DNotes 2.0 - Staking, CRISP Interest, DNotes Pay

[TimMarsh]

Crypto-pay Button in Your Browser Will Change What Content Creators Offer Us

We've had a balance of power in media and particularly the Internet for a long time. Consumers want media entertainment for free. Advertisers want our attention. So we watch media, and read articles in exchange for a variety of advertising exposure.

But the public has also become more savvy about the power of advertising, and even those who don't care about the insidious influence, are getting tired of advertisements hogging screen space and interrupting their entertainment. But unless you're willing to subscribe to advertisement-free sources, there has been no other option. Possibly, a major cause of this situation is how expensive and difficult it is to make a financial transaction. This prohibits micro-payments of a similar value to the value of benefits advertisers get for our moment of attention.

But the W3C has been working on a browser based payment standard that incorporates cryptocurrency payment. This system could benefit from the fact that cryptocurrency transaction fees can be very low, and the currencies can be traded in fractions of a cent.

https://www.coindesk.com/bitcoin-browser-google-apple-move-adopt-crypto-compatible-api/

The standard has now matured to a stage where it is encouraging the development of APIs by merchants and financial institutions including cryptocurrency groups. This could herald a fundamental shift in the way media is consumed and as a result, the type of media that is provided.

At the moment, content creators are responding as much to the desires of potential advertisers as they are to the desires of the audience. This is because even if the audience really wants a product, if the advertiser won't partner up with its distribution, the content creator will get no income from it. Consider the number of Youtube content creators that were burnt when advertisers started demanding that their products were not displayed on channels with possibly offensive material, like those of comedians. Or consider how hard it would be to get advertisers in a blog about how advertising is making us buy products that we don't want.

But when efficient micropayments can be automated for our selected media channels, or we can hit a 'mini-pay' button instead of a thumbs-up for a more genuine expression of our support or gratitude, content creators will respond to completely different motivators. The direct connection between audience, payment, and creator will enable much more contentious points of view, and possibly much more offensive entertainment to be profitable.

[TeeGee]

Are you saying TeeGee, that wealthy Chinese might currently consider Bitcoin and cryptocurrencies a safe harbour or logical partial hedge against possible devaluation of the Chinese Yuan? I find it really curious that Bitcoin responds to financial markets so independently of fiat currency, and behaves more like precious metals or real estate than stocks or bonds.

I understand China being concerned that savings may be going elsewhere instead of into their banks if they're carrying $40 trillion in debt. But with bitcoin having a market cap of $66 billion. Even if Chinese investors diverted their money into bitcoin at its current price, it would be less than 0.16% of their carried debt. A literal one and a half millilitre drop in a litre bucket.

Bitcoin is beginning to be seen by many as worth taking a trading risk on in the face of market uncertainty. In the west negative economic news often correlates to bull runs in the price of gold and Bitcoin. In China it works a little differently because the PBOC peg the price of the Chinese Yuan (CNY) to the US dollar at a rate that is beneficial to their exporters, which means frequent devaluations that reduce the 'world value' of the wealth held by Chinese savers. This makes devaluations more predictable -- each time the Yuan becomes stronger relative to its neighbours, Chinese companies become less profitable, and they devalue again.

The problem for China would actually be much more significant than you calculated - because it is the precious savings, or the 2 trillion in "equity" supporting the loan system that is being invested into Bitcoin. China claims this number is 3 trillion, which happens to be the IMF minimum reserve adequacy. If you look at a 20/1 debt to equity ratio, the problem compounds at 20x what you calculated if savings are withdrawn to purchase BTC, and the new owner of the Yuan (CNY) does not put them back into bank saving accounts (potentially 40x if you want to compare to the liquid reserves). If people borrow to buy Bitcoin, it puts additional strain on the system because it is supported by such little equity, but only a fraction as much as savings exiting the banking system. It would mean that extra pressure is placed on the Chinese financial system, just to support Bitcoin's growth, which in turn creates even larger demand to borrow and place increased pressure on the system again.

One interesting question is why 'savers' buying bitcoin should matter much, given that if Yuan are swapped for BTC, the Yuan are still "in China", and are likely to just be put straight back into the bank (or never even leave the bank if the transfer is internal i.e. bank to bank).

[TeeGee]

Crypto-pay Button in Your Browser Will Change What Content Creators Offer Us

We've had a balance of power in media and particularly the Internet for a long time. Consumers want media entertainment for free. Advertisers want our attention. So we watch media, and read articles in exchange for a variety of advertising exposure.

But the public has also become more savvy about the power of advertising, and even those who don't care about the insidious influence, are getting tired of advertisements hogging screen space and interrupting their entertainment. But unless you're willing to subscribe to advertisement-free sources, there has been no other option. Possibly, a major cause of this situation is how expensive and difficult it is to make a financial transaction. This prohibits micro-payments of a similar value to the value of benefits advertisers get for our moment of attention.

But the W3C has been working on a browser based payment standard that incorporates cryptocurrency payment. This system could benefit from the fact that cryptocurrency transaction fees can be very low, and the currencies can be traded in fractions of a cent.

https://www.coindesk.com/bitcoin-browser-google-apple-move-adopt-crypto-compatible-api/

The standard has now matured to a stage where it is encouraging the development of APIs by merchants and financial institutions including cryptocurrency groups. This could herald a fundamental shift in the way media is consumed and as a result, the type of media that is provided.

At the moment, content creators are responding as much to the desires of potential advertisers as they are to the desires of the audience. This is because even if the audience really wants a product, if the advertiser won't partner up with its distribution, the content creator will get no income from it. Consider the number of Youtube content creators that were burnt when advertisers started demanding that their products were not displayed on channels with possibly offensive material, like those of comedians. Or consider how hard it would be to get advertisers in a blog about how advertising is making us buy products that we don't want.

But when efficient micropayments can be automated for our selected media channels, or we can hit a 'mini-pay' button instead of a thumbs-up for a more genuine expression of our support or gratitude, content creators will respond to completely different motivators. The direct connection between audience, payment, and creator will enable much more contentious points of view, and possibly much more offensive entertainment to be profitable.

Thanks for that Tim.

It is great to see this technology being adopted by browsers. I would hope that the browser doesn't have access to 'pull' funds from your wallet (pretty likely), nor include a special 'inbuilt' wallet. This would open up Google and Apple to seizing all the assets upon request by regulators. On the other side of this, it's certainly going to help cryptocurrency become mainstream, and make it so simple to reward/pay one another to the point that even our grandmothers can take part!

I know somebody actually who just launched an ICO (today) in www.circlesproject.io that seeks to work in this space, to reward content creators with crypto, by encouraging people to circulate their content and make it 'viral' with a payout system that rewards early circulators. The wider spread the content becomes, the more 'early circulators' of the content get rewarded (capped at 10% profit, before the next people are paid). 90% of the payments are given to content creators on Youtube through a browser app, with the other 10% going to a payout pool that rewards the circulators.

 

[TimMarsh]

Are you saying TeeGee, that wealthy Chinese might currently consider Bitcoin and cryptocurrencies a safe harbour or logical partial hedge against possible devaluation of the Chinese Yuan? I find it really curious that Bitcoin responds to financial markets so independently of fiat currency, and behaves more like precious metals or real estate than stocks or bonds.

I understand China being concerned that savings may be going elsewhere instead of into their banks if they're carrying $40 trillion in debt. But with bitcoin having a market cap of $66 billion. Even if Chinese investors diverted their money into bitcoin at its current price, it would be less than 0.16% of their carried debt. A literal one and a half millilitre drop in a litre bucket.

Bitcoin is beginning to be seen by many as worth taking a trading risk on in the face of market uncertainty. In the west negative economic news often correlates to bull runs in the price of gold and Bitcoin. In China it works a little differently because the PBOC peg the price of the Chinese Yuan (CNY) to the US dollar at a rate that is beneficial to their exporters, which means frequent devaluations that reduce the 'world value' of the wealth held by Chinese savers. This makes devaluations more predictable -- each time the Yuan becomes stronger relative to its neighbours, Chinese companies become less profitable, and they devalue again.

The problem for China would actually be much more significant than you calculated - because it is the precious savings, or the 2 trillion in "equity" supporting the loan system that is being invested into Bitcoin. China claims this number is 3 trillion, which happens to be the IMF minimum reserve adequacy. If you look at a 20/1 debt to equity ratio, the problem compounds at 20x what you calculated if savings are withdrawn to purchase BTC, and the new owner of the Yuan (CNY) does not put them back into bank saving accounts (potentially 40x if you want to compare to the liquid reserves). If people borrow to buy Bitcoin, it puts additional strain on the system because it is supported by such little equity, but only a fraction as much as savings exiting the banking system. It would mean that extra pressure is placed on the Chinese financial system, just to support Bitcoin's growth, which in turn creates even larger demand to borrow and place increased pressure on the system again.

One interesting question is why 'savers' buying bitcoin should matter much, given that if Yuan are swapped for BTC, the Yuan are still "in China", and are likely to just be put straight back into the bank (or never even leave the bank if the transfer is internal i.e. bank to bank).

Thanks TeeGee. The liquid ratio makes a lot more sense to me and I can see how that would have an impact.

As for money transfers between bitcoin buyers, Chinese exchanges, and banks, I find it hard to make sense of. I imagine a Chinese bitcoin buyer buys a bitcoin for 25,600 CNY, then the exchange hands over 1 BTC and puts 25,600 CNY in their bank. Then a year later, the Chinese investor buys 50,600 CNY with the same inflated bitcoin, where does the exchange get the extra 25,000 CNY from? I've never understood this.

[TeeGee]

Are you saying TeeGee, that wealthy Chinese might currently consider Bitcoin and cryptocurrencies a safe harbour or logical partial hedge against possible devaluation of the Chinese Yuan? I find it really curious that Bitcoin responds to financial markets so independently of fiat currency, and behaves more like precious metals or real estate than stocks or bonds.

I understand China being concerned that savings may be going elsewhere instead of into their banks if they're carrying $40 trillion in debt. But with bitcoin having a market cap of $66 billion. Even if Chinese investors diverted their money into bitcoin at its current price, it would be less than 0.16% of their carried debt. A literal one and a half millilitre drop in a litre bucket.

Bitcoin is beginning to be seen by many as worth taking a trading risk on in the face of market uncertainty. In the west negative economic news often correlates to bull runs in the price of gold and Bitcoin. In China it works a little differently because the PBOC peg the price of the Chinese Yuan (CNY) to the US dollar at a rate that is beneficial to their exporters, which means frequent devaluations that reduce the 'world value' of the wealth held by Chinese savers. This makes devaluations more predictable -- each time the Yuan becomes stronger relative to its neighbours, Chinese companies become less profitable, and they devalue again.

The problem for China would actually be much more significant than you calculated - because it is the precious savings, or the 2 trillion in "equity" supporting the loan system that is being invested into Bitcoin. China claims this number is 3 trillion, which happens to be the IMF minimum reserve adequacy. If you look at a 20/1 debt to equity ratio, the problem compounds at 20x what you calculated if savings are withdrawn to purchase BTC, and the new owner of the Yuan (CNY) does not put them back into bank saving accounts (potentially 40x if you want to compare to the liquid reserves). If people borrow to buy Bitcoin, it puts additional strain on the system because it is supported by such little equity, but only a fraction as much as savings exiting the banking system. It would mean that extra pressure is placed on the Chinese financial system, just to support Bitcoin's growth, which in turn creates even larger demand to borrow and place increased pressure on the system again.

One interesting question is why 'savers' buying bitcoin should matter much, given that if Yuan are swapped for BTC, the Yuan are still "in China", and are likely to just be put straight back into the bank (or never even leave the bank if the transfer is internal i.e. bank to bank).

Thanks TeeGee. The liquid ratio makes a lot more sense to me and I can see how that would have an impact.

As for money transfers between bitcoin buyers, Chinese exchanges, and banks, I find it hard to make sense of. I imagine a Chinese bitcoin buyer buys a bitcoin for 25,600 CNY, then the exchange hands over 1 BTC and puts 25,600 CNY in their bank. Then a year later, the Chinese investor buys 50,600 CNY with the same inflated bitcoin, where does the exchange get the extra 25,000 CNY from? I've never understood this.

It comes from the funds of other investors who have deposited money at the exchange's bank account. So another investor has fronted the additional 25,000 CNY, by depositing 50,600 CNY to purchase the original investors 1 BTC that they paid 25,600 for.

This is because exchanges have buyers and sellers. The buyers have CNY, and the sellers have Bitcoin (at the exchange in both cases). The exchange will only ever have as many CNY in their account as users deposit there, except that amount can stay constant, and the price of BTC could increase.

1 btc at the exchange, and 25,600 CNY

*Bitcoin price nearly doubles*

0.5 btc withdrawn for 50,600 CNY. There is 0.5 btc left on the exchange with no buyers. It is the rate that has changed, but that doesn't mean that all of the BTC can be sold at that rate. For the extra BTC to be sold, more people need to deposit money at the exchange.

[Dyna]

Thank you very much to Steve and the team at Vments for working with me on the interview.

Vments have a lot of fascinating content and product offerings listed at their website that have a high degree of potential to facilitate collaboration between Vments and DNotes in the future -- especially given our plan to integrate the frictionless means to convert DNotes or other crypto to merchant POS spending via fiat conversion. I could personally see the Vments ecosystem benefiting the DNotes multi-currency card and banking network in the following way, as I will outline one potential use case below.

