Hi! BitCoin Fully Decentralized Hard Asset Backed Bank!

[laffenlarry]

... and you can Earn INTEREST!

I am curious; how do you pay interest without engaging in fractional reserve lending or otherwise debasing the currency through the money multiplier effect? Doesn't this undermine Bitcoin's raison d'etre?

Not at all - ITS PART OF IT'S GREATNESS!

I suppose that I should point out - as we have touched on mining - that this forms part of our Returns Structure; Afterall - When we mine coins it's a little bonus for all of us! (But that's just one very small part - but it is a very real part of the system that allows us to provide interest payments!)

Thanks for your question!

[gweedo]

... and you can Earn INTEREST!

I am curious; how do you pay interest without engaging in fractional reserve lending or otherwise debasing the currency through the money multiplier effect? Doesn't this undermine Bitcoin's raison d'etre?

Not at all - ITS PART OF IT'S GREATNESS!

I suppose that I should point out - as we have touched on mining - that this forms part of our Returns Structure; Afterall - When we mine coins it's a little bonus for all of us! (But that's just one very small part - but it is a very real part of the system that allows us to provide interest payments!)

Thanks for your question!

So why you need donations if your mining? You only need 7.407BTC for $10,000

[laffenlarry]

... and you can Earn INTEREST!

I am curious; how do you pay interest without engaging in fractional reserve lending or otherwise debasing the currency through the money multiplier effect? Doesn't this undermine Bitcoin's raison d'etre?

Not at all - ITS PART OF IT'S GREATNESS!

I suppose that I should point out - as we have touched on mining - that this forms part of our Returns Structure; Afterall - When we mine coins it's a little bonus for all of us! (But that's just one very small part - but it is a very real part of the system that allows us to provide interest payments!)

Thanks for your question!

So why you need donations if your mining? You only need 7.407BTC for $10,000

That's right it is - but until we have a dedicated team in place (which requires funding) and we have equipment (which requires funding) and we have a team that can Administrate that function of setting up a few rigs and go hardcore mining - we are only 3 people. Donations help us add: Hardware, Team Members, Software Purchases, Legal Consults, 3rd Party Professional Hires, and a multitude of other required parts to project.

I suppose if someone offered us $10'000.00 worth of TIME that would to just as good!

Thanks for your question!

[dflatline]

OK, so you don't touch the deposits in any way and interest is paid from investing (somehow) the transaction fees?  How about this instead?  I'll save you the trouble of keeping track of my bitcoin and I'll keep it where I know it's safe (in my safe), then I'll pay you a small fee in place of the transaction fee, in exchange for which you pay me at some indefinite point in the future what I would have earned in interest on the deposit.   That should be equivalent, right?

Also, wondering how you can provide anonymous accounts that transact in fiat currency without running afoul of the anti-money laundering laws.

Great Questions - With Simple Answers!

We do not "transact or conduct business in any "REAL OR PHYSICAL Fiat Currency", no paper money ever changes hands.

Let's give an example.

Assume you were in the basement of your house.  And (most of you who are up to date will know this as Mining, or Rigging), but you sit there in your basement, and all the doors are closed. You sit in your PJ's and you are running a little piece of software called a BitMiner. It works on your computer, at home, in your house, in your basement, and all of a sudden you get a DING over your speaker. YOU Found A BitCoin!

Well that BitCoin has value. It is available to TRADE INTO any Fiat Currency, yes. But DID YOU GET IT FROM Fiat Currency NO. Tada! The magic has begun.

Now you go and spend that BitCoin. Say 1 Coin (about $120.00 USD), and you buy a little Tablet PC, a cheapo one! Now, did you pay ANYTHING Equivalent to A Fiat? Or Did the Transaction ORIGINATE FROM FIAT? No - not at all.

The BitCoin ORIGINATED from your computer at home! You did not receive any external payment for it. Thus - it's NOT FIAT, and CANNOT BE DEEMED TO RESULT from a FIAT Currency.

Suffice it to say the rest of it is very legally technical. But - IT IS LEGAL!

