I don’t understand suggestions of changing the protocol. Surely, changing a protocol is an admission of failure (like rolling back a block chain)?
I would think that if NuBits lost it’s peg, it would be a failure. At least in what it’s original goal was, to be pegged to $1. That is only the dollar and it may be pegged to many things at that point. So it wouldn’t be a complete failure as long as it learned. Changing the protocol would also need to include changes that make it more resistant to a similar thing happening again in the future. I am starting to agree with Jordan though. It may just go straight to $0. At that point in the distant future, there would surely be competitors that would have seen the problems and reacted to them before Nubits could (or just learned from NuBits mistakes and fixed them after NuBit’s demise).
This acknowledgement that NuBits will eventually die resolves a problem for me. Up until now, NuBits has appeared (to me) to be an attempt at perpetual motion
I now understand NuBits to be a tool for a purpose - the stablisation of crypto. All tools blunt eventually, but as long as NuBits lives, perhaps for a hundred years or more, we will have stability in crypto - which is what the world needs
Therefore, as I see it, the way forward is not to deny or be troubled about NuBits’ inevitable end, but to maximise its life:
The NuEcoSystem engenders natural market mechanisms which will prolong NuBits for the very long-term
Tools provided to NuShareholders will prolong NuBits for the very long-term
When, at a future point, NuBits begins to slide, market signals (rising interest rates for parking) will replace regular users with speculators - this protects the future public
NuBits will go full circle - starting in 2014 as a speculative investment, then becoming accepted and providing stability, before returning to being a speculative tool. Acceptance of final failure is what gives NuBits credibility
Ok, I may have no idea what I’m talking about here, but bear with me…
Some of you are talking about NuBits living for a hundred years or more. Bitcoin has gained exposure for cryptocurrencies, but its not being adopted like it should because of its volatility. As long as NuBits performs its function as a peg, that should help drive mainstream adoption. Given a certain amount of time, the entire world could adopt a payment system like this as long as the peg is reliable.
If we have mass adoption of NuBits around the world, that would bring up Peercoin along with it, since it’s vital to the system. This means that NuBits and Peercoin would be flooded with an amount of liquidity that Bitcoin only dreams of. After a certain length of time (Years, maybe decades) Peercoin would be stable in price because of its liquidity provided by mass adoption and can then be used as a transactional currency just as well as NuBits can, as long as it uses off-chain networks to get around the fee. Therefore, NuBits ends up acting as a stepping stone for Peercoin mass adoption and liquidity.
Does any of this make sense or am I smoking something?
It will be available on the full website on September 23rd, along with lots of other info and FAQs. Still in the final stages of editing.
I agree. As long as the shareholders think it’s a good thing to pay dividends in Peercoin, a revenue stream will be flowing into peercoins pushing up the price in terms of USD. If peercoins gets super liquid I do think volatility will decrease. I also agree with Jordan that if this happens, peercoins will act less as a share and more as a currency and therefor speculating in peercoins would be like speculating in USD or EUR.
I don’t share Jordan’s view that this would cause a sell-off. When peercoins have matured that much, it will have stopped behaving like a share a long time ago and people will be holding it because of its stable value, not because of its volatility. Or to put it another way, people today buy peercoins because of the volatility (upside risk). People in the future will buy peercoins because of its stable value. Why would someone who buys peercoins because of its stable value suddenly sell it, because it does what it is supposed to do (retains the stable value over time)?
Sure some will sell it to buy assets with more volatility and some will not. If the liquidity is deep enough, that won’t be an issue. If liquidity is not deep enough, it only means peercoins have not matured into a stable currency yet.
Let’s put it like this. I will gladly sell my USD in exchange for some shares. Both systems have an expansion phase ahead of them and that’s how you make money. There is nothing in NuBits that makes me want to sell my peercoins for it.
I think this questions is entertaining: Why is NuBits paying dividend is peercoins and not NBT?
Check David’s reply about that above.
Biggest problem now for Nubits in my opinion is customers experience problem, in my opinion, all Nubits exchange should be on separated page (possibly directly on or link from current exchange account balance page) providing direct exchange rate to Nubits without buying/selling order and/or providing current interest rates for parking Nubits, we don’t need (stupid visible huge) buy/sell wall and worst many trash buy/sell order filling up everywhere (ie. buying 1 usd for 1 cent) it should all be deep hidden in the backend in every supported exchanged. This will separated Nubits and any other crypto currency and give much better experience to customer as to just another crypto with really big buy and sell wall on an exchange.
