When I buy 1 Nubit now, who gets the Dollar?

Sabreiib 2014-09-26 15:18:04 UTC #24

Bter, buy wall 8778NBT@ 0.00239336 BTC and sell wall 389397NBT@ 0.00242710, price is 98.6 vs 100.
Who takes away 1.4%? Bter and KTM?

Of course, there are quite some transaction between these two price.

8778+389397=398175<400000, Has KTm lose 1825 NBT in 3 days?

Simple question: if BTC price suddenly drops to half, what’s the change of 22BTC buy wall? Still 22BTC or become 44BTC?

If still 22BTC, we introduce BTC risk, we should cancel all the BTC/NBT pair.

Chronos 2014-09-26 15:56:10 UTC #25

It remains 22 BTC.

lg15x 2014-09-27 00:13:15 UTC #26

Maybe, some exchange merchant could help for Nubits.

Sabreiib 2014-09-27 00:40:48 UTC #27

it remains 22btc. very bad.

That means attackers could sell a lot of NBT when BTC price drops because they can transfer more BTC whth their NBT, and attackers will buy lots of NBT when BTC price go up with less BTC.

That is counterpart risk!

Stop this! Negotiate with exchange for just “display” buy wall BTC while actually we holding USD. Otherwise, cancel all NBT/USD pairs, I suggest.

Cybnate 2014-09-27 01:24:39 UTC #28

When price of BTC goes down against NBT, BTC goes down against USD.

When BTC is US$400 NBT/BTC rate is 0.0025.
When BTC goes down to US$350 NBT/BTC rate will be ~0.0028
In both cases NBT/USD rate stays the same.

In your example halving the price of BTC would result in doubling the rate of BTC/NBT.
Maybe @Chronos misunderstood your question?

Edit, thanks Ben you triggered me. This is about a buyback fund. The issue is that you can’t hold a buyback fund in BTC or NBT. It has to be USD or a very stable commodity against USD outside cryptoworld. Maintaining such fund would create challenges in managing and regarding decentralisation. Keeping the fund on the exchange in US$ would create an exchange default or hacking risk.

Ben 2014-09-27 01:27:02 UTC #29

Where does the USD held in reserve come from in your scenario?

Sabreiib 2014-09-27 03:28:16 UTC #30

LPC should hold USD with real name in exchange account to avoid BTC volatility. I completely agree with that.

If there are only several big LPC in future, we need to resolve two issues.

let people trust several of you even if LPC retrieve USD from exchange to bank accounts.
pray for government will NOT control those real name LPC and ruin the whole system.

Either is difficult.

Cybnate 2014-09-27 09:21:08 UTC #31

Another option is to introduce another NuBits coin pegged to a relative stable currency like Euro or Yuan. The buyback funds can then be held in multiple wallets with multi-sig and would be relatively safe. Only risk remaining is changing EUR/USD or CNY/USD rates.

Disadvantage is that you wouldn’t be able to make the money work, so I think it would be hard to make a viable business model attractive to the stakeholders. Only option I can think of is reducing the buyback fund to 80% or maybe even 50% instead of 100%.

lovely89 2014-09-29 09:32:29 UTC #32

I completely agree. See my post-