Quote from: thejaytiesto on May 01, 2017, 03:50:45 PM

Anyway, im done with so called "digital dollars" that supposedly stay pegged with the dollar. Everything tried thus far has been a failure (anyone remembers nubits?). I wish there was a way to do this so you don't need to get fucked by the taxman if you want to go to fiat temporarily to profit from a bitcoin dip, but all those "cryptodollar" coins keep crashing eventually.

There was no reason for nubits to succeed, I predicted its failure a while ago.

How does bitUSD make any sense? You have to put in 2 USD to get 1 bitUSD. The market seems to agree, less than $1 million in bitUSD.

I don't think its hard to have a digital asset pegged to fiat. As I pointed out, all you need is:

1. 1:1 reserves that are distributed in banks with insurance in different jurisdictions (including security of the bank)
2. third party audit of the bank accounts
3. security of the digital asset
4. agreement of the company to exchange digital assets and fiat, meeting KYC/AML laws.

None of the attempted pegs, including tether, has met these requirements. Yes, this requires a centralized authority, but it is impossible to have a pegged asset without one, simply because a trusted entity has to secure and possess the reserves. All attempts to use financial manipulation to secure a peg are going to fail, including the rolling peg idea someone posted.

On its face, a rolling peg idea doesn't make sense either. People want an absolute peg. If you make it rolling, it defeats the purpose.