Topic: BTSX+BitUSD vs NuShares+NuBits - which will win the USD peg war? - page 2. (Read 15795 times)

He didn't say anything. There is little substance in that entire post. The one criticism of NuBits everyone is labeling as a ponzi scheme (increasing demand by increasing inflation) doesn't even meet definition of a ponzi scheme. And it's something that several people have proposed potential solutions to. It looks  like a bunch of people parroting bytemaster's post in an echo chamber. The very problem is talked about in the whitepaper, presumably it would happen years to decades from now, and it would be extremely obvious it's happening - and that's all if Nu didn't implement a solution by then.

I'm pretty sure that there is no way NuBits could have possibly released that wouldn't have the BTSX crowd hostile towards it. Fortunately whether or not the BTSX crowd likes it will not affect it's success.

Dang coinhoarder, you always know how to put complex ideas into easy-to-understand words. Sorry yurizhai, but his arguments blow yours out of the water.

Nubits is a ponzi in its current form, simple as that. Whether or not the devs are aware of this, however, is a different story.

It had a whole lot more substance than your retort.

I don't think you are intentionally running a Ponzi scheme, you just don't realize how flawed the Nubits model is and the inevitability of its failure. Bailouts will only keep it afloat for so long before it dies. It says so in the Nubits Whitepaper...

This is a whole lotta text with a whole lotta nothing in it.

Coinhoarder. Look at me. Put your face to your monitor. Imagine my eyes on the other side.

Do you genuinely, honestly believe the Nu network is intended to be a scam or ponzi scheme? I mean seriously? The Peercoin community and be extension the Nu commmunity is probably one of the least scam like communities in the entire cryptocurrency space. I'm not saying this as  PPC fan, or a NBT fan, just as a genuine fact. Thousands of posts over a year to confirm this. You are seriously deluded my friend.

You are forgetting the part where he said that Nubits would fail, like all ponzi schemes eventually do. There is probably a reason why "Jordan Lee" is anonymous. There is also a reason him and the Devs are selling all NuShares to bag holders for 6.5 million U.S. Dollars, ridding themselves of all risks of the Nushares/Nubits system. http://discuss.nubits.com/t/undistributed-nushares/125

You are also forgetting why people hate the Federal Reserve.. because they can and will print money if they deem it appropriate or necessary and dilute USD holders. Nushares has already started diluting Nubits owners by printing a 4 million Nubits bail out fund, and over time it will get worse and worse as the market cap of Nubits grows and more "rainy day" funds are needed to "bail out" the system when (not if) it fails. http://discuss.nubits.com/t/proposal-to-create-a-strategic-reserve-of-nubits/448

Except the federal reserve uses laws, regulations, prison, and weapons to ensure its power. Nubits, although modeling the way they print money closely, has none of these things going for it. Just like many think the Federal Reserve is a ponzi and will fail, people think the same of Nubits. Don't act like Nubits won't use the 4 million "bail out" fund which they already created for this exact purpose if shit hits the fan. This is why it is a Ponzi scheme, Nubits owners will pay for the bail out via dilution, even though they have no control over its creation or usage. Nubits owners are vulnerable to whatever Nushares holders deem appropriate or necessary.


You must understand BTSX users hatred for Nubits. You guys come onto the scene after BTSX and bitUSD and claim to be "The World's First Stable Digital Currency" in big letters right on the home page of your website, even though BTSX and bitUSD were being talked about, advertised, developed, and released before Nubits. The BTSX community also acts the way it does towards Nubits because it believes that they have the better solution to the same problem. Yet Nubits/Nushares bag holders are going everywhere (including our own forums) and spreading the gospel as to how it is such a "better" solution, as is evidenced with your bolded statement, sucking in new and unwitting victims to your ponzi scheme.

Nushares holders print uncollateralized tokens in the form of Nubits, and can print however many they would like as they are uncollateralized. Meanwhile bitUSD is backed by 300% collateral as they do not come into existence without 200% collateral provided by a short position on bitUSD and 100% collateral as provided by the buyer of the bitUSD. Nushares/Nubits can evolve and so can BTSX/bitUSD, but it doesn't change the fact your system is broken in the same way the Federal Reserve is broken and thus hated. It would need to be completely redesigned to collateralize Nubits and not be a ponzi scheme.. the ability to burn Nubits for Nushares doesn't change this. It would need to be redesigned so much so that it would no longer resemble anything like Nushares/Nubits functions today.

