What is NuBits?

A Beginner´s Guide to Buying, Selling, Using, and Mining NuBits:

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2017 has been an especially good year for cryptocurrency enthusiasts. Not only have they seen a myriad of coins rise in value, but there is also an abundance of new platforms on which users can spend their cryptocoins. It seems like the time is finally coming for cryptocurrencies to integrate with the mainstream world.

Unfortunately, there are still some significant disadvantages to using cryptocurrencies. 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 that has been able to achieve price stability for over three years. This coin, NuBits, may very well be the cryptocurrency that ushers in mass digital coin acceptance.

What is NuBits?

Fundamentally, NuBits 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 is always equal to one USD.

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 one numerous exchanges. Once signed up for an exchange that accepts Nubits, one can fund their account with cash or with a credit card and purchase Bitcoins. Now 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

Unlike other cryptocurrencies, NuBits should not be thought of primarily as an investment vehicle. Because its price is set a $1, there isn’t the potential for price appreciation. NuBits track record speaks for itself--the ebb and flow of the coin supply has kept the price solidly at $1 for some time.

NuBits’ fixed value makes it a particularly good coin to hold in one’s wallet, not for price appreciation, but for transaction potential. With a stable price of $1, NuBits 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.

NuBits coins also don’t face the typical exchange rate volatility when fiat currency conversions take place. Unlike Bitcoins or Ethereum, NuBits coins don’t have price fluctuations that can greatly impact currency exchanges. What happens if Bitcoin drops when the Euro rises? Those wanting to exchange Bitcoins for Euros are hit twice.

NuBits price stability also makes it an excellent addition to a cryptocurrency portfolio, though not for the purpose of increasing value. Rather, NuBits coins can be used to dampen volatility, similar to holding a cash position in a traditional stock and bond portfolio. The NuBits cash position will decrease a portfolio’s standard deviation because the price is held constant, and the currency can also be used to quickly buy other coins when pullbacks occur.

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 NuBits price chart shows, there is remarkable consistency in its price. To be sure, there have been some drops and spikes, but the coin has reverted to the $1 target after each movement. Nevertheless, 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. As 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.

All things considered, NuBits coins are an astounding creation.The coin has a track record of meeting its $1 price objective, and has done so in a consistent and dependable manner. If more people knew about NuBits, perhaps a larger number of businesses and individuals would be willing to conduct business with cryptocurrencies.

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