Now, let's say you want to have a 'common association to it' - well you can THINK of your BITCOIN in TERMS of VALUE "related" to a Fiat Currency - Yes. But that's just for Ease and Convenience of use. For your convenience.

But - If you decide that you want to store the bitcoin you got from your computer as a Euro, or a USD, or a GBP does NOT MEAN IT IS! It's simply for you to have a something that's easy to count in your own books, ledgers, or for use when thinking about how much to pay for something - IT'S YOUR CURRENCY! Not Ours.

Now - if you deposit a Virtual Cryptocurrency, to a Virtual Ledger, that is a Virtual Transaction. It has no Physical Origin. But if we tell you that we are going to give you 30 SLATOVSKIES for your 1 Bitcoin that is a LOT more complicated than saying that we'll give you $120 US Dollars, or $100 Euros.

I hope that gives you a brief explanation on Virtual Transactions. It's also why we call ourselves an Outfitter and NOT a Bank. Bank is just an easy Common Term of Reference. But we are an Counting House (much like an accounting firm), the units we use to designate accounts a Proprietary Unit Exchange Unit.

Thanks for your questions and comments!

OK, so you don't touch the deposits in any way and interest is paid from investing (somehow) the transaction fees?  How about this instead?  I'll save you the trouble of keeping track of my bitcoin and I'll keep it where I know it's safe (in my safe), then I'll pay you a small fee in place of the transaction fee, in exchange for which you pay me at some indefinite point in the future what I would have earned in interest on the deposit.   That should be equivalent, right?

Also, wondering how you can provide anonymous accounts that transact in fiat currency without running afoul of the anti-money laundering laws.

So actually, when you said "We cannot divulge internal workings, they are proprietary" when I asked how you will be holding peoples deposits you actually meant to say 'in bitcoin'.

At the most basic level there are 3 ways you can hold peoples deposits: 1. Assets and investments, 2. Standard currencies, 3. Bitcoin. You're not doing it in 1. because you outright said you're not, you're not touching peoples deposits. You're not holding them in 2. because you said "We do not "transact or conduct business in any "REAL OR PHYSICAL Fiat Currency"". So the only possible way you can hold onto peoples deposits without investing them is in the manner in which they were deposited; Bitcoin.

Now, under your 'system' you are going to be responsible for paying 4% interest for a large amount of capital you cannot leverage in any way, those deposits are going to just sit there doing nothing for you. In order for that interest rate to be sustainable, you're going to need at minimum an equal amount of 'money' that you have invested in order to buy your assets. Say a depositor has £1000000 invested in you, you'd need to have £1000000 of your own money to invest in assets elsewhere to provide growth for their money, because their deposit  money isn't actually doing anything. Keep in mind, you do not actually have any money. You can barely scape £10000 together. So where is this money coming from you're going to use to buy your assets with which you pay interest? Transaction fees you say?  You're charging like $5 for an account and a few percent on withdrawals. I invest my  £1000000 and take it out after a year of 4% interest, you have not made 4% off of me alone. In real terms taking the withdrawal fee into account what you're actually doing is paying me less interest. You are not making any money from me.

I'll humor you and consider a best case scenario. You make £100000 off my £1000000 in transaction fees. You're going to invest this in assets to pay me my interest at 4%. Can you work out what percentage interest YOU would need to make on £100000 to pay 4% interest on £1000000 you have no control over?

[algorithmic]

We do not "transact or conduct business in any "REAL OR PHYSICAL Fiat Currency", no paper money ever changes hands.

Perhaps I misunderstood your "Yes" reply to Mike Christ's question:

Will I be able to trade my BTC for USD easily?

I took that to mean that you would accept USD deposits.   If it's strictly bitcoin in and out then I believe there wouldn't be a legal problem with anonymity. Certainly there isn't a technical one.

I think you still haven't answered my first question, the point of which is to gain some confidence that you are not a scammer by demonstrating a realistic business model.  How can you possibly pay interest out on funds that you say you will not touch?

