There is a lot to digest, and I am far from arguing about visions with the very same person who had the vision of Nu. However I have been into (researching) startups for a while now to sense a pivot coming from miles away. Is a common pattern.
A pivot is “structured course correction designed to test a new fundamental hypothesis about the product, strategy, and engine of growth.” link . On a more in depth comprehension, a piovot is a change of strategy without a change of vision ( in basketball terms, the vision is the foot on the ground, the strategy is the rotating foot) .
A pivot is often effective if done properly, and it normally takes several pivots before finding the right one that leads to growth. However, its a big step for any kind of organizations, so no wonder ben is surprised .
Now the paragraph below deserves attention :
Now I invite you all to read (again) “The problems solved by Nu” extracted from the whitepaper.
Bitcoin was a phenomenal innovation. For the first time individuals could hold an asset without counterparty risk and transfer it to anyone else on the network quickly and privately, if desired. It had some flaws, which include a high cost of maintaining the network and the disassociation of control of the network (given to miners) and ownership of its assets (Bitcoin holders). Peercoin improved upon Bitcoin by dramatically reducing the cost of network maintenance and giving control of the network to the owners of network assets.
Both of these networks contain a critical flaw which Nu resolves. These networks permit the purchase of scarce units used in the networks which function much like shares. If the value of the network rises, the value of these “shares” rise. This dynamic has been critical to the success of these networks as it allows anyone to purchase a stake and benefit from promoting the network. These networks have simultaneously been promoted as currencies but have not functioned well as such. Currencies must have a stable value to be effective, while Peercoin and Bitcoin have exhibited exceptional volatility. Many argue volatility will end with the high liquidity that will accompany widespread adoption. While volatility will decrease with greater adoption, it is unlikely volatility will ever be less than occurs with large cap stocks such as Google or Microsoft. This is still an unacceptable level of volatility for a currency. Let us suppose I am wrong and that volatility will be eliminated in these networks. In that case they would serve well as currencies but poorly as shares, because they would not appreciate, nor give dividends. This would likely cause a selloff of these “shares”, thereby introducing volatility once again.
The critical flaw is that Peercoin and Bitcoin use the same fungible unit for share and currency functions. Shares must have the capacity to appreciate and reflect changes in the perceived value of the network while currency must remain stable regardless to be effective. It is impossible to accommodate these diverse pricing needs in a single unit.
Now, I would like to get it straight: do we still want to pursue the original vision, right?
What Jordan is proposing is to test “NuBits as a tool for traders to exit illiquid market” to reach the “NuBits as a digital currency for the internet” outlined in the whitepaper. Am I correct?
The first step, and we agree, is proving our capability to maintain the peg, and we are doing it right now.
Following steps may or may not be the one proposed here by Jordan. We have already seen other proposals: one is attacking the landing market, right?. And betting. And tipping. and wages. and spam control, and merchants and inflation and bankings and the moon.
Are we really sure we want to spend so much time and energy in pursuing this change of strategy? Is it worth, especially when compared with alternative? Do we have a clear sign of the market asking for it (because thats what generally triggers pivots) ? Did we consider all the alternatives in a in depth comparative analysis (not that I know of)?
I hope do you see my point here.
Egoistically I could just shut my mouth and execute : the proposed approach to liquidity brings technical challenges which are exciting and will guarantee I will be busy with innovative stuff for a long while.
I want to make sure it is done properly. Does that sounds reasonable?