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Here's a good analysis of the (highly-questionable) economics of BitShares: http://prestonbyrne.com/2014/08/17/dont-walk-away-run/ http://prestonbyrne.com/2014/

Here's a good analysis of the (highly-questionable) economics of BitShares: http://prestonbyrne.com/2014/08/17/dont-walk-away-run/ http://prestonbyrne.com/2014/08/17/dont-walk-away-run/

tinkerrr 12y ago
Not sure if someone wrote a rebuttal. The author does get quite a few things wrong. I guess we'll find out soon enough. The markets for BitAssets are going to open this week, and a pure-prediction market will take over soon thereafter. There's a 'backup' strategy of centralized price-feeds instead of prediction markets that's published by a majority of the delegates if the market isn't able to maintain the peg or is easily manipulated.
- querybitnap 12y ago
  http://prestonbyrne.com/2014/08/24/what-goes-up/ http://prestonbyrne.com/2014/08/24/what-goes-up/
jabgrabdthrow 12y ago
Check out the discussion in the comments here. The article you linked has effectively only one argument: that BitUSD will not maintain the peg in the event of a flash crash in BTSX value. The author and the lead developer of BTSX have a back-and-forth which clarifies the whole situation. http://prestonbyrne.com/2014/08/24/what-goes-up/ http://prestonbyrne.com/2014/08/24/what-goes-up/
- querybitnap 12y ago
  Do you really need any more an argument than that?
  - jabgrabdthrow 12y ago
    Of course not, if you think it's likely don't put your money in. Even Bitcoin's rapid price drops in the past have not been fast enough to have triggered a peg break. And you're trading the risk off against the risk of a bank haircut or account freezes or what have you. Again, to be clear: I am not encouraging anyone to put their money into this.
  - notahacker 12y ago
    If you did, Bitshare founder's Daniel Larimer's comments at the bottom provide a couple more Namely (i) As he points out governments tend to like to be involved in investment and money transmission schemes... and the likelihood of the SEC taking a dim view of the trade and marketing of unregulated "shares" is probably a tad higher than the likelihood of your USD deposit account being frozen or haircut. (ii) he appears to imply the only thing that went wrong with MtGox and "other otherwise trustworthy institutions" is government intervention. Whether that selective blindness to MtGox's problems was purely rhetorical or not, it's a remarkable attitude coming from the founder of a crypto exchange...

Here's a good analysis of the (highly-questionable) economics of BitShares: http://prestonbyrne.com/2014/08/17/dont-walk-away-run/ http://prestonbyrne.com/2014/08/17/dont-walk-away-run/

tinkerrr 12y ago

Not sure if someone wrote a rebuttal. The author does get quite a few things wrong. I guess we'll find out soon enough. The markets for BitAssets are going to open this week, and a pure-prediction market will take over soon thereafter. There's a 'backup' strategy of centralized price-feeds instead of prediction markets that's published by a majority of the delegates if the market isn't able to maintain the peg or is easily manipulated.

querybitnap 12y ago
http://prestonbyrne.com/2014/08/24/what-goes-up/ http://prestonbyrne.com/2014/08/24/what-goes-up/

jabgrabdthrow 12y ago

Check out the discussion in the comments here. The article you linked has effectively only one argument: that BitUSD will not maintain the peg in the event of a flash crash in BTSX value. The author and the lead developer of BTSX have a back-and-forth which clarifies the whole situation. http://prestonbyrne.com/2014/08/24/what-goes-up/ http://prestonbyrne.com/2014/08/24/what-goes-up/

querybitnap 12y ago
Do you really need any more an argument than that?
- jabgrabdthrow 12y ago
  Of course not, if you think it's likely don't put your money in. Even Bitcoin's rapid price drops in the past have not been fast enough to have triggered a peg break. And you're trading the risk off against the risk of a bank haircut or account freezes or what have you. Again, to be clear: I am not encouraging anyone to put their money into this.
- notahacker 12y ago
  If you did, Bitshare founder's Daniel Larimer's comments at the bottom provide a couple more Namely (i) As he points out governments tend to like to be involved in investment and money transmission schemes... and the likelihood of the SEC taking a dim view of the trade and marketing of unregulated "shares" is probably a tad higher than the likelihood of your USD deposit account being frozen or haircut. (ii) he appears to imply the only thing that went wrong with MtGox and "other otherwise trustworthy institutions" is government intervention. Whether that selective blindness to MtGox's problems was purely rhetorical or not, it's a remarkable attitude coming from the founder of a crypto exchange...