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CATO Institute discusses NuBits

NuBits is the only serious contender to displace Bitcoin as the number one crypto-currency

On the 29th of December, 2015,  William J. Luther, scholar at the CATO Institute, published an article entitled "Theoretical Fedcoin, Meet Operational NuBits".

In this articile, Luther describes NuBits as the first decentralized crypto-currency to maintain a perfect peg to the US dollar.

In this sense, he concludes that NuBits is accomplishing the role of a Fedcoin.

At the end, he however states that NuBits is not perfect.

Nontheless, he acknowledges that NuBits solves the biggest problem of Bitcoin: its volatility.

I do think that the world is starting to realize the huge benefits of NuBits over Bitcoin.

It is time to realize that NuBits is far superior than Bitcoin as a currency.

One might remember what Hanke and Dowd that wrote "New private monies" said about Bitcoin's volatility at the end of 2014.

“Though the supply of Bitcoin is limited, the demand is very variable; this variability has made its price very uncertain and created a bubble-bust cycle in the Bitcoin market. Perhaps the safest prediction is that Bitcoin will eventually be displaced by alternative cryptocurrencies with superior features.”

To me this is clear. Bitcoin will be eventually displaced at the crypto-currency with the most liquidity and NuBits is the only serious contender right now.

2016 is likely to be a very interesting year for NuBits!

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blog   2015/12/31   uploada

Why does Nu have the right approach to distributed reserve banking?

Nu has the right approach - namely: the currency price is that of the market(s) and stability is reached when demand and supply sides are balanced, elastically so that the price is constantly maintained to its stable value.

Now, how do we elastically, dynamically control the buy/sell sides on market?
By having intelligent shareholders that monitor in real time the network, that have an incentive that the peg is not broken.
How is that possible? every nushareholder is smart, has a direct voting influence, and the more nubits spread, the more there are nuclear shareholders that monitor Nu in real time and providing new motions, making it more robust.

Whereas the FED will sell its currency to banks that will resell them to end users into loans,
(in a pyramid structure) Nu will ask reputable liquidity custodians (local banks?) to resell NBT for a fee so that the peg is maintained.

Nu is a currency supplying reserve bank that is co-owned, and flattened out - that is distributed among as many shareholders as possible and pyramid-scheme-proof.
It appears that the satoshi blockchain thought form is perfect for that task - to distribute shares and make decisions based on a consensus among an indefinite number of people scattered on the web that do not need to know each other.

Nusharesholders cast vote because they have an absolute direct business incentive (they have nobody above, nobody below to oversee or check out, no intermediary to pass the money onto) to do so - so that the peg is maintained

The bottom line: "to have a stable price, you must be able to expand or contract either the supply or demand for the currency. Thanks to the peershares template, shareholders can expand the supply by voting to create it in the hands of particular entities and also support the price by increasing demand for the currency by paying interest on NuBits when necessary."

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blog   2015/09/02   gbboy