BitShares Forum
Main => General Discussion => Topic started by: bytemaster on January 15, 2015, 12:14:51 am
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http://bytemaster.bitshares.org/article/2015/01/14/A-New-Perspective-on-NuBits/
I couldn't resist one last blog post because I didn't want the "Ponzi Post" to be the last post for a while. After discussions on this forum I have adopted a new view on NuBits that is much more friendly and will make a better top post and hopefully repair some damage the last post may have created.
In any event, I did get some coding done today and will do more tomorrow.
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Das ist sehr gut!
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I've been watching NuBits for a while, so I can help with some of the SWAG numbers.
Disclaimer: I have no official affiliation with NuBits. The below are my own thoughts and opinions, and of course, may be incorrect.
It would be very interesting to know how much they are making on this spread, but lets assume $1,000 per day or about $360,000 per year. Note this is just a SWAG (scientific wild ass guess).
The NuBot actually defaults to a spread equal to the exchange fee, which means no profit at all. For example, on BTER the exchange fee is 0.2%, so the spread there is 0.4% (+/- the fee in each direction). In the best case, the market maker breaks even due to exchange fees. In the worst case, clever arbitrageurs cause losses for the market maker.
Mean while their crypto-currency assets have experienced a capital loss of 50%, also a SWAG.
Most of the lifetime of Nu has seen Bitcoin around $350, so since it is about $200 today, I would estimate current capital losses of about 35%. There has also been a $50,000 dividend paid out, which came out of the asset side of the balance sheet. In addition, some losses (it's unclear exactly how much) have been incurred due to arbitraguers trading against the artificial liquidity provided by the market maker bots. On the other side of the equation, proceeds from the centralized sales of NuShares are sometimes used to prop up the peg, which they call "tier 4" support. See https://discuss.nubits.com/t/finalized-evolution-of-liquidity-operations/618
Since they launched they have sold over $2 million worth of 0% interest bonds.
That $2M number, which I assume came from CoinMarketCap, is roughly number of NBT that was issued to custodians. However, they have not sold all these; my estimate would be $400,000 to $500,000 of sales. Clearer numbers will probably be forthcoming from custodians as they improve their data reporting.
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I've been watching NuBits for a while, so I can help with some of the SWAG numbers.
Disclaimer: I have no official affiliation with NuBits. The below are my own thoughts and opinions, and of course, may be incorrect.
It would be very interesting to know how much they are making on this spread, but lets assume $1,000 per day or about $360,000 per year. Note this is just a SWAG (scientific wild ass guess).
The NuBot actually defaults to a spread equal to the exchange fee, which means no profit at all. For example, on BTER the exchange fee is 0.2%, so the spread there is 0.4% (+/- the fee in each direction). In the best case, the market maker breaks even due to exchange fees. In the worst case, clever arbitrageurs cause losses for the market maker.
Mean while their crypto-currency assets have experienced a capital loss of 50%, also a SWAG.
Most of the lifetime of Nu has seen Bitcoin around $350, so since it is about $200 today, I would estimate current capital losses of about 35%. There has also been a $50,000 dividend paid out, which came out of the asset side of the balance sheet. In addition, some losses (it's unclear exactly how much) have been incurred due to arbitraguers trading against the artificial liquidity provided by the market maker bots. On the other side of the equation, proceeds from the centralized sales of NuShares are sometimes used to prop up the peg, which they call "tier 4" support. See https://discuss.nubits.com/t/finalized-evolution-of-liquidity-operations/618
Since they launched they have sold over $2 million worth of 0% interest bonds.
That $2M number, which I assume came from CoinMarketCap, is roughly number of NBT that was issued to custodians. However, they have not sold all these; my estimate would be $400,000 to $500,000 of sales. Clearer numbers will probably be forthcoming from custodians as they improve their data reporting.
judging from the above statement , I can see that Nubits is in fact a product provided by a company . This company can earn profit through some high risk operation .
However , the ones who bought this product is the heavier risk taker in this equation , because he/she has to suffer from the unbacked NBT once this company is in the red ?
So , aside from being decentralization , you showed Nu is exactly like any other banks who would bankrupt on people if they hit a huge red and couldn't pay off the depositors . I thought this is exactly why crypto currency was invented , to prevent this .
So , calling Nu a "digital currency" , is incorrect .
Blockchain is just the form , digital currency must have its own recognition from those people who are gonna adopt them .
Otherwise , what's there to seperate an user issued asset on the blockchain from a digital currency ?
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http://bytemaster.bitshares.org/article/2015/01/14/A-New-Perspective-on-NuBits/
I couldn't resist one last blog post because I didn't want the "Ponzi Post" to be the last post for a while. After discussions on this forum I have adopted a new view on NuBits that is much more friendly and will make a better top post and hopefully repair some damage the last post may have created.
In any event, I did get some coding done today and will do more tomorrow.
Your talent on coding and writing is stunning. We need both.
