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.
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.
