The problem with bitUSD is that it is only available on bitShares. That and it is only backed with bitShares. I think it will work best in an environment where bitShares is number one. That isn’t likely to happen. As long as Binance and Bittrex have USDT pairs Tether will rule. That being said I’m not ruling out a USDT scandal. Although, I think the fear around USDT is a little overblown. Since Bittrix owns Tether they would have a lot to lose in a collapse or USDT.
Agreed. I think a BitUSD on EOS would be king!
That's what I anticipate. I see BitShares upgrading to the EOS platform once it's launched
We listen to so many bullish things about bts for months and the price keeps tanking lower and lower.
I think that's a general crypto price tank. BTS will reach the 1$ price point at the next bull run no doubt.
I agree... it was already at 70 something cents before and it's only going to go higher this time. Plus I'm bullish BTS for long-term. Temporary price tank doesn't mean anything. It doesn't scare me in the least bit.
Well it scares me a tiny bit since I shorted BitUSD a few days ago ><
So I hope it doesn't drop tooo much more lol
You don't lose unless you sell at a loss. It's only temporary. Price still definitely go back up again. It's more of a long term home for sure because it's so ahead of its time and a lot if people don't understand it yet.
You'll be fine! No worries 😀
That is only because of BTC. No altcoin is independent yet.
Bitshares is seductive. My opinion as a novice is that with these low prices is the opportunity to get into business.
This comment has received a 0.36 % upvote from @speedvoter thanks to: @ariel998.
it's on sale! lol
China has been eyeing to have its currency replace the U.S dollar as the global reserve currency. This is quite clear in the manner in which, China pushed the IMF to have its currency included in the basket of global reserve currencies. In essence, as China soldiers on with its push for global dominance, you can expect the value of its currency to grow in the long-run. As such, making an investment in BitCNY coin right now, gives you the opportunity for long-term growth without the uncertainty that is characteristic of the rest of the crypto market.
That's an interesting take on it. Never thought about buying bitCNY for that reason. I def think the future global reserve currency will likely be a basket of assets and currencies of some kind
You have to follow the steps of the Chinese. They have more and do not want to lose money. I believe that we are in a moment of opportunities that we should know how to take advantage of.