Quote from: tonyk on September 30, 2014, 02:46:44 AM

I just did not get why the market rocks?

Isn't it better to have self appointed body that prints NuBits at will... Even if this board does not know what exactly to do with the extra supply, I think they have some ideas...

I realize you are joking, but that is exactly the point. At least Bitassets like BitUSD are collateralized by something. They don't come into existence without matching a short that has provided 200% collateral with a long position, or by a buyer selling a bitUSD that already exists and is collateralized.

Nubits requires the inflow of new money to maintain the peg when the value of Nubits is lower than the value of a dollar, and it is why the Bitshares community has likened it to a Ponzi scheme and compared it to the federal reserve. For the whole system to work it relies on Nushares holders setting interest rates and printing new Nubits, all of which have no collateral and require new capital to come in to maintain the peg. Furthermore, Nushares holders have way less power than the federal reserve even though it functions similar to it. They can't destroy money (Nubits) and they don't have a government, laws, regulations, and guns backing Nubits.

BitsharesX doesn't need any of that because it is as close to a free market solution you can get when it comes to a decentralized market pegged asset, and thus I believe it comes with less risks involved than owning Nubits. It relies on people acting rational in a free market approach rather than shareholders setting interest rates and printing money without collateral. As long as people act rationally, then the Bitasset market peg will be maintained. People will act rationally as it would be unprofitable not to do so for them, the free market system works on the belief that people will act in a way that is financially in their best interest (IE. Profitable.) to trade against the peg is an unprofitable decision as free market participants will buy into that price movement and profit from your unprofitable decision.