Spending of cryptocurrency using the DNotes multi-currency *debit* card could trigger the following process:

Any crypto converted into DNotes via DNotes' decentralized exchange >
DNotes are converted into fiat through our regulated exchange (fiat gateway) >
USD transfer from the fiat gateway exchange into the DNotes bank >
Forwarding of funds from DNotes bank to partner bank accounts (nostro accounts)> (particular benefit here)
Forwarding of payment to local merchant that multi-currency card is used to make purchase of goods or services.

The process above would be designed to be seamless and near-instant, and Vments work in the area of inter-bank payment flows could massively benefit some of these processes - namely, inter-bank money flows in different countries. This could allow debits to be made from checking accounts with instant movement of funds across the entire process, rather than current 'credits' being made in lieu of physical money transfer as is the case with credit card systems today. This would allow users to avoid a lot of the fees common with credit card systems. Currently some projects allow for integration with the visa network to spend cryptocurrencies, the above model is different in that it brings the 'authentication', 'liquidity provider' / 'exchange' and 'banking' network under the same roof as the operators of the currency & card issuer, which means they can be more tightly integrated with more cost effective revenue models.  

This is just an example of how such collaboration could work. There are many others.

Tim, that was an excellent interview. Steve has very high regards for DNotes and has been following us for quite a while. I have spoken to him and very impressed with what Vments has to offer. Although some collaborations in the future is very possible, we need to be mindful that anything to do with banking these days will that a long time to jump through a lot of legal hurdles. Especially because of the current market conditions, we will that our time to seek out the best opportunities and do things right.

I agree with Alan that this is definitely one to watch, while taking careful, sure steps as the ground beneath cryptocurrencies becomes more solid and predictable.

And I'm really glad that DNotes has such talent, including TeeGee to make sense of all of those buzz words used in the article. To me, the meanings of a lot of the terms were unfamiliar, but not entirely vague.

But what really caught my attention was, "At the core of the technology is Virtual Fiat Money (VFM) which flows through account types CommunityVcash and CommunityVcredit established by participating financial institutions in their local base currency."

I assumed that both of these were a permissioned blockchain cryptocurrency that is pegged to a particular currency. I then imagined it was used to symbolise a transfer of value in some way, but I really would like to know more about it. Like does this virtual fiat currency have a tag in the transaction saying which currency it is pegged to and the peg value? Do they actually buy the virtual fiat from Vments at the pegged currency rate and the Vments sell this back to the receiver as a different fiat currency according to the predetermined pegged value?

So much to think about, so I hope there is a follow up article with more concrete details once that information is ready for public disclosure. And again I wonder if this DNotes thread might be the most broadly informative thread on bitcointalk.org.

Thanks, Tim. Vments platform is a private and permissioned blockchain functional ecosystem and network of financial institutions.

I sometime see the decentralized world and the centralized world as two extremely ends of the spectrum. Neither one is perfect but each has massive potential. A bridge that can negotiate the gap in a well balanced manner can reap great rewards. That is what DNotes Global, Inc. is destined to become. It will take time and many great strategic moves, collaborations, and partnership.

Vments can enable peer to peer settlement with a merchant or vendor using its VFM (virtual fiat money) using an account denominated in DNotes (or any cryptocurrency) where the card/account issuers settle with the customer in the cryptocurrency and the fiat currency of the transaction is similar to current credit/debit card trans for a foreign currency transaction. The card/account issuer would have to acquired VFM of the currency they need to send to the merchant/vendor, but then collect in crypto from the card/account holder. The merchant/vendor can then redeem the VFM to their bank account, reuse it for other transactions, or exchange it for some other fiat or crypto currency. If the merchant/vendor is willing to accept the crypto, then the conversion to VFM is not necessary and they can either reuse the crypto or exchange it for some other fiat or crypto currency. The VFM would be minted by the bank that the card/account issuer uses for the settlement, including where the bank could be the card/account issuer and handle all of the applicable compliance that our software would help comply with.

Welcome to DNotes, Steve. Thank you for explaining how DNotes could work with Vments to process payment settlement in a peer to peer transaction. This could be a great opportunity for mid-sized and small banks to participate in the immense power of blockchain technologies. Feel free to ask any questions. Meanwhile, we wish you the best success. 

[DNotes]

Are you saying TeeGee, that wealthy Chinese might currently consider Bitcoin and cryptocurrencies a safe harbour or logical partial hedge against possible devaluation of the Chinese Yuan? I find it really curious that Bitcoin responds to financial markets so independently of fiat currency, and behaves more like precious metals or real estate than stocks or bonds.

I understand China being concerned that savings may be going elsewhere instead of into their banks if they're carrying $40 trillion in debt. But with bitcoin having a market cap of $66 billion. Even if Chinese investors diverted their money into bitcoin at its current price, it would be less than 0.16% of their carried debt. A literal one and a half millilitre drop in a litre bucket.

