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RE: Another Breakthrough: STEEM About To Be Accepted Everywhere: STEEM Payment System (On The Bitshares Blockchain)
The volatility is removed because the token on Bitshares is pegged (closely) to $1.
For example, if someone used BTC to make a payment, that BTC is instantly converted to bitUSD. Now the shop is holding bitUSD. Throughout the day this could occur until day's end when all the bitUSD are accumulated. At that point, the shop could convert to USD through openledger.
Ah okay.....so for example, someone pays in Steem for example. At the time of payment steem was priced at $5 and a payment of 1 steem was made. So regardless of where the price of steem is at the end of the day, the shop will still be getting around $5....did I get it correct?
Yes although it is not at the end of the day, it is instantly.
The STEEM would be converted to bitSTEEM which is pegged at $1. So one STEEM would be converted to 5 bitSTEEM....which is worth $5 at the moment of the change and at the end of the day and three days later.
Awesome....thanks so much for the clarification. My concept of the bitBTC and those things was bit hazy, now I get it perfectly.
Cheers!!