[rusane]

A'ite, bear with me here, cause I'm struggling to follow your business plan. So no fractional reserve lending. Fair enough. Reading through you're other responses I've ascertained you (correct me if I am wrong) intend to pay interest by

• charging fees and returning a portion of that income as interest
• investing a portion of that income in real assets and commodities which you hope will appreciate in value and return some of the capital gains as interest

So to point one, the sum of all fees must exceed the sum of all interest, ergo your clients are net losers if we view point one in isolation. If we include point two, you are making the claim that real assets and commodities will gain value relative to bitcoin. That is another way of saying bitcoin will lose value relative to those assists/commodities.

The above being true, what your are counting on is (through your doing or the pressures of the market place) bitcoin will depreciate relative to goods and services. You will then arbitrage the difference and pay a proportion of that arbitrage to your clients. Meanwhile, your clients will have lost a (necessarily larger) portion in depreciated coin. So at best, you're cushioning the depreciation with interest. At worst, you've some scheme in mind to cause the depreciation. Either-way, it's not clear to me how your clients end up with more value over time, even if they end up with more coin.

[laffenlarry]

To assume things based on incomplete information makes the assumption itself flawed.

And of course, you are entitled to have any opinion you wish. That's your prerogative.

The structures and foundations are sound, and have been working for our 45 active clients very well.

But when BitCoin goes down for 3 days due to loss of electricity, or you loose the charge on a cell phone, or the banks are closed and the exchanges aren't running - we have confirmed that people prefer holding something that IS LINKED TO CASHABLE ON DEMAND item, than a digital piece of coding.

You could still call us, on one of those old land line, or fax us, and request a Withdrawl - which would then be sent via a more direct payment; of course after verification of account holder.

But that would require divulging the internal workings, which of course are not for public disclosure by any company, group organization, or other like or similar entity.

What I will say is this: It's safe to hold something of value, good hard asset value, than something that you simple believe has value because you see the numbers on a stock ticker rising.

Thank you for your comment!

[laffenlarry]

A'ite, bear with me here, cause I'm struggling to follow your business plan. So no fractional reserve lending. Fair enough. Reading through you're other responses I've ascertained you (correct me if I am wrong) intend to pay interest by

• charging fees and returning a portion of that income as interest
• investing a portion of that income in real assets and commodities which you hope will appreciate in value and return some of the capital gains as interest

So to point one, the sum of all fees must exceed the sum of all interest, ergo your clients are net losers if we view point one in isolation. If we include point two, you are making the claim that real assets and commodities will gain value relative to bitcoin. That is another way of saying bitcoin will lose value relative to those assists/commodities.

The above being true, what your are counting on is (through your doing or the pressures of the market place) bitcoin will depreciate relative to goods and services. You will then arbitrage the difference and pay a proportion of that arbitrage to your clients. Meanwhile, your clients will have lost a (necessarily larger) portion in depreciated coin. So at best, you're cushioning the depreciation with interest. At worst, you've some scheme in mind to cause the depreciation. Either-way, it's not clear to me how your clients end up with more value over time, even if they end up with more coin.

We use a Multi Chained Commodity Basket to Value an Internal Proprietary Exchange Unit.

This unit is not tied to the Fiat Market, but rather to Commodities, Raw Land Holdings, and other similar and like Tangible Inventories.

The Bit Coin Exchanges to our INHOUSE CURRENCY. This is how we manage the ledger. Payout are whatever our INHOUSE Commodity Chained Unit converts to a FIAT VALUE of which ever chosen country's Unit Of Payment.

BitCoin is simply a TRANSFER mechanism. But due to it's virtual nature and duplicitous monetary aspects can be extended beyond the regular confines of the traditional systems available.

I hope this helps.

[dflatline]

A'ite, bear with me here, cause I'm struggling to follow your business plan. So no fractional reserve lending. Fair enough. Reading through you're other responses I've ascertained you (correct me if I am wrong) intend to pay interest by

• charging fees and returning a portion of that income as interest
• investing a portion of that income in real assets and commodities which you hope will appreciate in value and return some of the capital gains as interest

So to point one, the sum of all fees must exceed the sum of all interest, ergo your clients are net losers if we view point one in isolation. If we include point two, you are making the claim that real assets and commodities will gain value relative to bitcoin. That is another way of saying bitcoin will lose value relative to those assists/commodities.

