Topic: Alt Coins pegged to the Dollar: Nubits, Tether - Worthwhile? (Read 1456 times)

On bitcoin morning brief (which often goes for an hour) with tone vays, one of the hosts said he had just got invited to audit tether. Be interesting to see how that goes!?

Yes, nubits has a wallet. You can also hold nushares in the same client.

If you trust that nubits will remain pegged to USD, you can treat it as cashing out into the equivalent of USD. Handy for those that don't want to leave money on exchanges or go through the process of cashing out into fiat. However (as with all crypto), is comes with a health warning... [see bold italic]

So can you hold the nubits in a client wallet?

I don't have experience with Tether but have flirted with Nubits.

Nubits has held up okay so far.

However, I'm wary... 

• (a) What happens if there is a sudden flash (Mt Gox-esque) crash in BTC, that is highly likely to be ridden out?
• (b) Equally, what happens if there is a major announcement that would be an obvious precursor to a BTC pump?

Will the BTC sell peg on NBT hold?... Will they get pulled/ adjusted? Or even eaten up by NBT holders wishing to cash in?

I would like to see it stress tested before buying anything other than a superficial amount of NBT. 

Tether is the newest one, and it's also the one I know least about. I know it evolved from Realcoin - which was Brock Pierce's project. Realcoin was meant to be backed by a central reserve of real USD and operated on top of the Bitcoin blockchain via Mastercoin but I'm not sure if Tether still does that. Several altcoin exchanges seem to have adopted it which is a good sign.

NuBits/NuShares is based on Peercoin/Peershares. Custodians (i.e. holders of NuShares) maintain buy and sell walls at close to $1 in order to keep the price stable.

Apart than the ones you've mentioned, there are a few other ones out there as well. BitShares has market pegged assets and one of these is BitUSD. That one gives interest and is backed by collateral on the blockchain although its trading volume is usually quite low. Then there is also CoinoUSD which is an asset that represents USD on the NXT asset exchange and can be exchanged to real USD via a centralized service called Coinomat for a small fee.

I've heard of people using these fiat-pegged currencies as an alternative to USD while trading on exchanges in order to take advantage of Bitcoin's price fluctuations. I've always been interested in doing something like this (or just simply trading between NBT/BITUSD, BTC, and USD) but I never really got around to trying it. There is currently a huge divide between fiat currencies and cryptocurrencies and the way I see it, these fiat-pegged coins are kind of like a bridge between the two worlds.

That being said, even though their pegs have been holding decently so far, it's still not known whether they will continue to hold in the future. I've heard that it's possible that an extreme bear market could destabilize the peg, for example. Many blog posts and quite a few papers have been written about the viability of these fiat-pegged systems as well as countless discussions both here on the forums and elsewhere but the fact that many supporters of BitUSD seem to really dislike NuBits and vice versa certainly doesn't help when you're trying to separate the good information from the FUD.

I have noticed that both of these peggers have been stable at $1 for a while.

Unfortunately they are both mainly traded on exchanges that Im not with... Poloniex and Bitrex.

Curious about a few things: What is the trading and withdrawal fees for nubits and tether. And do they both come with a qt wallet so I can keep them off the exchange?

Maybe because the fiat value of cryptocoins is always subject to large swings and the OP wants a stable cryptocurrency. The dollar is not going to suddenly crash any time soon but it will continue to slowly grind down.

I'm interested too in such pegging schemes but I still can't understand if/how much they're flawed

The dollar is going to crash. Why would you want it pegged to a dollar?

Hey folks,
Anyone have experience with these dollar pegged cryptos?
I am looking for alternative ways to hold my btc in fiat.
I noticed Tether and Nubits both have ok trading volume, as dollar pegged Cryptos.
Your feedback and recommendations welcome.
Thanks,
H.