bitusd and tether and bitshares potential market cap
There are currently c$2 mil tether in existence and only c$100k of bitusd. I believe that this is an indication of what bitshares can become!
When bitshares was first launched, within 1 month c$1 mil bitusd were created and this skyrocketed bitshares market cap to c$80 mil. I believe that if a whale (s) again see the benefits of decentralized bitassets and decide to create c$2 mil bitusd then I believe that bitshares market cap will surpass the $300 mil. This can happen within a few days not to say hours. Increasing the amount of bitassets to these levels, will create liquidity and enormous speculation about the potential of bitshares. Confidence in the ecosystem will be restored.The ecosystem is much more mature now than 2 years ago, the Graphene technology is much better than the one used in the original bitshares.
I believe that since there is currently a demand for $2 mil tether there should be much more demand for a decentralized stable asset such as bitusd. Otherwise what is the point evangelizing bitcoin and cryptocurrencies? Just stay with fiat and the current banking system.
I believe that one of the many reasons for not this happening yet is that the benefits for a whale (s) to create bitusd are not very clear. I think we should all start explaining what are these benefits in simple structured business plans and proposals. There have been some nice attempts in the past to explain those benefits but mostly with riddles.
Investors do not want riddles. They want a simple plan.
Why should someone with lots of money to invest should buy bitshares, lock them in collateral and create bitusd? How will this whale profit from the ecosystem?
I will start describing some ways a whale could benefit from bitshares (many thanks to @Stan from the bitshares community to inspire me with his post). Please let's hear others as well who can describe it better and more simply.
An investor with a lot of money to invest can provide:
Marketing, Trust,Demand, Liquidity, Growth and buying pressure by shrinking the supply
Some steps that the whale investor can do to benefit:
How can a centralized exchange benefit from bitshares?
Since most of the supply anyway are in their hands, centralized exchanges could lock a lot of bts (they keep them in their cold storage anyway) to create a lot of bitusd and other bitassets whereby they could sell these bitassets to their users at a premium (1%-5%). At the same time, they provide liquidity, confidence in the ecosystem from the creation of bitassets and bitshares trading and value will undoubtedly rise. Centralized exchanges will benefit from trading fees from the increased trading and from the bitasset premium that they will charge. It would be like the current system where current banks use the savings of the depositors for investments. The difference is that current banks only hold a minuscule portion of the actual depositors savings so in case of a bank run they will most likely be in serious problem and won't allow the depositors to withdraw their funds (capital controls). On the other side, centralized cryptocurrency exchanges such as Poloniex, BTC38 will use the depositors funds (bitshares) to create bitassets by holding 200%-300% collateral in bts value. All this is fully transparent on the blockchain. The bank run will be unlikely..
Please share your thoughts and once many opinions and thoughts are gathered we can create a simple 2-5 pages presentation that we can hand out to potential whales.
If you consider bitUSD to be money, than money are to be used. I always thought that without eBay like market for physical goods for non cryptofans there will be only a few bitUSD.
A couple of years ago no one was accepting bitcoin as a payment and now one can buy a lot of things with bitcoin. I believe that those who accept bitcoin as a payment should also accept bitusd as a payment. In the end of the day the merchant doesn't want to have bitcoin's volatility but rather bitusd stability.
The reason that not many merchants accept bitusd...yet..is that bitshares in reality is only starting now..It can't be compared with bitcoin's network effect..yet..I think that once POS for bitassets are in place (thank you @kencode) and with some more marketing and effort from everyone from the bitshares community, bitassets can become very popular.
I am with BitShares from the PTS days and I believe in bitUSD and other bitCurrency. Hopefully we are right.
But there is also plenty demand for stable crypto coin on blockchain without counter-party risk. I'm using bitCNY for this purpose now.
I like this idea, because it is something that can be done now. Can I help you somehow?
Maybe we could start by co-authoring a post here on steem about how to maximally benefit from bitshares. We could emphasize things like protecting the downside and maximizing the upside and benefitting from others' work. That might be stuff that people like to hear.
And we can post it under your alias.
wow..c$3 mil tether usd in existence... Why Poloniex doesn't issue IOU.tether in bitshares network? Can't bitshares take a portion of that market cap? What can we do to attract exchanges issuing bitassets in our DEX? Can it be that the exchanges are not properly informed about how they can use bitshares DEX?
Tether market cap is now c$6 mil.. To me this means 2 things: