Updates

2015年10月

NuBits and the decentralization of finance

Nu is welcoming anybody that wants to contribute to the decentralization of finance.

Nu is welcoming anybody that wants to become a shareholder of Nu, the first decentralized central bank in the world.

If you would like to become a shareholder of Nu, you will need to acquire NuShares, the assets that back the peg of NuBits to one dollar.

NuBits is free of any counterparty-risk. It is not reserve-backed.

The peg is kept solely by buy/sell side liquidity walls around 1NBT = 1USD across several exchanges.

The liquidity is provided by liquidity providers that can contribute in stand-alone mode or via decentralized liquidity pools.

Right now, there are roughly 500k NBT in existence, the buy side liquidity is around 90k NBT and the sell side liquidity around 110k NBT.

The peg has been kept perfectly since NuBits' inception in Sep 2014. Nu has more and more liquidity, with more and more exchanges trading NuBits.

 

But perhaps the biggest thing on the horizon is a totally decentralized exchange called B&C Exchange which would guarantee a very secure and cheap NuBits liquidity for Nu Shareholders.

That exchange which will be released in a few months will be using NuBits as a synthetic dollar to get in and out of the exchange.

In that sense, NuBits is a crypto-FIAT (crypto-dollar), or a crypto-currency pegged to FIAT money (dollar).

 

You have the following links at your disposal, if you would like to get more information.

- www.nubits.com: official web site

- www.discuss.nubits.com: official forum

- https://docs.nubits.com/history : the origin and the beginnings of NuBits.

 

NuBits combines the best of both worlds:

- the convenience and stability of FIAT currencies

- the decentralization of Bitcoin

 

Nu is welcoming anybody that wants to contribute to the decentralization of finance!

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blog   2015/10/12   uploada

NuShares, Bitcoin and Peercoin

About why Nu has the right economics while having a good intrinsic decentralization.

Economically, from a production cost perspective, bitcoin works well, peercoin does not.

Technologically, from a decentralization perspective, it is the opposite.

Nu combines the best of both worlds: you hold nushares, which decentralizes the network because you expect it would bring you dividends.

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blog   2015/10/10   uploada
タグ:peercoin

About the need for synthetic FIAT currencies or FIAT-pegged crypto-currencies

Nu, the decentralized central bank that is behind NuBits, the most successful USD-pegged crypto-currency is in fact offering the world, synthetic FIAT currencies, currencies that exist in the Internet, pegged to FIAT money but over which the FEDs have no say. Such synthetic FIAT currencies cannot be illegal since they are fundamentally crypto-currencies, which are regarded as commodities by the FEDs.

And such synthetic FIAT currencies are much in need...right now!

I predict that over the next months (from Oct 2015 ~ Dec 2016), FIAT currencies will undergo the following:

 

1- devaluation: for example, the USD is likely to be devalued compared to the Yuan because the Yuan will get the status of reseve currency by being included into the SDRs, which will rebalance the current financial chess board in which the USD is King.

2- confiscation: central banks will adopt negative interests because they cannot increase them (increasing them would increase exponentially the national debts, which would make economies collapse immediately), which means that you will be losing money just by holding deposits into a bank account.

3- liquidity loss: cash (physical cash that you can hold into your hands in bills and coins) is getting rarer and rarer because economies have been more and more relying on credit and debt.

 

Because of these 3 things, the global economy risks getting stuck for a while and the world cannot afford that.

However, do not except the central banks or goverments to help you because central agencies will be losing their relevance.

This is why, we (individuals) need to create synthetic FIAT currencies that are controlled by decentralized entities so that they are out of reach of centralized corrupt agencies.

FIAT money's stability is obviously a good thing. No one can argue against that.  However, the bad thing about FIAT money is the centralized aspect of the decision-making process of monetary policies because the people have no control over them.

What NuBits is doing right now is what I call synthetic FIAT currencies or FIAT-pegged crypto-currencies. These are crypto-currencies whose monetary policies are made by a decentralized agency (Nu) in order to make the system very robust, very agile and entirely democratic and which enjoy a price stability similar to FIAT money.

Therefore, you have the best of both worlds:

- stability of FIAT

- decentralization of Bitcoin

to put it simple.

 

Right now, NuBits has only one peg, the USD-pegged NuBits, but other pegs such as the Yuan-pegged NuBits, the Euro-pegged NuBits and the SDR-pegged NuBits are in the works according to this.

 

How exciting!

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blog   2015/10/09   uploada
タグ:FIAT money

NuBits, the potential to be the basis for a cost API

Provided a sufficiently solidly written motion that is passed by Nushareholders, NuBits could go beyond the function of issuing a stable currency.
What about providing a cost API?

