The other day I posted about BitSpark's CEO explaining why he made the switch to the Bitshares network. Basically, we see a situation where a company dealing with a real world issue, the transfer of money to poorer nations, needed a blockchain that could perform. The BitSpark team obviously felt the Bitshares network was a better option than Bitcoin.
Certainly the technical abilities of the Bitshares blockchain was attractive. I also believe the transaction costs appealed to their business model.
However, one of the biggest reasons was the Market-Pegged Assets that are available on the Bitshares network. This tokens eliminate the burden of market volatility since they are pegged to a currency such as the USD.
This appeals to BitSpark because transferring cryptocurrency could mean a sharp change from the time it is sent until it is received. Bitcoin is really susceptible to this since the network could be back-logged. It is not unheard of for a cryptocurency to drop 10% in under an hour.
MPAs eliminate this concern. For BitSpark, this means that one can send money over a blockchain network, for a fee much lower than the traditional money transfer companies, using an asset that is pegged. Hence, what is sent is the amount received (less the transaction cost).
Now for the real bombshell.
BitSpark is going to use the Bitshares MPAs to create a smart token for every currency in the world.
This is sensational news.
To start, this means that BitSpark is planing to conduct transactions in every country in the world. They are going global with the initiative. The advantage to this is they are able to make the fiat to crypto to transfer to fiat very easy. There will be no fiat currency that they cannot handle.
The other major benefit to this is that each MPA requires 2 times the amounts of Bitshares tied up. Certainly, this is going to mean a lot of Bitshares that has to be used to back these tokens. I am not sure how many there are in the world, but the number of currencies has to eclipse 100.
Perhaps I am missing something here since this did not appear to be a major announcement. Yet for hodlers of Bitshares, this could be enormous.
If you found this article informative, please give it an upvote and resteem.
Wasn't SBD supposed to be a Market-Pegged Asset? Then people could use SBD to buy and sell stuff and not have to worry if the value of the coin was going to drop while they're figuring things out?
That's interesting news though and good news for Bitshares. Shows what can happen when you're in touch with the needs of the market and are willing to adapt to those needs.
Sort of. Steem SBD was partially copied from BitShares MPAs, but they tried to make it a simplified version with no direct user initiated issuance. In doing this they removed the price ceiling, which is why SBD fluctuates so widely above $1. Now so many Steem users get excited about speculating on the price of SBD that fixing the peg system for it is pretty controversial.
BitShares MPAs work much better than SBD for stability because they can be issued on-demand by anyone willing to lock up BTS as collateral.
Interesting. All of that was new to me, so thanks for the lesson. I hadn't realized that was one of the reasons that SBD broke the peg. I know it was getting close to the peg again and that (maybe) it could be locked once it was there, but it has skyrocketed back up and it would be difficult to get consensus to strong-arm it back there (at least at this point).
I like the higher rewards, but I think that for long-term growth of the platform, having a stable currency will be key. It will attract more people who are looking for something where their value won't disappear or drop by large percentages in short periods of time.
I think the difficult part will be getting a reliable oracle for every currency in the world. That is a tons of data sources that could be hacked. Large attack surface.
Even without hacked data sources there could be some ambiguity as different data sources fall under political sway to report meaningless 'official' rates: https://www.cnbc.com/2017/03/28/venezuelan-just-announced-a-new-currency-rate--and-nobody-cares.html
Thanks for sharing this news. I've suspected Bitshares was a sleeping giant just waiting for the right 'alarm' to wake up. One of the major things which first perked my attention in crypto was its potential to transform the worldwide remittance market which has been syphoning cash forever. Time to check out Bitspark to see what they're all about.
great news right from on set i think that bitshares is a coin will have so much potentials,i know is just a matter of time.
bitspark hmm another hit .
without wasting much time i will do more of my research to see if its worth investing into it
nice work @taskmaster4450
I am HODLing and I am stoked about this!
I read about this last year already. Nothing happens so far.
Pretty cool news in the headlines about bitshares. Glad to see this @taskmaster4450 #letthegoodtimesroll 🙌🤣