Bitcoin is beginning to be seen by many as worth taking a trading risk on in the face of market uncertainty. In the west negative economic news often correlates to bull runs in the price of gold and Bitcoin. In China it works a little differently because the PBOC peg the price of the Chinese Yuan (CNY) to the US dollar at a rate that is beneficial to their exporters, which means frequent devaluations that reduce the 'world value' of the wealth held by Chinese savers. This makes devaluations more predictable -- each time the Yuan becomes stronger relative to its neighbours, Chinese companies become less profitable, and they devalue again.

The problem for China would actually be much more significant than you calculated - because it is the precious savings, or the 2 trillion in "equity" supporting the loan system that is being invested into Bitcoin. China claims this number is 3 trillion, which happens to be the IMF minimum reserve adequacy. If you look at a 20/1 debt to equity ratio, the problem compounds at 20x what you calculated if savings are withdrawn to purchase BTC, and the new owner of the Yuan (CNY) does not put them back into bank saving accounts (potentially 40x if you want to compare to the liquid reserves). If people borrow to buy Bitcoin, it puts additional strain on the system because it is supported by such little equity, but only a fraction as much as savings exiting the banking system. It would mean that extra pressure is placed on the Chinese financial system, just to support Bitcoin's growth, which in turn creates even larger demand to borrow and place increased pressure on the system again.

One interesting question is why 'savers' buying bitcoin should matter much, given that if Yuan are swapped for BTC, the Yuan are still "in China", and are likely to just be put straight back into the bank (or never even leave the bank if the transfer is internal i.e. bank to bank).

Thanks TeeGee. The liquid ratio makes a lot more sense to me and I can see how that would have an impact.

As for money transfers between bitcoin buyers, Chinese exchanges, and banks, I find it hard to make sense of. I imagine a Chinese bitcoin buyer buys a bitcoin for 25,600 CNY, then the exchange hands over 1 BTC and puts 25,600 CNY in their bank. Then a year later, the Chinese investor buys 50,600 CNY with the same inflated bitcoin, where does the exchange get the extra 25,000 CNY from? I've never understood this.

It comes from the funds of other investors who have deposited money at the exchange's bank account. So another investor has fronted the additional 25,000 CNY, by depositing 50,600 CNY to purchase the original investors 1 BTC that they paid 25,600 for.

This is because exchanges have buyers and sellers. The buyers have CNY, and the sellers have Bitcoin (at the exchange in both cases). The exchange will only ever have as many CNY in their account as users deposit there, except that amount can stay constant, and the price of BTC could increase.

1 btc at the exchange, and 25,600 CNY

*Bitcoin price nearly doubles*

0.5 btc withdrawn for 50,600 CNY. There is 0.5 btc left on the exchange with no buyers. It is the rate that has changed, but that doesn't mean that all of the BTC can be sold at that rate. For the extra BTC to be sold, more people need to deposit money at the exchange.

The exchange in this case just facilitates trades between buyers and sellers, and takes a fee for each exchange. If you want to buy a bitcoin, and agree to the price of the seller, you would have to deposit that amount. Some exchanges operate their own reserves, in which they buy and sell from, in which case they have to manage their own risk of price fluctuations.

[Dyna]

Great discussion on our current global financial systems. I think, we all can agree that it has already been stretched too thin. However, it is harder to predict when is the breaking point. Looking at past financial crises we can predict, with a high degree of certainty, that it will happen again. Based on the data shared on this forum, we are over-leveraged and reaching a point of no return. Consequently, nations (not just corporations) are resorting to creative accounting – “off balance sheet” and foot notes. Not a good sign.

Bitcoin and digital currencies, like DNotes, will continue to play a vital role as alternatives to fiat currencies and help avoid a sudden halt in economic activities (as in the recent case of Greece). 

[Chase]

Interesting results so far on a poll from Yahoo Finance:

[Dyna]

Interesting results so far on a poll from Yahoo Finance:

That is very telling. For all practical purposes, we are at the infancy of a global paradigm shift that will take years to take its course. We are often over-conditioned for instant gratification - we want it here and now. "if it didn't happened; it is not happening" mentality.

We know that what is happening in our industry is very disruptive. There will be push-backs from some political leaders and big bankers. But digital currency is the future of money and no one is in the position to stop that.

[TeeGee]

That is very telling. For all practical purposes, we are at the infancy of a global paradigm shift that will take years to take its course. We are often over-conditioned for instant gratification - we want it here and now. "if it didn't happened; it is not happening" mentality.

