Why can't I store Bitcoins in the Bitshares exchange?

in bitshares •  8 years ago 

Hello, I have a question. If I transfer Bitcoins to Bitshares at get open.btc instead of btc. When this happens I get the feeling that someone else is keeping the Bitcoins and is giving me another token of his creation instead.
If I want to use bitshares because it is decentralized and I have control of my assets, I find that I really can't have control because if that someone loses somehow the actual Bitcoins, I won't get them back because no one wants open.btc. This same thing happens with any other asset one deposits from an exchange.

Am I missing something? Is there something I'm not understanding?

Can someone explain? Thanks!

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Thank you for raising this question. I've often wondered about this too. Is open.btc any different to real BTC? Looking forward to a GREAT answer.

I know for a fact they're not the same. But it makes me raise the question why they don't let us have actual btc, or eth, or anything real?...

I can answer this to the best of my understand which I will admit is not much.

open.btc is a open. asset provided by openledger. They have in their statement that they are backing the open.x(btc,eth) with equal value of btc open.x(btc,eth).

You can generate a deposit address for safekeeping with the CCEDK dac openledger.

You can then trade your Open.BTC for things like maker DAO (A DAO operating using Graphene and the Ethereum Blockchain)

https://bitshares.openledger.info/#/market/MKR_OPEN.BTC

Or back to BTS here:

https://bitshares.openledger.info/#/market/BTS_OPEN.BTC

Openledger is a registered Danish company and I imagine it would not be fun to have to account for missing btc and with that said I think Ronny puts a great deal of attention towards the latest security tech and knowing that your and if you look at coinsbank Ronny Boesing has a lot more up his sleeve.

There are also a number of UIA (User ISsued assets) on the Graphene blockchain that do not have open. or meta. These can be organizations, companies, celebrities or whatever that issue these tokens on the graphene blockchain.

Think Cadastral Bitland, PEerplays, OPEN.X, BitTeaser, MKR, blockpay, bunkerchain, ..

Overall I think bts is a cool eco system that has a promising future assuming the commitee can get shit done in the growing market.

Thats my not so educated rant on BTS. :D

It is good idea to use OPEN. assets for incoming and outgoing from BitShares platform only.
On the BitShares exchange trade and keep funds in bitAssets like bitBTC bitUSD etc.
Further look at lafona ´s post.

I mean BitAssets are backed in value by BTS whereas Open is backed by whatever they offer for deposits and such .

Exactly.

Its true that open.btc is a UIA and is similiar to btc on an exchange like poloniex or bittrex. If someone steals the btc in deposit, your funds may be at risk. As part of the bitshares network, open.btc has does have several advantages over traditional exchanges. For additional protection from counterparty risk, one can trade open.btc for for bitBTC(listed as BTC). BitBTC is one of several assets backed by BTS(the native token on bitshares) and thus is not subject to the same counterparty risk as the gateway tokens(open.btc trade.btc etc).

In addition to bitBTC, there are assets for other cryptos or commodities of interest. When actively trading open.btc on markets with these bitAssets or SmartCoins one is potentially exposed to half of the counterparty risk of a normal exchange as only one of the two assets is backed by crypto held by the gateway. So by using the Openledger/bitshares you should be able to reduce your exposure to counterparty risk.

  ·  7 years ago (edited)

I am not sure if many people understood what you said. If they did you must have had many more upvotes ;) Thanks for a good answer.

@lafona. I know this is a really old post. I hope you are still around to reply? I didn’t understand what you said. What is the difference between open.btc and bit.btc and why is the price different?

OpenLedger's open.BTC is exactly the same as BTC an exchange like coinbase, circle, poloniex, bitrex, or Mt. Gox. Those should be called base.BTC, circle.BTC, polo.BTC or gox.BTC. Someone else is controlling the private keys. OpenLedger is simply more honest about it!!
You can buy bitBTC which is strongly pegged to BTC and YOU control the keys. or buy BTS (bitshares) or peerplays or obits or any one of the bitshares smart-coins or user issued assets (UIAs).

Your clarification that the exchanges should use terminology like base.BTC, circle.BTC, polo.BTC or gox.BTC clears a lot of confusions.

Good to know. I am a total newbie here.
A discussion like this helps.

I've tried to explain this below. I would research the details on everything I've said because I dont know everything obviously lol

You can. Go to Withdraw / Deposit. Apparently OpenLedger STORES the Bitcoin / Other Cryptocurrency in their own wallet, and charges fees to deposit / withdraw.

Open.btc is same as btc, just imagine 1gm of gold you want to trade it in olden days(say 1900's) what you will do, deposit in a bank or trust and get equalent contract and place that contract in market. So if someone agrees to buy it, you will give that contract. The person who hold the contract is the owner of that 1gm gold now. This gives the mobility of gold and security. Hope you understand open.btc and btc now. Thats why they say open.btc is iou(i owe you)