Nubits - Cryptocurrency with no volatility

Stability is achieved through adjusting the supply of the currency according to market demand. Maybe this could be the final nail in the coffin for banks as there is no more need for merchants to convert crypto into fiat to remove any volatility risks.

Bitshares also has its own implentation of non-volatile assets but the price still flucutates +/- 5 - 10%.

1 Like

Haven’t read all the info, but essentially this is a crypto currency that is pegged to the USD.

This is an interesting approach and a direct competitor to the dollar, which I think means it cannot succeed. Needs a lot of thought at least!

Nice find, one to watch :slight_smile:

1 Like

From their FAQs, here’s one of ways how these are created “ex nihilo”:

First, when individuals who possess NuShares reach a consensus to grant NuBits to a custodian. A custodian is a person/entity (or persons/entities if multisignature transactions are used) that pledges to use the NuBits in a particular way, such as raising funds for dividend distributions or funding development.

How is anyone going to get NuBits back if this “custodian” disappears with his newly obtained coins or spends it on hookers and blow?
How are NuShares-holders going to monitor custodians? Who’s going to spend his time on due diligence for all those custodians?
Very Ponzi-like IMHO.

If it is pegged the the dollar then it is still prone to government led ‘money creation’ and inflation, which seems like a pretty fundamental flaw/weakness to me. Having said that it is interesting to ponder to what to degree (or not) this supersedes the corresponding weakness in the instability of price in pretty much every other crypto currency out there.

1 Like

Yes that’s another problem.

I’d like to add another one: the silly voting idea is not going to work.
They say NuShares holders would have to reach a consensus. One guy can completely derail any emission this way.
If they change that to a simple majority (most likely outcome), then they’d place undue burden on other shareholders because anyone who doesn’t turn up may be outvoted by (bribed) NuShares holders willing to invest time and effort to “buy” votes. Unworkable.

Buying votes happens everywhere, in one form of another. There is no such thing as full proof, we can only do much. For now at least, pegging to USD in my opinion is better than relying on Bitcoin. If someone comments on nuBits as a ponzi scheme, how about Bitcoin, where early adopters and huge BTC holders can manipulate the value- a ponzi scheme and gambling…

For me nuBits, is worth watching. For now, using it for coffee and stuff is way better than using Bitcoin. I hope more shops accepts nuBits…