Over the first 4 months of life of Nu, the peg has never been unkept.
This is a success.
At the same time, we have seen the buy support decrease down to 15k NBT but each time, some funds sitting at Tier2 were unfrozen and shifted to Tier1, in my understanding.
So it seems that NuBit’s peg has never been in great danger.
Conversely, the sell side has never been in great danger either.
This prompts me to ask the following question: Do we need first to increase the buy side in order to make users confident in Nu’s ability to maintain the peg before those users feel comfortable enough to buy NuBits or do we need first to create services that make use of NuBits and encourage users to buy NuBits, after which we can concentrate on increasing the buy side support or do we need to do both at the same time?
It is a bit like the chickens and eggs problem.
In the same way that Bitcoin was produced and satisfied a demand for them on a certain market (black market), I believe that NuBits have to be produced to satisfy a demand for them (end users, not traders) and that will feed a healty demand for a supply from LPCs
Reminder: the NuBits promise
Addressing merchants (the “Selling” column in the infographics) more heavily in our marketing efforts would be a good idea. NuBits should be particularly interesting for them, because they can accept cryptocurrencies without instantly converting them to fiat on almost every transaction. So they save the service fee of BitPay or at least can significantly reduce it.
From our perspective these merchants will hold a substantial amount of NBT which they obtained at 1$ and which they want to liquidate at 1$, so they will implicitly support the peg.
Working on the “selling” aspect seems to be a second step that would follow the first step which consists in establishing a huge liquidity across exchanged according to: Finalized evolution of liquidity operations
I will soon present a service which will use NBT as main currency. It should greatly increase demand for NuBits and give it first application beside trading.