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http://bytemaster.bitshares.org/article/2015/01/14/A-New-Perspective-on-NuBits/
I couldn't resist one last blog post because I didn't want the "Ponzi Post" to be the last post for a while. After discussions on this forum I have adopted a new view on NuBits that is much more friendly and will make a better top post and hopefully repair some damage the last post may have created.
In any event, I did get some coding done today and will do more tomorrow.
Your talent on coding and writing is stunning. We need both.
+5%
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http://bytemaster.bitshares.org/article/2015/01/14/A-New-Perspective-on-NuBits/
I couldn't resist one last blog post because I didn't want the "Ponzi Post" to be the last post for a while. After discussions on this forum I have adopted a new view on NuBits that is much more friendly and will make a better top post and hopefully repair some damage the last post may have created.
In any event, I did get some coding done today and will do more tomorrow.
Your talent on coding and writing is stunning. We need both.
+5%
+5%
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http://bytemaster.bitshares.org/article/2015/01/14/A-New-Perspective-on-NuBits/
I couldn't resist one last blog post because I didn't want the "Ponzi Post" to be the last post for a while. After discussions on this forum I have adopted a new view on NuBits that is much more friendly and will make a better top post and hopefully repair some damage the last post may have created.
In any event, I did get some coding done today and will do more tomorrow.
Your talent on coding and writing is stunning. We need both.
+5%
+5%
+5%
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Das ist sehr gut!
+5%
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http://bytemaster.bitshares.org/article/2015/01/14/A-New-Perspective-on-NuBits/
I couldn't resist one last blog post because I didn't want the "Ponzi Post" to be the last post for a while. After discussions on this forum I have adopted a new view on NuBits that is much more friendly and will make a better top post and hopefully repair some damage the last post may have created.
In any event, I did get some coding done today and will do more tomorrow.
Your talent on coding and writing is stunning. We need both.
Agree. I think the perfect balance would be one blog post a week and the rest of time coding. Those blog posts are extremely important not only for showing your vision but also those post are paying dividends and help marketing tremendously.
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http://bytemaster.bitshares.org/article/2015/01/14/A-New-Perspective-on-NuBits/
I couldn't resist one last blog post because I didn't want the "Ponzi Post" to be the last post for a while. After discussions on this forum I have adopted a new view on NuBits that is much more friendly and will make a better top post and hopefully repair some damage the last post may have created.
In any event, I did get some coding done today and will do more tomorrow.
Your talent on coding and writing is stunning. We need both.
+5%
+5%
+5%
+5%
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Just to note the stunning difference here:
After Fuzz posted your last "Ponzi" post on Crypto Currencies Collectors Club on Facebook, the guy running the group, James Clayton, became extremely frustrated by the ponzi analogy and told everyone he was selling his BitShares. By comparison, look how he recieved this blog post.
James Clayton: Much better, we just don't want to scare everyone away from cryptos with that sort of thing. I think there is too much invested to be anything but a legit attempt at success myself, if it makes it or not time will tell, but pretty sure Nushares is connected to the Peershares stuff, so it is a serious project.
James Clayton: Bought some more Bitshares, Nushares, and some XCP, maybe Bitcoin will recover enough that Counterparty starts seeing some gains soon too.
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Love it!
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http://bytemaster.bitshares.org/article/2015/01/14/A-New-Perspective-on-NuBits/
I couldn't resist one last blog post because I didn't want the "Ponzi Post" to be the last post for a while. After discussions on this forum I have adopted a new view on NuBits that is much more friendly and will make a better top post and hopefully repair some damage the last post may have created.
In any event, I did get some coding done today and will do more tomorrow.
Your talent on coding and writing is stunning. We need both.
+5%
+5%
+5%
+5%
+5% that was a really good article.
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http://bytemaster.bitshares.org/article/2015/01/14/A-New-Perspective-on-NuBits/
I couldn't resist one last blog post because I didn't want the "Ponzi Post" to be the last post for a while. After discussions on this forum I have adopted a new view on NuBits that is much more friendly and will make a better top post and hopefully repair some damage the last post may have created.
In any event, I did get some coding done today and will do more tomorrow.
Your talent on coding and writing is stunning. We need both.
+5%
+5%
+5%
+5%
+5% that was a really good article.
+5%
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This is a very timely post given today's events with the swiss franc (CHF). Basically, the Swiss National Bank (SNB) guranteed a peg of 1.2CHF/EURO, meaning they were required to give 1.2 francs for each Euro. Euro bagholders began flocking to the CHF because of threats of debasement of the currency. The SNB does not have enough francs in reserve to honor all transactions so they decided to remove the peg and the exchange rate instantly fell to 0.8CHF/EURO. Now they are only required to pay 0.8 CHF for each EURO. Nubits operates basically in the same way.
The Swiss Franc has long been a global safe haven currency. The fact that this currency can have a 30% move in minutes completely debunks the volatility argument aginst cryptocurrency.
THE SWISS FRANC IS OUT OF CONTROL (http://www.businessinsider.com/the-swiss-franc-is-rocketing-upwards-2015-1)