bitusd and tether and bitshares potential market cap vol. 2
About a year ago I have posted the following..
https://steemit.com/bitshares/@mf-tzo/bitusd-and-tether-and-bitshares-potential-market-cap
Since then many things have changed...
First of all there are c50.7 mil Tether into existence compared to $2 mil a year ago...wow...Does this sounds strange only to me or does this ring any dangerous bells to anyone else as well? That is x25 more Tether into existence than a year ago..Do you know that tether is not backed by anything? Do you know that Poloniex does not have any legal obligation to convert tether to usd and yet there are $50 mil tethers into existence...
Polo charges 0.2% on a trade. Does this mean that Polo since last year had $20.35 billion ($20,350,000,000) value in trades (tether 50.7 mil / 0.2%) and assuming that all their earnings are converted to Tether... Seriously?? Does this not ring any dangerous bell to anyone or am I missing something here? How on earth is Polo going to find $50.7 mil if all users wanted to convert their Tether is usd? I think that there is an obvious answer here..They won't...Tether is not backed by anything.
Now let's go back to bitusd..Currently there are $550,000 bitusd and another $400,000 in bitcny. Taking into account the other bitassets there are approximately a bit more than $1 mil value in bitassets. That is x10 since a year ago. This on the other side is very healthy. Bitshares DEX trading has been significantly improved (see image) due to many reasons among others: btsbots, blockpay, significant improved GUI experience, OpenLedger marketing etc etc...In order to create bitassets one has to lock at least x2-3 value in bts collateral. That means that the $1 mil of bit assets is backed by at least $3 mil in bts collateral (someone please advise the exact amount).
So which one feels safer for you? Holding an IOU.Asset from a centralized exchange or holding a market pegged asset backed up by x3 value on the decentralized blockchain?
As a final note, consider the following..BTS market cap has only increased by c50-60% since about a year ago (when bitcoin increased by 300% and other alts much more than that) and bitassets into existence have increased by x10...Personally I expect that since bitassets increased x10, bts market cap should have increased by x10 at least by now. Therefore I feel that a fair market cap for bts (especially with the whole altcoins pump the last month) currently should be at least $150 mil - $200 mil..I mean for the love of god, Ripple is worth much more than BTS..How on earth is this possible? BTS can do whatever ripple does and much more and much faster...
Maybe it is time to short more bitassets into existence and buy some more bts? What do you think?
Couldnt agree more. The fundamentals of bitshares are sound and thata what your article illustrates.