The only thing Nubits has on bitUSD right now is better liquidity. Whereas Nubits uses market makers to provide massive buy and sell walls, bitUSD liquidity is more natural and related to its adoption.. similar to all cryptocurrencies. The Nubits market would probably qualify as the most manipulated cryptocurrency market for this reason. The only way it retains its value is with these market makers in place and the massive buy/sell walls they provide, whereas bitUSD allows all of its end users to maintain the market peg without such manipulation. bitUSD liquidity will improve as it is further adopted, and thus it is more natural compared to its current adoption and not as manipulated. It's liquidity develops much like any other cryptocurrency, as it is adopted more there will be more liquidity and volume.

The only thing upholding the value of Nubits is the promise that someone will buy it back for $1. In the case of exchange default, that promise could be broken as who will sign up as a market maker once that happens. Exchange default will happen sooner or later. Furthermore, the market makers could withdrawal their buy walls at any moment, and at that point there is nothing upholding the value of Nubits to $1. There are only handfuls of market makers in Nubits, whereas with bitUSD the whole user base are the market makers. Nubits isn't traded on a decentralized exchange like bitUSD is and is subject to exchange default, kyc/aml regulations, and possibly taxes at some point due to those aml/kyc restrictions that all centralized exchanges will need to adhere to once governments around the world regulate Bitcoin and other virtual currencies.

Both systems have there pros and cons but I'll stick to the system (BTSX/bitUSD) that doesn't rely on trusted third parties like Nubit's market makers, centralized exchanges, and Nushares owners, rather than settle for an alternative that prints uncollateralized money, is similar to a ponzi scheme just as the federal reserve is, will likely fail at some point in time due to its ponzi-like attributes...... that happens to have better liquidity at the moment until bitUSD is more widely adopted. Enjoy your one and only benefit as in having better liquidity for the time being, as once that statement is no longer true there isn't any benefit to Nubits over bitUSD and yet it retains all of the negatives that BTSX doesn't suffer from by design. It will be a sad day when Nushares/Nubits bag holders lose all of their money, yet I will not feel sorry for you all as we have warned you about all of the flaws repeatedly and you choose to write it off as FUD.

The security of the network required a portion of the shares to be distributed to people who could be trusted in order to get off the ground. It will only become more decentralized from here. However, there is nothing stopping any exchange from adding NuShare trading. In fact, the first exchange trading NuShares was added today.

https://bter.com/trade/nsr_btc  ( Note: bter had trouble and deposits currently aren't working but I'm guessing it will be fixed within a day )

So it's already on one exchange, a month from now it will probably be several. You want NuShares on exchanges? Go petition your favorite exchange to add them.


You're just echoing what bytemaster said. Did you forget he also said that it could probably work for quite awhile? Oh and guess what else, a new mechanism to burn NBT in exchange for NuShares is already being discussed, a draft will probably be presented within a few  weeks. Boom, the major criticism of NuBits solved, probably years before it would have become a problem anyway. It's like you don't understand cryptocurrencies can evolve.  It's clear the BTSX is either deluded or shitting themselves.

why should i buy Nubits?

i want to buy Nushares, but only "selected" people are chosen. if you go to the nubits side, you will find nothing, how you can buy nushares. nushares are not traded on any exchange. but the 1 Dollar pegged Nubits i can buy millions of them. great!  what can I do with them? nothing, just selling or parking.

what can i do with bitUSD till now?

1. by holding i earn a yield from the trading fees etc. ; it is not clear how big the yield will be in the future but right now it is >1.5%
2. it is not only bitUSD but bitCNY, bitBTC and bitGLD - and on any of them, you get a yield! great Gold with yield fantastic
3. i can exchange bitUSD on BTER to USD or BTC or BTSX . ok, the volume is not great at the moment, but i have 3 assets to sell my bitUSD and bitUSD are not backed with millions issued Nubits to tradingbots.

my problem with nubits is - i don't get them.

why is it not a ponzi if the nushare owners can vote anytime more nubits at the market? the interest for parking, where does it come from? i suspect from issuing new nubits - this is inflation - and will blow up big time!

Yeah laugh away, keep denouncing it as a "ponzi scheme", it's not going to change the fact that NuBits is and will probably continue to blow BitUSD out of the water. Make up all the excuses you want.

