I wanted to do a quick update on NuBits and where we are at in the fight to get back to $1. If you aren't familiar with NuBits it is a decentralized mechanism to keep a crypto pegged to the US Dollar. There are a couple other currencies in the Nu network that peg to the Euro and the Chinese currency as well but US-NBT or the US dollar pegged version is the most popular and oldest one. It isn't like Tether because it isn't just saying there are dollars in some never seen vault. It has a unique relationship between NuShare holders and NuBits. Now in the wallet you can access all the currencies and also NuShares. That is where you would stake NuShares as well. When you do that you actually are processing transactions for currencies like NuBits and you will get Staking rewards in NuShares. The dollar peg was lost around a month ago when there were a couple positive days for Bitcoin and a lot of people sold out of NuBits and funds ran low to maintain automated bots on exchanges like Bittrex and UpBit to maintain the price at $1. The core team was having to sell NuShares to get more BTC to buy NuBits back up to $1 but they ran out and there weren't enough people buying NuShares right then.
Another incentive for holding and not selling NuBits is the interest rates to "park" your NuBits. The NuShare holders vote and determine what the interest rates are going to be. It is clear up at 58% to encourage buying and holding. The system is essentially printing their way out of the problem by issuing more NuBits to investors holding the coins in their wallets. Also they are continuing to sell NuShares but as you see from this screenshot there appears to be no volume over the last 24 hours. That is strange. There is usually around 1 BTC which is low but at least something. Also you can buy NuShares privately from the core team as well in larger blocks.
If you see that fatty pump for NuShares during the boom it got clear to $0.02. I have done the math and if it can return to that it would be like a 6,000% gain. So I'm thinking of just investing $100 into it and staking the NuShares and if it makes a big comeback then the investment could really pay off.
NuBits to me has mainly become like another crypto at the moment. Instead of seeking shelter there it is more like and opportunity to profit.
Would you rather earn 58% Parking NuBits or 30% Delegating STEEM Power to upvote bots? Which is a safer investment?
I think someone delegating their STEEM Power to an upvote bot to earn passively is probably pretty safe. I anticipate STEEM being worth more in the future. NuBits has recovered from a broken peg before and I anticipate that it will recover again but nothing is guaranteed by any means. Personally I think it is one of the more interesting situations in crypto right now. It will be very interesting how everything plays out.
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It's my first time hearing of NuBits.. I will have to read more on it. Thanks for sharing
It is a pretty interesting mechanism but pretty confusing for sure. There needs to be more documentation out there about it.