The above being true, what your are counting on is (through your doing or the pressures of the market place) bitcoin will depreciate relative to goods and services. You will then arbitrage the difference and pay a proportion of that arbitrage to your clients. Meanwhile, your clients will have lost a (necessarily larger) portion in depreciated coin. So at best, you're cushioning the depreciation with interest. At worst, you've some scheme in mind to cause the depreciation. Either-way, it's not clear to me how your clients end up with more value over time, even if they end up with more coin.

I understood him as if he's not touching people's deposits and he's holding people's assets in Bitcoin and paying them out in Bitcoin there is no need to be valuing them in their exchange rate to to other currencies, i.e you deposit 1 BTC you withdraw 1.04 BTC after a years interest regardless of it's exchange rate in another currency.

Either way is really stupid for different reasons, as you've shown but it'd be nice if he'd clarify.

[laffenlarry]

I should probably add to the previous post in saying that:

Our Internal Unit of Exchange Increases In Value as the Dollar, Euro, and other Fiat Currencies drop.

This differentiation allows us to leverage our Unit. The resultant difference is proportionally distributed (over a multitude of uses), but as well to form another part of our Interest Payment structure.

Further information is confidential, and not for public disclosure.

Thanks again!

[laffenlarry]

A'ite, bear with me here, cause I'm struggling to follow your business plan. So no fractional reserve lending. Fair enough. Reading through you're other responses I've ascertained you (correct me if I am wrong) intend to pay interest by

• charging fees and returning a portion of that income as interest
• investing a portion of that income in real assets and commodities which you hope will appreciate in value and return some of the capital gains as interest

So to point one, the sum of all fees must exceed the sum of all interest, ergo your clients are net losers if we view point one in isolation. If we include point two, you are making the claim that real assets and commodities will gain value relative to bitcoin. That is another way of saying bitcoin will lose value relative to those assists/commodities.

The above being true, what your are counting on is (through your doing or the pressures of the market place) bitcoin will depreciate relative to goods and services. You will then arbitrage the difference and pay a proportion of that arbitrage to your clients. Meanwhile, your clients will have lost a (necessarily larger) portion in depreciated coin. So at best, you're cushioning the depreciation with interest. At worst, you've some scheme in mind to cause the depreciation. Either-way, it's not clear to me how your clients end up with more value over time, even if they end up with more coin.

I understood him as if he's not touching people's deposits and he's holding people's assets in Bitcoin and paying them out in Bitcoin there is no need to be valuing them in their exchange rate to to other currencies, i.e you deposit 1 BTC you withdraw 1.04 BTC after a years interest regardless of it's exchange rate in another currency.

Either way is really stupid for different reasons, as you've shown but it'd be nice if he'd clarify.

Due to the fluctuation nature of non-real value currency like crypto currency the sentiment posed is inaccurate.

A currency that is not linked to a Tangible Real Value Unit (liek Oil, or Gold, Or Wheat) has no value.

It would also subject our clients to Unknown Losses, which defeats the saving principle. As if the BitCoin devalued to BELOW the Fiat Exchange you chose we'd be happy to pay you less - but we woulndt' feel comfortable doing so.

We provide a way to associate to REAL Value, not Speculative Valuations.

Thanks for your comment!

[rusane]

Mayhaps an example.... Pick your favorite commodity, how's tulips, I like tulips.

I deposite a bitcoin in your bank, which on the day I deposit it happens to be worth a tulip bulb. You charge me a fee. You take my fee and, with some black box inhouse currency mumbo in the middle, buy something less than a tulip bulb (you only have less than my deposit in fees, and my deposit is worth a whole bulb, so you can't possible buy a whole bulb). Over time, your less than a whole bulb appreciates and becomes worth a whole bitcoin. You sell your bulb, and now have a bitcoin.  You pay me a share of the gains in interest.  I now have a bit coin and then some.  Sadly, my bitcoin and then some can't buy a whole bulb anymore. So even though I have more bitcoin than when I started, I can't buy as many bulbs, and as I said, I like tulips.  

