NuBits is structured like a Ponzi Scheme [BLOG POST]

[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 .

[fuzzy]

So glad you started this Blog...

[vladvlad]

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

[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

[jonny]

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

[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)" 

[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.

[Tuck Fheman]

PLEASE stop attacking NuBits like this.

 

[bytemaster]

PLEASE stop attacking NuBits like this.

 

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.   

[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.

[sumantso]

PLEASE stop attacking NuBits like this.

 

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'.

[bytemaster]

PLEASE stop attacking NuBits like this.

 

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'.

I updated the post to address that part of the definition:
 
http://bytemaster.bitshares.org/article/2015/01/13/NuBits-is-a-Ponzi-Scheme/

[sumantso]

With all the edits it will turn into a novel

Last thing, the url still mentions the old title.

[starspirit]

From least risky to most risky -

USD - high exchangeability, no counter-party risk, but inflation
bitUSD - limited liquidity, limited exchangeability, collateral risk, underlying inflation
NuBits - high liquidity (while alive), limited exchangeability, fractional reserving, counter-party risk, underlying inflation

[donkeypong]

Controversy and drawing contrasts can be good for marketing. This can also dig holes that require extra work to climb out of before one reaches the original starting point. Time will tell, but we'd be wise to think about how to market BitShares beyond the crypto community. I really don't know how many open-minded people are left who don't already have strong opinions about BitShares.

http://www.reddit.com/r/BitShares/comments/2sbewk/im_done_with_bitshares/