What is NuShares (NSR) Crypto Beginner’s Guide
The Nu network offers the NuShares as a means through which various individuals can support the operations of the network. It is important to note that the NuShare is not a requirement for anyone looking to purchase and make use of the NuBits cryptocurrency. The NuShares were developed to offer speculators, developers, and entrepreneurs with a network equity.
According to nubits.com, in order to ensure NuBits can maintain a $1.00 value, demand and supply of NuBits will be regulated using actions. The actions are implemented through votes which holders of NuShares are eligible to cast.
What is NuShares?
Jordan Lee is the alias the developer or the team of developers (we are not given much information) of the Nu system have been using since the release of Nu on September 23, 2014. An investor who chose to remain anonymous provided funding for the project. The sum of $500,000 was given which the team used in creating a Peershares customized extension, which is what we know as Nu.
A proof of stake system is used in minting blocks while shareholders with ownership of NuShares have control over Nu. The unique addition which makes Nu different is the use of the NuBits currency in the transmission and verification of transactions. Holders of NuShares are also permitted to adjust the NuBits quantity without any restriction by the blockchain mechanism.
Shareholders also have the power to create NuBits through voting while they select a custodian to serve as a recipient. There is no limitation to the number of custodians available and the shareholders also hold the power to change the custodians. According to the whitepaper available on nubits.com, custodians also have the right to choose an alias.
How does voting on NuShares work?
The Nu network provides various types of voting such as a Motion vote, a Custodian vote, a Transaction Fee vote, and a Park Rate vote. The voting process will also play an important role in the generation of new NuBits on the network.
Each custodian has to provide a NuBits address and the amount of NuBits which they need for a particular project. Holders of NuShares will receive proposals from various custodians which contain details on the project, the address, and the amount they are requesting.
Should I invest in NuShares?
If you are looking for a good form of investment, then NuShares is not the right option for such a venture. The market volatility makes it better for speculation but quite unsafe for investment.
There are also other means of making money off the NSR value. Holders can decide to go short if they notice a market crash and make great profits while an increase in the NSR value also provides excellent opportunities for making profits.
For anyone who has a fundamental knowledge of the markets and how prices move, then it will be possible to make a guess on the direction of price movement before purchasing the Nushares.
It is important to note that trading is a risk and it is possible to lose some or all of your capital. It is possible to buy and hold a currency for a short period within which you can lose all your investment.