Author Topic: Basket MPA  (Read 3540 times)

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Offline Samupaha

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Offline bitacer

Re: Basket MPA
« Reply #16 on: January 05, 2016, 08:53:44 pm »
How about BASKET.METAL, BASKET.FIAT, BASKET.CRYPTO, BASKET.STOCK and then BASKET of all those?

38PTSWarrior

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Re: Basket MPA
« Reply #17 on: January 05, 2016, 09:15:18 pm »
Funny, Matrjoshka Basket

Offline bitacer

Re: Basket MPA
« Reply #18 on: January 05, 2016, 09:23:25 pm »

38PTSWarrior

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Re: Basket MPA
« Reply #19 on: January 05, 2016, 09:25:19 pm »
Funny, Matrjoshka Basket
:D


Awesome, I wad too tired to add a photo. Good job! :-D

Offline Empirical1.2

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Re: Basket MPA
« Reply #20 on: January 05, 2016, 10:15:21 pm »
Nu guys are going to make SDR-based coin:
https://discuss.nubits.com/t/on-currency-baskets/2819
https://discuss.nubits.com/t/passed-motion-to-introduce-new-nubits-products/2834/84

I doubt there would be much demand for an SDR based coin.

But given they were able to distribute $400 000 in dividends in 2015 on the back of NBT, if they can replicate some of that with a NuYuan and NuGold, NuShares should have a good 2016. 
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Offline Samupaha

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Re: Basket MPA
« Reply #21 on: January 06, 2016, 06:53:33 am »
How about BASKET.METAL, BASKET.FIAT, BASKET.CRYPTO, BASKET.STOCK and then BASKET of all those?

Not really a good option for what I'm thinking here. The point is to create just one coin that can be marketed as a really stable coin globally.

Nu guys are going to make SDR-based coin:
https://discuss.nubits.com/t/on-currency-baskets/2819
https://discuss.nubits.com/t/passed-motion-to-introduce-new-nubits-products/2834/84

I doubt there would be much demand for an SDR based coin.

But given they were able to distribute $400 000 in dividends in 2015 on the back of NBT, if they can replicate some of that with a NuYuan and NuGold, NuShares should have a good 2016. 

Yeah, I'm quite skeptical about SDRcoin too. But it might be somewhat good option if we add gold and silver into it. Is there an easy way to check the price of that basket historically?

Offline Empirical1.2

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Re: Basket MPA
« Reply #22 on: January 06, 2016, 10:46:24 am »
Nu guys are going to make SDR-based coin:
https://discuss.nubits.com/t/on-currency-baskets/2819
https://discuss.nubits.com/t/passed-motion-to-introduce-new-nubits-products/2834/84

I doubt there would be much demand for an SDR based coin.

Yeah, I'm quite skeptical about SDRcoin too. But it might be somewhat good option if we add gold and silver into it. Is there an easy way to check the price of that basket historically?

If you mean just the SDR, there seems to be some 10 year charts available on XE.com

http://www.xe.com/currencycharts/?from=XDR&to=USD&view=10Y
http://www.xe.com/currencycharts/?from=XDR&to=XAU&view=10Y
 

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Offline Samupaha

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Re: Basket MPA
« Reply #23 on: January 06, 2016, 02:29:10 pm »
Yeah, I'm quite skeptical about SDRcoin too. But it might be somewhat good option if we add gold and silver into it. Is there an easy way to check the price of that basket historically?

If you mean just the SDR, there seems to be some 10 year charts available on XE.com

http://www.xe.com/currencycharts/?from=XDR&to=USD&view=10Y
http://www.xe.com/currencycharts/?from=XDR&to=XAU&view=10Y

Hmm... If we think what's the optimal way to analyze how stable a currency is, probably the best way would be to compare it to consumer price index? And not just one, but several from biggest economies around the world.

Then should be analyzed what combination of currencies, commodities, stocks, bonds, etc. can give most stable basket when it's compared to CPI-basket. We can't peg the new currency straigth to CPI because we need live feeds for feed producers. Or do we? Is it enough if we get only once a month a price for CPI?

Anyway, even if we just want to compare SDR+gold+silver-basket to USD, we need a tool that shows a historical price for that basket. It can be of course calculated from data of each asset but it will be quite time consuming to do manually. :P

Disclaimer: I don't know what I'm doing here, just thinking out loud.