We know that what is happening in our industry is very disruptive. There will be push-backs from some political leaders and big bankers. But digital currency is the future of money and no one is in the position to stop that.

It's all just a matter of time. I think that in particular, many investors find the volatile and fast moving nature of Bitcoin to be a lot more exciting than investing in slow moving stock markets. Much in the same way that people get excited when sports teams play, the gambling with one's central nervous system makes everybody want to join in on the excitement of the 'highs', and the 'hope' of a heroic comeback during the lows.

As the industry matures, we will see the general volatility of the industry as a whole decrease, and its use case as spendable money further realised.

[R-J-F]

That is very telling. For all practical purposes, we are at the infancy of a global paradigm shift that will take years to take its course. We are often over-conditioned for instant gratification - we want it here and now. "if it didn't happened; it is not happening" mentality.

We know that what is happening in our industry is very disruptive. There will be push-backs from some political leaders and big bankers. But digital currency is the future of money and no one is in the position to stop that.

It's all just a matter of time. I think that in particular, many investors find the volatile and fast moving nature of Bitcoin to be a lot more exciting than investing in slow moving stock markets. Much in the same way that people get excited when sports teams play, the gambling with one's central nervous system makes everybody want to join in on the excitement of the 'highs', and the 'hope' of a heroic comeback during the lows.

As the industry matures, we will see the general volatility of the industry as a whole decrease, and its use case as spendable money further realised.

A friend of mine calls it "Crypto Crack" Nuff said I should think... 

[DNotes]

New additions to the Four Pillars membership site

The videos will be available to watch via the links below for a short period of time, after that they will only be accessible from the membership site.

Chapter 3 Understanding the
System Approach to Business Design

https://youtu.be/XNdoDgx2Nfk

How Competition Can Affect... https://youtu.be/jwAo-NXFqCY

Your Team and the System Approach https://youtu.be/o_oQnSrByJ8

Mission Focused Culture https://youtu.be/WUE4vIhsLik

System Approach to Management https://youtu.be/HFC-SwrCDkM

[TimMarsh]

As for money transfers between bitcoin buyers, Chinese exchanges, and banks, I find it hard to make sense of. I imagine a Chinese bitcoin buyer buys a bitcoin for 25,600 CNY, then the exchange hands over 1 BTC and puts 25,600 CNY in their bank. Then a year later, the Chinese investor buys 50,600 CNY with the same inflated bitcoin, where does the exchange get the extra 25,000 CNY from? I've never understood this.

It comes from the funds of other investors who have deposited money at the exchange's bank account. So another investor has fronted the additional 25,000 CNY, by depositing 50,600 CNY to purchase the original investors 1 BTC that they paid 25,600 for.

This is because exchanges have buyers and sellers. The buyers have CNY, and the sellers have Bitcoin (at the exchange in both cases). The exchange will only ever have as many CNY in their account as users deposit there, except that amount can stay constant, and the price of BTC could increase.

1 btc at the exchange, and 25,600 CNY

*Bitcoin price nearly doubles*

0.5 btc withdrawn for 50,600 CNY. There is 0.5 btc left on the exchange with no buyers. It is the rate that has changed, but that doesn't mean that all of the BTC can be sold at that rate. For the extra BTC to be sold, more people need to deposit money at the exchange.

The exchange in this case just facilitates trades between buyers and sellers, and takes a fee for each exchange. If you want to buy a bitcoin, and agree to the price of the seller, you would have to deposit that amount. Some exchanges operate their own reserves, in which they buy and sell from, in which case they have to manage their own risk of price fluctuations.

Between you both I finally understand. Thanks. I think the bit that was tripping me up was my difficulty in imagining how an exchange could manage its reserves so that it could facilitate instant exchanges. Still not a business I think I'd have the nerve for.

[TimMarsh]

New additions to the Four Pillars membership site

The videos will be available to watch via the links below for a short period of time, after that they will only be accessible from the membership site.

Chapter 3 Understanding the
System Approach to Business Design

https://youtu.be/XNdoDgx2Nfk

How Competition Can Affect... https://youtu.be/jwAo-NXFqCY

Your Team and the System Approach https://youtu.be/o_oQnSrByJ8

Mission Focused Culture https://youtu.be/WUE4vIhsLik

System Approach to Management https://youtu.be/HFC-SwrCDkM

I've just watched and enjoyed all five of these video productions. They all work together to deliver a very important message and I really believe that if more businesses followed this advice, they would have a much greater chance of success. Except for the fact that with them all following it, the competition will have just become much stronger. But even this is a good thing, because society always benefits when less effort is wasted.

