1 Level
6 Review
14 Karma
Review on BitShares by Giang Chu
Every Dollar, Euro, bitcoin and ounce of gold held as a SmartCoin on theβ¦
Every Dollar, Euro, bitcoin and ounce of gold held as a SmartCoin on the BitShares exchange is backed by up to twice the reserves of traditional centralized exchanges. The traditional banking system has long practiced what I like to call fictional reserve banking, more commonly known as fractional reserve banking.
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Pros
- The heart of BitShares is the SmartCoin system which enables the creation of 200% collateralized IOUs from the BitShares network. A BitUSD has all of the properties of Bitcoin combined with the price stability of the US dollar. At any point in time you can sell a BitUSD for at least 1 dollar worth of BTS. If at any time the value of the collateral falls below a certain point the blockchain will automatically buy back the BitUSD with a dollars worth of BTS.
Cons
- Requires use of another service to deposit/withdraw funds.
