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RE: The MASSIVE Tether Ticking Time BOMB
This is a perfect opportunity to bring up bitUSD from bitshares. bitUSD is 2x collateralized by BTS value backing it and is fully auditable on chain. Also, there is no central authority to go after.
Would love to see an episode where you show how to lock up BTS for bitUSD. Also, it would be great to show people how to purchase bitUSD.
Might look into making a video on 'stable' coins in future just in general given it is a popular topic.
Would be good to differentiate Tether vs Bitshares USD
Won't the deflationary properties of crypto collide with the inflation of the Fiat is is back on. Also won't the trading of the crypto affect the price. What happens when people try to pump and dump collateralized crypto curencies. Also cuz it is free float, wouldn't the price change anyway, will the price differnce be marginal, such as tether or will big pump and dumps devalue the currency below the collateral.
These are legitimate questions that the @bitshares community should take into considerations before bringing such a dangerous game into mainstream adoption. Please note, the crypto space is filled with unpredictable moments--look at what happens to SBD now!
You're saying that everybody should be sending their BTC, ETH and Ripple to bitshares.org via blocktrades etc. and change them into bit$ there after blocktrades changed those into BTS (because there's really nowhere else these bit$ could possibly go, or if they did, why wouldn't anyone have more faith in them as they now have in tether), and as these bit$s are derivatives like bitgold etc., they would have to bind an extra $1.75 of their real dollars to buy one of them, and that to send their real dollars to bitshares, they should NOT be sending tether from the centralized exchange where they are trading now, because tether cannot be trusted ?
And that there is no central authority 'to go after.' You see, as there is no way to get fiat to bishares.org directly, it makes no sense complaining about the necessary intermediaries, as the authorities are controlling people at the other end, where they live, via their banks and the centralized exchanges, as long as you guys don't manage to dream up a way to get the money into a decentralized one, possibly without using a bank or a credit card... this is all rather delusional, even while lots of Chinamen're now dodging frontier guards at Hong Kong wearing body stockings filled with cash.
The way the crypto market is creating its own FUD, it will definitely end up in the hands of central authorities for the simple reason that the way the little boys behave, everybody will be calling for the big boys, to make sure their funds are safe, as the impression that the entire market is a Ponzi made by folks who just dream up virtual products, may be be intensifying rapidly and ruin the entire concept of crypto.
Proposing that customers change one of their hard-earned dollars into 2.75 virtual ones, and to spread that idea, might just topple the vat. That's humanity's tragedy (uh no - lets just call it a burlesque drama) that it keeps complaining about a lack of freedoms, when we're really a bunch of insane, adolescent primates who are using every opportunity in the sandpit to steal each others' shovels the instant big daddy happens to look in a different direction. It's either no trust or too much... ;)
Don't put words into my mouth because you don't understand the concept of collateralized assets. Get a book. Read it.
Seems you might appreciate words put into your mouth as your time is too precious to actually explain things to concerned customers - like, why they would pay $2.75 for one bit$, just to have "more security."
Upvoting your own posts is of course quite in the style of steemit, where egalitarian whales rule with highly convincing "steem power."
You're proving my arguments in such a concise manner that potential customers will hopefully now better understand the risks involved, though they'll certainly keep asking themselves what the actual benefits are supposed to be - as the salesmen prefer to not mention the subject.
Texas authorities have just taken the first step to inhibit the growth of Arise Bank, a bitshares partner. I've been watching bitshares since I started being interested in crypto, and I've seen this coming up.
It's complicated, they are not just letting us put our money on decentralized exchanges anonymously. Too good to be true.
Speaking of salesmen, well I have been a salesman once in a while, and I know how salespersons behave. They tend to dodge those critical inquiries whom the potential customers are throwing at them when the product they are trying to sell doesn't support the customer's needs. It is called diversionary tactics, by shifting the direction of the sales pitch into something fancy feature that the customer won't even need after all.
P. S.
I only use BTS to move my funds from exchange to another exchange to save me from withdrawal and high transaction fee. But when Doge is available, I always prefer Doge because it has more inherent liquidity among all utility coins.
