Once again the conversation is greatly appreciated. Every comment and insight is read and taking into consideration. At the end of the day we are building a platform with a sound business model.
Let me respond to some of the thoughts shared to help bring perspective.
When you lend you get interest and your USD capital back at the end of the term. To lend you will first need to purchase Nucleus token and then convert it within the platform to USD to lend to the bot. You receive the amount in USD back that you lent at the end of the term.
For me, lending make sense ONLY if I get back exactly the same number of NCL which I lend for x no. of days + additional profit on them for locking my tokens for those days.
You could choose to hold your Nucleus token in order for it to appreciate and do not lend it out to the bot in exchange for interest.
Members holding Nucleus for appreciation and members lending to the bot for interest both serve the purpose of the project.
Limiting supply (holders) and creating demand (lenders).
It makes little sense to lend coins at cheap price, HODLing BTC and NCL will yield better returns
10% a month in USD isnt much, buyin gand holding btc beats that and you dont rely on bot which might stop performing.
5-10% a month in BTC is more appealing(remove compounding burdens the system), you not going to have many investors lend you coin at such a low fiat rate. By now everyone invested in lending coins knows how it all works
With BCC this has been mostly true. Holding BCC as opposed to lending it out would have the better return. I hope the same is true for Nucleus, this is the model we are emulating - only with a transparent bot.
You cannot say the same for Bitcoin. There have been multiple period when holding Bitcoin yielded negative monthly returns for extended period of time.
Bitcoin traded from $1,100 (Dec 2013) to $232 (Nov 2015). A prolonged period of consistent negative returns month over month. And it will happen again with certainty.
Returns of 8-10% is very good in general terms. I agree that will be a huge investment opportunity for people who are not in crypto.
I am unable to understand the maths. Lets take an example. I lend 1000 NCL (@ rate of $1.5) of value $1500. After 180 days my $1500 grows to $2500. At that time NCL rate is $40 and hence I will be paid back 62.5 NCL. So I have in my hand $2500. Now, had I just kept and hold on to the 1000 NCL, it would fetch me $40000. Even If I hold on to $1500 worth of BTC, it will give me far far more attractive returns. The price of BTC when I purchased 500 NCL on 25th Nov. was $8300 and it doubled since then. Leave alone, the daily flow of various legitimate transparent and also lucrative, ICO opportunities. Now why will anyone in crypto like the 8-10% returns in lending. Agreed that 8-10% for people who are not in crypto is lucrative.
I would like to understand this. Am I missing something.
People with big money would love 7-12% returns monthly. Because it is extraordinarily difficult to find. Crypto's are violatle. And when you have money are you looking to protect it not takes changes.
People with money love 7-12% yearly returns.I have said from the beginning that I believe the greatest value will come from holding Nucleus and token appreciation. Do it. But you cannot lend money to the bot, collect interest, and receive Nucleus back - because the bot is not trading Nucleus.
The price of Bitcoin has catapulted in the last few weeks but that is not normally nor should you expect it to continue or use it as a guide. I hope Bitcoin trades up to $25,000 in the near term but it could trade down to $8,500 just as easily.
