DNotes 2.0 - Staking, CRISP Interest, DNotes Pay

[TimMarsh]

Mainstream Article on Intrinsic Value

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

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

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

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

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

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

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

[DNotes]

I don't understand why every time bitcoin goes down, the price of dnotes goes down further more. In USD it has depreciated from $0.32 to $0.11 now. This is a total control of whales. There are more DNotes in whales pockets than in long-time holders pockets. A coin holder won't dump like that and with this volume...

That seems to be the case with pretty much all altcoins today.

If you look at overall BTC dominance of the total coin market cap, it was like 37-38% a week or two back. And right now, it's 43+%. So, it stands to reason that on a day when 145 of the top 150 coins are in the red (with most of them being down 10+%), and a day that is seeing an increase in BTC market cap dominance....that most alts would fall further today than bitcoin.

Doesn't seem too out of the ordinary, all in all. Though it does kinda suck to lose the kind of money today, overall (in BTC, LTC, ETC, ETH, XRP, and SYS, along with NOTE) that make grown men cry.

But I'm determined to be not be emotional about all this volatility. Either up, or down.

HODLLLLLL

I still don't understand the correlation between BTC and alts . Why the other coins drop in price when bitcoin drops ? I was inclined to think that people sell BTC to buy alts which would have a totally different effect from what is actually happening now. So is it the market totally controlled by bitcoin whales ? And the whales sell when the BTC price is up then buy when it reaches a bottom and so on , accumulating more and more from the unexperienced traders? over the last 24h i lost more than $10000  which is very annoying. Well "lost" is inaccurate because i'm still on the green side overall but this volatility  is not for the faint-hearted.

When the value of BTC/USD goes down a lot the value of alts/USD goes down a lot as well (because they are mostly indexed relative to BTC), which leads people to sell their alts into BTC and then USD, which brings the value of alts/BTC down and the value of alts/USD even more down, which leads more people to sell their alts and so on and so forth until remain the people who do not want to sell or are not aware of what's going on, and once BTC/USD stabilizes or goes back up people start buying BTC and alts again

Right on the money. This has been the general trend and the inverse can be said for price movements in the other direction. Investor psychology and herd mentality are powerful drivers when it comes to market valuation, nobody wants to miss out and nobody wants to be left holding the bag in a currency that has no future.

Thank you everyone for supporting this forum. Your best efforts in trying to make sense of the correlation between BTC and altcoin value adjustment is as good as mine; in this case, better than mine could have been. What I can tell you is that, for all practical purposes, DNotes is worth a little more each day. We are working very hard ever day and investing serious money in taking DNotes to the next level with DNotes 2.0 and beyond. I have no doubt that DNotes will be a significant leader in our industry in a year or two. How much would DNotes be worth one day? You got it. Your guess is as good as mine. But don't make the same mistake I made with Startis. I bought a chunk when it was trading below $10 million and sold it at a nice profit after it doubled and then watch it went to $500 + million and to $1 + billion. Startis is developing in C# - so is DNotes. Just some food for thought.

It has been another long day. I started at 5:30 am in Chicago, drove 3.5 hours (240 miles), put in a full day in Coldwater, MI where DNotes core group is at this time. It's now 1:00 am. I have never been with a more committed and talented team. We are very passionate about what we are doing. It takes an amazing team with a clear vision to accomplish amazing results.

"I have never been with a more committed and talented team. We are very passionate about what we are doing. It takes an amazing team with a clear vision to accomplish amazing results. "

Agreed, I have also never been with a more passionate and committed team. We have a clear vision of the future, each step forward is strategically planned and executed, and value is being added to DNotes every single day by very talented and dedicated people.

[Brandon Cheliak]

I don't understand why every time bitcoin goes down, the price of dnotes goes down further more. In USD it has depreciated from $0.32 to $0.11 now. This is a total control of whales. There are more DNotes in whales pockets than in long-time holders pockets. A coin holder won't dump like that and with this volume...

That seems to be the case with pretty much all altcoins today.

If you look at overall BTC dominance of the total coin market cap, it was like 37-38% a week or two back. And right now, it's 43+%. So, it stands to reason that on a day when 145 of the top 150 coins are in the red (with most of them being down 10+%), and a day that is seeing an increase in BTC market cap dominance....that most alts would fall further today than bitcoin.