[dflatline]

A'ite, bear with me here, cause I'm struggling to follow your business plan. So no fractional reserve lending. Fair enough. Reading through you're other responses I've ascertained you (correct me if I am wrong) intend to pay interest by

• charging fees and returning a portion of that income as interest
• investing a portion of that income in real assets and commodities which you hope will appreciate in value and return some of the capital gains as interest

So to point one, the sum of all fees must exceed the sum of all interest, ergo your clients are net losers if we view point one in isolation. If we include point two, you are making the claim that real assets and commodities will gain value relative to bitcoin. That is another way of saying bitcoin will lose value relative to those assists/commodities.

The above being true, what your are counting on is (through your doing or the pressures of the market place) bitcoin will depreciate relative to goods and services. You will then arbitrage the difference and pay a proportion of that arbitrage to your clients. Meanwhile, your clients will have lost a (necessarily larger) portion in depreciated coin. So at best, you're cushioning the depreciation with interest. At worst, you've some scheme in mind to cause the depreciation. Either-way, it's not clear to me how your clients end up with more value over time, even if they end up with more coin.

I understood him as if he's not touching people's deposits and he's holding people's assets in Bitcoin and paying them out in Bitcoin there is no need to be valuing them in their exchange rate to to other currencies, i.e you deposit 1 BTC you withdraw 1.04 BTC after a years interest regardless of it's exchange rate in another currency.

Either way is really stupid for different reasons, as you've shown but it'd be nice if he'd clarify.

Due to the fluctuation nature of non-real value currency like crypto currency the sentiment posed is inaccurate.

A currency that is not linked to a Tangible Real Value Unit (liek Oil, or Gold, Or Wheat) has no value.

It would also subject our clients to Unknown Losses, which defeats the saving principle. As if the BitCoin devalued to BELOW the Fiat Exchange you chose we'd be happy to pay you less - but we woulndt' feel comfortable doing so.

We provide a way to associate to REAL Value, not Speculative Valuations.

Thanks for your comment!

The only way you can link the value of capital (i.e, your banks deposits) to a bundle of commodities is by investing that capital in those commodities. If you've got £1000000 of deposits it does not matter how much say, gold is worth unless you have bought £1000000 gold. Are you investing peoples deposits in commodities? No, you're investing fees in them.

[laffenlarry]

Mayhaps an example.... Pick your favorite commodity, how's tulips, I like tulips.

I deposite a bitcoin in your bank, which on the day I deposit it happens to be worth a tulip bulb. You charge me a fee. You take my fee and, with some black box inhouse currency mumbo in the middle, buy something less than a tulip bulb (you only have less than my deposit in fees, and my deposit is worth a whole bulb, so you can't possible buy a whole bulb). Over time, your less than a whole bulb appreciates and becomes worth a whole bitcoin. You sell your bulb, and now have a bitcoin.  You pay me a share of the gains in interest.  I now have a bit coin and then some.  Sadly, my bitcoin and then some can't buy a whole bulb anymore. So even though I have more bitcoin than when I started, I can't buy as many bulbs, and as I said, I like tulips.  

Nope - Let's not use non-referentials for examples, as that just becomes messy.

Let's start with the BitCoin. Bitcoin has a Speculative Value, not a Real Value. It's worth nothing if the currency is not there.

Now say you have a dollar bill, or a euro coin. You can use those anywhere to buy anything - as they have a Standardized and Intrinsic Commonly Recognized and Known Value.

A dollar is a dollar.

And though a bitcoin is a bit coin; the dollar will be there when the power goes down. The dollar cannot be hacked and is not succeptible to a virus.

But, now let's assume that your 1 dollar bought 1 bitcoin. and tomorrow the bitcoin was worth 0, and the dollar was worth .50 cents.  Better to have the dollar.  Or let's say that your computer crashed, or the power went down, or your battery lost it's charge - you could take out the dollar and pay.

