NuBits, dropped buy support when bitcoin price is rising? Alternatives?

[SebastianJu]

I saw that the last time when the bitcoin price was rising but now, when it is practically rallying i see i much more. The buy side of nubits, at least on poloniex, is practically emptied out. There are a lot of nubits on the sell side but not on the buy side.

Even though i can understand that, it means that A) users sold their nubits to take part in the rally of bitcoins and B) it might be done to protect liquidity providers. So the liquidity bots don't create orders. I observed the buy side and i saw that the 300 and the 600 order was taken out and recreated at the same time. So it is pretty safe to say that these are the orders created by the liquidity bot. And they are far away from the actual price.

Though that is not how it should look like for a currency that should be stably connected to the USD. I mean that effectively means that your nubits are not worth the USD when you can't sell them for a price matching 1 USD.

How are the alternatives at the moment? Which alternatives exist and how safe are they? Something where you can go in and out at every time and where you can hold your coins safely in your own wallet instead having to trust an exchange. Of course the coin would need to be stable too, trustworthy that their value holds.

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[SebastianJu]

Here a screenshot from the poloniex orderbook. You see the sell side is filled pretty fine though the buy side is practically emptied out. Too few offers and the spread from the actual price is 2 to 3%.

http://imgur.com/llFA8ox

[BitcoinNational]

i suspect it will get better over time.
but yeah what pegged coin can play the BTC volatility game?
the only legit $dollar coin is one with bucks in the bank (or under the bed) and with solid proof of such.

nubits is basically saying to investors ... you all handle this we'll sit it out.

[criptix]

I hope for you guys that the liquidity providers just dont vanish and you end up bagholding.
The sell side looks not good for a coin that is pegged to 1$

[SebastianJu]

I hope for you guys that the liquidity providers just dont vanish and you end up bagholding.
The sell side looks not good for a coin that is pegged to 1$

The sell side looks way better now, now that the rise of bitcoin price stopped. But that isn't the issue. The issue is that it seems that the liquidity bots did hold out orders of the market for some time. Understandable to protect the providers but for the coin it is not good. I mean look at me. I used nubits all the time to have a stable value. Though when i wanted to go out i couldn't, which effectively would have meant a lower price than $1 for me.

So i did not read alternatives. Can someone give one?

[testz]

I hope for you guys that the liquidity providers just dont vanish and you end up bagholding.
The sell side looks not good for a coin that is pegged to 1$

The sell side looks way better now, now that the rise of bitcoin price stopped. But that isn't the issue. The issue is that it seems that the liquidity bots did hold out orders of the market for some time. Understandable to protect the providers but for the coin it is not good. I mean look at me. I used nubits all the time to have a stable value. Though when i wanted to go out i couldn't, which effectively would have meant a lower price than $1 for me.

So i did not read alternatives. Can someone give one?

Take a look to BitShares: https://bitshares.org/technology/price-stable-cryptocurrencies
More info here: https://bitsharestalk.org

[blackyblack]

You can also use coinoUSD on NXT. They are fully backed with USD, redeemable for real USD and also pay interest over time. There is counterparty risk though.

[SebastianJu]

Thank you guys for the suggestions. I will check them out and see how safe they are and if their value is established all the time.

To make it clear, i don't think that liquidity providers drop out of offering liquidity in times. I think the liquidity bots they use are doing that automatically. It would make no sense if liquidity providers would be able to drop out of that job in the instant the bitcoin price moves. That would mean that the dollar peg can't be held and it would not be in the interest of nubits devs.

So i'm pretty sure the bots are doing that to protect the liquidity providers. Though that means that the nubits owners might get screwed because the pegging can't be held up.

I think that's something the devs of nubit has to solve.

I will check out the alternatives.

[SebastianJu]

I hope for you guys that the liquidity providers just dont vanish and you end up bagholding.
The sell side looks not good for a coin that is pegged to 1$

The sell side looks way better now, now that the rise of bitcoin price stopped. But that isn't the issue. The issue is that it seems that the liquidity bots did hold out orders of the market for some time. Understandable to protect the providers but for the coin it is not good. I mean look at me. I used nubits all the time to have a stable value. Though when i wanted to go out i couldn't, which effectively would have meant a lower price than $1 for me.

