Thanks for the comment. But did you read what I wrote?
That's actually the opposite of the point I was making. There's no market to buy anything for buying anything for bitEUR, and I'm not rich enough to be a market maker.
So borrowing bitEUR would mean I'm locking up bts that I can't use to borrow bitUSD which has a lot of good markets. So basically missing out on a lot of opportunities.
But I'm hoping some market makers like some European startups will come to the bitshares platform and make the bitEUR more useful. Then it will start to make sense for the small fish like me to borrow it.
Well the reason someone would create a BitEUR is because he thinks the price of BTS is going to rise (compared to the value of the EURO)
So he creates, say 1000 BitEUR (locking up about twice that value in BTS in order to do so)
He then sells the 1000 BitEUR on the market for anyone that wants to "cash out of crypto" to escape volatility and things of that nature. It doesn't need to be used by merchants and commerce.
So at the time of speaking, you STILL have your BTS locked up and made 1000 Euros.
If BTS goes up in value over the months, you then buy back your position at a much cheaper rate. The value of BTS you locked up MINUS the price you paid to close your position = your profit in BTS.
Hope that makes sense!
It's interesting both of you seem to think it's possible to cash out of crypto via bitEUR. Which platform do you log into?
On wallet.bitshares.org the daily traded volume is 5bitEUR on the bts market and non existent on the other markets.
And the rate for buying bts with bitEUR is actually pretty bad. So borrowing bitEUR instead of bitUSD would be a pretty bad gamble since it's also hard to sell them back at a good rate if the bts price would rise.
And on openledger it's pretty similar, no market for obits/bitEUR for example. Where can you sell 1000bitEUR? ( I would actually love to do it)
So if someone is creating bitEUR right now, they would be taking a risk without anywhere to get a possible gain, right?
So I agree with what you're saying if it would apply to bitUSD, but hardly to bitEUR at the moment.
The only bitEUR market that has any liquidity right now is bitUSD to bitEUR, and that can hardly be called 'cashing out of crypto.'
Oh yes, I'm sorry. I actually completely agree with you. The BitEUR is currently even less liquid than the BitUSD was even at inception years ago.
What would be interesting is figuring out why the european exchanges don't offer it to their customers. If I owned (or had inside connections to) say BitStamp, I would create a bunch of BitEUR, then would have it listed on it as a Tether for the Euro zone customers.
Chicken or Egg problem I guess. They don't add it because there's no liquidity, but there won't be any liquidity if they don't add it.
Thing is they could hugely profit from add it, since they could buy it back with less BTS than they locked up in the first place.
BitShares needs to market this!
:P
Even better, people could use BitShares MPAs for P2P exchange like localbitcoins except without the volatility. That would take a lot of the confusion and friction out of the exchange. Each trader could just offer a fixed percentage fee known in advance without anyone having to worry about price variance while arrangements were being made.