Seriously, the irrational hatred and the general behavior of the BitsharesX crowd is truly pathetic. Just look at the post on the BitsharesX forum https://bitsharestalk.org/index.php?topic=9057.300 . Insane. I hope the entire world sees that thread, it's enough to stay away from BTSX completely. They're just afraid.

btw nubits just printed another 4.04M out of thin air, any potential buyers here? remember that they can print as many as you want! maybe you can ask for a discount if you buy large quantities!

My guess is that noone is buying this ponzi, all I see is an artificially inflated supply and bot trading to get some attention, perhaps they should "print" 140M this would bring them to the 2nd place in marketcap.

In the short term, it looks like NuBits has the advantage, because they are providing a lot more market liquidity, and holding to the peg much more tightly. NuBits is actually usable today, more so than BitUSD, because of this.

In the long term, it seems that BitUSD will outlast NuBits, because BitUSD doesn't seem to depend as much on growing demand. However, if NuBits adds a "NuBits burn" mechanism as has been discussed in their forums, which shrinks the supply of the pegged asset in exchange for creating NuShares, it could go either way.

Thats top quality digging - bravo

Can safely say all of us has missed some bus or the other. Last year during that Bitcoin rally, I sold at $155. Imagine how much I was kicking myself when it soared to $1200.

I realize you are joking, but that is exactly the point. At least Bitassets like BitUSD are collateralized by something. They don't come into existence without matching a short that has provided 200% collateral with a long position, or by a buyer selling a bitUSD that already exists and is collateralized.

Nubits requires the inflow of new money to maintain the peg when the value of Nubits is lower than the value of a dollar, and it is why the Bitshares community has likened it to a Ponzi scheme and compared it to the federal reserve. For the whole system to work it relies on Nushares holders setting interest rates and printing new Nubits, all of which have no collateral and require new capital to come in to maintain the peg. Furthermore, Nushares holders have way less power than the federal reserve even though it functions similar to it. They can't destroy money (Nubits) and they don't have a government, laws, regulations, and guns backing Nubits.

BitsharesX doesn't need any of that because it is as close to a free market solution you can get when it comes to a decentralized market pegged asset, and thus I believe it comes with less risks involved than owning Nubits. It relies on people acting rational in a free market approach rather than shareholders setting interest rates and printing money without collateral. As long as people act rationally, then the Bitasset market peg will be maintained. People will act rationally as it would be unprofitable not to do so for them, the free market system works on the belief that people will act in a way that is financially in their best interest (IE. Profitable.) to trade against the peg is an unprofitable decision as free market participants will buy into that price movement and profit from your unprofitable decision.

I just did not get why the market rocks?

Isn't it better to have self appointed body that prints NuBits at will... Even if this board does not know what exactly to do with the extra supply, I think they have some ideas...

Daniel Larimer of BitShares lays out in simple steps in this mumble session how NuBits is by definition a Ponzi scheme: https://soundcloud.com/beyond-bitcoin-hangouts/beyond-bitcoin-community-dev-hangout-2014-9-26

Skip to 9:30 to hear the pertinent info, but very good show all the way thru

I wish this could be a debate on the merits of BitsharesX/bitUSD vs Nubits/Nushares, but since you guys want to focus on ad hominem criticism.... You criticize the Bitshares community for name calling etc and then you on to do the same thing all throughout your post. Furthermore..

As chryspano mentioned it is ironic that you show up out of the blue in August, after taking a 5 month hiatus from Bitcointalk, and immediately start bashing Bitshares in all 6 of your posts since you came back.

It is doubly ironic that this is around the time that Nubits, a project that would be competing with BitsharesX by solving the same problem in a different way, was about month from being released.

It is triply ironic that you seem to be a big fan of Peercoin/Peershares/Nubits:
http://www.peercointalk.org/index.php?action=profile;u=30870
http://www.reddit.com/user/sportscliche

It is quadruply ironic that in February of this year you give a completely different reason for not investing in Bitshares than you give in your post here and now.

http://www.peercointalk.org/index.php?topic=527.msg18220#msg18220


It seems to me you are a bit bitter you missed out on getting into Bitshares early because you talked yourself out of it. Instead you decided to invest in Peercoin which is about 1/3 of the value today that it was in February. If you had invested into Bitshares instead you would of came out way better as BTSX is up 300% since its release and the people that got in before the snapshot have done much better than 300%. That being said, I'm sure all of this isn't affecting your opinions and statements as to Bitshares and how horrible of people the Bitshares developers and community is.  

