I'm going to assume you already understand how bts smartcoins work in this post. AKA bitassets AKA MPAs
I think creating BitSteem would make alot of sense as a smartcoin.
Firstly because of the natural synergys between the bitshares and steemit users but more importantly this would be a bit asset that many people would actually want to short.
- Whales with vested SP might want to hedge their large positions by shorting steem.
- Someone who wanted to power down their SP over 2 years could be guaranteed a fixed payout if shorted correctly
- When people call Steem a scam you can suggest they put their money where their mouth is and short it.
The issue with BitUSD, BitGold, etc is it is only created when theres a trader willing to short it into existence so the supply has been limited so far.
I think there would be a good supply and decent liquidity of BitSteem because of an appetite to short from traders.
Everybody will short it but who will buy it?
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Interesting idea!
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Very good idea. With direct STEEM -> bitSTEEM conversion via Blocktrades.
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Perfect!! Lets spread the word and give them a way how to short steem.
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omg @johnybitcoin...I can't believe this...I was thinking the exact same thing and I was about to write about that exactly and request bit.steem in bts and I accidentally read your post...
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and also I just wanted to add that an additional benefit for the creation of bitsteem is that Polo and no other exchange at least for now offers margin trading and shorting for steem, so bitshares DEX can attract those traders that actually want to short steem..
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I think about this all the time. STEEM Power is gaining interest daily, you would think an instrument backed by this growing VEST would make perfect sense.
The hedging is brilliant as you describe. We need this discussion to carry on in steemit.chat.
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Aaa....hedging.
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I agree
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Ready to provide the price feed
and happy to purchase altcap.steem to test the theory
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This is a really good idea and a great way to bring steem liquidity to the bts chain. +1 would read again
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I've just thought of an issue with shorting bitsteem. Most people using the scenarios above would want to short steem with the dollar not bts. Would still be useful for many but not a simple as i first envisaged.
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use bitUSD as collateral
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You can't create bitsteem from bitusd. Only bts as far as the Gui shows.
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You sure?
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#bitshares #smartcoins can be backed by the value of any stock, share, index, fiat or crypto currency including bitUSD.
As an example of the versatility of bitshares, I created ALTCAP and ALTCAP.X smartcoins. They are backed by the value of Bitcoin using bitBTC as collateral:
Info @ http://cryptofresh.com/a/ALTCAP
Info @ https://bitshares.openledger.info/?r=by24seven#/asset/ALTCAP
Info @ http://cryptofresh.com/a/ALTCAP.X
Info @ https://bitshares.openledger.info/?r=by24seven#/asset/ALTCAP.X
You can trade ALTCAP and ALTCAP.X on BitShares Decentralised Exchange exclusively at:
https://bitshares.openledger.info/?r=by24seven
https://secure.freedomledger.com/?r=by24seven
https://altcap.io/?r=by24seven
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But shorting steem will put pressure on it and it will lower it's quotation.
I understood you're a trader and need both options: to go long or short so for you it should be profitable to have the posibility to shorten the steem.
But for all others, the majority of steem holders ? What's their advantage ?
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sooo..what happened with this?? Why haven't yet created bitsteem in bitshares? If this was implemented when suggested, many people could have hedged steem and not lose by steem getting lower and lower..
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