NSR/BTC price question

nikolaso 2015-03-29 23:07:36 UTC #1

I have question regarding NRS/BTC price in relation to BTC/USD. It is obvious that NSR had its peak of 0.00008448 when BTC/USD was lowest - 170 in mid january. Also, NSR/BTC price waned as BTC peaked up last month at 290.

However, last days (exactly since BTER opening) NSR/BTC and BTC are going down together. What the hell happened?

And what would if BTC correction to 100-150$ is true, can somebody explain possible factors for NSR to go up again, or we have to wait for code to become open source?

Thanks

tomjoad 2015-03-29 23:50:21 UTC #2

As I’ve mentioned before, when trading volume is below 1% of market cap for equities (NSR is currently less than 0.1%), the fluctuations in price are mostly random noise.

The actual value of NSR might be much higher or much lower. Either wouldn’t surprise me, because while the fundamentals of the Nu design remain solid, we suffered quite the setback in February with our exchange hackings. The fact that the price stability of NuBits was maintained throughout that stress test is a very positive sign for the robustness of the pegging mechanisms.

We’ll have a better idea of the true value of NSR a month or two from now when we are listed on larger exchanges, and NSR trading liquidity has resumed.

Chronos 2015-03-30 03:57:52 UTC #3

Exactly. NSR 24-hour trade volume is often under $1000. At these low volumes, price discovery is often lacking. A big buyer or seller will drastically move the price.

crypto_coiner 2015-04-05 02:44:05 UTC #4

what’s exactly price discovery?

Nagalim 2015-04-05 20:50:51 UTC #5

discovering price is a process that requires an active market. A low volume means the prices listed are easily manipulated and reflect just a few active people.

"Some markets may not have many participants as the assets being traded do not have much appeal (the formal term is market interest - As participants express interest in the underlying asset. Such markets are often called illiquid. Examples might include minor currencies. In illiquid markets price discovery might take place at a predefined auction time or even whenever participant wants to trade. In such cases there may be no executions for days or months. In such examples there is no price discovery for long periods so the last traded price is used. This can have significant risk as the market for the illiquid may have moved. Another characteristic of illiquid markets is that the cost of trading can be higher due to the lack of competition."