Today on signing into openledger.io I encountered something that seemed complicated, only because I don’t fully understand the concept behind the idea of ‘bit’.
I noticed that instead of the account showing the account value in USD, it now shows it as “bit” USD. Perhaps it’s false concern, but, (nervous inner lol) there’s something about the word ‘bit’ that gets stuck in my craw.
Do I get a bit of the money in the account based on some variable? The little research that I have been able to glean about this decentralized asset reveals that the value is 1:1 with the USD.
Of course, if this is truth, my only question becomes, why add the ‘bit’. I know there has to be something of substance to this change; and, I welcome any professional expertise (links and discussions) to expand my knowledge of the matter.
I want to believe that the money accrued is secure, and available without risk in the openledger.io account; but, I’m also eerily reminded of the experts who say, “If you don’t own the key, it’s not yours.”
Hmmm…Input, anyone?
Peace.
Bitusd is a pegged coin that basically is backed by 2 times the amount of bitshares hence the bit part.
Bitusd=$2 worth of bitshares.
every bitUSD is backed by at least $1.75 worth of bitshares and is worth around $1
https://coinmarketcap.com/currencies/bitusd/
Okay. This is extremely interesting and a bit of weight lifted from the FUD (no pun intended).
The only other factor that I hesitantly am encouraged by is that the BTS developers have additional projects; leaving me con-vinc-ed (lol) that they aren't going to close up shop and change names and faces.
I'm a crypto fan; but, realistically the Wild-Wild-West pioneer stages remind me of the old westerns where the bad guys ride up and rob the stage coach en route to the bank.
Of course, I don't perceive that occurring; but, just a reminder that FUD is a real experience; and, has to be kept in a healthy balance. As in life, there are scammers, and then there are people really working diligently to create something better.
This is where due diligence has to factor in, especially for those new to crypto. The Larimers have a stellar reputation; and, at some point one has to accept that everybody can't be wrong with their perceptions.
Again, many thanks for the clarification!
Peace.
Bitshares is a DEX ( Decentralized Exchange) You own the private key to your account so you money is 100% safe as long as you keep your private key safe. BitUSD or other smart coins are digital assets thats value is pegged to other currencies or commodities like gold/silver.
That way you have a coin that is stable in value yet tradeable in a decentralized way.
Thanks for the input. I just have to stay mindful that crypto is indirectly akin to the centralized version, aka Wall Street; and therefore, involves due diligence, as with everything life.
Best regards!
Peace.
Many thanks for the swift reply.
Double the security sounds good; but, after a little research on discussions about ‘pegged assets’, my FUD meter just went up a notch. Here’s a quote from a very detailed article:
What if the markets aren’t too fond of the idea and liquidity is limited because the issuer doesn’t actually have the amount of assets pegged to the currency in reserve available (as we’ve seen with so many in the past)?
The result being that the open market dictates the price of the asset, not the issuer (as was intended) and holders of the asset start selling them off for less than the artificially designated “market value” in order to mitigate risk.
In the end, unless you’re a centralized federal government with authority and a standing legal structure to defend your assertions, there is no such thing as a truly ‘pegged’ asset in the cryptocurrency markets and there never will be.
Here’s the link to the article:
https://cryptocoinmastery.com/lets-talk-pegged-crypto-assets/
For now, I will accept that this is crypto; thus risks. I’m aware enough that when people are in the equation, the word ‘trust’ has its consequential 'security' variables automatically built in. I hate to sound cynical; but, that’s reality; and, besides there's risk in just about everything. The effort to invest beats the alternative...zero-growth funds in a mason jar.
Currently, I don’t have enough in the account to lose sleep over; but, it’s still good to remember that crypto does not have an FDIC backing. And, in today’s US economy even that’s ‘questionable’.
Lastly, God calls us to grow our money and not just hold on to it at face value for 'secure' savings. (Matthew 25: 14-30).
Best regards.
Peace.
bitUSD is not only pegged. It is also backed by BTS collateral. User issued assets are a different type of token on bitshares platform.
bitUSD is a smart token and it is not 'issued' by a specific user. It is shorted into existence by any user, by locking at least 1.75x worth of BTS as collateral. It is veeery different than tether in this sense.
it is not 'issued' by a specific user...It is veeery different than tether in this sense.
Thank you for this helpful input. I don't usually equate crypto with collateral benefits; but, this certainly raises an awareness, and level of confidence. Worth noting, the article mentioned similar warnings about the developer of Tether doing a huge money "grab".
Again, many thanks! Thus far, I haven't withdrawn any earnings for tangible cash. I have this pseudo 'FUD' that when it comes time to exchange the crypto for fiat, all assets will be down for maintenance; and no bank transactions will be allowed. Had I not had this maintenance experience with STEEM and OpenLedger for weeks on end; I might not be so 'nervous'. Now, of course, this is clearly unfounded, as people are not shy about being duped. The discussions would be abundant.
Again, many thanks!
Peace.