The Potential Risks and Rewards of Nubits
Nubits is supposed to trade for about $ 1 (it’s really is supposed to be considered a “stable coin“). But, starting around March 20th, its own cost begun to drop. Currently, at the time of April 3rd, it trades beneath $0.40.
This has a few consequences, but especially two significant consequences in the investor perspective:
- There can be certainly a risk that Nubits won’t recover and will instead drop further. The downside is 100% losses on an investment.
- If Nubits does recover, it should logically recover to $1. Thus, those who purchase the coin now could see a 60% develop in their investment on the upside.
With that risk and reward in mind, it is worth noting that this is not the before all else time Nubits has lost value. In the past it has always recovered, so that point should be noted. Of course, its history of recovering accompanies a history of failing (which is worth noting too).
Nubits has a complex system and history. I am going to forego trying to explain it in my own words and let the articles beneath speak for themselves.
To obtain a sense of the mechanisms behind Nubits and the history of its cost collapses and recoveries I would point you to the following articles:
- Once considered a zombie project, is NuBits now rising from the ashes? (on Medium)
- NuBits History — What the heck has happened? (a forum post from the official site)
- NuBits Whitepaper(the whitepaper from the official site)
Why Bring this Up Now?
Although Nubits has been in decline after all mid-March, the cost has seemed to start stabilizing recently. Thus, now that it is no longer actively declining, it is starting to be more reasonableto consider as a possible purchase.
Back in June 2016, the equal thing happened, the cost declined, started to stabilize (that time around $0.20) and then recovered. See the chart here for yourself.
It isn’t ridiculous to consider the opportunity on this happening .
Of course, I could ‘t suggest something like this. I’m simply bringing it up so people are aware.
Make sure to do your research and realize the risk you are taking.
You’ll want to research the whole NuBits system, includingNuShares (the stock that backs NuBits), and you’ll want to understand why they are in the state they are (for yet another time).
Lastly, this is most certainly a situation that calls for you to be “be inclined to shed all you install. ” So be careful and reasonable if you go this direction.