NuBits

[Chronos]

In 1980 when demand for the US dollar was in decline the Federal Reserve raised interest rates to the high teens. People were quite happy to buy dollars and treasury notes to receive these high interest payments. Far from being an unsustainable action, it saved the US dollar from hyperinflation at that time. 34 years later it remains viable.

This is a fallacious comparison. Paul Volcker's action of raising the federal funds rate from 1979 to 1981 had the effect of decreasing the total money supply, because the USA operates on a fractional reserve system. If a bank loans money in the USA, money is created. When it is repaid, the money is destroyed. This is completely incomparable to the NuBits interest rate mechanism.

A high NuBits interest rate results in a higher total money supply, not a lower total supply.

[sschechter]

... it all depends upon trust in a central authority to perform market intervention to buy back NuBits.....

This is not accurate.

There is no central authority and there is no need to buy back NuBits to support the price when demand is in decline. Instead, shareholders spread throughout the world can vote to provide incentives to hold NuBits by offering interest rates on parked NuBits.

Delayed inflation dependent upon continual growth to prevent losing all value. 

Tell me this...  If the dollar was loosing value and the us government decided they would prop it up by paying interest via inflation would you lock your savings away in a cd hoping that the interest earned would outpace the very inflation it creates?   

Would you trust the fed to buy back dollars with their assets to stop inflation.

In 1980 when demand for the US dollar was in decline the Federal Reserve raised interest rates to the high teens. People were quite happy to buy dollars and treasury notes to receive these high interest payments. Far from being an unsustainable action, it saved the US dollar from hyperinflation at that time. 34 years later it remains viable.

The Nu network's mechanisms for handling booms and busts in the level of demand for currency are classic, having long been demonstrated to be effective in the management of other currencies.

What is revolutionary about Nu is the decentralized control of these proven currency management mechanisms. Shareholders dispersed throughout the world simply configure their vote in their client and mint. Their votes are recorded in the blockchain and the protocol changes supply and interest rates accordingly.

Ben Bernanke is that you?

[JordanLee]

... it all depends upon trust in a central authority to perform market intervention to buy back NuBits.....

This is not accurate.

There is no central authority and there is no need to buy back NuBits to support the price when demand is in decline. Instead, shareholders spread throughout the world can vote to provide incentives to hold NuBits by offering interest rates on parked NuBits.

Delayed inflation dependent upon continual growth to prevent losing all value. 

Tell me this...  If the dollar was loosing value and the us government decided they would prop it up by paying interest via inflation would you lock your savings away in a cd hoping that the interest earned would outpace the very inflation it creates?   

Would you trust the fed to buy back dollars with their assets to stop inflation.

In 1980 when demand for the US dollar was in decline the Federal Reserve raised interest rates to the high teens. People were quite happy to buy dollars and treasury notes to receive these high interest payments. Far from being an unsustainable action, it saved the US dollar from hyperinflation at that time. 34 years later it remains viable.

The Nu network's mechanisms for handling booms and busts in the level of demand for currency are classic, having long been demonstrated to be effective in the management of other currencies.

What is revolutionary about Nu is the decentralized control of these proven currency management mechanisms. Shareholders dispersed throughout the world simply configure their vote in their client and mint. Their votes are recorded in the blockchain and the protocol changes supply and interest rates accordingly.

[liondani]

the good news for them is that our world is...

full of... fools


PS why are the majority still with fiat involved even when we are on the cryptocurrency period?

[cybnate]

We are reducing the money supply by having people to park the Nubits at an attractive interest rate. The interest rate will depend on the shareholders voting for it. When there is lots of selling pressure the shareholders will increase the interest rates. When there is no selling pressure they will be zero. The shareholders can set interest rates independantly for short the term (days), months, years or basically infinite practically burning it.

My doubt is, how in the world do shareholders know what is the correct interest rate? It's the 'price' that should be decided by the market, not by some isolated group.

The shareholders will be fed with information from the bots about the liquidity position. Each shareholder will take their own position which will provide some market rate. If the interest rates are too low the bots will feed the information to the shareholders that not enough money is parked reducing the money supply and they will likely respond to that. So the interest rate will be set by the market indirectly. It is very similar how it happens in the fiat/banking world. On top of that I see the development of intelligent bots made and configured by shareholders to their views and best interests which may auto-respond to events fed by the NuNet bots. Every shareholder may still respond differently based on the same information. The network will respond to the 'view' of the majority.

Edit: BTW NuBits and NuNet are an experiment. Please read the disclaimer on our website: https://nubits.com/disclaimer
Edit2: grammar and spelling

[vlight]

We are reducing the money supply by having people to park the Nubits at an attractive interest rate. The interest rate will depend on the shareholders voting for it. When there is lots of selling pressure the shareholders will increase the interest rates. When there is no selling pressure they will be zero. The shareholders can set interest rates independantly for short the term (days), months, years or basically infinite practically burning it.

My doubt is, how in the world do shareholders know what is the correct interest rate? It's the 'price' that should be decided by the market, not by some isolated group.

