Weekly Update #114

News
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Weekly Update #114

[ul][li]Since the release of Nubits, the exchange peg of nubits to USD appears to be working so far. It must be noted that, the fact that due to the peg it’s under political control (fiat inflation) to some extent, is actually quite superficial. This is because, the pegging mechanism can be used to commodity money as well, especially gold. The fact that the project issues USD equivalent first is likely a market driven decision, as USD remains the dominating currency in the world.[/li]
[li]Also, Nubits inherit privacy features of bitcoin, thus having privacy properties very close to fiat cash. Let’s recall that during Internet 1.0, David Chaum had a project known as digicash/ecash, which focused on anonymity of digital fiat. The project failed primarily due to political obstacles. But it was a big deal back then, as that was the only known way to preserve privacy in money at the time. That was before bitcoin brings decentralization technology to the market. It is decentralization that allows the market to freely launch currency projects without official support from banks and governments.[/li]
[li]Notably, Nubits now has achieved similar goals of ecash, despite having different compromises in its properties. And thanks to decentralization, nubits is now circulating in the market, while the other pioneers of market-driven digital currencies, ecash and e-gold, languished in the footnote of history.[/li][/ul]

[tt]Chronology:

1995 digicash/ecash, anonymous digital note
1996 e-gold, digital gold note
2009 bitcoin, decentralized digital currency
2012 peercoin, energy efficient decentralized digital currency
2013 peershare, decentralized autonomous/anonymous company
2014 nubits, decentralized pegged digital note[/tt]

Have fun!

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Well said! Sunny, what’s your opinion about Hayek cocurrent currencies theory written in 1976, “Denationalization of Money”? His theory is to control circulation and maintain currency price stable, i.e. keep buying power stable, eliminate the inflation/deflation, good money dream!

My two cents:

inflation—>bad money (FIAT)
deflation—>bad money(Gold)
volatility—>not money(BTC)

neither inflation/deflation nor volatile —>Good money (If not Nu, it must be Nu style whose supply is flexible to cope with demands fluctuation in free market.)

In history, the reason why “bad money drives out good money” is that the mintage is monopolized by the King or Government. As we all known, the monopolists always provide worse product/service due to lack of competition. If competition is there, good money WILL drives out bad money, said by Hayek.

In my opinion, the only Historical Significance of BTC is its blockchain technology which makes Hayek’s dream come true.

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I am reading Hayek book too, at the moment.
In our economy, what’s the role of Gold?
In the cryptoeconomy, what’s the role of Bitcoin? Peercoin?

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[quote=“crypto_coiner, post:3, topic:3024”]I am reading Hayek book too, at the moment.
In our economy, what’s the role of Gold?
In the cryptoeconomy, what’s the role of Bitcoin? Peercoin?[/quote]

Gold will never be a king of currency again, I guess.

BTC/PPC’s future I don’t know, but not convinced by their supply mechanism.

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A look back to the history of digital currencies, from the digicash (1995) to nubits (2014)