If the liquidity stays stabilized, I’ll lower them in steps until I arrive at small single digit APR values later.
I think we’ll find that our standard is rapidly approaching positive numbers. Please consider lowering to a more sustainable number like 5-10% and holding there for a month.
234.235472 - 315.767552 = -81.532080 BTC in the share buyback pool.
The Standard is 5.00 percent of this, -4.0766 BTC (~ -1827.73 USD)
+225 from the outstanding nbt. But you’re right, we’re probably still a good bit away from positive standard.
Currently there are 192k nbt parked, about 26% of all nbt in circulation.
Assuming the average period is 22.3 days and park rate 18% ap, Nu will pay 2k nbt interest.
In fact, if NBT pegged to USD and capital movement is free, we cannot control the interest rate at all, it is controlled by FED. If you don’t believe it, you will fail just like the Mexican peso crisis (1994–95), the 1997 Asian financial crisis (1997–98), and the Argentinean financial collapse (2001–02).
Please refer to impossible trinity.
Not sure how much that applies to Nu. It is certainly a bit different in Nu. You basically remove the money from circulation. There is no way to get it back beforehand. With a bank you can always withdraw your money at a cost if you really want.
Anyone can sell NBT for USD (via BTC). When Nu consumes buy wall, just like Argentina government run out of “foreign currency, i.e USD", then the peg is crashed.
The impossible trinity can be explain simply like this:
When the smaller economy (eg. Mexico, Argentina,) blooms, lots of hot money(USD) enter these economy, these country promise their FIAT equal to USD, Peso:USD=1:1, but when FED increase interest or Argentina economy decline, these hot money will leave Argentina, but before they leave they must transferred into USD, and since Peso=USD, Argentina’s foreign exchange reserve consumed (partial reserve & buy wall eliminated), thus peg crashed.
If they held a bigger reserve they would have remained liquid. I agree that we arent doing something entirely new, we’re just applying it to a new economy. There is no guarentee of success or failure, but we’re doing pretty well in my opinion. You keep quoting that trinity but we are following it just fine. We let the interest rates match the economics, we arent trying to force them to be a particular value.
From April 1991 to Dec. 2001, Argentina maintained Peso pegged to USD for 10 years long, but finally they failed.
The failure is doomed, the only question is “when”.
Yah, see, that’s a really weak philosophy to live by. It’s the “I’m going to die anyway, so why live?” philosophy. Is Nu supposed to somehow have created an invincible economy that people haven’t been able to do for thousands of years? Why is it not ok to be just as good as world economies when we’re breaking so much new ground as far as anti-corruption measures are concerned?
And we should take into consideration that there’s the potential to transform Nu, to have it offer different, adjusted, corrected products, if the need arises (or gets recognized).
There are ways to test the waters without risking much.
BCE can be groundbreaking and try an inflation adjusted version of an otherwise pegged currency.
As BKC aren’t pegged, there’s little trouble from trying that.
As Nu and BCE are cooperative and have a (partially) common shareholder base, there might be a chance to find consensus for that.
The lessons learned can help Nu creating additional products.
I feel, Nu is far from its end - still in rough waters, but far from being done.
One of the bigger troubles is the low NSR liquidity.
Once that has been fixed, the market cap of currently 4 times the liabilities can easily be tapped.
Nu dev and many community numbers are IT experts, and your enthusiasm & effort are appreciated. However, as new intruders to financial kingdom, you have entered the most formidable land - monetary theory.
You surprisingly underestimate the difficulty of building a new monetary model, and just like a bunch of experienced medical men want to become the frontier engineering(in another field) designing advanced machines without proper knowledge of Newton’s law of mechanics and law of thermodynamics.
You may even overconfident to laugh at those laws, but don’t forget that Satoshi contributed NONE to monetary theory because he follows one of the oldest monetary theory hundreds years ago–gold standards. If Satoshi get Nobel Prize of economics, it is because of blockchain tech, not monetary theory at all.
Financial experts will laugh at your ignorance of basic economics laws, including those ordinary fans like me.
“I’m going to die anyway, so why live?”
If you still belive it’s worthy of trying perpetual motion machine which voilates the 1st thermodynamics law and doomed to fail, I have nothing to comment but a picture:
If they fail in 1000 years it is ok
At least for me.
people have been saying the same for years regarding usd.
I thought the same.
But it seems the world cannot afford having a huge devaluation of usd.
That means the world will keep paying the bills in exchange of something else.
Regarding NuBits, as long as the organization is well enough decentralized, I believe we ll make the right decisions, meaning we will not be losing the peg.
Yes, FED can exploit the whole world by manipulating the USD because they can print USD from thin air or increase interest to expand or shrink liquidity. USD is the biggest pool on this planet.
However, the smaller pools such as mexico and argentina peso has NO such advanatge, they can not print USD when hot money flee from these countres, thus peg failure.
Can you imagine argentina peso attack USD in the same way? No way! FED (USA) has no foreign exchange reserve at all! When foreign money wanna enter USA, just finish the transfer within foreign countries. USA has no obligation of transfer USD into Peso when argentina money flee USA, therefore, USA has no worry about insufficient peso at all. And don’t worry about the less liquidity at all because they can print USD as wish! That’s God Mode!
It seems that you misunderstand the currencies between being pegged and pegging others.
If Nu can print BTC, of course, the peg is always maintained!
And because they sometimes print to much and it can’t be “backed” by the current domestic economy alone, they need economical assaults like TTIP if hyperinflation shall be posponed.
Just because something works now, doesn’t mean its design is ideal and can’t be improved.
The Romans reigned for a long time and finally failed - because the design of their society and economy didn’t work longer.
Just caring about now and not thinking about the future is often feasting in future generations.
That’s why there are so many nuclear power plants - the produce “cheap” electricity now. Caring for the nuclear waste is a job for the future generations and oh, it will only take hundreds of thousands of years until that nuclear waste is harmless.
I could go on with so much more, e.g. fossil fuels, genetically modified organisms, etc. all of them offer potential now, but may have significant drawbacks in the future.
Why am I writing all this crazy stuff the seems partially unrelated to Nu?
I see Nu as a way trying to make the world a bit better. If I sense improvement of this way, I need to point that out and try to convince others to test that way.
Nu can act responsible and not only in terms of its shareholders now and in the next years.
If it’s done right, it might even pay out more than otherwise.
I don’t want to feast on future generations; not more than I already do. I try to make it less.
I don’t believe Nu can survive the next 2-3 years if they stay pegged to USD. It is just like a perpetual motion machine stops after the initial energy is used up.
That is why there is a voting mechanism for Nu. If, for some reason the peg needs to be changed, there can be a vote where to peg it to. I am not saying that there needs to be a change, but if it does, then there is a way forward.