Unfortunately, you haven't learned your lesson in the past 7 months of pain that you've been a Peercoin investor and wrote off Bitshares. Yet, here you are 7 months later backing the wrong horse again (Nubits) and suffering from the stubborn tribe mentality that plagues most cryptocurrency communities. Bytemaster, and other Bitshares community members, have eloquently and thoroughly explained for everyone to read why Nubits/Nushares is flawed and likely to fail, yet you decide to write this possibly valuable learning experience off as name calling, cheerleading, and hating for the sake of hating.

Along with the concept of Nushares/Nubits being flawed, the release of Nushares behind closed doors to well connected Peercoin community members and Nubits developers doesn't strike me as being very fair or open. Bitshares had months of open fundraising and mining/buying/selling of PTS that gave everyone an equal chance to get in on the ground floor. The developers didn't have any special privileges compared to any other random investor, they paid/mined their fair share of the genesis stake of BitsharesX just like everyone else.

Don't let your stubbornness and bitterness cost you any more of your cryptocurrency savings than you've already lost by investing in Peercoin. I am not saying invest in BitsharesX, but you are backing the losing horse all over again in the market pegged cryptocurrency wars. This is your warning, and it is the warning that Bytemaster and other Bitshares community member have been so nice to share with you. If you invest heavily in Nushares/Nubits I think you may look back at this in a year and say damn... I should of listened to them, they really weren't just trolling.

BitsharesX is the better solution to the same problem meanwhile awarding its users with less risk than Nubits/Nushares. It is for this reason and others that we believe we are going to win this battle of the USD market pegged stable cryptos, including through our innovative and successful implementation of the decentralized market place, the dedicated community and developers, and our solution being the closest thing you'll get to a "hands off" free market approach in a market pegged crypto asset. Whether you choose to believe us and heed the writing on the wall is up to you, and you can take it or leave it.

Now, can we get back to technical analysis as to the merits of Nushares/Nubits and BTSX/bitUSD, or do you guys want to continue flinging poop at one another?

You have 12 post and in your last 6 posts you are attacking BitShares!

Please tell us what coin you support and post a picture of your developers here! There are lots of reasons for developers to be anonymous and one of them is lack of belief in their project, I will let you figure out what other reasons there are to be an "anonymous developer".

I respect the developers you mentioned above, especially Sunny King but Jordan Lee is doing it wrong! I see no wrong to tell him that his creation "quacks like a duck" and some people might actually think that it's a "duck" and not what he claims thinks (EDIT) it to be.  

I believe in bitshares and I know who the developers are and how capable they are, I also have some pictures of the developers! how many people can say the same in this forum?

Yurizhai makes a good point.  Leaving their approaches to implementing a dollar-pegged digital asset aside, the Bitshares and Nubits/Peercoin communities couldn't be more different.  Sunny King, Sigmike, Jordan Lee, and the other devs display the attributes of scholarly, completely serious professionals, who absolutely refuse to get into the ubiquitous name-calling, cheerleading, and bashing that permeates so much of the crypto-coin discourse and marketing.  The extent of Jordan Lee's comments on Bitshares was that it is different than the Nubits concept.  That's pretty much it -- no criticisms, no bashing.  He and the other devs work in anonymity and let their work speak for itself.

The Bitshares community, in contrast, strikes me as more of an us-vs-them frat-boy club.  The tone of the posts, which are often sophomoric with little to no substance, isn't going to do them any favors with potential investors or adopters.  I was initially very intrigued by Protoshares, but found myself losing interest as I became aware of the prevailing close-minded attitude.  Then there was the headline photo in their February 2014 newsletter, which essentially sealed it for me:

http://static.squarespace.com/static/51fb043ee4b0608e46483caf/t/52f318d2e4b0bdba1c163a6d/1391663314443/News%20Letter%2005%20-%20February%202014.pdf

Nothing has happened in the last half year that has caused me to change my opinion.

Huh? is all I can give for the example you gave. half ounce at price of 1 is clear scam and it will be restricted but is not same as not allowing people to short wherever they want. I am sorry but was the point of the thread to get an opinion or was it to throw absurd examples to support BTSX. If its latter, I leave the thread to you.

Can't blame Daniel Larimer for sneering just a little bit, when he has published and educated people on his idea for over a year, and along comes the hype of "something Nu" that aims to accomplish something similar but is developed entirely in secret, leaving him unable to even evaluate it, during the most critical phase of his own project.

I think the market limitations and reliance on feeds is a short term measure to help during the initial low volume phase. Might be wrong, though.