Thinking with a systems mindset is not an easy thing to do and doesn't come naturally to many people. We tend to think in metaphors and need some visual way of conceptualising our thoughts. Business systems are often complex and don't lend themselves easily to visualisation. There are a lot of tools out there to assist with different aspects of them. I like flow charts, and business process mapping. But all such tools find it hard to incorporate the flow of resources and information into, through, and out of the whole system. Then trying to map over that the interactions of the staff at a more abstract and emotional level, becomes very difficult even though these interactions can have a powerful impact on success.

I also like how the videos all have a consistent look and style to them. It says to me that the important thing in the video is the valuable information being delivered. And recognises that anything else, might make it look fancier, but would ultimately become a distraction from the core message. So there have been some effective decisions made with this around its production format and delivery. Well done.

[TeeGee]

I too have been browsing through the videos. Great job Alan.

[Dyna]

New additions to the Four Pillars membership site

The videos will be available to watch via the links below for a short period of time, after that they will only be accessible from the membership site.

Chapter 3 Understanding the
System Approach to Business Design

https://youtu.be/XNdoDgx2Nfk

How Competition Can Affect... https://youtu.be/jwAo-NXFqCY

Your Team and the System Approach https://youtu.be/o_oQnSrByJ8

Mission Focused Culture https://youtu.be/WUE4vIhsLik

System Approach to Management https://youtu.be/HFC-SwrCDkM

I've just watched and enjoyed all five of these video productions. They all work together to deliver a very important message and I really believe that if more businesses followed this advice, they would have a much greater chance of success. Except for the fact that with them all following it, the competition will have just become much stronger. But even this is a good thing, because society always benefits when less effort is wasted.

Thinking with a systems mindset is not an easy thing to do and doesn't come naturally to many people. We tend to think in metaphors and need some visual way of conceptualising our thoughts. Business systems are often complex and don't lend themselves easily to visualisation. There are a lot of tools out there to assist with different aspects of them. I like flow charts, and business process mapping. But all such tools find it hard to incorporate the flow of resources and information into, through, and out of the whole system. Then trying to map over that the interactions of the staff at a more abstract and emotional level, becomes very difficult even though these interactions can have a powerful impact on success.

I also like how the videos all have a consistent look and style to them. It says to me that the important thing in the video is the valuable information being delivered. And recognises that anything else, might make it look fancier, but would ultimately become a distraction from the core message. So there have been some effective decisions made with this around its production format and delivery. Well done.

Thank you, Tim. Good to know that you like it. This is a big project with almost two years in the making and quite costly to me personally – both in terms of time and money. One would wonder why I made such a huge commitment.

To begin with, my book “Improve Your Odds – The Four Pillars of Business Success” https://fourpillarsofbusinesssuccess.com/  is one of the major building blocks of DNotes and DNotes Global, Inc. The book practically serves as a blue print for DNotes, and everything that we are involved in to follow. It also established our brand, mindset, and culture – critical guidelines for collaborations and partnership. They are the guiding principles for business success. And, Chapter 15 is about our industry, technology, and the DNotes story – a great way to introduce digital currency and DNotes to our readers.

Additionally, I am always deeply troubled by the high rate of business failures – 8 out of 10 businesses failed within ten years. Business failure is painful, costly, and emotionally distressful; often affecting not just the failed business owners but also family members, friends, and others. I am very committed to make a positive contribution to improve the chances of success.

There will always be the unknowns and uncontrollable that contribute 5% to 10% of business failures. Recognizing that no one is perfect, I strongly believe that any business that I am passionately involved in will have an 80% chance of succeeding. That is quite an improvement from the 20%. I trust that any true entrepreneur who follows my teachings religiously will greatly improve their odds of succeeding. Over 40,000 businesses in the United States failed each month. Even an improvement of a few percentage points will make a significant difference. 

By the time my book video production is completed – by the end of this year – I would have produced 70+ videos with bullet points, full transcripts, and the book itself. I am not aware of anything close to this scale has been done. Correct me if I am wrong. The book is available for purchase on Amazon and other outlets as an E-book, paper-back, or hard-cover. The videos with bullet points and full transcripts are available for viewing at your convenience for free till the end of 2019. All you need to do is sign up as a member HERE: https://fourpillarsofbusinesssuccess.com/register/free-membership/

I have granted DNotes Global, Inc. 100% royalty free for all revenue deriving from the book. So, why is this book project important to DNotes stakeholders?  I love to have your comments, including those who have already read my book. Thanks.