Doesn't seem too out of the ordinary, all in all. Though it does kinda suck to lose the kind of money today, overall (in BTC, LTC, ETC, ETH, XRP, and SYS, along with NOTE) that make grown men cry.

But I'm determined to be not be emotional about all this volatility. Either up, or down.

HODLLLLLL

I still don't understand the correlation between BTC and alts . Why the other coins drop in price when bitcoin drops ? I was inclined to think that people sell BTC to buy alts which would have a totally different effect from what is actually happening now. So is it the market totally controlled by bitcoin whales ? And the whales sell when the BTC price is up then buy when it reaches a bottom and so on , accumulating more and more from the unexperienced traders? over the last 24h i lost more than $10000  which is very annoying. Well "lost" is inaccurate because i'm still on the green side overall but this volatility  is not for the faint-hearted.

When the value of BTC/USD goes down a lot the value of alts/USD goes down a lot as well (because they are mostly indexed relative to BTC), which leads people to sell their alts into BTC and then USD, which brings the value of alts/BTC down and the value of alts/USD even more down, which leads more people to sell their alts and so on and so forth until remain the people who do not want to sell or are not aware of what's going on, and once BTC/USD stabilizes or goes back up people start buying BTC and alts again

Right on the money. This has been the general trend and the inverse can be said for price movements in the other direction. Investor psychology and herd mentality are powerful drivers when it comes to market valuation, nobody wants to miss out and nobody wants to be left holding the bag in a currency that has no future.

Thank you everyone for supporting this forum. Your best efforts in trying to make sense of the correlation between BTC and altcoin value adjustment is as good as mine; in this case, better than mine could have been. What I can tell you is that, for all practical purposes, DNotes is worth a little more each day. We are working very hard ever day and investing serious money in taking DNotes to the next level with DNotes 2.0 and beyond. I have no doubt that DNotes will be a significant leader in our industry in a year or two. How much would DNotes be worth one day? You got it. Your guess is as good as mine. But don't make the same mistake I made with Startis. I bought a chunk when it was trading below $10 million and sold it at a nice profit after it doubled and then watch it went to $500 + million and to $1 + billion. Startis is developing in C# - so is DNotes. Just some food for thought.

It has been another long day. I started at 5:30 am in Chicago, drove 3.5 hours (240 miles), put in a full day in Coldwater, MI where DNotes core group is at this time. It's now 1:00 am. I have never been with a more committed and talented team. We are very passionate about what we are doing. It takes an amazing team with a clear vision to accomplish amazing results.

"I have never been with a more committed and talented team. We are very passionate about what we are doing. It takes an amazing team with a clear vision to accomplish amazing results. "

Agreed, I have also never been with a more passionate and committed team. We have a clear vision of the future, each step forward is strategically planned and executed, and value is being added to DNotes every single day by very talented and dedicated people.

I'll third that notion. During my time spent in Coldwater with you guys it really took me by surprise how much everyone was on the same page, even on issues we hadn't discussed prior to that. That cohesive team mentality and a common vision are huge advantages for DNotes.

[MiningHabit]

Mainstream Article on Intrinsic Value

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

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

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

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

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

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

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

I'm not super well practiced at thinking along these lines. My "economic theory" muscles need a little exercising. So excuse me if this seems obtuse, but why can't the intrinsic value be thought of as the social trust of the community?

The article's author refers to gold being "shiny" as intrinsic value. What does that mean? Shiny is a physical characteristic of a thing, which people find psychologically pleasing. Building a trust based, decentralized means of exchange is also psychologically pleasing. And at it's core, it's all math. Only we are talking about the positive psychological effects emanating from math-backed bytes, as opposed to the positive psychological effects emanating from math-based bits (i.e. physics, chemistry).

