Quote from: ulhaq on May 03, 2017, 11:27:52 PM

I don't think its hard to have a digital asset pegged to fiat. As I pointed out, all you need is:

1. 1:1 reserves that are distributed in banks with insurance in different jurisdictions (including security of the bank)
2. third party audit of the bank accounts
3. security of the digital asset
4. agreement of the company to exchange digital assets and fiat, meeting KYC/AML laws.

None of the attempted pegs, including tether, has met these requirements. Yes, this requires a centralized authority, but it is impossible to have a pegged asset without one, simply because a trusted entity has to secure and possess the reserves. All attempts to use financial manipulation to secure a peg are going to fail, including the rolling peg idea someone posted.

Your idea for the "ideal" digital asset pegged to FIAT requires heavy centralization and gateways. That defeats the whole purpose of cryptocurrencies and creating an ideal cryptocurrency ecosystem.

Quote from: ulhaq on May 03, 2017, 11:27:52 PM

Yes, this requires a centralized authority, but it is impossible to have a pegged asset without one, simply because a trusted entity has to secure and possess the reserves.

Bullshit. Bitshares' bitUSD has held a $1 peg since 2014 without any centralized authority.

Quote from: ulhaq on May 03, 2017, 11:27:52 PM

How does bitUSD make any sense? You have to put in 2 USD to get 1 bitUSD. The market seems to agree, less than $1 million in bitUSD.

Ummm... this is a half truth or you don't understand how bitUSD works. I'm not sure which one.

You can buy 1 bitUSD with $1 USD (plus a small margin for traders) on Bitshares' decentralized exchange. Since bitUSD's inception the ecosystem's dynamics have been heavily fine tuned and experimented with. Also, the market has since matured greatly with the creation of easy to use market makers bots (such as https://btsbots.com/), as well as privately developed and operated bots, which people run to automate market making operations for a profit. That has resulted in the margin of buying 1 bitUSD not being more than $0.05 USD for over a year now. As the market matures further, that $0.05 spread will eventually diminish closer to $0.

The only reason you would need to spend more than 1 USD (plus the small margin) is if you are are bullish on Bitshares' value and sought leverage to increase your trading profits by selling the BTS token during or after a bull run. Your statement that you have to spend $2 USD to buy 1 bitUSD is quite misleading. Possibly that was the intent? I don't know...