BitUSD is a broken product that is unlikely to ever gain widespread usage. I don’t understand why we would want any exposure to it. Integrating a weaker product into our network would give that competing network legitimacy, which is counter to NuShareholder interests.
This shows that the custodian has a powerful financial interest to ruin the NuBits peg through speculative attack. Benjamin wrote about the possibility of speculative attacks on a much larger scale here: Speculative Attack on Nubits
If I owe the Nu network 10,000 NBT and don’t own NuShares, I will do everything in my power to devalue NBT prior to paying back my loan. This could include negative PR campaigns, hacking our website, or performing a speculative attack. We should not give custodians incentive to harm our network.
Our T4 reserves could be better-diversified through investment in other cryptoassets like LTC, PPC, ETH, etc., but pure BTC in a multi-sig fund is still desirable to paying one person to hold USD in my opinion.
