Bit20 About Bit20 FAQ How to invest ?

Frequently asked questions (FAQ) :

# What is exactely a BTWTY ou Bittwenty ?

The whole explanation is at the "BTWTY" tab in the menu.

# Where can I buy BITWTYs ?

The detailed process is at the "How to invest ?" tab in the menu.

# Where does BITWTYs come from ? Who sells them ?

It’s a free market. BTWTY team doesn’t create nor sell BTWTYs. Short sellers (traders) are the ones creating BTWTYs by locking 200% collateral of their value in BTS and then sell them. Once they are created and sold, they are acting as any other asset in the market and can be sold again and again.

# How secure is BTWTY ?

BTWTY is a smartcoin in the BitShares blockchain and does possess the same properties as the core asset BTS. We can agree that Blockchain technology has demonstrated so far that is more reliable than centralised online exchanges.

# Can BTWTY team manipulate the price to dishonestly win money ?

No we can't ! The new composition of the index is monthly sent in a BitShares Blockchain block. Once in a block, it can not be changed. The nodes of the BitShares blockchain (called “Witnesses”) are reading this composition, calculating the price and sending it into the next block so it can be displayd in the market BTS : BTWTY. The number of witnesses and their high reputation in the system guarantee the decentralisation of the price production and its trustless characteristic.

# What kind of fee are involve when buying or selling BTWTYs ?

The BitShares ecosystem takes around 0.1 BTS for the trading operation, which is worth around 0.0005$ at the time of this writing. That’s obviously extremely low. Besides this, the BTWTY team set 0.2% fee on the market trades. This fee aims to provide money for the development of Bittwenty, the website maintenance and future evolvements, publicity and anything that can help this market to grow.

# How the market will evolve and grow ?

At the every beginning, this market will be empty. Then, as we believe BTWTY is an amazing tool to invest in cryptocurrencies, the market will experience a disequilibrium with much more buyers than sellers (shorters).
The short sellers are mainly traders in the BitShares ecosystem. If there is liquidity in the buying side of the market, they will gain interest in using this market to trade and gain on the volatility of the index.
That will create more sellers and increase to market depth.

# What would happen if the collateral of the shorter drop below the value of the BTWTY I possess ?

BitShares provide a protection that margin call any short position if the collateral decreases below 175% of the value of the index. Consequently, the value of your investment is well protected.

# Can I get my money back at any time ?

Any time you wish, depending on the buy orders present in the market, you can sell your BTWTYs and have your BTS back. Once you have BTS, you can change them in any currency you like in the BitShares ecosystem or through a centralised exchange. The whole process take seconds !