[tonyk]

They understand that and are happy to see more use of PPC for various projects, but the members I chatted with do not view NuBits as a viable partner in the long run. A lot of PPC folks are pretty conservative, you know. It's hard enough getting them to believe in collateralized BitUSD, much less this NuBits house of cards.

I will not blame them for not believing in either of those!

BTSX is an  experiment, based on well thought through theories. - I do not blame the blind, that do not see it working. After all people still do not believe in ' the Origin of Species by Means of Natural Selection' and chose to believe that God created mankind X ears ago, some solely because the opposite is just a theory.....

NuShares is an opportunistic  and  at least in the minds of its creators 'well disguised' get rich quickly scheme. No blame to put in the non-believers in this either.

I don't throw around the ponzi accusation lightly, but nubits is the first crypto I have seen that fits the description. 

Propping up demand by increasing future supply hoping to sucker in a greater fool with the promise of more unbacked assets.   

Sooner or later you run out of suckers willing to hold out for increased future demand at any interest rate. 

Blame me of short sightedness, but I am more curious to see who the initial promoters/'risk your money, to hold the peg; for 5-10% return' guys are.

[donkeypong]

They understand that and are happy to see more use of PPC for various projects, but the members I chatted with do not view NuBits as a viable partner in the long run. A lot of PPC folks are pretty conservative, you know. It's hard enough getting them to believe in collateralized BitUSD, much less this NuBits house of cards.

[tonyk]

The whole idea is to hope more sucker to joint the shareholders just to earn minting profit from the next batch of sucker who want to earn minting profit from
the next next batch of sucker.

And that's assuming someone votes to print more. Is endless inflation OK if the Federal Reserve Board governors vote for it? I was chatting with a couple of longtime PeerCoin members on and offline on Reddit. They like the fact that this uses the Peercoin ecosystem, but they certainly are not wild about it.

They should be ... because whenever, whoever, decides to issue dividends, for whatever unexplainable reasons to the NuShares holders, it will be in Peercoins [per protocol], so hope  should still remain... 

 [/sarcasm]

[donkeypong]

The whole idea is to hope more sucker to joint the shareholders just to earn minting profit from the next batch of sucker who want to earn minting profit from
the next next batch of sucker.

And that's assuming someone votes to print more. Is endless inflation OK if the Federal Reserve Board governors vote for it? I was chatting with a couple of longtime PeerCoin members on and offline on Reddit. They like the fact that this uses the Peercoin ecosystem, but they certainly are not wild about it.

[tonyk]

... it all depends upon trust in a central authority to perform market intervention to buy back NuBits.....

This is not accurate.

There is no central authority and there is no need to buy back NuBits to support the price when demand is in decline. Instead, shareholders spread throughout the world can vote to provide incentives to hold NuBits by offering interest rates on parked NuBits.

Stop kidding yourself... incentive to hold something is in the form of more of the same worthless something...?
I will not comment on 'spread through the world, but hand picked by us' decentralization model...

Also in the  initial  growth phase  - have you found willing idiots to secure the peg for you, for 5-10% per annum or you intend to do it yourselves?

[bytemaster]

I don't throw around the ponzi accusation lightly, but nubits is the first crypto I have seen that fits the description. 

Propping up demand by increasing future supply hoping to sucker in a greater fool with the promise of more unbacked assets.   

Sooner or later you run out of suckers willing to hold out for increased future demand at any interest rate. 

[bytemaster]

... it all depends upon trust in a central authority to perform market intervention to buy back NuBits.....

This is not accurate.

There is no central authority and there is no need to buy back NuBits to support the price when demand is in decline. Instead, shareholders spread throughout the world can vote to provide incentives to hold NuBits by offering interest rates on parked NuBits.

Delayed inflation dependent upon continual growth to prevent losing all value. 

Tell me this...  If the dollar was loosing value and the us government decided they would prop it up by paying interest via inflation would you lock your savings away in a cd hoping that the interest earned would outpace the very inflation it creates?   

Would you trust the fed to buy back dollars with their assets to stop inflation. 

[JordanLee]

... it all depends upon trust in a central authority to perform market intervention to buy back NuBits.....

This is not accurate.

There is no central authority and there is no need to buy back NuBits to support the price when demand is in decline. Instead, shareholders spread throughout the world can vote to provide incentives to hold NuBits by offering interest rates on parked NuBits.

[tonyk]

Anyone want to try with a real response? This type of response is incredibly unattractive to new people like myself. BTSX is highly unprofessional if this is an example of how their community thinks.

Shadow, don't take it personally. And by the way, welcome. This forum provides an open exchange of ideas and there are all kinds of people on here. Even decent folks have good days and bad days. Tonyk is a good sort once you get to know him; we just throw him some raw meat every once in awhile and he stays in line for a few days.

LOL

On the subject of 'raw' I do hope Bitshares Music comes with some more 'baked' and thought out  ideas, so they do not make another chapter of my future book...

cough Agent86 DNS cough

Actually, I personally, do not have strong feelings/thoughts regarding  A86's DNS proposal. I think of it as an innocent experiment more than anything else... now his 'devotion' accounts on the BTSX chain is another story.