[Poll] FED coin or Hayek coin?

[Sabreiib]

About Tether.

Tether’s central reserve model reintroduces an inherent weaknesses that bitcoin meant to replace. And this is not simply an ideological exercise. Tether’s reserve account represents a single point of failure which, whether by accident, incompetence, evil design or force majeure, could undermine their entire currency.

Tether

[Sabreiib]

It is the 40th anniversary celebration of Hayek’s book “Denationalization of Money”.

[backpacker]

Thanks to you I’ve been reading it for couple of weeks and it’s very interesting and relevant!

[crypto_coiner]

Great write up –

Peershare originated from PoS system(Peercoin) makes it possible to implement Hayek’s theory

You meant NuShares?
Peershares = “Peershares - inexpensive and decentralized ledger to be used by businesses for tracking share ownership and distributing dividends in an automated fashion.”

Did you investigate other blockchain apps like, i dont know, ethereum or bitcoin sidechain?

Therefore, nowadays many stable cryptocurrency projects actually betray Satoshi’s ideality by pegging their coins strictly to the inflated FIAT. Situation may become even worse when those “FEDcoins” try to achieve the “impossible trinity”.[sup][3][/sup]

The Impossible trinity (also known as the Trilemma) is a trilemma in international economics which states that it is impossible to have all three of the following at the same time: • A fixed foreign exchange rate • Free capital movement (absence of capital controls) • An independent monetary policy

FEDcoin = pegging to the fiat?
What is the difference with the Hayekcoin, in simple terms?

About the trilemna, can we have 2 conditions satisfied at the same time?

[Sabreiib]

FEDcoin = pegging to the fiat?What is the difference with the Hayekcoin, in simple terms?

About the trilemna, can we have 2 conditions satisfied at the same time?

Hayek coin pegged to stable buy power, inflation/deflation adjusted, while NBT/tether pegged to USD face value. if 1HYK pegged to 1USD in 2014, perhaps today 1HYK =1.05USD accrording to FED inflation rate.

yes, you can achieve 2 conditions at the same time in impossible trinity.

Did you investigate other blockchain apps like, i dont know, ethereum or bitcoin sidechain?

Neither Bitcoin sidechain coin nor ETH has the mechanism to control coins quantity to maintain buying power.

Nu/B&C is the closest model to Hayek theory, but I guess we need modify them. If B&C succeed, issuing a kind of Hayek money is a easy mission. This will be the biggest innovation since 2009’s BTC, and hundreds of copy cats will come.

[Sabreiib]

“The issuing bank could, at first, at no prohibitive cost keep in cash a 100 per cent reserve of the currencies in terms of which it had undertaken to redeem its issue and still treat the premiums received as freely available for general business. But once these other currencies had, as the result of further inflation, substantially depreciated relative to the ducat, the bank would have to be prepared, in order to maintain the value of the ducat, to buy back substantial amounts of ducats at the prevailing higher rate of exchange.This means that it would have to be able rapidly to liquidate investments of very large amounts indeed. These investments would therefore have to be chosen very carefully if a temporary rush of demand for its currency were not to lead to later embarrassment when the institution that had initiated the development had to share the market with imitators.

In Hayek’s theory, we should maintain relative high reserve such as 60-80%, and the 40-20% money should invest to somewhere in order to make profit to support the buywall. Even Nu doses not have to lift NBT buy price slowly, Nu has some expenditure of operation.

Nu’s crisis comes from that we don’t obey Hayek’s suggestion, we even have no profit model, and our so called investment: NSR buyback, is very illiquidity, and cannot provide help when NBT dumping occured.

[crypto_coiner]

Hayek coin pegged to stable buy power,

How do you measure purchasing power in Nu?

[crypto_coiner]

. If B&C succeed, issuing a kind of Hayek money is a easy mission.

There s no mechanism to inflate or deflate supply in bcex – so why hayekmoney in bcex?

[crypto_coiner]

As for the poll does it intend to ask the preference as a nu implementation?
I am interested in both but i think a fedcoin is a very good start

[Sabreiib]

Shareholders vote for a inflation/deflation rate of USD, and FLOT adjust buy/sell wall, very easy.

I prefer B&C, because BKC can be better than NBT.

[crypto_coiner]

USD,

OK – you will rely on inflation/deflation data provided by some central agencies and the USD

[crypto_coiner]

I prefer B&C, because BKC can be better than NBT.

Please elaborate why you think so

[Sabreiib]

OK – you will rely on inflation/deflation data provided by some central agencies and the USD

Shareholders vote for a inflation rate which may be different from FED’s data. This is a decentalization decision making.

[Sabreiib]

Please elaborate why you think so

Very simple. B&C’s business is exchange, BKC is destroyed every day, this is healthy service and sound revenue.

Imagine if 1000 NBT are destroyed every day, would nusharegholders laugh and cheer?

[crypto_coiner]

Imagine if 1000 NBT are destroyed every day, would nusharegholders laugh and cheer?

Why not?
I think the difference lies in that BC is just a business – It gets a cut for a service
Nu is a matrix – the matrix on which BC lives – It cannot just get a cut for a service – It is the fabric against which every thing else is measured and referred – So it is so much harder to start up Nu, but once confidence is created, it can run and go on just with people belief.

We have to use some know-how from the banks here

[Sabreiib]

Why not?I think the difference lies in that BC is just a business – It gets a cut for a serviceNu is a matrix – the matrix on which BC lives – It cannot just get a cut for a service – It is the fabric against which every thing else is measured and referred

After B&C released, If Nu dies, B&C can live happily. No offend, just a fact.

[crypto_coiner]

Imagine if 1000 NBT are destroyed every day, would nusharegholders laugh and cheer?

I did not get that one – please elaborate

[Sabreiib]

Debts destroy = profit

If Nu destroys1000NBT per day via service, it means Nu has 1000NBT profit every day.

This also means the peg will be maintained sooner or later even in Nu’s crisis.

[crypto_coiner]

Debts destroy = profit

So that s no different with B&C on that matter

[cryptog]

Tks for the long post.

Why does Hayek Coin issuing entity needs a revenues model?