NuBits is structured like a Ponzi Scheme [BLOG POST]

[Helikopterben]

I disagree with this quote from the blog post:

    The US government has no realistic means of ever paying off [its] debt...

A country can always inflate its way out of debt.

In other words, the national debt is in nominal terms.  I.e. it is a certain number of dollars.  Bondholders have no guarantee about the real value of the goods and services represented by this nominal debt.

His statement is correct.  Inflating the money supply is not a REALISTIC means of paying off debt.

[davidpbrown]

.. what they are attempting. And the attempt and accompanying noise is causing FUD

.. This is global, not UK-centric. Obama is making similar noises in the U.S., and other countries' "leaders" will soon be stimulated to do so by their controllers.

I see no difference from the noise they've always been making.. no sudden change that should prompt any serious Bitcoin interest to sell out.

The bigger resistance will come from existing third party authorities, fearful that blockchains will make them redundant.. but again, I wouldn't expect Governments to be duped by them for long. I expect too, those disingenuous will put a lot of resources into the fight later too.

To go back on topic.. perhaps we all need to put more time into noting how what we have really isn't good enough and highlighting what all of blockchain technology can do, whatever flavour if comes in.

[Empirical1.1]

Dan's unique drum is what sets BTS apart from all the other crypto's.  It's unfiltered and delivers hard truth's that many competitors don't want to acknowledge.  We don't want Dan's thoughts and words to go through the PR dumb down filter.  Alt coins and Currencies are a totally unique and new concept for humans... It is counter-productive to try to fit them into a cookie cutter, make everyone happy PR mold.

Boldness is what will make BTS a huge success.  Vanilla tiptoeing and walking on eggshells PR and Marketing will only suffocate us.

I disagree with this. Some moves I've seen are unnecessarily PR negative & VERY BTS costly. In this case though, Daniel is exceptionally strong on economics & has clearly laid out why this is doomed to fail. The potential victims of NuBits will be people who don't understand this process. I think the PR outcome should be OK but it's largely a matter of principal imo that people should be warned about high risks like this regardless of the PR outcome.

[onceuponatime]

As a reaction to the (probably) false flag "je suis Charlie" event, the controllers (as fronted by Britain's Cameron today) are trying to initiate a crackdown on cryptography on the internet and on privacy in general. Big players are concerned that this will disrupt the crytpt-currency movement.

Nonsense.. the counterbalance is far stronger.. they are desperate to revive a dying economy. The Conservatives might want to indulge their nastyparty motivations but they are hobbled by the LibDems and the economic interests will overpower all other considerations. If the UK.gov does fall the wrong way, it will only be an error in effort to contain and control the mess they've created.

Given the tone of the call for information and the priorities for the UK atm, I would expect that when they do get their act together and suggest an interest, it will be in support of the UK playing host to digital economy.

Big players might become frustrated but the utility of blockchain technology cannot be denied.

Two points:

1. I didn't say they would succeed, merely that is what they are attempting. And the attempt and accompanying noise is causing FUD

UK Prime Minister Proposes Encryption Ban: What That Means for Bitcoin
http://insidebitcoins.com/news/uk-prime-minister-proposes-encryption-ban-what-that-means-for-bitcoin/28655

2. This is global, not UK-centric. Obama is making similar noises in the U.S., and other countries' "leaders" will soon be stimulated to do so by their controllers.

[edilliam]

Yes, that's good.. hope you added that comment to the blog.

Second paragraph on Blog... changed the title a bit too.

I much prefer the article with the edit, far more diplomatic.

[btswildpig]

Dan's unique drum is what sets BTS apart from all the other crypto's.  It's unfiltered and delivers hard truth's that many competitors don't want to acknowledge.  We don't want Dan's thoughts and words to go through the PR dumb down filter.  Alt coins and Currencies are a totally unique and new concept for humans... It is counter-productive to try to fit them into a cookie cutter, make everyone happy PR mold.

Boldness is what will make BTS a huge success.  Vanilla tiptoeing and walking on eggshells PR and Marketing will only suffocate us.

BitAssets are what sets BTS apart from all the other crypto's .

As for the PR part , I will I could agree with you , but I can't , because I know the truth .

Bad PR is always and will be effecting the future of this project for the very reason that the dilution income effected by the price , lower price would cause the developers don't have enough motivation to work .

It's a simple math .  Ignoring PR and marketing is like watching money fly away by one wrong sentence that you wish you can undo .

PR wouldn't matter if this project is still funding by AGS .
But it's not anymore .

Of course , all the PR I'm talking about is for keeping the investors . Not apply to this case .

[davidpbrown]

As a reaction to the (probably) false flag "je suis Charlie" event, the controllers (as fronted by Britain's Cameron today) are trying to initiate a crackdown on cryptography on the internet and on privacy in general. Big players are concerned that this will disrupt the crytpt-currency movement.

