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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 Cash is getting rarer and rarer...I hope you guys have withdrawn some physical cash.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