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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 t

by 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

by 1053r 9y ago

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