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BitAssets for businesses and consumers.
At the beginning of this series, I forecast some incredible use cases for BitShares. bitUSD is one of those incredible use cases.
Three big advantages bitUSD has over other non-crypto tools.
1) The ability to maintain your purchasing privacy.
2) Confiscation by authoritarian governments is impossible.
3) It operates on the blockchain. There are no third-parties and no trust is required.
Here’s 10 Use Cases to start with, but I think the uses of bitUSD are nearly unlimited.
Use Case #1: Storing your wealth. Let's look at bitUSD as a competitor to CD (Certificate of Deposit) accounts. Let's compare locking your money in a CD account for one year vs leaving your money for one year in bitUSD.
According to chase.com, the highest interest rate that you can get with them right now for a 1-year CD is 0.05% per annum. You need to deposit a minimum of $100,000.00. It’s only available in the US and there are account fees and penalties if you need to spend your money early.
With bitUSD, the current variable rate is 5% per annum. That is 10,000% increase over Chase's published interest rate. No minimums and your money is never locked away. Every month you hold bitUSD you are earning interest. It’s available to everyone and there are no account fees or penalties for spending your own money.
Inflation is higher than your interest rate, so you are guaranteed to make a loss on your money if you store it in a bank. Funds are secured by 300% collateralization in BitShares. Storing some portion of your wealth in an interest-bearing BitAsset is a smart move. Especially for the billions of un-banked.
Use Case #2: Currency and recurring payments. With BitAssets, businesses need not worry about volatility and are incentivized to hold them because of the interest rate.
If bitPay, or Coinbase, or others were to integrate bitUSD as an option, they would be able to tap into Billions of new, un-banked customers.
Use Case #3: Decentralized locks. Coinapult will preserve the value of a users Bitcoin irrespective of the Bitcoin price. However, they’re a centralized solution and as such, has many points of vulnerability.
Use Case #4: A crypto that allows continuity recurring payments. Think your phone/cable/Internet/Netflix subscriptions, all of these industries rely on subscription payments and coins like Bitcoin simply cannot meet their needs, at least not without third-parties.
Home shopping is also run with phone sales, getting a Bitcoin address over the phone is quite the challenge without third-party tools.
BitShares has user-friendly names called TITAN (Transfer Invisibly To Any Name). The phone sales person can ask the purchaser to simply pay "homeshopping". This is a lot easier than asking someone to pay 3J98... etc etc.
Use Case #5: Decentralized Smart Wallet. A Smart Wallet is a wallet that will change currencies for you instantly and seamlessly. The user can pay in bitUSD and the merchant can receive bitGOLD or bitCNY if desired.
Use Case #6: Bank accounts in foreign currencies. With BitShares, you can switch to any currency you wish. You don't have to ask permission from anyone. No one can stop you. There are no minimums and you can do it yourself in seconds.
Use Case #7: Bank accounts in commodities. What if you don't think that any national currency is a good place for your savings? What if you want your savings tied to the value of gold, silver, oil or wheat? In your BitShares wallet you can change what your savings are exposed to in a second for near-zero cost, and you can interest on your holdings. Bye bye expensive ETF’s.
Use Case #8: Streamlining cryptocurrency trading platforms. Most crypto traders right now are not receiving any interest on their holdings and are exposed to disaster scenarios like that of Mt. Gox or Bitstamp.
All of the problems associated with centralized solutions for those exchanges can be eliminated. "Gox'ing" can never happen on the BitShares blockchain.
Use Case #9: Earning interest on your Bitcoin. Why hold Bitcoin when you can hold bitBTC and earn interest?
Use Case #10: Loans in crypto have been nearly impossible.
BitShares platform solves all these problems.
BitShares also offers User Issued Assets (UIA's). These are tokens that users create and issue. Frequent flyer miles are one example. Airlines could issue, manage and track their miles on the BitShares platform, for near zero cost. They could save themselves a fortune, and improve security considerably.
Note: The above transcript has been truncated due to Youtube limitations.
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