Mainstream Article on Intrinsic Value

Here's one for you TeeGee:
https://www.forbes.com/sites/jasonbloomberg/2017/06/26/what-is-bitcoins-elusive-intrinsic-value/
Jason has written a well researched article for Forbes, on where intrinsic value might lie in Bitcoin. It looks at a number of possibilities, and refers to many common opinions. Then comes to the conclusion that if you can call anything value, it comes from the work required to mine it. Weak at best, and Jason aknowledges that.

I posted the following comment on the article site, but it has not shown up. Maybe it's in moderation.
"Jason made some insightful comments and found a heap of great quotes about intrinsic value to put together a compelling argument. Where I feel this article suffered from a little confusion is in the manner it blurred commodity and currency.

History is littered with examples of collapsed currencies, which lost the faith of the country supporting them. And the paper that represented them has no more utility than bitcoin would if the community lost faith in it.

I only know of one alt-coin that has recognized and overcome this problem. DNotes is backed by DNotes Global Inc, a company which is creating real value through a variety of ventures. It has then given a 25% stake of the company's value to the DNote currency. So by owning DNotes, you own a fraction of the company as well.
http://dnotescoin.com/

My only other issue with this great article is where it states: "Never before in the history of civilization has this happened – where cornering the market on a commodity means gaining the power over its intrinsic value."

I would argue that for commodities, this has happened so often we invented the word "monopoly" and a game to explore that principle.

And if you were to relate that concept to currency, your mind will immediately turn to the government's ability to effect the value of its currency artificially, in the interests of its economy. This is something that cryptocurrencies don't suffer from, and something that is perceived as a value."

Great I just ordered one.

Hah, that was my fault. I had to update a few things, now it should be good to go.

TimMarsh asked if we could post these on the forum for feedback.

https://www.redbubble.com/people/dnotes/works/26871402-we-accept-dnotes?asc=u



Appreciate it Tim!

This is a really interesting article, and it raises some curious questions too.

I wanted to see a graph of how the bolivar was inflating and went to xe.com where I immediately saw by the level values and vertical steps that it was pegged to the USD. I also saw that ten of them could buy a US Dollar, not the 6,000 required in the article. So, with confidence in the quality of DCEBrief, I knew I had to do some more digging.

According to Wikipedia, on the first of January 2008, the Bolivar was renamed the bolivar fuerte and revalued at 1:1000 of the earlier bolivar. Since then it has remained pegged to the USD with adjustments made every few years. But that didn't explain the 6,000 bolivar exchange rate. So I followed a link to DolarToday.

There I found that today the unofficial exchange rate for 1 USD is 8,287 bolivar. So what is going on? Does this mean that you could take a 1 USD to the black market, exchange it for 8,000 bolivar. Then walk over to the government exchange, and swap your newly acquired 8,000 bolivar for 800 USD. Walk back over to the black market and buy it out for 6,400,000 bolivar? Not bad for a day's work. So surely not. My guess is that the black market is working fine, and it is the government exchange that won't sell you USDs for claimed 10:1 rate.

If this is the case, then it looks like a really clear example of how centrally controlled currency can have a value that is completely out of touch with it's potential value if traded illegally. I'm not saying that artificially imposing stability on a currency is a bad thing. But it does make me wonder what the bolivar would be worth if it could be easily traded, peer to peer, like an alt-coin.

Thanks, Chase. Happy Father's Day to all Dads around the world.

Take a day off. I am doing just that.

Welcome to DNotes, CazMoney and thanks for asking a great question. It will certainly be an added advantage to tire Note to USD. As an example, an exchange like Poloniex would list DNotes as a Note/USDT pair. USDT is a Tether token with a 1:1 conversion with a slight value discrepancy of a few percent if traded in multiple exchanges.  

Out of 66 altcoins listed on Poloniex only 11 are listed with xxx/USDT pair. Poloniex, understandably, is very selective in adding to their listed coins.  I believe that given a sustained higher volume DNotes will achieve that status one day.

A Notes/USDT pair is far from an ideal solution to achieve (value) stability which is crucial as a medium of exchange in global commerce. Stability (a constant value with nearly zero fluctuation) is nearly impossible for any digital currency to achieve in their current forms. DNotes is mindful of those challenges. Accordingly, we have crafted a business model that will address the stability issue which will include having our own exchange, bank, and partner banks in the future. These will take a few years to accomplish. If you need more clarification please feel free to PM me.  Thanks, Alan Yong.

Along those lines: In case you didn't see, I posted this on DCEBrief concerning the declaration of digital assets to US Customs at border entry points. Honestly, with all these morons, sorry, "politicians" coming out of the woodwork, it feels like we have actually taken 2 steps back in digital history.

"Ludicrous, ridiculous, stupid, inept, uninformed and down right self serving political theater. This ” bipartisan group” of cavemen needs to be UN-ELECTED as fast as their elections can be held. Lets all go back to using stone knives and bear skins while we shiver in our caves because of some totally uninformed self serving members of the electorate are trying to make a name for themselves while putting the future on hold for their own aggrandizement. I have so had it with idiots getting elected perhaps we need to change the entire system. Surely there is something better than “governing by ignorance”. Besides, it is TOTALLY and COMPLETELY unenforceable and a huge waste of taxpayer time and money. Lets pull these idiots into the new world or, better yet, let them rot in theirs."

I know it's a little weak, just could force myself to use more eloquent language considering the subjects...