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Would something like DashUSD be useful for discreet investors and ordinary businesses?

Discussion in 'General Discussion' started by SnowHater, Jan 20, 2016.

  1. SnowHater

    SnowHater Active Member

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    I mean subcurrency of the Dash that is pegged to 1 USD like NuBits or BitUSD. This innovation could atract more investors to Dash and rise its capitalization. The same goes for phisical goods traiders and buisnesses who don't like high volatilty. Maybe this service could be maintained by some amount of masternodes which will get addtional fees payment for that service. What do you think?
     
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  2. GrandMasterDash

    GrandMasterDash Well-known Member
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    I would totally love this feature. I'm a regular user of nubits and it works very well. I've heard a few times that BitUSD isn't very good / stable. If we had a DashUSD, I would definitely recommend doing it the same way nubits does. But the big question is, why not just use nubits?

    1. we could completely eliminate exchange fees between Dash and DashUSD

    2. nubits are actively looking for privacy features, which dash has already

    3. it would allow for instant switching between the two.

    4. We could later add DashGOLD (nubits are expanding to euros, yen and yuan!)

    Nubits previously used peercoin as a base currency because nubits are collateralized, am not sure if that's still the case, they might of switched to bitcoin. I guess we could use dash for collateral instead, but one of peercoin's features is no fixed supply, meaning you can mint and burn indefinitely. I think that's right anyway, someone correct me!

    I've previously tried to get some interaction going between dash and nubits but I think it's technically challenging to integrate the two chains. Nubits now have the Blocks and Chains Exchange but I haven't used it (yet). Maybe we could get dash added on there?
     
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  3. Sapereaude

    Sapereaude Well-known Member
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    Could I ask how having a currency pegged to 1 usd is useful? I mean either you want to hold Dash or you want to hold usd? Why not just convert straight away?
     
  4. GrandMasterDash

    GrandMasterDash Well-known Member
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    USD considered less volatile, for example....

    You sell dash at $5, dash drops to $4.50 so you buy again.. it's a lot less risk than selling to bitcoin.

    Also, if retailers price their products in DashUSD, they wouldn't have to mess with conversions or updates, and their customers would have a familiar / stable / standardised point of reference.

    Doesn't have to be DashUSD, in theory it could be pegged to gold...
     
  5. f2000

    f2000 Member

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    I was curious about Nubits since you keep mentioning it, found this article (although it is a bit dated, September 26, 2014) :

    http://digiconomist.net/details-and-shortcomings-of-nubits/

    Perhaps there has been some big changes in that time and the authors conclusion is no longer relevant.

    "
    Conclusion
    In short, NuBits uses increases in its total supply (through various ways) and thus inflation as the only method to combat both an increasing and decreasing price. This might be able to hold for a while, but leaves nothing but a time bomb waiting to go off. The developers might have created NuBits with the best intentions, but until any adjustments have been made it is advised to avoid from this digital currency. A discussion on the discussed problem and possible improvements can be joined on the NuBits forum here."
     
  6. GrandMasterDash

    GrandMasterDash Well-known Member
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    I can't tell you with certainly because I'm just a regular user of it, but I thought there was a "burn" element.. someone more familiar with it is welcome to correct me.

    If you look at their forum, they seem to know what they're talking about. I've seen charts compared to other USD pegs and nubits did the best... bitUSD in the early days was all over the place, though I don't know if they fixed that (they use a totally different method.. again, I'm not familiar with the technicalities).

    For a long time and on a regular basis, I've held a fair bit in nubits and I've always found it very reliable. There was one occasion I believe where it strayed to 1.09 nubits to USD but that really was unusual. Sometimes it strays between 0.99 - 1.02 nubits to USD but overall I'd say it works very well. In fact, in the past few months I'd say it's improved, but I have no idea why.

    They're confident enough with what they have that they are launching the same thing for euros, yen and yuan (not sure which yuan). I find that very interesting.

    If there was a DashUSD, we wouldn't need an outside exchange at all, the MNs would simply handle it all in-house. Or maybe - I'm not sure - create a new type of node that provides liquidity for an FX exchange to operate - an FX Node (FXN). If that's the case, it would expand the governance system and potentially make for a more democratic system.
     
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  7. SnowHater

    SnowHater Active Member

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    Yes. I imagine checkbox in the wallet like 'I want my funds be pegged to USD'))