"Proof of burn is a suitable means of applying cost to actions that don't need to be a revenue stream. Any time a company or service accepts money it has to be accounted for. This can complicate things, but applying costs to an action can prevent abuse. This is the fundamental purpose for the transaction fee in Nu network. Now, let us imagine a company or service wants to apply a cost to an action, but does not want to deal with the overhead of having to account for receiving that value? Require a NBT burn instead. Have the user submit a transaction ID for the NBT burn. Now that Nubits has the burn RPC command implemented, it's very easy for anyone to burn NBT or NSR. A service can verify burn transaction ID to process an action on their service without having to account for receiving any value. It could be worthwhile for Nu to become a cost API of some kind. That would require to make the client flexible enough for others to utilize it within their services. Proof-of-burn or proof-of-park are two ways that other services could utilize Nu blockchain for applying costs to services. We should make it easy for them to use those features. We should explore all potential uses for NBT outside of just a transactional currency. Being able to manage the supply to maintain a stable value gives us a huge advantage in offering these types of services. Creating consistant demand for NBT while simultaniously removing NBT from the available supply will create a healthy stream of profit to the network. Being a cost API is probably the most decentralized approach to building profit for Nu, because anyone could utiltize those services without needing to be voted in, or any action from shareholders. But the protocol must allow for it, and the client must make it easy to use."

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blog   2015/10/07   gbboy

About the need of creating a SDR-pegged NuBits.

Does the fact that NuBits is currently pegged to the USD make NuBits vulnerable to the FED?

Would it be better to have a financial system backed entirely by gold (or bitcoin, its crypto counterpart?)

[source]

 

 

Someone can argue that NuBits being pegged to the US dollar is useless because it defeats the very purpose of crypto-currencies, that is being independent from dangerous monetary policies that the people have no control over. 

Well, when we look at NuBits, what we find is dependent right now on the FED is just the purchasing power of 1 NBT.

If the USD is devalued down to 50% one day (which could happen very soon actually), automatically the very next day, NBT is only able to buy half of what it used to.

But imagine the FED stops printing USDs (in fact it seems now that there is a USD liquidity crisis in the US. Cash is getting rarer and rarer...I hope you guys have withdrawn some physical cash. Strong negative interests are right around the corner...), would that stop Nu from printing NuBits? Absolutely not.

More over, Nu can and will introduce new pegs, most likely.

The only thing we need to make sure is that the purchasing power of the peg is stable. Right now NuBits is pegged to the USD because the purchasing power of the USD is still relatively stable and that has been good enough.

If that stability vanishes, Nu can find new pegs. In fact this is what is likely to be implemented via [DRAFT] Motion to introduce new NuBits products and I think this is coming at the right timing.

With the Yuan mostly likely to get the status of one of the world reserve currencies, it will be included in the SDRs, strengthening a lot its role.

So I would argue that the dependency of Nu upon the FED is superficial or weak because Nu's monetary policies are basically independent from the FED's ones.

How does NuBits stand compared to Bitcoin which can be viewed as the crypto-gold? Would it be better to use Bitcoin (that is totally independent from the FED's monetary policies, while its unit price is not stable) rather than NuBits? I do not think so because as the real gold, we can speculate that somehow the price of Bitcoin is more or less controlled by centralized agencies (the exchanges and miners). It is no secret that the mining of Bitcoin is centralized.

You might think that the price of gold is naturally set according to its scarcity and it is somehow naturally determined. Well, the price of gold is controlled by the same centralized agencies that have control over the USD.

That is why you see the price of gold (and silver) declining while the inventories are vanishing... One of the goals of WW2 by the cabal was to plunder all the gold from the world's populations (the Nazis in Europe, the FED in the USA (well it started 10 years prior to WW2), and of course the Japanese in Asia, in order to prevent anybody from starting a currency backed by Gold.

Moreover, Gold is easily controlled since you need a lot of resources to extract it.

Last but not least, gold is rather scarce so backing a currency entirely by gold makes the currency scarce which is not good if you want to grow an economy...

So my point is that backing a monetary system on Gold or Bitcoin entirely is not desirable. What seems is going to happen is that the world economy (world's currency if you will) will be backed by a basket of reserve currencies + gold.

This would constitute the new SDRs system that could be released as soon as 01JAN16 according to Cobra, one of the leaders of the Resistance movement, a source I have been following for a few years now. It is heavily connected to the shadow financial system but the reality is that the current system is very shadowy. :wink:

Which makes a SDR-pegged NuBits even more desirable and relevant. And it is in the works. :)

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blog   2015/10/07   uploada
タグ:SDR