Bullish on BitShares: BitCNY on AEX and BitUSD > USDT

in bitshares •  7 months ago

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.

Screen Shot 2018-03-12 at 11.33.01 AM.png

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?

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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.

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@traiain I know right? It's one of my faves

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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

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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 ....

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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 ?

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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;

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Very good thinking @dmesquita .

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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.

As some of you may already know, Tether is a centralized company that promises to back every USDT with an actual US Dollar

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

If or when Tether implodes, the entire crypto market will suffer greatly

Now this is the problem we have with this. What can we do about it?

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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.

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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.

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Agreed. I think a BitUSD on EOS would be king!

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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.

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I think that's a general crypto price tank. BTS will reach the 1$ price point at the next bull run no doubt.

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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.

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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

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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 😀

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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.

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This comment has received a 0.36 % upvote from @speedvoter thanks to: @ariel998.

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it's on sale! lol

I have my hopes on DogeCoin

i don't know alot about these things

but Doge is cheap and i can have much of it :)

Satisfaction 100

Right! China is really doing a great job in cryptocurrency, I think enough investment in crypto to goes on high level. Hopefully we get a best result in crypto and earn more...
I've no much more knowledge about crypto, I want to learn here I followed you :)

very good post..my dear friend @cob.
thank you for sharing with us..
i love your post.

Is there a guide or a tutorial that can get me introduced to all this.
I'm relatively new to crypto but I'm developing an interest and want to learn more.
Anything would be really helpful..
I feel like an idiot not understanding all this in this age

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youtube and dtube could help you you could start from the basics so you do not get confused

very important information for us, thanks to with with us.

Thanks for the information about bitcny Keep sharing
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 I did not know about this so huge thanks for it Keep sharing

This seems very helpful to me .
Actually, am very new to all these steemit and cryptocurrency stuffs .
But i have heard more good news about the platform and i think steemit is going to be very helpful to me as well.
Anyway, am your new follower. I am a music teacher and a musician as well.
Wish you do well to visit my blog soon because music are is the main inspirational canal😇.
Lets ketchup soon

I would like to know what will happen when the petroyuan is implemented on March 26TH? will affect these markets and I work in the bitShares platform I will buy bitCNY!!

To listen to the audio version of this article click on the play image.

Brought to you by @tts. If you find it useful please consider upvote this reply.

I agree with you @cob 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!

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.

Nice post

It is really great that china has invested this amount of money in Bitcyn ... Even if the tether implodes it wont affect their investment ....Guess china was always into what made better for everyone.....they have all made huge investment in BITCYN ..... They kind of create luck...😄

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.

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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

Is the timeframe for $0.70 November 2017 or March 2018?

You know, I'm glad you pointed this out because Ive never paid any attention to bitshares. I'm new enough here to have jumped in after that hype and didn't care much about it. I hadn't been invested in Tether either but I liked the idea. I just didn't believe that one company could back it. I think you are spot on with China but I need to learn more before I say I'm bullish. But, I hope you are correct in your thinking because that would awesome.

China has really done a good work in case of investing.. They tend to make future for themselves and also for the others. Its good for the crypto market seeing such investments.

Nice post @cob but I would argue that individuals holding pegged assets will gain in case of scenarios resembling MtGox.
Assume Tether is getting crashed. This will cause all crypto including BTS to go down. When BTS goes down too fast it might cause Black Swan scenario. In worst case BitUSD holders will remain with BTS equivalents at the time of liquidating pegged asset. Most probably the downtrend movement of BTS will just get faster after Black Swan. In the end pegged asset holder is risking to have bags of BTS that is falling down together (if not more) with all the other crypto.
Of course all of the above is true in case of really serious negative events that will have the tremendous impact comparable to MtGox crash.

Yes, it does seem like it's dangerous. I'm all up for Bitshares! I've invested into it recently, because the price is crazy low and I think it should be much much higher! Its value has not been discovered yet...

No doubt brother people do not know the potential of Bitshares. A good promotion of it would be a push to the growth and development of this currency.
I already started to follow you with the idea of learning more about this.

bitUSD > tether. Good read. Keep it up

BTC is the perfect hedge for the upcoming stock market crash. I can totally see lots of $$ flowing from that world into crypto. And it's only a matter of time bfore the truth comes out about tether.

So Dan the Man abandoned bitShares because of political quagmire. Is there any light at the end of the tunnel for the platform? He doesn't seem to think so or care very much