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RE: What makes the bitUSD better than nuBits
There is currently $100K worth of BitUSD backed by $9M worth of BitShares. This means that the ultimate source of value backing BitUSD is 60x greater than NuBits.
$9M is the entire market cap of BitShares at the moment. Since not all BTS are tied into collateral for bitUSD, I doubt that the ratio is 60x, but it is surely more than 4x. Would be great to have a simply way to call this kind of data from the node.
Yes, but the value of the BTS in the collateral is derived from being part of a larger whole.
For me, collateral is locked and cannot be traded, transferred or moved. Thus "liquid" BTS are not backing anything.
However, I could understand if people thought of additional "inertia" coming from collateral for bitEUR, bitCNY, bitGOLD, because they reduce the supply of liquid BTS and thus result in reduced sell-pressure and this way support the "peg" during margin calls.
Whether the marketcap of BTS becomes bigger than the sum of the "market caps" of its bitassets needs to be proven first. Hopefully Metcalfe's law applies here as well :)