@cameron, you’ve raised two important issues.
why do people trust Nu shareholders especially those several custodians who are holding all reserve fund now? What if they run off? What if they have health problem?
why do people wanna hold nubits except that they need to use it? Since nubits pegged to USD and inflationary. Would you hold nubits for 10 years and use it as your children’s education fund?
These are the two reasons I am not convinced by Nubits.
Either nubits project hardcore team reveal their real identity or nubits get decentralized, otherwise the “trust” issue remains the biggest barrier to the public.
As FA Hayek said, the more people like to hold a private currency, the more success.
In 1976, Hayek told us how to issue a private currency and the only barrier is political reason: governments love monetary monopoly. And in 2009 the blockchain technology give people the very chance to issue currencies, however, most cryptos implement fixed supply and disobey Hayek’s theory where the stable currency is favorited.
Nu is very close to Hayek model but not 100%.
If I have enough money I will hire some programmers and issue a 100% pure Hayek money which is of the people, by the people and for the people.
Hayek coin: HYK
Anyone holding HYKshare can issue HYK by pledging hykshare to protocol, the pledge ratio is voted by Hykshareholders. Completely decentralized. And the HYK is anti inflation, so we get out of control of federal reserve. HYK’s goal is maintaining stable purchasing power. What’s the definition of “stable currency”? plz refer to chapter XIII “denationalization of money” 1976 by Hayek.
HYK price is maintained by custodians who set up buy/sell wall on exchanges(100% reserve)and the currency circulation is controlled by short term(1-2 weeks) lending. If pledge ratio is voted to lower level, some HYK will return to protocol, in a extreme case if ratio is voted to zero, within 1-2 weeks all HYK will come back to protocol if all HYK Holders agree to sell them, if they don’t, it cost less time to maintain HYK price, this is even better.
In order to anti inflation, that’s 2-3% annually, some HYK will be burned for HYKshare, thus the HYK price can be lifted continually and slowly.