We need to admit that we're all gambling here with this recent crypto price jump. There's an invisible hand throwing dice at the craps table, and we've been getting all the right rolls for a long time now. Will BTS break $1 before the luck breaks? It easily has the technology to do so, but sometimes the market prefers vaporware... We shall see.
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I totally get and agree what you're saying. One good thing is this: getting bitCNY on asian exchanges is currently in the works and should be completed very soon. This would make bitshares bitCNY the tether of asia, except it's actually backed by something. Asian exchanges using bitCNY would give bitshares wings.
Current bitCNY Marketcap: $39,065,779 USD and it has grown by leaps and bounds lately
The more I watch the exploding smartcoin supplies, the more nervous I get about black swan risk. There are some features built into the smartcoin protocol that seem destined to force a black swan before too long.
You're right, bitCNY are backed by something, but it's something that is susceptible to violent swings in value. It's a different sort of risk than the un-auditable backing of Tether, but it's pretty significant risk nonetheless.
Very true. I've been trying to look into what happens when a bitasset is black swanned lately, still trying to wrap my head around it. Stan and Michael doing the UPMA gold pegged crypto asset fully redeemable in gold deal could help in the event of a black swan, yes? If the market got too wild then people could just convert their bitCNY bitUSD etc into that gold asset, which is backed by and fully redeemable in a hard asset.
I hadn't heard about the gold thing, I'll have to check Stan's blog.
My understanding is that if a single short position is ever undercollateralized, the whole smartcoin has a stroke, immediately shuts down, and returns most of the outstanding collateral BTS to short positions. Then all outstanding long positions more-or-less just float. At that point, a rush to some other asset out of the smartcoin would likely result in a rapid price crash because the network's ability to back the smartcoin would be severely reduced, and thus confidence will be thin.
So... When the quantity of outstanding smartcoin grows this fast, I both marvel and worry.
Gotcha. "BitShares has in turn, teamed with the United Precious Metals Association (UPMA) to bring real-time metal-backed digital currencies into the mainstream. The combined strengths of conventional bank + decentralized bank + decentralized exchange + smart coin factory + gold depository + enterprise integrator makes the first full service alternative financial system to offer honest money and a level playing field for all mankind. This isn’t just exciting, it’s a game changer!" https://medium.com/@michaelx777/bitshares-and-arise-team-up-the-worlds-first-decentralized-bank-and-exchange-join-forces-db5b81369aa7?source=user_profile---------1---------------- Stan and Michael are supposed to be releasing more info on this in the coming days. Deals made at a precious metals conference in Utah.
Cool. The more use cases, the better!