Now - let's say that you knew the Dollar and the BitCoin were susceptible to going up and down; you would choose the one that has REAL VALUE to STORE the VALUE of the that thing.  Liek putting a penny in the piggy bank.  Tomorrow it WILL be there.

So, now let's say that your 1 bit coin went to a Unit that was linked to something entirely differently.  Let's say copper.  And let's say that your 1 bitcoin could buy you 1 Ledger Share of Copper, at YOUR Chosen Currency. And it gets recorded.

Tomorrow there your computer crashes! All your coins in your bitcoin wallet nice and safe, but no way to access them!  The networks are down, and a massive network attack has started on various serves causing downages.  your Bitcoin, just like MY BITCOIN - Are worthless.

But I could pick up the phone and call BGMCO, or send one of those paper letter things, or a fax, and say SEND ME MONEY! And - We Would.

Thanks for your comment! And sorry, but we have no tulips today (insert polite chuckle).

[laffenlarry]

A'ite, bear with me here, cause I'm struggling to follow your business plan. So no fractional reserve lending. Fair enough. Reading through you're other responses I've ascertained you (correct me if I am wrong) intend to pay interest by

• charging fees and returning a portion of that income as interest
• investing a portion of that income in real assets and commodities which you hope will appreciate in value and return some of the capital gains as interest

So to point one, the sum of all fees must exceed the sum of all interest, ergo your clients are net losers if we view point one in isolation. If we include point two, you are making the claim that real assets and commodities will gain value relative to bitcoin. That is another way of saying bitcoin will lose value relative to those assists/commodities.

The above being true, what your are counting on is (through your doing or the pressures of the market place) bitcoin will depreciate relative to goods and services. You will then arbitrage the difference and pay a proportion of that arbitrage to your clients. Meanwhile, your clients will have lost a (necessarily larger) portion in depreciated coin. So at best, you're cushioning the depreciation with interest. At worst, you've some scheme in mind to cause the depreciation. Either-way, it's not clear to me how your clients end up with more value over time, even if they end up with more coin.

I understood him as if he's not touching people's deposits and he's holding people's assets in Bitcoin and paying them out in Bitcoin there is no need to be valuing them in their exchange rate to to other currencies, i.e you deposit 1 BTC you withdraw 1.04 BTC after a years interest regardless of it's exchange rate in another currency.

Either way is really stupid for different reasons, as you've shown but it'd be nice if he'd clarify.

Due to the fluctuation nature of non-real value currency like crypto currency the sentiment posed is inaccurate.

A currency that is not linked to a Tangible Real Value Unit (liek Oil, or Gold, Or Wheat) has no value.

It would also subject our clients to Unknown Losses, which defeats the saving principle. As if the BitCoin devalued to BELOW the Fiat Exchange you chose we'd be happy to pay you less - but we woulndt' feel comfortable doing so.

We provide a way to associate to REAL Value, not Speculative Valuations.

Thanks for your comment!

The only way you can link the value of capital (i.e, your banks deposits) to a bundle of commodities is by investing that capital in those commodities. If you've got £1000000 of deposits it does not matter how much say, gold is worth unless you have bought £1000000 gold. Are you investing peoples deposits in commodities? No, you're investing fees in them.

You are labouring under the misapprehension that you are correct with your theory. And you are entitled to believe that which you have written. You would require knowledge of our structures to make any accurate conclusions. However, as you are not in possession of them, though we appreciate the comment, you are incorrect.


Thank you for your comment!

[rusane]

The volatility of the bitcoin is due to speculations and illiquidity. That doesn't mean it doesn't have an intrinsic value. Like the dollar (which isn't worth a dollar from one moment to the next by the way; see inflation) bitcoin is a fiat currency who's value is decide by market efficiency (a fancy way of saying we say its worth what its worth, tautological, I know). Since a bitcoin can be used to buy goods and services direclty, it isn't dependent on any other fiat currency, dollars, euros, or tulips. It can be converted into those other currencies and commodities, and since those other currency and commodities are also convertible into eachnother, in an efficient market the the conversation factors would all be reconcilable. We don't live in an efficient market, so they're are discrepancies in the conversion factors. Your business model is simply arbitrage is taking advantage of the discrepancies, aka skimming off the top - which debases the currency. See superman III for more information.