[DCEBrief]

Mexico Will Introduce bill to Regulate FinTech

https://dcebrief.com/mexico-will-introduce-bill-to-regulate-fintech/

[DNotes]

New additions to the Four Pillars membership site

The videos will be available to watch via the links below for a short period of time, after that they will only be accessible from the membership site.

Chapter 3 Understanding the
System Approach to Business Design

https://youtu.be/XNdoDgx2Nfk

How Competition Can Affect... https://youtu.be/jwAo-NXFqCY

Your Team and the System Approach https://youtu.be/o_oQnSrByJ8

Mission Focused Culture https://youtu.be/WUE4vIhsLik

System Approach to Management https://youtu.be/HFC-SwrCDkM

I've just watched and enjoyed all five of these video productions. They all work together to deliver a very important message and I really believe that if more businesses followed this advice, they would have a much greater chance of success. Except for the fact that with them all following it, the competition will have just become much stronger. But even this is a good thing, because society always benefits when less effort is wasted.

Thinking with a systems mindset is not an easy thing to do and doesn't come naturally to many people. We tend to think in metaphors and need some visual way of conceptualising our thoughts. Business systems are often complex and don't lend themselves easily to visualisation. There are a lot of tools out there to assist with different aspects of them. I like flow charts, and business process mapping. But all such tools find it hard to incorporate the flow of resources and information into, through, and out of the whole system. Then trying to map over that the interactions of the staff at a more abstract and emotional level, becomes very difficult even though these interactions can have a powerful impact on success.

I also like how the videos all have a consistent look and style to them. It says to me that the important thing in the video is the valuable information being delivered. And recognises that anything else, might make it look fancier, but would ultimately become a distraction from the core message. So there have been some effective decisions made with this around its production format and delivery. Well done.

Thank you, Tim. Good to know that you like it. This is a big project with almost two years in the making and quite costly to me personally – both in terms of time and money. One would wonder why I made such a huge commitment.

To begin with, my book “Improve Your Odds – The Four Pillars of Business Success” https://fourpillarsofbusinesssuccess.com/  is one of the major building blocks of DNotes and DNotes Global, Inc. The book practically serves as a blue print for DNotes, and everything that we are involved in to follow. It also established our brand, mindset, and culture – critical guidelines for collaborations and partnership. They are the guiding principles for business success. And, Chapter 15 is about our industry, technology, and the DNotes story – a great way to introduce digital currency and DNotes to our readers.

Additionally, I am always deeply troubled by the high rate of business failures – 8 out of 10 businesses failed within ten years. Business failure is painful, costly, and emotionally distressful; often affecting not just the failed business owners but also family members, friends, and others. I am very committed to make a positive contribution to improve the chances of success.

There will always be the unknowns and uncontrollable that contribute 5% to 10% of business failures. Recognizing that no one is perfect, I strongly believe that any business that I am passionately involved in will have an 80% chance of succeeding. That is quite an improvement from the 20%. I trust that any true entrepreneur who follows my teachings religiously will greatly improve their odds of succeeding. Over 40,000 businesses in the United States failed each month. Even an improvement of a few percentage points will make a significant difference.  

By the time my book video production is completed – by the end of this year – I would have produced 70+ videos with bullet points, full transcripts, and the book itself. I am not aware of anything close to this scale has been done. Correct me if I am wrong. The book is available for purchase on Amazon and other outlets as an E-book, paper-back, or hard-cover. The videos with bullet points and full transcripts are available for viewing at your convenience for free till the end of 2019. All you need to do is sign up as a member HERE: https://fourpillarsofbusinesssuccess.com/register/free-membership/

I have granted DNotes Global, Inc. 100% royalty free for all revenue deriving from the book. So, why is this book project important to DNotes stakeholders?  I love to have your comments, including those who have already read my book. Thanks.

Thanks TimMarsh and TeeGee, appreciate your comments!

I can say, though I may have a slightly biased opinion, from working with Alan through the years and my own contributions to four pillars... I don't believe there is any self help business content available at this level of raw insight and direction, while also placing the focus on exactly what you need to know. This can have a large impact on ones business and entrepreneurial outlook of running and starting a business. This is not a college course (though that may be helpful), this is not a story just designed to sell books or a single or just a couple lessons learned (again, still helpful), this is advice from someone who has walked the walk, has the experience, and truly wants to help people be more successful in business. It is an all inclusive business framework and strategy for success.

The add-on video series dives more in depth into the individual lessons that tie into the overarching concept. I am very excited to see it completed.

[Chase]

Thank you Denis and Crypto Coins Market for providing well researched and detailed information covering DNotes/DNotes 2.0 on your site. 


DNotes – General Info, Best Exchanges and Wallets - https://cryptocoinsmarket.com/dnotes/