NuBits on HitBTC
We are rapidly growing the amount of currencies you can trade on HitBTC. Here’s a new cool thing – NuBits!
What is it? How does it work?
NuBits is a new cryptocurrency from the makers of Peershares. It was developed in 2014 when Jordan Lee received funding of half a million US Dollars for a customized extension – NuBits is the result of this. What differs NuBits from other cryptocurrencies is its price stability. As you all know most cryptos are very volatile. NuBits however will always be equal to $1.
But how can this be achieved? There are 2 scenarios:
How can they maintain the dollar stable price if the demand for NuBits exceeds the supply available?
When the demand for NuBits goes up their shareholders will vote to introduce more Nubits with a grant custodian. They will create more and put them up for sale on exchanges.
What if the demand goes down?
When the demand is lower than the amount of NuBits available in the supply. There are sturdy mechanisms of price support in place which offer interest for funds taken out of circulation. This means for it to fail all of the users and participants must agree that the demand for NuBits will never go back up again. That would then render them outdated and useless yet this does not mean that you shouldn’t use it today – in theory any currency can become obsolete and many already have. If this outcome happens NuBits will simply shift to speculators who are happy to tolerate high risk for high returns. If this too fails it doesn’t mean the end of the Nu technology, simply this individual currency. You can read more about the supply and demand of NuBits here.
If a NuBit is always the equivalent to $1, why use it ?
Firstly both for merchants and customers – crypto’s come with minimal or no transaction fees. NuBits are no different. In addition to that it is a lot easier to purchase goods for the customer, they don’t need to go through a calculation to understand how much they are actually spending – when the bill is 1NBT it will cost $1. Also you can have the benefit of almost instantaneous transfers. No need to wait for many days for the bureaucracy of your bank to move your funds to the other side of the planet. Another area where to use NuBits and other crypto’s is definitely in the developing countries where getting a bank account may be difficult or even near impossible. With NuBits you don’t need to send in your documents, pay for an account or other banking nonsense still in place, you can simply download the wallet for free and start receiving and sending funds. It also makes trading crypto’s easy – no need to wait for fiat withdrawals, simply transfer your funds to your wallet.
Here’s from the NuBits team themselves:
“We are excited to see NuBits listed on HitBTC exchange. HitBTC is a professional, attractive, and secure exchange that will be an excellent trading partner for the Nu network. NuBits are the world’s first stable decentralized digital currency, having maintained a $1.00 US peg since September 23, 2014. NuBits are useful for many purposes, including general retail transactions as well as decentralized hedging for Bitcoin traders. The Nu network will soon become the first decentralized digital currency in history to maintain a price peg of $1.00 US for one year. We appreciate that quality exchanges like HitBTC are willing to add NuBits trading because it enhances the accessibility and stability of our network. For more information on NuBits please visit nubits.com.”
-TomJoad, NuBits Development Team”
Trade NuBits with HitBTC
Start trading this new awesome crypto on our exchange! We’re constantly adding new currencies and options on our platform to give you a wider selection of choices to choose from. Soon you can also add a lot of new tools for market analysis. More info coming soon!
Start trading here!
Nubits are supported ultimately by the value of the nushare and the voting mechanism therein. If nubit demand goes down, nushares will be sold to burn and remove nubits from the supply. As the nushare brand is inextricably tied to the price stability of nbt, shareholders will always vote in favor of defending the peg, even at the cost of diluting their own share base. In this way, nubits are secure from most every conceivable economic downturn as long as the value of the network exceeds its nubit debt.
Awesome news.
As you can see here,
https://nubits.com/about/white-paper
, besides parking rates, a NuBits burning mechanism has been added in order to reduce the supply when demand for NuBits decreases.
Eager to try it
Nice post!
But the “What if the demand goes down?” section unfortunately is dealing with an end-game scenario and not day-to-day business.
Before that end-game happens (my take is: Nu is far from that and prospering!), there are lots of ways to reduce NBT in case demand goes down.
1. Parking rates can be offered: parked NBT are removed from market and spawn later. The incentive to do that is interest rate for the parking period.
2. NSR can be created and sold for NBT. The received NBT are burned and permanently removed from the market.
3. BTC funds are available to create another line of defense for the peg.
NuBit is great. It has a long history for stable peg.