Anyway, here’s the problem: volatility! Localbitcoins works pretty well thanks to its reputation system. However as bank transfers take several days to complete it is risky to trade bitcoins there. Using an exchange such as bitstamp is also a bad solution due to their nasty verification requirement (see my struggle).
With NuBits, I could use some altcoin exchange that does not require verification. I would exchange my bitcoins for nubits. That is as good as selling bitcoins for USD, except I can withdraw nubits from a shady exchange while I typically cannot withdraw USD from that very same exchange. The newly acquired nubits I would send to localnubits trading site and sell for EUR or USD except this time the 2 day bank transfer delay won’t change the trade outcome. What do you think?
I am the owner of that domain. I didn’t acquire it for the purpose of squatting as I believe Hyena’s proposed idea has the potential to be a good one. I am waiting to see if NuBits starts getting some traction outside of what looks like its primary use at present – parking for crypto-currency traders. I recall reading somewhere that people were already trading NuBits with fiat at localbitcoins.com, but I can’t find anything there to suggest this is/was happening. I also suspect that if NuBits does reach critical mass, LBC will have little problem incorporating them into their existing protocol.
Also, do you think there will be problems with V.A.T. regarding NuBits? While value added tax seems plausible for Bitcoin and others I don’t think it makes sense for a cryptocurrency that is pegged to dollar.
Very little. LBC is an established business with first-mover advantage that would allow them to easily branch into NuBits.
Predicting the behaviour of lawmakers and politicians is difficult and one should never expect them to act rationally. I do agree that NuBits appears much more benign than Bitcoin, at least in countries like the USA that use the USD for commerce and taxation.