What is BitUSD?
“With BitShares we are taking Bitcoin and we’re making it profitable, and bringing cryptographic US Dollars that are as secure and easy to use as Bitcoin.
…what we want to do is we want to create a transparent banking where we create bitUSD by collateralizing it with a crypto-asset so the people who want price stability and the people who want leverage can meet, and then back bitUSD with a crypto asset by 300% so you are protected against the volatility and yet you still have all the benefits of bitcoin. Or perhaps the most exciting thing is there is so much demand for people to be invested in bitcoin; everyone thinks its going to grow as you get the network effect and these things grow; people are going to want leverage to short it so they can buy more. so they want to borrow dollars to sell them and when they do that they pay interest and bid up the interest rate, and all that interest that gets earned from the people who want to speculate on the rise of cryptocurrencies can get paid to the people who want price stability. So you can buy bitUSD and enter a higher rate of return than you can in any bank in the US. “
Why does the world need BitUSD?
“The average man on the street wants the features bitcoins provides — being able to transfer money anywhere in the world, being able to store it in your head, not having your accounts frozen; they want these features, but they don’t like the volatility. So bitcoin is not very good as a medium of exchange because you buy it and you sell it as fast as you can when you pay for something. And all of the bitcoin processors out there are taking a huge spread so the cost of doing purchases with bitcoin is not sustainable mostly because of the volatility…Bitcoin is not sustainable — its losing 500 million dollars a year to fight global cooling. They’re diluting their shareholders to fund work that has no returning value. If you view bitcoin as a company, it’s like raising capital to burn it. And, you can’t keep doing that forever. Bitcoin requires $1M per day to flow into it just to break even — for the miners. And, it’s not really buying you decentralization, it’s not buying you security, and in our system we really focus on the company analogy — focus on profitability of the system; it has to produce more value than it consumes so that the users of the system can have a secure, sustainable, economic foundation.”
How do you buy BitUSD?
You can buy in right now by buying BitSharesX on various exchanges… You can go to coinmarketcap and you can see us there and all the exchanges that are listed. You can visit our website at BitShares.org or BitSharestalk.org.
Listen to Dan’s entire talk on YouTube.
Sources: CryptoBiz Magazine, Daniel Larimer, BitShares OnlineShow comments