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RE: How to Buy Bitshares Explained
tony..i haven't been able to get an answer from anyone, but is BitUSD the same as holding US dollars in a bank account?? The reason i ask is because when you look at the price graph it shows a large decline in price since August....is this irrelevant because of the collateral backing and does it keep the dollar for dollar promise?? Thank you for any help on this..cheers friend
I wanted to make sure I got a full answer so I asked so I asked in the group and here is some answers I got back ...
A fiat bank account isn't backed by anything, at least your bitusd has legit backing collateral.
Fiat banks operate fractional reserves, bts doesnt. End of story, lol.
USD is backed by nothing but Oil and war, Bitassets (market pegged assets such as bitUSD) are backed by at least 175% in Bitshares.
No matter how Bitshares fluctuates in price, your 1 bitUSD will always be pegged to the value of one $1.00 (USD)
The price does not change, what changes is the market cap.
You can buy bitUSD from the market without using your own collateral
Maybe you can answer another question about Bitshares Collateral as I get it - it is actually a margin trading in Bitshares DEX.
I have seen a lot of times that there are huge price spikes when one currency is sold for 2x the price and the piece is 0.0000001 or just nothing. But the point is that it is actually showed in the chart and makes it a mess.
I am scared about those little flashes that fluctuate the price. Can it impact my collateral if I have not 1.75 but 2.0 ratio?
If those guys are doing those fake trades then probably they know that it is making some impact.
Yeah I am not sure. Please join he group and ask in there I think you will get a more educated answer https://t.me/BitSharesDEX
Thanks! Actually I found the "hidden" tab where those margin prices are published. And from what I see, they are normalized.
https://wallet.bitshares.org/#/asset/USD
Tony....thank you kindly for the response...this is what i wanted to know...i think a lot of newcomers get confused by the price charts and don't understand the true inter workings and complexity of this exchange..I'll use this knowledge to further educate others as well..thanks for taking the time to ask the team my friend....cheers
You're welcome mate :)