NuBits brings an interesting selling point (somewhat literally) to the altcoin marketplace. Instability among altcoins has been one of their main drawbacks, and NuBits hence uses automatic bot trading to steady the price, ensuring 1 NBT equals 1 USD.
Building out the requisite infrastructure to make international remittances as cost-effective in NBT as with Bitcoin may take some time, but the removal of the conversion headache with the dollar can hardly be underestimated.
they claim “instability” to be a problem among altcoins (therefore excluding btc)
automatic trading bot is not the only mechanism to mention, rather is the control of the supply that should be mentioned in an article as that. And dividing the equity token from the transactional unit, and parking, interest rates, dividends, liquidity provisions, voting,burning …
Rational expectations would then come into play to stabilize the price of coins during
each period. If the price of coins were to go below $1 during any such
period, it would be profitable to take a bullish position in coins, go
long, and profit when the quantity adjustments at the end of the period
pushed the price back up to $1. Conversely, if the price of coins were
to go above $1 during that period, then it would be profitable to take a
bear position and sell or short coins to reap a profit at the end of
that period, when the quantity adjustments would push the price back
down to $1.[/quote]
Why am I writing all this?
The author seems to be well-informed, the article is well-written, using references and Kevin Dowd is presented as “an adjunct scholar at the Cato Institute, and a professor of finance and economics at Durham University in England. Dowd has written extensively on the history and theory of free banking/private money, central banking, financial regulation, and commodity monetary systems.”
It might not help getting the desired attention spamming comments at the end of that article which is already close to two weeks old.
Getting in contact with Kevin Dowd, informing him about Nu hoping that he finds that interesting might be worth the efforts.
It could be he just haven’t heard about Nu so far…
@tomjoad, what do you think of this? Could this be worth writing him an email or a comment?
D’oh! I should have read the comments…
…buy anyway the assertion that there is fluctuation based on charts from coingecko can hardly aligned with the liquidity at 1 USD provided by pools.
It’s just like selling you 1 USD for 0.9 USD or 1.10 USD (you wouldn’t want to do the latter) and claiming that USD fluctuates.
USD doesn’t fluctuate relatively to the level the issuer is guaranteeing and that’s (so far) true for NBT as well.
B&C Exchange is another decentralized exchange that is in fundraising. It has raised about $95,000 out of $200,000 required. It will allow trading between native blockchains and offers cryptoequity to its owners in the form of BlockShares (which can earn Bitcoin dividends from trading fees on the exchange).
In this thread I created about Sunny King’s comments last week, I got into a small discussion with somebody about NuBits. They’re convinced our model will fail. I’m posting this here in case @Nagalim or somebody wants to respond to him. Also it’s important that we take outside feedback like this into consideration in case they have a point. Living in our own bubble is not helpful…