Quote from: bytemaster on September 02, 2013, 07:17:11 PM

Quote from: becoin on September 02, 2013, 07:10:40 PM

Quote from: bytemaster on September 02, 2013, 06:48:36 PM

BitUSD is a prediction market on the consensus value of BitShares vs FedUSD and that is all it is. Consensus value will track the value of FedUSD without ever having to store FedUSD with any trusted party. Anyone who doesn't invest according to where the consensus is going to move will lose money.

What money they'll lose?

They can lose only BitUSD. They can't lose FedUSD because you have no access to their FedUSD. The value of BitUSD is absolute zero if losing BitUSD doesn't automatically inflict losing the "real" stuff (FedUSD)!

They can lose BitShares which is like losing Bitcoin and the value of the BitShares they lose could have purchased FedUSD and thus they did lose FedUSD.

On a Bitcoin exchange you reward the winning party with FedUSD by taking those FedUSD from the losing party. On BitShares you take from the losing party and and give to the winning party only BitUSD. There is no real life "interface" between BitUSD and FedUSD. In the real economy you have to take to give! If you can't take (not purchase, but take from the losing side) FedUSD, you'll have no FedUSD to give (not sell, but give the winning side)!