With this customers experience improvement I mentioned, everything should still works as it is. It shouldn’t required much work other than some changes from the exchanges side.
What is the need of trading pair anyway? (BTC/NBT) From my understanding of Nubits system. Those wall shouldn’t be breach anyway, so all buy/sell order should all be from the Nubit bot itself anyhow. I think most people would feel much more comfortable converting BTC to Nubits (and vice versa) directly with current exchange rate (with options to exchange with higher or lower rate than current rate and get in queue) provide to them instead of buying into huge sell wall. Same outcome but much improve from customer experience end and much more professional.
I think we should take out trading pair as soon as possible. We should have people view Nubits as service providing stable pegging to USD and NOT just another pair of crypto currency. (“ppc is a coin nubits is a coin” quote from some member from well known exchange.) Distributing/ Introducing Nubits to the world shouldn’t be trading pair. But service add-on to those exchange instead, on its own page and space with clear introduction and usefulness of Nubits then it should give the feeling of stable and trusted service as to usual pump and dump coin with big walls.
Other thing I feel concerned is the API connection between the Nubits bots and exchange. What would happen if there is lost of connection (accidental/ human error). Is there any already solution implement to conquer with this type of problem? The easiest I could think of my head now is to halt all Nubits exchange in case of losing connection between API.
-I am Thai student studying in China, (thus sorry for my english) and I know for sure adding nuCNY now would created a lot of buzz in China. I think nuCNY should be implement as soon as possible (after improving customer experience which I think should be first priority.)
-I lost most of my money (most likely instant noodle for lunch/dinner for the rest of semester) buying PPC thinking I was somehow supporting Nubits. I was wrong, but I expected much more from Nubits. It is a very good stuff just need some little tweak and improvement.
If anyone or any body from Nubits think this is useful please support me, I am more than happy to discuss or give more ideas about Nubits to improve it.
Customer experience is definitely important. However the integration as you described would require a lot of work on the exchanges running their own legacy solutions, and that will take time. The advantage of having the buy/sell/ wall visible is that it provides transparency at this early stage. The Network will need to gain trust, so its workings should be as transparent as possible. It is certainly possible that in the near future a new type of decentralized NuBits exchange may eventuate which offers virtually instant exchanges between NBT and other cryptocoins as a service as you call it. Time will tell.
Adding NBT/CNY pair (or service) is certainly something we should look into, but we will need support from the exchanges. At this time the focus is on maintaining the pegs we have, strengthen them where required and gain valuable experience to keep them in working order at all times.
If you let dividends be paid in nubits, and because nushareholders
are free to hold and free their shares at any time (freedom of action
and will) then there’s a big part of the nubit supply that you just don’t control; price swings then happen.
As a currency supplier, you want ideally to equate in real time exactly
the quantity of currency and their demand, so that price remains ideally constant.
Why are there no buy/sell walls on AllCoin.com while there are on bter and ccedk?
We’re interested in seeing what happens on an “unsupported” exchange. Long-term we won’t be able to add sell and buy side pressures on every exchange in existance, so we’ll need to understand how the market helps us maintain the peg, even when we don’t have bots there supporting it.
This is not to say that it will always be unsupported, just that right now, we’re in a spot where we can experiement.
alright. this makes sense.
I was playing with bter’s and ccedk’s APIs a bit… and I was not happy.
Looking forward for new exchanges to come.
Edit: Of course I mean new exchanges with nubits bots.
I’m willing to make a wager, that price will oscillate very close to $1. If I’m wrong, I will program an arbitration bot and split the profits with any one who takes the other side of my bet. Any want want to wager?
Why are you not happy with their APIs? Too limited? Unreliable? Just curious.
I have put together a proposal of a solution addressing this issue. Would love to hear your thoughts on the matter over on that thread.
As long as the price is supported on the exchange(s) that dominates volume of trade, arbitrage opportunities should keep it close on other ‘unsupported’ exchanges, with some error allowing for the cost of such arbitrage.
WOW! This is very interesting. I will have to digest it first to be able to provide constructive feedback, but the intuitive feeling is that have to buy some of these shares.
It’s been a week so I hope I don’t mix things up…
BTER: no withdraw method
CCEDK: just look at the documentation.
AllCoin’s API looks perfect in this competition.