Is there any actual correlation between BTS valuation and creating bitAssets?
What is it and what can I do to support the price?
I can only imagine a very weak positive link between shorting bitAssets and BTS price.
First the negative direct correlation:
If I short bitEUR into existence and people like to buy the bitEUR, it drives bitEUR up and BTS down, doesn't it? Sure, it ties down my BTS, but I wouldn't have sold it anyway, and the people speculating with BTS continue to cause swings. Me shorting bitEUR doesn't decrease the BTS being sold on the markets, and so the direct consequence is downward pressure on BTS.
Then the positive, indirect and weak correlation:
If the BTS price went up for a long time, shorting bitAssets would look more interesting. More people would actually start taking debt positions, which in turn would reduce the liquid (or whatever the right term) amount of BTS, reinforcing the phenomenom. There might be less BTS for sale. The piece I'm missing here is; what will create the positive feedback loop in the first place? We can't count on speculation. It should be the people holding BTS and believing in bitshares long-term creating bitGOLD and bitSILVER so that people afraid of the BTS price falling could buy them without leaving the bitshares ecosystem, shouldn't it? In exchange for the bitAssets the BTS would come into the hands of people investing in bitshares long-term. Maybe that would reduce the down-pressure on bitshares.
If 90% of BTS were in debt positions, the correlation would be strong and self-supporting, but that's not the case and the correlation is weak. A few individuals shorting bitAssets does nothing to the price, and we need something more powerful.
What I think would help initiate the positive cycle
We (anyone owning some BTS) need faith and courage. Fear cripples us. We don't dare to take a debt position. We want to wait for others to build the ecosystem and then jump on the bandwagon. If we want to see bitshares succeed, we need to take courage and create lots of bitAssets. It's a chicken-egg problem which we can solve. The more liquidity the more trading. The more volume the more people will come.
Some people are investing lots of time and money doing awesome work, like the openPOS and the mobile app. They need bitEUR to succeed. Lets start providing liquidity. If 12% of all the BTS was used to short bitEUR, we would have 1,000,000 EUR. That would help openpos get off the ground, and because the € is doomed anyway, the risk shouldn't be too big.
I'm a small guy but I believe in bitshares. I will dedicate 30% of my crypto holdings to provide liquidity for bitshares. That's not much, but I challenge you to do the same. Lets not wait for any magic or new incentives.
Lets just do it.
I will try, but it will take some while :-). Do you know of any in the works?
Not aware of the status of current marketmaking projects.. Try pm monsterer, toast, bytemaster, riverhead, abit or xeroc @ bitsharestalk.org or https://bitshares2.slack.com
I just show your post after I have posted something relevant https://steemit.com/bitshares/@mf-tzo/bitusd-and-tether-and-bitshares-potential-market-cap
I agree with you that we should all try and short some bitassets into existence but the reality is that wealthy people with money will always dominate. The risk for small investors is very high because liquidity is very low currently. So what is more important is to explain to whales why they should short sell bitassets and invest in bitshares.
Currently Poloniex and BTC38 have c 1 billion bts in their possession. What can they do with it? Should they use those funds to create bitassets even if those funds belong to individuals? Should they use trading bots to inflate or dump the price? How would those exchanges benefit from holding all these bts? Shouldn't bts holders withdraw their holding and start trading more on bitshares DEX?
Why would someone with lots of money invest in bitshares? Why should such an investor lock collateral and short sell bitassets? How can he profit by owning most of the bitshares?
Thanks for the thoughts. I read your post too, and I think we agree it is a problem to which something should be done. You mentioned 3 different groups:
What I personally think is important is to recognize what I can do - and then do it. What else can I do? For me that means providing bitAssets to the market and trying to spread some positive attitude. I can't code, but I'm working on that too. Thankfully there is a liquidity-bot in the works, which I hope will help more people like me notice they can do something for the community.