What is NuBits?
A Beginner´s Guide to Buying, Selling, Using, and Mining NuBits:
An In-Depth NuBits Guide by Ya Poker
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Cryptocurrencies have a lot of advantages, but there are still some significant disadvantages as well. Perhaps the most commonly cited one is price volatility. This is the case with both small coins where low trading volumes have an adverse effect on price, as well as larger coins where it seems like the herd mentality prevails. The lack of stability has discouraged merchants from accepting cryptocurrencies, thus disincentivizing from users paying with them.
There is, however, one coin, Nubits, that has been trying to achieve price stability. If it is able to succeed long-term, it may very well be the cryptocurrency that ushers in mass digital coin acceptance.
What is NuBits?
Fundamentally, NuBits is a blockchain. A blockchain is defined as a decentralized ledger or database that stores a record of all transactions that transpire on the network. Because the blockchain is decentralized by nature, it operates independently of a central governing authority. Additionally, all NuBits users can view and audit the transactions that happen on the blockchain.
NuBits differs from traditional cryptocurrencies in that its network actually issues two non-fungible units – shares (NuShares) and currency (NuBits). The shares denote ownership of the network and their quantity does not change. Thus, share prices will increase as demand increases.
NuBits currency (USNBT), however, is designed not to appreciate or depreciate in value. This is accomplished by adjusting the coin supply upwards or downwards to keep the price stable. Thus, one USNBT should be equal to one USD, although there have been some exceptions and as of August 2019, the price is well below $1.
Those looking for discussions, news updates, and expanded definitions for NuBits can go to its Reddit page. Because NuBits research must be conducted online, the Reddit page is an excellent source of consolidated information.
How Do I Buy NuBits?
Nubits coins can be purchased with Bitcoins on numerous exchanges. Once signed up for an exchange that accepts Nubits, one can fund their account with cash or credit card and purchase Bitcoins. The Bitcoins will be in the user’s crypto wallet and can be used to purchase NuBits.
How Do I Turn NuBits into Cash?
To turn NuBits into cash, users must convert their NuBits to Bitcoins and then exchange Bitcoins for the fiat currency of their choosing. Like the process outlined above, this involves an additional step but is very easy to complete.
Once the NuBits coins have been sold for Bitcoins, and once the Bitcoins have been turned into a fiat currency like USD or Euros, the funds can be transferred to a bank account. From there, the money can be withdrawn from an ATM.
How to Use NuBits
When NuBits has a stable price of $1, the coins are the ideal cryptocurrency for everyday transactions like buying and selling goods and services. Merchants don’t have to worry about the payment dropping by 20% or more within minutes of receiving it, and users don’t have to worry about a dramatic decrease in purchasing power because a coin’s value suddenly plummets.
It remains to be seen if Nubits can make a recovery.
What is NuBits Mining?
Cryptocurrency mining is the process of finding and verifying groups of transactions–called blocks–and adding them to other blocks, forming a blockchain. To mine a block, miners must use available processing power to solve a set of problems related to the transactions. The mining process introduces a level of transparency and security that fiat currencies can’t. For their efforts, miners are rewarded with coins, typically of the blockchain they are verifying transactions for. There are a wide variety of mining calculators miners can use to determine profitability as well as the output required to process a given block.
Miners can mine on their own or in groups called mining pools. When mining alone, the profitability percentage is greater, but usually overall processing power is limited. This means certain blocks simply cannot be mined by individuals. When mining in pools, the profitability percentage is lower because the reward is split between multiple parties. However, the combined output is much greater in a mining pool, meaning that more difficult blocks can be processed at a more rapid pace.
NuBits coins cannot be mined.
How to Mine NuBits
NuBits coins are not mineable. Because the price must be kept stable at $1, the supply fluctuates based upon other factors. Traditional cryptocurrency mining would affect the coin supply. What’s more, because the price of the coin is stable, investors should not expect the coin’s market cap to rise or fall dramatically either.
How will NuBits Scale?
As with all other cryptocurrencies, there are questions about how NuBits will scale, especially since the focus is on practical transactions rather than investment potential. If the coin grows in popularity, NuShares holders will need to determine how to process transactions at a more rapid pace, though even now the transactions per second metric varies.
If more people knew about NuBits and its price can make a stable longterm recovery, perhaps a larger number of businesses and individuals would be willing to conduct business with cryptocurrencies.