And then when comparing our genetically driven desire to be social, to build psychological trust between groups, to tell ourselves stories...I'd argue that this is far better with bitcoin than with fiat currency. The economies of the United States, the European Union, is so complex, so opaque, so unaccessible. Why do we trust these government's promises, which underlie the value of their monies? Of course there are reasons, but on balance, I'd argue they are more nebulous than trusting bitcoin. Because their is a verifiable purely mathematical reason underlying the entire superstructure. There is no opacity. Well, given the example of Chinese miners maybe controlling the network one day, there is some. But I'd say that is far less than opacity of Goldman Sachs puppetmasters running the world.

Basically, why isn't long-term social trust considered an intrinsic value? In fact, if you look at this from the perspective of Yuval Harari in Sapies, this is the core of our entire species. We have the ability to bind ourselves by the stories we tell, which get strengthen over time generation to generation.

[virasog]

It is like we are being turned into the pod people or something.  I fully appreciate what the dev has put together, but we don't want a bridge between decentralized and centralized.  The entire concept and idea of Bitcoin is to be completely decentralized.

Hi taxmanmt5, and welcome to the DNotes forum.

1. We are not a copycat of bitcoin or any other alt.
2. If every currency replicates the same concept and idea as bitcoin, that would make them the pod people... 

The minute that we begin to attack a person, a company or any controlling interest to a coin or token, we lose that one forever.  It is too much power to place in a single system.  Because of the nature of crypto, to put a controlling force over that will result in a corruption from within, no matter how trusted the entity.
DNotes is no doubt a real trusted company.

[Chase]

It is like we are being turned into the pod people or something.  I fully appreciate what the dev has put together, but we don't want a bridge between decentralized and centralized.  The entire concept and idea of Bitcoin is to be completely decentralized.

Hi taxmanmt5, and welcome to the DNotes forum.

1. We are not a copycat of bitcoin or any other alt.
2. If every currency replicates the same concept and idea as bitcoin, that would make them the pod people... 

The minute that we begin to attack a person, a company or any controlling interest to a coin or token, we lose that one forever.  It is too much power to place in a single system.  Because of the nature of crypto, to put a controlling force over that will result in a corruption from within, no matter how trusted the entity.
DNotes is no doubt a real trusted company.

Thanks virasog, that was very well said. From day one, DNotes began building a trusted cryptocurrency that would be available for everyone, regardless of wealth, status, or knowledge of technology. By providing a bridge to the current business and financial world, people from around the world have the opportunity to finally be included in the global economy. It would be difficult for them to start/operate a business of any size if they are using a cryptocurrency that is perceived to be anti-establishment. 

[DNotes]

It is like we are being turned into the pod people or something.  I fully appreciate what the dev has put together, but we don't want a bridge between decentralized and centralized.  The entire concept and idea of Bitcoin is to be completely decentralized.

Hi taxmanmt5, and welcome to the DNotes forum.

1. We are not a copycat of bitcoin or any other alt.
2. If every currency replicates the same concept and idea as bitcoin, that would make them the pod people... 

The minute that we begin to attack a person, a company or any controlling interest to a coin or token, we lose that one forever.  It is too much power to place in a single system.  Because of the nature of crypto, to put a controlling force over that will result in a corruption from within, no matter how trusted the entity.
DNotes is no doubt a real trusted company.

Thanks virasog, that was very well said. From day one, DNotes began building a trusted cryptocurrency that would be available for everyone, regardless of wealth, status, or knowledge of technology. By providing a bridge to the current business and financial world, people from around the world have the opportunity to finally be included in the global economy. It would be difficult for them to start/operate a business of any size if they are using a cryptocurrency that is perceived to be anti-establishment. 

Appreciate it virasog, DNotes is the trusted decentralized digital currency. The company, DNotes Global Inc, is separate and will compete in the real modern financial world for the betterment of DNotes. Imagine if one of the large companies currently operating the in bitcoin space existed not only to make a profit, but also worked towards growing bitcoin, as if bitcoin is successful so will the company.

[DCEBrief]

New Ransomware Attacks Strike Europe, US

https://dcebrief.com/new-ransomware-attacks-strike-europe-us/

[DCEBrief]

Mainstream Article on Intrinsic Value

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

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

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

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

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

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

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

I've generally found that the words "never before in the history of civilization has this happened..." are almost always followed by a description of something that's happened at least once in history - in one form or another.