I wish you luck with your venture, it's not the bank for me though, as its not really any different than the royal bank of-JP-citi-SBC-ice-Scotland, inc

[laffenlarry]

The volatility of the bitcoin is due to speculations and illiquidity. That doesn't mean it doesn't have an intrinsic value. Like the dollar (which isn't worth a dollar from one moment to the next by the way; see inflation) bitcoin is a fiat currency who's value is decide by market efficiency (a fancy way of saying we say its worth what its worth, tautological, I know). Since a bitcoin can be used to buy goods and services direclty, it isn't dependent on any other fiat currency, dollars, euros, or tulips. It can be converted into those other currencies and commodities, and since those other currency and commodities are also convertible into eachnother, in an efficient market the the conversation factors would all be reconcilable. We don't live in an efficient market, so they're are discrepancies in the conversion factors. Your business model is simply arbitrage is taking advantage of the discrepancies, aka skimming off the top - which debases the currency. See superman III for more information.

I wish you luck with your venture, it's not the bank for me though, as its not really any different than the royal bank of-JP-citi-SBC-ice-Scotland, inc

Thanks for your comment, but again - the conclusion you draw is incorrect.

I greatly enjoy everyone trying to figure out 'the how' but that is proprietary information. Formulas, equations, individual basket make ups, and the like are not for public disclosure.

The foundations and structure are sound.

Your comments are appreciated, and thanks for keeping things lively!

(PS: If you went to a bank or any business and asked them about their secrets they wouldn't tell you either. But "Success Is Knowing Something that No One Else Knows", and we know many things that no one knows.)

[dflatline]

A'ite, bear with me here, cause I'm struggling to follow your business plan. So no fractional reserve lending. Fair enough. Reading through you're other responses I've ascertained you (correct me if I am wrong) intend to pay interest by

• charging fees and returning a portion of that income as interest
• investing a portion of that income in real assets and commodities which you hope will appreciate in value and return some of the capital gains as interest

So to point one, the sum of all fees must exceed the sum of all interest, ergo your clients are net losers if we view point one in isolation. If we include point two, you are making the claim that real assets and commodities will gain value relative to bitcoin. That is another way of saying bitcoin will lose value relative to those assists/commodities.

The above being true, what your are counting on is (through your doing or the pressures of the market place) bitcoin will depreciate relative to goods and services. You will then arbitrage the difference and pay a proportion of that arbitrage to your clients. Meanwhile, your clients will have lost a (necessarily larger) portion in depreciated coin. So at best, you're cushioning the depreciation with interest. At worst, you've some scheme in mind to cause the depreciation. Either-way, it's not clear to me how your clients end up with more value over time, even if they end up with more coin.

I understood him as if he's not touching people's deposits and he's holding people's assets in Bitcoin and paying them out in Bitcoin there is no need to be valuing them in their exchange rate to to other currencies, i.e you deposit 1 BTC you withdraw 1.04 BTC after a years interest regardless of it's exchange rate in another currency.

Either way is really stupid for different reasons, as you've shown but it'd be nice if he'd clarify.

Due to the fluctuation nature of non-real value currency like crypto currency the sentiment posed is inaccurate.

A currency that is not linked to a Tangible Real Value Unit (liek Oil, or Gold, Or Wheat) has no value.

It would also subject our clients to Unknown Losses, which defeats the saving principle. As if the BitCoin devalued to BELOW the Fiat Exchange you chose we'd be happy to pay you less - but we woulndt' feel comfortable doing so.

We provide a way to associate to REAL Value, not Speculative Valuations.

Thanks for your comment!

The only way you can link the value of capital (i.e, your banks deposits) to a bundle of commodities is by investing that capital in those commodities. If you've got £1000000 of deposits it does not matter how much say, gold is worth unless you have bought £1000000 gold. Are you investing peoples deposits in commodities? No, you're investing fees in them.

