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RE: ELI5 Detailed Explanation of Everything going on with BTS/bitUSD Market

in #bitshares6 years ago (edited)

I think it's pointless to borrow bitUSD and just let it sit. The reason I say this is that I can't think of a good reason to have unused capital lying around. Let's say you borrow 10k bitUSD and post appropriate BTS as collateral for it. If you fail to use all the bitUSD, I think it makes sense to just pay back the loan (or whatever portion of bitUSD you have left over) to minimize your exposure. Bitshares makes it so easy to borrow again that it's silly to expose yourself to unnecessary risk.

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The idea it's "pointless" is not quite accurate Bill. Yes, your point is quite valid if you're borrowing BitUSD, but what if you just buy it rather than borrow it? Do you not see the value of savings in this world that runs on debt and is on the verge of collapse as a result? Such a consumptive economic model leads to waste of resources rather than fueling long term growth. What of hedging, that requires some place to park your funds with some level of higher safety than what you're trading in?

I think it's pointless to borrow bitUSD and just let it sit.

I stand by my exact statement.