thanks for the comment. The problem with bitusd is its around 7% ($1.07) over its actual value and fluctuates to as high as 15% this means you pay a premium to get into it.
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thanks for the comment. The problem with bitusd is its around 7% ($1.07) over its actual value and fluctuates to as high as 15% this means you pay a premium to get into it.
Depends how you get into it. Most people buy bts, use it for collateral to borrow bitUSD and then you're suddenly on the discount side of the equation.
But of course it's impossible to have a perfect pegged token unless there's a direct fiat gateway to it. But it seems like that's in the works from several places.
what if you borrow bitusd against bitshares and bitshares goes down and you're magin called? That's a big risk no? and this only works if the price goes up, which its not doing.
Sure you need a good ratio and to check up on it sometimes. I kept a 10:1 ratio which kept safe even during these crazy dips.
And if you believe the price is going further down and staying there.
Then yes it's probably pretty bad.
But if you use the bitUSD to invest with profit and then keep paying them back every time, then the risk is not very big.
thanks for clearing that up :)