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RE: The Dao Street Journal: Bitshares and BitUSD
Food for thought here. Appreciate the time and thoughts. I agree whales do this. The best part is how it is recorded in an immutable ledger for the community to study. This is a crucial feature for governance and keeping third party service providers honest. A healthy bitUSD market is a public good for all bts stakeholders.
Ultimately the response should be driven by the community. Consensus is critical and many views should be expressed. For the average investor the bottom line is a good experience with the DEX. Smartcoins are a critical part of the platform. BitUSD makes a simple unit of account that can facilitate mainstream adoption. It is worth considering all potential avenues for improving liquidity and usability.
I've been trying to figure out exactly why bit USD isn't always worth $1. For my ignorance, I've stayed away from using leverage. Is there a way to profit from the current price disparity with say 5X BTS reserves?
Yes if one margins bts into bitUSD at 5x that is a relatively very safe position. The profit will come if you believe that bitUSD will soon return to it's nominal peg closer to one USD. By selling the margined bitUSD today and buying back when the price returns to normalcy - that would be one way to play the overvalued bitUSD.
Thanks for putting this in terms I can understand. One of my issues with the BTS DEX is that it is tough to get simple alerts when prices hit defined targets so it is tough for me to always be monitoring the DEX.
FYI, do you have any thoughts on where bitUSD may be headed? Obviously, demand for bitUSD is higher than supply and this causes the price overvaluation but do you see this reversing in the near term future? Or if banks start closing and the US Government starts discounting its debt, would demand increase further? Another issue I have the the DEX is the lack of stops.
It is good you notice that. Bitshares is interesting because the interfaces are designed by private companies. Which platforms do you use when you check the dex? OpenLedger, Crypto-Bridge, GDEX, RuDEX?
Ug, I'm re-reading my poor grammar on the last post. Apologies. Children don't allow me much time for diligence.
I simply use bitshares OG interface. Do you recommend otherwise? I've noted that bridge and open.ledger are all easily accessible by web but haven't considered looking into them. Would love to hear/see a summary of the differences.