So i did not read alternatives. Can someone give one?

Take a look to BitShares: https://bitshares.org/technology/price-stable-cryptocurrencies
More info here: https://bitsharestalk.org

It seems BitShares are not pegged to the USD-Dollar. You can't use it as a safe haven to protect your property with it.

Did you mix something here?

[SebastianJu]

I found tether USD seems to be pegged to 1 USD too.

Can someone explain his opinion about tetherUSD, coinoUSD and BitUSD? How trustworthy are they? Nonscammy, good devs, no chances to scam and how reliable are they when it comes to exchange them to USD?

[SebastianJu]

I hope for you guys that the liquidity providers just dont vanish and you end up bagholding.
The sell side looks not good for a coin that is pegged to 1$

The sell side looks way better now, now that the rise of bitcoin price stopped. But that isn't the issue. The issue is that it seems that the liquidity bots did hold out orders of the market for some time. Understandable to protect the providers but for the coin it is not good. I mean look at me. I used nubits all the time to have a stable value. Though when i wanted to go out i couldn't, which effectively would have meant a lower price than $1 for me.

So i did not read alternatives. Can someone give one?

Take a look to BitShares: https://bitshares.org/technology/price-stable-cryptocurrencies
More info here: https://bitsharestalk.org

It seems BitShares are not pegged to the USD-Dollar. You can't use it as a safe haven to protect your property with it.

Did you mix something here?

No, he's right, the new version (BitShares 2.0) allows for full conversion of bitUSD at $1

This model was constructed/revised to allow customers like you to avoid the exact problem you just faced.

Thank you for the headsup. I think i will open a new thread and ask about opinions about these coins. It would not make sense to use these coins and then risk your value only because the issuers are not trustworthy, there are risks in the design or something other.

[Windpower]

check here https://coinomat.com/coinousd.php about coinousd.
1 CoinoUSD = 1 dollar CoinoUSD is a assets based on NXT AE platform, bring USD to NXT trading directly to NXT blockchain, without using exchanges. They maintain a gateway which allows to buy CoinoUSD for USD denominated payment systems.

When you buy CoinoUSD asset is it transferred to you, and can be traded or exchanged for all support USD currencies, BTC-e codes, withdrawn to your bank card or our Coinomat Visa debit card!

Coinomat supports also third-party blockchain-based USD value transfer projects, such as Bitshares USD — BitUSD ,it can be exchanged for CoinoUSD.  Even you can earn interested from your coinousd.

It is actively traded in NXT AE : https://trade.secureae.com/#12982485703607823902

Coinomat.com is recognized by many users and actively inolving in many projects, like cryptofund, MMNXT, MMBTCD etc.

[SebastianJu]

Thanks for the info.

No scepticism about these coins? Normally the sceptics are the marjority.

[barbierir]

CoinoUSD works and pays interests but, of course, it's a centralized solution with 3rd party risks. If you can wait a few months there will be a new system of completely decentralized pegged currencies and commodities, it's called PAX = pegged asset exchange and based on Bitcoindark. At this time it's in testing on private net.

[Munti]

BitBay will also be pegged in a few monts (Q1 2016).
Unlike some of the other options it will be a realistic peg -meaning it will hold on a rainy day as well. Fully decentralized of course.

[HCLivess]

there is decentralized voting for parking. still 0.998

[mhps]

see comparison and discussions here https://bitcointalk.org/index.php?topic=1237187.msg12895069#msg12895069

[SebastianJu]

see comparison and discussions here https://bitcointalk.org/index.php?topic=1237187.msg12895069#msg12895069

Well, the problem is that you can not protect your bitcoins against a falling bitcoin price if it happens. The price stability is taken away then since you can't buy nubits or the spread is huge.

Ok, i understand the reason but still unfortunately if you can't trust that your nubit is always worth $1. The theory doesn't help you then the same way like these other coins where the theory says they are stable but you can't use it because the order books are empty.