NuBits is structured like a Ponzi Scheme [BLOG POST]

[liondani]

As a new comer in the Bitshares community, here is my point of view: it looks desperate and unprofessional to partake in doing mudslinging on competitors. Bitcoin core dev team isn't doing that. RIpple Labs isn't doing that even to Stellar in spite of the fact Stellar ripped off Ripple's code and keeps pulling their leg and badmouthing them. Mudslinging competitors looks lame and unconfident. I don't think Bitshares needs to do that to prevail.

make sense but on the other hand think about investors that probably avoided to get exposed to such a risk and probably will be thankful to read such an analysis because they saw  a title like that ... 



Sent from my ALCATEL ONE TOUCH 997D

[klosure]

As a new comer in the Bitshares community, here is my point of view: it looks desperate and unprofessional to partake in doing mudslinging on competitors. Bitcoin core dev team isn't doing that. RIpple Labs isn't doing that even to Stellar in spite of the fact Stellar ripped off Ripple's code and keeps pulling their leg and badmouthing them. Mudslinging competitors looks lame and unconfident. I don't think Bitshares needs to do that to prevail.

Now I agree about the fact NuBit is a train wreck waiting to happen. But as far as we can tell they still have options and are not yet on the verge of blowing up. Maybe it would have been more politically correct to warn about the excessive leverage and the risk of blow up rather than downright calling them a ponzi scheme.

[Empirical1.1]

I must admit that drives me crazy !!!

http://coinmarketcap.com/assets/nushares/#charts

we should raise like that!!!



PS we have all the fundamentals+it's the perfect timing for bitAssets... but we follow the trend.... obviously we are making something wrong! Hope I am wrong and we see our price pumping the next days.  :)

They are stealing our food ... or whatever is left of it :D

We need a bit more volume on bter, even if it's artificially generated by delegates at a small loss. Obviously nothing like NuBits but just a little something to grease the wheels and get the car going.

[vlight]

I must admit that drives me crazy !!!

http://coinmarketcap.com/assets/nushares/#charts

we should raise like that!!!



PS we have all the fundamentals+it's the perfect timing for bitAssets... but we follow the trend.... obviously we are making something wrong! Hope I am wrong and we see our price pumping the next days.  :)

They are stealing our food ... or whatever is left of it :D

[sumantso]

An opportunity to get BitUSD heard https://bitcointalk.org/index.php?topic=924540.0

[mike623317]

NuShares up 50% over the last 24 hours ....

NuBits being bought like crazy as shelter?

... i suggest this would be us if we had a finished, easy to use & understand interface. I think we have a superior product, we just need to get it over the finish line (and we are). Its got to be finished and easy to use for the average person to adopt it.

[nomoreheroes7]

NuShares up 50% over the last 24 hours ....

NuBits being bought like crazy as shelter?

NuShares price is skewed by Excoin; for whatever reason they're reporting a price of $ 0.028013 on low volume. BTER and CCEDK still show the price at just over a penny.

http://coinmarketcap.com/assets/nushares/#markets

...but even so, they are holding their own fairly well. Probably because they're practically the only coin showing green. That alone will probably cause people to buy it as shelter...which will continue to up the price. Nice little self-reinforcing system going on.

[sumantso]

NuShares up 50% over the last 24 hours ....

NuBits being bought like crazy as shelter?

[liondani]

I must admit that drives me crazy !!!

http://coinmarketcap.com/assets/nushares/#charts

we should raise like that!!!



PS we have all the fundamentals+it's the perfect timing for bitAssets... but we follow the trend.... obviously we are making something wrong! Hope I am wrong and we see our price pumping the next days.  :)

[liondani]

"Even if the NuBit custodians have the best of intentions, we know from their trading volume that they keep a large quantity of BTC on the exchanges. Therefore, we know they have lost 50% of their capital held as BTC.*** If an exchange were to be hacked or compromised then the NuBit custodians would lose a large amount of their capital making them instantly insolvent and unable to peg NuBits to USD.

We can conclude from this that in a declining crypto-currency bear market that the NuBits custodians must be practicing fractional reserves and are therefore insolvent."


**After this BTC free fall the losses must be much more than 50%

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




great photo BM  :)

[onceuponatime]

The number of people who are interested in or own Bitshares, who will be convinced to sell them and walk away from Bitshares because of this post is an unknown number greater than zero. 

The number of people who will, months or years from now, come back to this post and think, that freaken Dan Larimer is a genius, for knowing that this closed source, anonymously run ponzi scheme[/b] will break down, and investors will lose money.

I don't think it is quite right to call it "anonymously run"  There was an interview with a dev, Ben Rossi on Arthur Falls' broadcast:

We Look at Nubits, the value controlled digital currency that has emerged from the Peercoin/Peershares team.
https://letstalkbitcoin.com/blog/post/beyond-bitcoin-24-the-second-to-last-a-nu-approach

[islandking]

Another problem with Nubits is that the buy and sell walls are on centralized exchanges. If those exchanges close down or get hacked then Nubits will suffer.

[Ander]

The number of people who are interested in or own Bitshares, who will be convinced to sell them and walk away from Bitshares because of this post is an unknown number greater than zero. 

The number of people who will, months or years from now, come back to this post and think, that freaken Dan Larimer is a genius, for knowing that this closed source, anonymously run ponzi scheme will break down, and investors will lose money.

That is the only way it helps us, and only at that future time.  But we already had a big 'nubits is a ponzi' thread on the forums, we didnt actually need a blog post too, this only doubles up on the amount of people who think bad of us.

[sschechter]

The number of people who are interested in or own Bitshares, who will be convinced to sell them and walk away from Bitshares because of this post is an unknown number greater than zero. 

The number of people who will, months or years from now, come back to this post and think, that freaken Dan Larimer is a genius, for knowing that this closed source, anonymously run ponzi scheme will break down, and investors will lose money.

[oco101]

Of course things can always be positioned better. This is certainly no exception. And Given BM's history of missing the mark on positioning it is a shame he didn't reach out to some of the marketers before posting.  this could have been seen as a valuable contribution to the crypto world spun correctly.

I agree with this. This is the only thing missing in that blog. As is stands today none of the shortcoming of Nubits are fixed( they are planing to do it I know) . Was this necessary ? I guess it depend on your values and what you have to lose.  Knowing that a lot of people stand to loose money, what would you have done ?  Was that the best way to spell it out ? Definitively not, but to say nothing that would be wrong because if Nubits  are not fixing things quickly(not even sure that this is possible) people will lose money for sure !!!

Bitshares had critics too that's the way it is. So you answer back with proof that whatever is said is wrong. Well there is nothing technically wrong  with that blog !!!
Same goes with NXT vs Bitshares blog