Seriously go read what collateralized asset are before saying stupid stuff., you are embarasing yourself. AriseBank was not a bitshares partner. They wanted to use Bitshares for their tech.
The Tether/Bitfinex affair demonstrates the lunacy of the cryptocurrency libertarian revolutionaries' fantasy of their technology fueled utopia of non-government. No sane polity will allow for usurpation of coinage and capital controls by two-bit hacks "minting" digital garbage.
As you eloquently point-out, the central authorities merely need to control the access points to and from the crypto-market by enforcing AML regulations that already govern banks and financial institutions. When no banks will deal with cryptocurrency exchanges, the entire scheme will collapse. That the central authorities of major polities have allowed for the growth of cryptocurrency market, thus far, assures near-future central control and regulation over the cryptocurrency market. It will be beneficial to all involved, when central authorities properly regulate cryptocurrencies paving the way for major financial institutions to enter. Then, and only then, will mainstream adoption finally occur. Decentralization is a garbage pipe dream of teenagers for a by-gone era that have not existed for ten-thousand years.
I don't necessarily have to agree with this observation. Do not underestimate the power of peer-to-peer exchange as demonstrated by LocalBitcoins.
If the government goes full retard on AML/KYC implementation, then it opens the door for people to resist and go all in to the black market where exchange is done via remittance centers, e-currency like Perfect Money and MTO services.
The harder to buy, the price soars to the moon! Crypto will then become more valuable store of value than ever.
When cryptocurrency to fiat conversion is essentially severed by banking interests and governing regulatory agencies, then cyrptocurrencies effectively become worthless baubles. Cryptocurrency is not like heroin or cocaine that has end-use value. It is merely an exchange medium that requires an end-point conversion to fiat. What sane mercantile institution will accept cryptocurrencies for their wares, when there exists no financial institution for fiat conversion?
For cryptocurrencies to have any value, it requires banking cartel support and government assent for fiat convertibility. Can "peer to peer" transactions support millions or billions of USD worth of transaction orders? Peer to peer is a fad, not some revolutionary exchange medium that will replace the current financial institutions.
bitUSD can be purchased for very close to a dollar. The margin requirements only apply to “creating” bitUSD.
For example; yesterday I put 1200 bts up for collateral and borrowed 300 bitUSD, then I bought 300$ worth of bts and immediately put in a slightly higher sell order, and 1 hr later, I closed every thing out and now I have 1230 bts. I’m new to Bitshares and wanted to see for myself how it works.
Have used bit.USD with great success in the past. Though I am now no longer as adverse to using USD since if you are playing by the rules you are paying taxes on every trade.
How can the goverment react to those trades? I mean what are the possibilites? Wouldn't they tax them us as usual trades?
They do tax crypto trades as usual trades (non-crypto), as of 2018.. sort of. Non-crypto trades involve USD for U.S citizen (typically). Meaning when you sell something you are taxed on it. Now whenever you make a crypto-crypto trade you owe taxes on gains. So even trading in and out of bitcoin you owe.
Before 2018 the allure of tether was that you were only taxed on crypto fiat trades.
And what BTS is valued in?
Correct, in US dollars. Therefore "bitUSD 2x collateralization by BTS value" is a meaningless expression because once the dollar value of bitUSD evaporates it won't matter how many times something is backed by zero.
And there's something else. Markets always deal with perceptions as suppose to real stuff. Therefore if you create a currency which is a stealth representation of the USD then you committing a grave sin of the unauthorised USD printing and no authority in the world will tolerate its currency counterfeiting.
Hopefully something like this gets adopted widely before tether goes down, I doubt it though. There might be a rush from exchanges to adopt some sort of replacement after the crash leading to some making suboptimal choices.(AKA not tested/questionable origins)
It's unfit to be a replacement.
Or graduate from Fiat peg already and stay in crypto. The whole crypto gotta work to be actual currency, that's the real with and what we want this to be ultimate, is it not?
While I like the idea of Bitshares economic ecosystem, the question is: what will happen to your BitUSD when the BTS price dives like a starving peregrine falcon?