NuBits is structured like a Ponzi Scheme [BLOG POST]

[sumantso]

PLEASE stop attacking NuBits like this.

+5%

What is an "ATTACK" vs what is calling a spade a spade?     

Anyway, this is my one and only post about NuBits and it says nothing new.  *IF* something I said was factually wrong I will correct it.

The definition of ponzi as you quoted mentions 'fradulent'.

[speedy]

To all those complaining about Bytemaster attacking Nubits, check out this risk table he made back in 2013:

http://youtu.be/5BV55IrZi7g?t=2m35s

His predictions have a tendency to be correct.

[bytemaster]

PLEASE stop attacking NuBits like this.

+5%

What is an "ATTACK" vs what is calling a spade a spade?     

Anyway, this is my one and only post about NuBits and it says nothing new.  *IF* something I said was factually wrong I will correct it.   

[Tuck Fheman]

PLEASE stop attacking NuBits like this.

+5%

[starspirit]

I would rather have seen this blog post with no mention of bitUSD at all, and a separate blog post on the benefits and applications of bitUSD.

I think we should also recognise that bitUSD may not be the perfect incarnation of stable crypto either, and be willing to evolve and experiment with our ideas. I'm not seeing evidence yet that bitUSD has hit the mark.

[speedy]

Great blog post as always!

Unless the custodian liquidated to real USD they now have 50% of the capital required to buy back the NuBits.

You could have put in a bit of shameless plugging and said "liquidated to real USD (or BitUSD)"  :P

[jonny]

Thanks for another great blog post, I probably red it before you modified it. I support the word Ponzi.

[mint chocolate chip]

There are several mechanisms planned to reduce the supply of NuBits one day...

"No Ponzi schemer tells anyone exactly how it works. The purpose of a Ponzi scheme is to trick people, to take the money and run." - Mitchell Zuckoff


"When running a Ponzi scheme, how does one avoid enormous, unexpected withdrawals - runs on the bank, so to speak - that would pull back the curtain and reveal a little man blowing smoke? One way would be to attract a core of investors who could be counted on to never withdraw more than a small percentage of principal each year." - Mitchell Zuckoff

[vladvlad]

the link still says: http://bytemaster.bitshares.org/article/2015/01/13/NuBits-is-a-Ponzi-Scheme/

[fuzzy]

So glad you started this Blog...

[btswildpig]

Isn't it literally impossible for the US to pay off its debt because the fed perpetually gives the treasury loans at >0% interest? I thought debt always grows and we just hope real value of dollars falls fast enough

True, cause each dollar in circulation is owed with interest to the fed. It's a simplified explanation, but each new dollar printed comes with a percentage of interest that is owed to the lender (fed). There's no way we can ever pay back completely the debt, cause we use those borrowed dollars to pay interest payments.

unless the US sell all their top secret techs and earn some big bucks from it to pay off the debt .

[sumantso]

The definition of Ponzi as mentioned in wiki and quoted by BM mentions 'fradulent'. That means NuBits is accused of being having wrong motives.

[Chuckone]

Isn't it literally impossible for the US to pay off its debt because the fed perpetually gives the treasury loans at >0% interest? I thought debt always grows and we just hope real value of dollars falls fast enough

True, cause each dollar in circulation is owed with interest to the fed. It's a simplified explanation, but each new dollar printed comes with a percentage of interest that is owed to the lender (fed). There's no way we can ever pay back completely the debt, cause we use those borrowed dollars to do interest payments.

[oldman]

Mathematically the US cannot repay debt owed unless they pull some serious hyperinflation shenanigans.

Realistically they will:

1. Default

Tin foil says they will:

2. Show up with millions of BTC (following ground-up global adoption), claim it is legal tender/new world currency, pump the cap into the trillions via Wall Street, pay off their debt and resume status as the global alpha dog.

As for BM's article, sometimes you have to call a spade a spade. I applaud BM for doing so and truly hope he continues to do so in the future.

In the end, folks will come to Bitshares for honesty, integrity, truth. There is only one way to build that sort of reputation and sometimes it ain't pretty.

Plus I found the indignant 'soonish/someday/probably' response from the Nubits guy very telling...

[toast]

Isn't it literally impossible for the US to pay off its debt because the fed perpetually gives the treasury loans at >0% interest? I thought debt always grows and we just hope real value of dollars falls fast enough