Nonsense.. the counterbalance is far stronger.. they are desperate to revive a dying economy. The Conservatives might want to indulge their nastyparty motivations but they are hobbled by the LibDems and the economic interests will overpower all other considerations. If the UK.gov does fall the wrong way, it will only be an error in effort to contain and control the mess they've created.

Given the tone of the call for information and the priorities for the UK atm, I would expect that when they do get their act together and suggest an interest, it will be in support of the UK playing host to digital economy.

Big players might become frustrated but the utility of blockchain technology cannot be denied.

[lil_jay890]

Dan's unique drum is what sets BTS apart from all the other crypto's.  It's unfiltered and delivers hard truth's that many competitors don't want to acknowledge.  We don't want Dan's thoughts and words to go through the PR dumb down filter.  Alt coins and Currencies are a totally unique and new concept for humans... It is counter-productive to try to fit them into a cookie cutter, make everyone happy PR mold.

Boldness is what will make BTS a huge success.  Vanilla tiptoeing and walking on eggshells PR and Marketing will only suffocate us.

[onceuponatime]

  my worry is that Nubits will refine their design base on BM's article .....
 

You worry BitShares won't double down and beat them at their own game again?

Another more positive bitcointalk thread notes the uptick in Bitshares assets.. https://bitcointalk.org/index.php?topic=923698.msg10140714 to which I've suggested it is a good place for sheltering in a storm. btw what's happening with Bitcoin!?.. I've lost track not having so many now.

As a reaction to the (probably) false flag "je suis Charlie" event, the controllers (as fronted by Britain's Cameron today) are trying to initiate a crackdown on cryptography on the internet and on privacy in general. Big players are concerned that this will disrupt the crytpt-currency movement.


UK Prime Minister Proposes Encryption Ban: What That Means for Bitcoin
http://insidebitcoins.com/news/uk-prime-minister-proposes-encryption-ban-what-that-means-for-bitcoin/28655

[bytemaster]

Yes, that's good.. hope you added that comment to the blog.

Second paragraph on Blog... changed the title a bit too.

[davidpbrown]

Yes, that's good.. hope you added that comment to the blog.

[btswildpig]

Before going any further I would like to clarify that I have no evidence to suggest the people behind NuBits and NuShares have intent to defraud. This article merely aims to highlight the structural problems with NuBits as I see them. Some people have suggested that I should not use the phrase “Ponzi Scheme” because it could be offensive, but that would merely make me complicit and harm those who read this blog. Until new information surfaces that proves that NuBits has at least 100% reserve which are secure against theft, fraud, or misappropriation then I will maintain the fully objective, non-FUD, opinion that a NuBit is at best an unsecured IOU from unknown issuers. It only becomes a Ponzi scheme once NuBits is forced to print new NuBits to pay interest on old NuBits. They are not currently doing this, but due to the fractional reserve, naked-shorting that I believe is being practiced it is inevitable. Even Ponzi started out with honest intentions.

It is my sincere hope that the fans of NuBits can identify and clarify any misunderstandings in this post. If you have identified the secret to high-liquidity, low-risk, pegged crypto-currencies then it is something I want to understand and share with my readers.

 

Finally , for once , I don't want to shut you up .
Just this once   

[bytemaster]

Before going any further I would like to clarify that I have no evidence to suggest the people behind NuBits and NuShares have intent to defraud. This article merely aims to highlight the structural problems with NuBits as I see them. Some people have suggested that I should not use the phrase “Ponzi Scheme” because it could be offensive, but that would merely make me complicit and harm those who read this blog. Until new information surfaces that proves that NuBits has at least 100% reserve which are secure against theft, fraud, or misappropriation then I will maintain the fully objective, non-FUD, opinion that a NuBit is at best an unsecured IOU from unknown issuers. It only becomes a Ponzi scheme once NuBits is forced to print new NuBits to pay interest on old NuBits. They are not currently doing this, but due to the fractional reserve, naked-shorting that I believe is being practiced it is inevitable. Even Ponzi started out with honest intentions.

It is my sincere hope that the fans of NuBits can identify and clarify any misunderstandings in this post. If you have identified the secret to high-liquidity, low-risk, pegged crypto-currencies then it is something I want to understand and share with my readers.

[Vizzini]

Couldn't some of this blog-writing energy be better spent...gee, I don't know, maybe returning CoinBase's call?

[btswildpig]

  my worry is that Nubits will refine their design base on BM's article .....
 

You worry BitShares won't double down and beat them at their own game again?

Another more positive bitcointalk thread notes the uptick in Bitshares assets.. https://bitcointalk.org/index.php?topic=923698.msg10140714 to which I've suggested it is a good place for sheltering in a storm. btw what's happening with Bitcoin!?.. I've lost track not having so many now.

Chinese lunar new year is coming , big miner have to settle their debt on their factory .
Maybe that's the reason .......