I hadn't heard about the gold thing, I'll have to check Stan's blog.
My understanding is that if a single short position is ever undercollateralized, the whole smartcoin has a stroke, immediately shuts down, and returns most of the outstanding collateral BTS to short positions. Then all outstanding long positions more-or-less just float. At that point, a rush to some other asset out of the smartcoin would likely result in a rapid price crash because the network's ability to back the smartcoin would be severely reduced, and thus confidence will be thin.
So... When the quantity of outstanding smartcoin grows this fast, I both marvel and worry.
Gotcha. "BitShares has in turn, teamed with the United Precious Metals Association (UPMA) to bring real-time metal-backed digital currencies into the mainstream. The combined strengths of conventional bank + decentralized bank + decentralized exchange + smart coin factory + gold depository + enterprise integrator makes the first full service alternative financial system to offer honest money and a level playing field for all mankind. This isn’t just exciting, it’s a game changer!" https://medium.com/@michaelx777/bitshares-and-arise-team-up-the-worlds-first-decentralized-bank-and-exchange-join-forces-db5b81369aa7?source=user_profile---------1---------------- Stan and Michael are supposed to be releasing more info on this in the coming days. Deals made at a precious metals conference in Utah.
Cool. The more use cases, the better!