Offline Empirical1.2

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Re: Basket MPA
« Reply #24 on: January 06, 2016, 02:40:35 pm »
Yeah, I'm quite skeptical about SDRcoin too. But it might be somewhat good option if we add gold and silver into it. Is there an easy way to check the price of that basket historically?

If you mean just the SDR, there seems to be some 10 year charts available on XE.com

http://www.xe.com/currencycharts/?from=XDR&to=USD&view=10Y
http://www.xe.com/currencycharts/?from=XDR&to=XAU&view=10Y

Hmm... If we think what's the optimal way to analyze how stable a currency is, probably the best way would be to compare it to consumer price index? And not just one, but several from biggest economies around the world.

Then should be analyzed what combination of currencies, commodities, stocks, bonds, etc. can give most stable basket when it's compared to CPI-basket. We can't peg the new currency straigth to CPI because we need live feeds for feed producers. Or do we? Is it enough if we get only once a month a price for CPI?

Anyway, even if we just want to compare SDR+gold+silver-basket to USD, we need a tool that shows a historical price for that basket. It can be of course calculated from data of each asset but it will be quite time consuming to do manually. :P

Disclaimer: I don't know what I'm doing here, just thinking out loud.

Imo, any basket which includes SDR is unlikely to maintain purchasing power as fiat currencies historically always lose their purchasing power over time.

Also if it will be on a new risky blockchain with an unproven backing system, then you have high downside risk but very limited upside because at best you are only maintaining your purchasing power.

My views are still similar to when Ethereum was/are looking at creating a stable coin...

The downside of being a StableCoin early adopter is you could lose a lot and the upside is that if it works you just get to maintain your relative purchasing power. So you will probably be required to pay a lot of interest to attract any demand. Especially when limited crypto-currencies and currently suppressed gold/silver, exposure to which is available via BitAssets give people currency options that are likely to explode in relative purchasing power if there’s significant problems with the global financial system and major fiat currencies.

Purchasing power stability is also relative to specific countries based on their economic situation and government policies. So even if you achieve a greater degree of average global stability you will be locally unstable over long periods so any marginal benefit you may ideally achieve over current options will be in practical terms largely negated. 

In terms of pricing goods, people are looking at their expenses which are currently priced in national currencies. So if you’re working on tight margins & budgets that’s the kind of stability and predictability you’re after which is available via BitCurrencies. Any deviations the StableCoin makes to a currency people are working in, (provided it's not very inflationary - then anything else is better) will be a negative to this market. 

So from my POV StableCoin is unstable at a local level  & unstable for businesses even if it works while being high risk for very limited reward.  Unlike BitAssets, the system will require years to prove it’s efficacy to the market. I also think it's quite likely that after years of work, StableCoin will just be seen as an alternative to a CPI or commodity basket ETF.

If you want to take the island burn the boats

Offline bitacer

Re: Basket MPA
« Reply #25 on: January 06, 2016, 04:02:55 pm »
REIDIN  for real estate,  stocks and real estate are more reliable than figures prepared by govs , like CPI.

Offline Samupaha

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Re: Basket MPA
« Reply #26 on: January 06, 2016, 06:49:17 pm »
The downside of being a StableCoin early adopter is you could lose a lot and the upside is that if it works you just get to maintain your relative purchasing power. So you will probably be required to pay a lot of interest to attract any demand. Especially when limited crypto-currencies and currently suppressed gold/silver, exposure to which is available via BitAssets give people currency options that are likely to explode in relative purchasing power if there’s significant problems with the global financial system and major fiat currencies.

Purchasing power stability is also relative to specific countries based on their economic situation and government policies. So even if you achieve a greater degree of average global stability you will be locally unstable over long periods so any marginal benefit you may ideally achieve over current options will be in practical terms largely negated. 

In terms of pricing goods, people are looking at their expenses which are currently priced in national currencies. So if you’re working on tight margins & budgets that’s the kind of stability and predictability you’re after which is available via BitCurrencies. Any deviations the StableCoin makes to a currency people are working in, (provided it's not very inflationary - then anything else is better) will be a negative to this market. 

So from my POV StableCoin is unstable at a local level  & unstable for businesses even if it works while being high risk for very limited reward.  Unlike BitAssets, the system will require years to prove it’s efficacy to the market. I also think it's quite likely that after years of work, StableCoin will just be seen as an alternative to a CPI or commodity basket ETF.

Thanks, those are good points.

So would it be best just to stick to gold and silver and not try to create something more stable? Let users hold several currencies and use whatever they feel is the best in a current situation?