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> stabilized by central banks acting as trusted monopoly producers Oh the number of cryptocurrencies which have tried to stabilize their currency. There was B

> stabilized by central banks acting as trusted monopoly producers Oh the number of cryptocurrencies which have tried to stabilize their currency. There was BitsharesX which was abandoned quickly. Then there is USDT. The answer is there can never be a "trusted monopoly producers" in a decentralised world.

1053r 9y ago
To be fair, while Bitshares was a pretty complete failure, BitUSD, which sits on top of it as a "stablecoin" should be regarded as a complete success. Look at the price chart relative to dollars. [1] It only has brief and small excursions away from $1 despite being thinly traded and having very low market cap, and being backed by having a nearly worthless coin, as cryptocurrencies go. Stablecoins are a very interesting concept. They are a game-theoretically incentive compatible way to stabilize a currency WITHOUT a trusted monopoly producer. [2] 1 - https://coinmarketcap.com/currencies/bitusd/ https://coinmarketcap.com/currencies/bitusd/ 2 - https://blog.ethereum.org/2014/11/11/search-stable-cryptocurrency/ https://blog.ethereum.org/2014/11/11/search-stable-cryptocur...
- thisisit 9y ago
  The smallest measure in forex is called a pip. For USD it is $0.0001. Movement of price from $1 to say $0.98 is a movement of ~200 pips. This is considered huge volatility in forex. So it might look small excursions it is not a good result when compared to real world use. and I am saying this as someone who invested in Bitshares and it's precursor Protoshares. I still hold ~100k of BTSX. > They are a game-theoretically incentive compatible way to stabilize a currency WITHOUT a trusted monopoly producer. This is the biggest fallacy in cryptocurrency scene. People think everything can be mathematically modeled. Absolutely not. Everyone will act rationally in a given situation. Absolutely not. If that were the case we would solved all the problems in the world using some kind of game theory function. Edit: Oops looks like I deleted the SNB example. Here's what happened: https://www.reuters.com/article/us-swiss-snb/swiss-draw-line-in-the-sand-to-cap-runaway-franc-idUSTRE7851LV20110906 https://www.reuters.com/article/us-swiss-snb/swiss-draw-line... SNB drew and held a line at 1.20 for EUR/CHF pair. No cryptocurrency can repeat that feat.
  - samsonradu 9y ago
    Think cryptocurrencies are just waiting for George Soros to make a GBP-like move. https://en.m.wikipedia.org/wiki/Black_Wednesday https://en.m.wikipedia.org/wiki/Black_Wednesday
mattbeckman 9y ago
BitShares currently uses pegged assets like bitUSD. These assets use BTS as the collateral. Price of BTS fluctuates, but the pegged assets remain stable due to short selling/margin calls. ...but I'm not a trading or financial expert.
empath75 9y ago
They’ve printed a hundred million usdt this week. The price is heavily manipulated with wash trading on kraken. It’s a house of cards that going to collapse at the first breeze.
- mancerayder 9y ago
  I thought Bitfinex was the washing machine, as the Tether 'creators' own that too?

1053r 9y ago

To be fair, while Bitshares was a pretty complete failure, BitUSD, which sits on top of it as a "stablecoin" should be regarded as a complete success. Look at the price chart relative to dollars. [1] It only has brief and small excursions away from $1 despite being thinly traded and having very low market cap, and being backed by having a nearly worthless coin, as cryptocurrencies go. Stablecoins are a very interesting concept. They are a game-theoretically incentive compatible way to stabilize a currency WITHOUT a trusted monopoly producer. [2] 1 - https://coinmarketcap.com/currencies/bitusd/ https://coinmarketcap.com/currencies/bitusd/ 2 - https://blog.ethereum.org/2014/11/11/search-stable-cryptocurrency/ https://blog.ethereum.org/2014/11/11/search-stable-cryptocur...

thisisit 9y ago
The smallest measure in forex is called a pip. For USD it is $0.0001. Movement of price from $1 to say $0.98 is a movement of ~200 pips. This is considered huge volatility in forex. So it might look small excursions it is not a good result when compared to real world use. and I am saying this as someone who invested in Bitshares and it's precursor Protoshares. I still hold ~100k of BTSX. > They are a game-theoretically incentive compatible way to stabilize a currency WITHOUT a trusted monopoly producer. This is the biggest fallacy in cryptocurrency scene. People think everything can be mathematically modeled. Absolutely not. Everyone will act rationally in a given situation. Absolutely not. If that were the case we would solved all the problems in the world using some kind of game theory function. Edit: Oops looks like I deleted the SNB example. Here's what happened: https://www.reuters.com/article/us-swiss-snb/swiss-draw-line-in-the-sand-to-cap-runaway-franc-idUSTRE7851LV20110906 https://www.reuters.com/article/us-swiss-snb/swiss-draw-line... SNB drew and held a line at 1.20 for EUR/CHF pair. No cryptocurrency can repeat that feat.
- samsonradu 9y ago
  Think cryptocurrencies are just waiting for George Soros to make a GBP-like move. https://en.m.wikipedia.org/wiki/Black_Wednesday https://en.m.wikipedia.org/wiki/Black_Wednesday

mattbeckman 9y ago

BitShares currently uses pegged assets like bitUSD. These assets use BTS as the collateral. Price of BTS fluctuates, but the pegged assets remain stable due to short selling/margin calls. ...but I'm not a trading or financial expert.

empath75 9y ago

They’ve printed a hundred million usdt this week. The price is heavily manipulated with wash trading on kraken. It’s a house of cards that going to collapse at the first breeze.

mancerayder 9y ago
I thought Bitfinex was the washing machine, as the Tether 'creators' own that too?