Author Topic: NuBits is structured like a Ponzi Scheme [BLOG POST]  (Read 29380 times)

0 Members and 1 Guest are viewing this topic.

sumantso

  • Guest
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'.

Offline speedy

  • Hero Member
  • *****
  • Posts: 1160
    • View Profile
  • BitShares: 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.
« Last Edit: January 13, 2015, 10:13:37 pm by speedy »

Offline 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.   

For the latest updates checkout my blog: http://bytemaster.bitshares.org
Anything said on these forums does not constitute an intent to create a legal obligation or contract between myself and anyone else.   These are merely my opinions and I reserve the right to change them at any time.

Tuck Fheman

  • Guest

Offline starspirit

  • Hero Member
  • *****
  • Posts: 948
  • Financial markets pro over 20 years
    • View Profile
  • BitShares: 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.

Offline speedy

  • Hero Member
  • *****
  • Posts: 1160
    • View Profile
  • BitShares: speedy
Great blog post as always!

Quote
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

Offline jonny

  • Newbie
  • *
  • Posts: 13
    • View Profile
Thanks for another great blog post, I probably red it before you modified it. I support the word Ponzi.

Offline mint chocolate chip

Quote
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


Offline fuzzy

So glad you started this Blog...
WhaleShares==DKP; BitShares is our Community! 
ShareBits and WhaleShares = Love :D

Offline btswildpig

  • Hero Member
  • *****
  • Posts: 1424
    • View Profile
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 .
这个是私人账号,表达的一切言论均不代表任何团队和任何人。This is my personal account , anything I said with this account will be my opinion alone and has nothing to do with any group.

sumantso

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

Offline Chuckone

  • Sr. Member
  • ****
  • Posts: 314
    • View Profile
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.
« Last Edit: January 13, 2015, 08:22:22 pm by Chuckone »

Offline oldman

  • Hero Member
  • *****
  • Posts: 556
    • View Profile
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...


Offline toast

  • Hero Member
  • *****
  • Posts: 4001
    • View Profile
  • BitShares: nikolai
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
Do not use this post as information for making any important decisions. The only agreements I ever make are informal and non-binding. Take the same precautions as when dealing with a compromised account, scammer, sockpuppet, etc.