Russian economist schedules collapse of the USD within 1-1.5y from now

[crypto_coiner]

http://actualidad.rt.com/economia/view/149778-sistema-dolar-explotar (article in spanish)

[Ben]

Amusing, but unless there’s a level of arcane knowledge that the rest of the World isn’t privy to, it’s going to take a black swan event for this to come to pass.

[Cybnate]

The Russians are desperate as the Rouble (Russian fiat) has tumbled down against major currencies recently. So I agree will take this with a grain of salt.

[Raythma]

But it will happen anyway and may be in 5 years or so, i am worried about the NuBits survival then.
And may be it will be a worldwide economic collapse so we wont find any other fiat to peg to, how can the reserve scheme would help us then with pegging to commodities ?

[seki]

i am reading about dollar’s collapse for many years now.
i don’t believe this is possible unless all the people are suddenly change their state of mind
about economy and money in general.
Perhaps cryptos will play a role in this

[Raythma]

Hyperinflation is not a myth, and there is no reason to think that USD will be an exception, their monetary policies are not sustainable by any means.

[tomjoad]

Attention Russian economist: I’m willing to buy all USD at $0.10 per USD. Please send a BitMessage to BM-NBQwATfqG9tBoVRJGAJzLuwhfBj22aEw to facilitate trade. I accept all forms of payment except BitUSD.

[tomjoad]

But it will happen anyway and may be in 5 years or so, i am worried about the NuBits survival then.

I don’t think there are many mainstream economists that genuinely believe the USD is in any sort of short-term danger. Luckily, the design of NuBits can adjust to peg to a different target if needed.

In the edge case that USD hyperinflation does occur, shareholders may at that time pass a motion to peg NuBits to another currency, commodity or basket of goods.

https://nubits.com/about/white-paper#if-usd-becomes-unstable

[Raythma]

Imagine that $1 = 1 Euro today and Nu have 120% reserve for 1000,000,000 NBT (1200 M USD$).
If USD dollar lost 50% of it value but and it didn’t affects Euro’s value, if the Nushares holders decided to peg Nubits so (1 NBT == 1 EUR), they would sell all the USD dollars they have to buy Euro, but then they will have only 600M EUR to back 1000 NBT (ignoring the further depreciation in the USD$ value while selling all these reserves).

Please explain how could the current reserve scheme deal with this event?

[Ben]

If USD dollar lost 50% of it value but and it didn’t affects Euro’s value

Economic scenario discussions are valuable, but this one isn’t credible. If USD sustained a rapid 50% devaluation, I cannot imagine a situation where the causal event that lead to the decline would not also affect the rest of the World’s currencies.

If this day comes, Nu’s ability to respond will be important, but likely less important to each of us, individually, than trying to survive whatever social, financial, or civil cataclysm caused that immediate 50% devaluation.

[Raythma]

I agree, and i am sure that if it happens it will affect the global economy not a single currency, what i really want to discuss is that Nubits reserve scheme -while it is the most robust- but it is not as flexible as some imagines, and its inability to adopt a non-currency peg like basket of commodities or Gold.

Any way i see Nubits as service of short range stability and perfect money transfer, it doesn’t have to be perfect as a store of value at all.

[Cybnate]

Any way i see Nubits as service of short range stability and perfect money transfer, it doesn’t have to be perfect as a store of value at all.

You made an interesting point. Stability and ease of use and money transfer are strength of NuBits. As long as you consider US$ a good store of value in the medium and short term NuBits are too. As Ben already said it would be hard to find anything better when US$ tumbles. Only essentials as fuels/energy sources and food would go up probably. As said earlier it would be great to find a way to tie NuBits to a basket of commodities. We might have to develop our own price-feed for that and vote on regular bases on what should be included in the basket.

But slightly going off-topic, we have at least 1-1.5 year to look into that even when the Russians know something we don’t (yet).