You are labouring under the misapprehension that you are correct with your theory. And you are entitled to believe that which you have written. You would require knowledge of our structures to make any accurate conclusions. However, as you are not in possession of them, though we appreciate the comment, you are incorrect.


Thank you for your comment!

You are labouring under the misapprehension that you're standing up to even the most basic scrutiny. Deflecting any reasonable criticism or inquiry in the manner you're doing is unprofessional and embarrassing especially when its you who is asking us for money.

[rusane]

Fair enough, modus vivendi.

PS, please forgive my growing number of typos, but they are inversely proportional to the volume of whisky still in the bottle. 

[laffenlarry]

A'ite, bear with me here, cause I'm struggling to follow your business plan. So no fractional reserve lending. Fair enough. Reading through you're other responses I've ascertained you (correct me if I am wrong) intend to pay interest by

• charging fees and returning a portion of that income as interest
• investing a portion of that income in real assets and commodities which you hope will appreciate in value and return some of the capital gains as interest

So to point one, the sum of all fees must exceed the sum of all interest, ergo your clients are net losers if we view point one in isolation. If we include point two, you are making the claim that real assets and commodities will gain value relative to bitcoin. That is another way of saying bitcoin will lose value relative to those assists/commodities.

The above being true, what your are counting on is (through your doing or the pressures of the market place) bitcoin will depreciate relative to goods and services. You will then arbitrage the difference and pay a proportion of that arbitrage to your clients. Meanwhile, your clients will have lost a (necessarily larger) portion in depreciated coin. So at best, you're cushioning the depreciation with interest. At worst, you've some scheme in mind to cause the depreciation. Either-way, it's not clear to me how your clients end up with more value over time, even if they end up with more coin.

I understood him as if he's not touching people's deposits and he's holding people's assets in Bitcoin and paying them out in Bitcoin there is no need to be valuing them in their exchange rate to to other currencies, i.e you deposit 1 BTC you withdraw 1.04 BTC after a years interest regardless of it's exchange rate in another currency.

Either way is really stupid for different reasons, as you've shown but it'd be nice if he'd clarify.

Due to the fluctuation nature of non-real value currency like crypto currency the sentiment posed is inaccurate.

A currency that is not linked to a Tangible Real Value Unit (liek Oil, or Gold, Or Wheat) has no value.

It would also subject our clients to Unknown Losses, which defeats the saving principle. As if the BitCoin devalued to BELOW the Fiat Exchange you chose we'd be happy to pay you less - but we woulndt' feel comfortable doing so.

We provide a way to associate to REAL Value, not Speculative Valuations.

Thanks for your comment!

The only way you can link the value of capital (i.e, your banks deposits) to a bundle of commodities is by investing that capital in those commodities. If you've got £1000000 of deposits it does not matter how much say, gold is worth unless you have bought £1000000 gold. Are you investing peoples deposits in commodities? No, you're investing fees in them.

You are labouring under the misapprehension that you are correct with your theory. And you are entitled to believe that which you have written. You would require knowledge of our structures to make any accurate conclusions. However, as you are not in possession of them, though we appreciate the comment, you are incorrect.


Thank you for your comment!

You are labouring under the misapprehension that you're standing up to even the most basic scrutiny. Deflecting any reasonable criticism or inquiry in the manner you're doing is unprofessional and embarrassing especially when its you who is asking us for money.

Thanks for your continued participation!

I am sorry that my not telling you the internal workings is upsetting you - however, that would strike me as more of a personal issue than associated to the operation of BGMCO.

You are entitled to your opinions, but the fact that we have clients weakens the positing of your sentiment.

The Structures and Foundations are sound - if you have not been able to see how it works and figure it out, I am sorry. I suppose it's beyond your comprehension -but that does not mean it is beyond ours.

Your comments also do not lessen the fact that it works, despite your resistance as to whether it can. We have proven the foundations over the past 12 months, they are valid, the returns are solid and as expected.

Thanks again for your participation!