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Why Steem might actually make sense as a Smartcoin by jonnybitcoin

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· @jonnybitcoin ·
$115.90
Why Steem might actually make sense as a Smartcoin
http://i.imgur.com/LR5YwbS.png

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.
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vote details (89)
@chris4210 ·
>When people call Steem a scam you can suggest they put their money where their mouth is and short it.

Perfect!! Lets spread the word and give them a way how to short steem.
👍  
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vote details (1)
@fishborne ·
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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@fishborne ·
Aaa....hedging.
👍  
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vote details (1)
@hcf27 ·
$0.19
Everybody will short it but who will buy it?
👍  ,
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vote details (2)
@ihashfury ·
Ready to provide the price feed
and happy to purchase altcap.steem to test the theory
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@instructor2121 ·
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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vote details (1)
@jonnybitcoin ·
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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@ihashfury ·
$0.03
use bitUSD as collateral
👍  
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vote details (1)
@jonnybitcoin · (edited)
You can't create bitsteem from bitusd. Only bts as far as the Gui shows.
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@justiciar ·
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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@karnal ·
$0.03
Interesting idea!
👍  
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vote details (1)
@mf-tzo ·
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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vote details (1)
@mf-tzo ·
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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@mf-tzo ·
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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@n25052016 ·
$0.02
Very good idea. With direct STEEM -> bitSTEEM conversion via Blocktrades.
👍  ,
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vote details (2)
@ulfa ·
I agree
👍  
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