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morantis (OP)
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November 14, 2015, 09:39:00 AM |
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Ok, first and foremost is the matter of trust. That actually points to several of your questions and is a very difficult question. If you have seen the movie Wall Street, then you understand the concept of the hedge fund manager. The reason that people let Michael Douglas handle their investments was because he showed a history of making money, at least that is how the real world works. This will take time and documentation. Honestly, because the way I play with Altcoins, I only have around $20 in various coins(a value of $20). I have had as much as $4000 worth and obviously $0 in the beginning. That is my money and it is low because I experiment with different things and it is not in any way pivotal to my financial world. I will ahve to take at least two years and show, step by step, documented every step of the way to show that I know how to do this. It is not a simple buy low, sell high market. That, provided I have the same success as I have in the past, will handle trust when I choose the coins in the fund. I will also use this time to build SEO on a site that will handle all of this and garner some colleagues along the way. There has to be enough trust that if I see a coin failing I can short sell those and protect peoples investment.
This time factor of say two years also has a huge bearing on legality. Right this moment, if this was a current running project, I would be only accepting common coins, maybe only bitcoin as a payment option. No FIAT. Let the people trade their coins for cash elsewhere. However, the legal functions of altcoins are up in the air and two years could make a big difference. Two years ago, buying Bitcoins for cash was easy, now, not so much.
The above does not cover the level of trust for dealing with the coins themselves. Yes, I could pack a fund with my own coins or I could push coins from others for a fee, both pretty low on the integrity scale. Pretty much exactly what the Wolf of Wall Street was about with cryptocurrency. Like most sites that involve money, there will be some faith that has to be used. I want the fund to be transparent. I want any and all that invest to see at any time what coins are in there and their value. I want people to be smart and research those coins and see what is what. I am still giving all of that some thought. I also plan, but am not sure about allowing a no minimum withdrawal. Any time you want out, get out.
Some tech answers....I can code a website and I can code a database, but I cannot do what I want for this site, so I will hire someone. I want the database that contains the fund information to constantly update the prices of each coin and keep a current fund value. I would use a set of API's and Cron jobs, but I will let the programmer choose a route to go. They might as well do the site too, since most of the data will be integrated into such said site.
As far as offline "wallet", that is another rough one. I can make a program that interfaces with the site and allows for trading, but that is no better than the site itself. The fund is obviously not a blockchain based value system and I do not think that can be done. At this moment, and I hope this will improve is the idea of an escrow. I will explain. This will hold a lot of my money in tandem. Say you bought $500 worth of the fund. I would then back that up with an escrow of $500 in Bitcoins. If you want to sell immediately, we dump that escrow and pay you. This is sort of the cold wallet back up plan with a twist. However, it still does not solve the offline QT issue. The second best idea is child like simple. I create a new altcoin to represent the fund. The issue there is controlling the value of the new coin. How can I force a coin to have X value. if that was possible we would all have coins at $350 per coin. The coin would help with trading on an exchange, but that gives up control completely. If the wallets have deep controls to never allow the coin to leave my control, that would be best, but gives me too much control. A rough riddle to solve. I need to get a deeper understanding of say the SHA256 algorithm. Is it possible to mess with the Bitcoin source enough to allow two wallets to make a protected exchange of the fund the same way two lone users of a pretty new coins? I need to fully read up on the block chain and how it works precisely.
So, I think I covered most of those questions with even more questions. But, the basic plan?
Oh year, how do I make money you asked, lol. That is the last thing I will tackle because it is actually pretty easy. No ads, I will keep the site clean and professional. So, I could use a per transfer fee. I could and will gain interest on the Bitcoins. Mikey Douglas took a percent of the profit of his investors, that could work too.
1. Start with a fresh Bitcoin wallet and a domain with a Wordpress blog. There is no reason to get super fancy in the beginning, just a site to share information of document profits.
