Looking at this chart, yes over time the peg has been relatively stable, while the market cap has soared recently.... Which means to me they aren't afraid to create a ton of new tokens in order to maintain the the peg..
I may be wrong. I'm going to have to research this topic some more
Yes, in that case the whole function of the token is to be pegged to USD and, as you noticed, the way to keep the price from rising is to create more tokens. Will they destroy those tokens to keep the price from then falling?
That's not correct. The system uses a 200% collateral and smart contracts to create new tokens. Basically every btsUSD is backed by 2 USD and that keeps the peg stable. http://docs.bitshares.org/bitshares/user/mpa.html
Thanks for the clarification. Perhaps with the rollercoaster ride in cryptos, it is becoming a popular "safe haven" between trades - at least in terms of fiat dollars.
There is collateral to guarantee the peg. I'm not going to try and explain the details as I am not experienced enough and there are better resources ;-)
Just wanted to let you know.
Looking at this chart, yes over time the peg has been relatively stable, while the market cap has soared recently.... Which means to me they aren't afraid to create a ton of new tokens in order to maintain the the peg..
I may be wrong. I'm going to have to research this topic some more
Yes, in that case the whole function of the token is to be pegged to USD and, as you noticed, the way to keep the price from rising is to create more tokens. Will they destroy those tokens to keep the price from then falling?
That's not correct. The system uses a 200% collateral and smart contracts to create new tokens. Basically every btsUSD is backed by 2 USD and that keeps the peg stable.
http://docs.bitshares.org/bitshares/user/mpa.html
Thanks for the clarification. Perhaps with the rollercoaster ride in cryptos, it is becoming a popular "safe haven" between trades - at least in terms of fiat dollars.
There is collateral to guarantee the peg. I'm not going to try and explain the details as I am not experienced enough and there are better resources ;-)
Just wanted to let you know.
One source: http://docs.bitshares.org/bitshares/user/mpa.html