RE: Interest-Free Loan : Unleash the upside potential of BitShares !

[bobreedo]

I am confused...I can actually borrow into US dollars and transfer money to my bank account? Or just convert into bitusd to buy other coins?

Comments

[scorer]

The trick is that your collateral is sold in free market if you are too greedy and the price of BTS falls down, like it is now. You loose money in that case.

Edit: No, bitUSD is US dollar derivative (a caltulated currency) that you can exchange to US dollars as well.

[dorineclay]

"The trick is that your collateral is sold in free market if you are too greedy and the price of BTS falls down, like it is now. You loose money in that case."

100% correct.

[dorineclay]

SmartCoins are guaranteed to be worth at least their face value. 1 bitUSD = 1$. Their value are backed by the BitShares core currency, BTS.

But if you want to convert bitUSD to real US Dollars (transfered to your bank account) : you have to convert it to another crypto. For now.

[dorineclay]

For example : You can borrow bitUSD with BTS. BTS is your collaterized promise to pay back the loan you made. With your fresh BitUSD you can buy BTC and transfer BTC to your wallet if you want.
If you want to cashout those BTC : localbitcoin, coinbase, kraken or any other exchange.

I can advice you Blocktrades.com if you want to convert and transfert bitUSD to your BTC wallet easily.