2. Network a lot and use only organic, non-tampered SEO. No games, just do the right thing and let Google handle the traffic over time. No splashy social ads, just plain old information sharing. Tell people what I am doing and how. If things are going well, tell them how to much of it themselves. For example, today I played around and took 0.003 in mined coins and rented additional hash for the same pool. It generated a tiny return profit, but in the end that is not a long term way of making money.
3. Get with the exchanges and blockchain explorers. It appears that on most exchanges there is a suggestion and voting process. I will not know until I talk to them if an exchange of this type is even possible. Maybe subscriptions. Part of the site can provide real high quality information and another part more information that you must subscribe to.
4. Load up on new coins. I tell people to buy stock market items that like and believe in. I read a lot of new coin announcements and play with many new coins. Easy to mine early coins can turn into something quick and a coin is failing and I have mined a lot of them I always return them to the person that made the coin in hopes that a last ditch effort can help them out. I have actually had a few new coins raise quickly that I was able to mine more than ten thousand of within the first few hours after the initial chain sync. I do not download or use coins that are made for the wrong reasons whether it makes money or not.
5. So fast forward two years...I have a small server with a few newer coins mined to a high number. I have the site and the hired programmer is putting together the final live version. I have a shown and proven two years history of profits above losses.
6. Yes, we already have a corporation, but I will set up a new one for this. I intend to succeed, but I also do not want my employees and stock holders from my main company to get screwed because Bitcoin becomes illegal or too hard to manage. Insurance is going to be great for a very good reason. Asking a company to insurance a virtual coin against loss is yet another step to working these currencies into the main economic world.
7. Demonstrate it works and helps people get where they want to be. I think this is a key to all business. Helping people and making money at the same time just leads to success. I can show people that I own a share, it is made up of these coins and why I chose them. Then show them that I spent $500 to buy these coins and they are now worth $1000. There are a lot of hoops and questions, but I think this is a service that needs to exist. I am sure that there are many of you that have six different wallets for six different coins. Like I said, the next two years I will have a small server filled with the qt's from seven different coins and I find doing that to be a real pain. And how much time do we waste trading BTC for LTC because the price changed, only to reverse the process a day later after a shift the other way.
The great thing about programming this all is the fact that internal wallets can be used to make changes. I would love to see a site page or hidden script like my 401K has where I can use a couple sliders to alter my investments.
There are too many sites and people that try to make altcoins fun and there are too many that are interested in only making money. Imagine buying a small fund package that has half Bitcoins and half Litecoins. These are two coins that will surely outlast them all. You keep the $500 coin package and retire twenty years later to a nice little pile of coins that are worth much more than when you got started based on nothing more than the steady rise of the coins. I have not looked at LTC, but people are scared because the Bitcoin is back in the $300's. The fact is that if you bought a Bitcoin two weeks ago and have it now, you have made $100. Twenty years down the road the effective should be much greater.
I hope this answers your questions. So, to summarize two biggest issues....trust and tying all the tech together. The funny thing is that trust is based on some quirky things. Three ago I deposited 0.01 into a site called Crypto Hourly. If you are on this forum, then you have seen the ads. The greater the deposits, the greater the hourly payout. The site looks like every other site out there and used the "Proof of Payment" idea to create trust. I find that one dumb because you can create the transactions themselves. Any way I try to deposit 0.004 and nothing happened. It was gone from my wallet and took forever to show on the website. I should have cut and run, but I read some more of the website and found that 0.01 BTC might be a requirement. So, following a transaction that was no where to be found, I deposited another 0.01 and then everything was better. I have no reason to trust them and no recourse if they leave, but I thought the site was good and so I did it. I must pass 400 sites per week with one service or another that requires you to deposit money a coin address to get started and do this rarely. The thing is that my like or dislike for a site has literally nothing to do with any concrete information, but I put around $8 worth of trust in them and I did get my first payment today.
Tech? Guess what, let the programmer handle it. There are too many hard to answer programming questions and I am willing to pay to have this done right. really want to find a way to create a blank dummy coin to allow easier trading, but either way using the database, API's and deep scripting, I see no reason why this can't be made functional. Thanks for your time and good luck in all you do.
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