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Asset Denomination: nxt? btc? dollars? singapore
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Author Topic: Asset Denomination: nxt? btc? dollars?  (Read 1033 times)

Funkylump

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Asset Denomination: nxt? btc? dollars?
« on: May 16, 2014, 05:22:12 am »

This is likely controversial, but assets on the Asset Exchange should not necessarily be denominated in NXT.

I understand that nxt is the primary unit of account on the NXT platform but it is simply too volatile to make an effective denominator for assets. Serious investors will want to gauge their gains and losses in the simplest way against a measure of value that is relatively stable. I would suggest denominating the assets in US dollars or bitcoins if possible.

I personally believe nxt and btc units of account will continue to appreciate over the coming years so even if I bought an Asset on the exchange today and it doesn't change in nxt-denominated value for years, it may may still gain in real value. But that system of measurement is misleading and troublesome to assess on an ongoing basis. I had this problem when I invested in Havelock Investment funds denominated in btc. When I saw the btc price running over 1,000 in dollar terms and the price of my Havelock assets remaining constant or decreasing I felt like I was missing out.

You can't take the psychology out of the exchange. Investors want to see their purchases gain and their numbers increase.

When purchasing the assets, of course, people will need to use nxt so it's important to have that as a gauge (denominator) as well but, as more people enter the NXT Asset Market and charts are created to assess changes in value, having other evaluative options will be desirable.

Perhaps this option could be added to the clients?
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jl777

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Re: Asset Denomination: nxt? btc? dollars?
« Reply #1 on: May 16, 2014, 05:34:05 am »

This is likely controversial, but assets on the Asset Exchange should not necessarily be denominated in NXT.

I understand that nxt is the primary unit of account on the NXT platform but it is simply too volatile to make an effective denominator for assets. Serious investors will want to gauge their gains and losses in the simplest way against a measure of value that is relatively stable. I would suggest denominating the assets in US dollars or bitcoins if possible.

I personally believe nxt and btc units of account will continue to appreciate over the coming years so even if I bought an Asset on the exchange today and it doesn't change in nxt-denominated value for years, it may may still gain in real value. But that system of measurement is misleading and troublesome to assess on an ongoing basis. I had this problem when I invested in Havelock Investment funds denominated in btc. When I saw the btc price running over 1,000 in dollar terms and the price of my Havelock assets remaining constant or decreasing I felt like I was missing out.

You can't take the psychology out of the exchange. Investors want to see their purchases gain and their numbers increase.

When purchasing the assets, of course, people will need to use nxt so it's important to have that as a gauge (denominator) as well but, as more people enter the NXT Asset Market and charts are created to assess changes in value, having other evaluative options will be desirable.

Perhaps this option could be added to the clients?
InstantDEX is designed to allow this
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