[TimMarsh]

Mainstream Article on Intrinsic Value

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

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

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

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

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

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

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

I'm not super well practiced at thinking along these lines. My "economic theory" muscles need a little exercising. So excuse me if this seems obtuse, but why can't the intrinsic value be thought of as the social trust of the community?

The article's author refers to gold being "shiny" as intrinsic value. What does that mean? Shiny is a physical characteristic of a thing, which people find psychologically pleasing. Building a trust based, decentralized means of exchange is also psychologically pleasing. And at it's core, it's all math. Only we are talking about the positive psychological effects emanating from math-backed bytes, as opposed to the positive psychological effects emanating from math-based bits (i.e. physics, chemistry).

And then when comparing our genetically driven desire to be social, to build psychological trust between groups, to tell ourselves stories...I'd argue that this is far better with bitcoin than with fiat currency. The economies of the United States, the European Union, is so complex, so opaque, so unaccessible. Why do we trust these government's promises, which underlie the value of their monies? Of course there are reasons, but on balance, I'd argue they are more nebulous than trusting bitcoin. Because their is a verifiable purely mathematical reason underlying the entire superstructure. There is no opacity. Well, given the example of Chinese miners maybe controlling the network one day, there is some. But I'd say that is far less than opacity of Goldman Sachs puppetmasters running the world.

Basically, why isn't long-term social trust considered an intrinsic value? In fact, if you look at this from the perspective of Yuval Harari in Sapies, this is the core of our entire species. We have the ability to bind ourselves by the stories we tell, which get strengthen over time generation to generation.

Thanks MiningHabit, for your well explained thoughts on this. I agree with all of your points with respect to the idea of value and I really like how you refer to 'story' as part of our society's technique for adding and understanding value. I even like your perspective on the mathematics of the bits that make gold, because I see the world in a very similar way.

But I do see value as distinct from intrinsic value. I think the best way for me to explain this is by referring to a floor-price. Because gold is used in manufacture, some people will always pay something for it so long as the goods they make are still selling. It is pretty and doesn't tarnish, so while people want to look pretty and don't want to polish, gold will also sell at least a floor value of what people are happy to pay for jewellery. I would call that the intrinsic value of gold. Partly because of this intrinsic value, and partly because the difficulty of mining it is well established, capping its availability, gold also has speculative value on top of its floor price.

During war time, or a significant financial crisis, the value of gold goes up, because more people are buying than selling, and the difference in demand is not being met by what is coming out of the ground. Then, some investors understand the cause of the spike, feel confident that they can get out again before their predicted peak, so buy up big in speculation. This speculative value can disappear quickly and is dependant on social beliefs. But once it does, the gold will still exist, and it will still be worth something to the manufacturer and jewellers.

Sidenote: Cubic zirconias look, to most people, identical to diamonds. They lack the industrial functionality that diamonds have, but as jewellery function just as well as diamonds. I believe that the difference between the value of a diamond and the value of a cubic zirconia of equivalent shape, is exactly the speculative value of the diamond, not its intrinsic value.

But with cryptocurrencies, there is no intrinsic value. If you took away the public faith, interest, and willingness to purchase any cryptocurrency coin, it would be worth absolutely nothing. It doesn't even have collector or ornamental value.

  Grandchild, "Grandpa, what's that plastic stick in the crystal cabinet for?"
  Grandpa, "Well grandchild, that stick contains 1,000 bitcoin. It was worth three million dollars back in 2017. It's just memorabilia now, because I didn't sell in time."
  Grandchild, "What's bitcoin? Is it something like DNotes?"
  Grandpa, "Yeah, but it didn't include shares in a company or anything of real value, so when it popped, I had nothing."

Because of this total reliance on perceived value, cryptocurrencies have a floor price of zero dollars. You can't manufacture or make jewellery out of them when nobody wants to buy them. Exactly like the point you made with fiat currencies, which also rely on both perceived value and an opaque system.

But if nobody wanted to buy my DNotes, they would still be worth their share of the 25% of DNotes Global Inc, or what ever that percentage may be as it gets diluted while forming a more valuable company in the future. So DNotes appears to have a floor price, albeit marginal at the moment, which I equate to intrinsic value. But even this is dependant on the functional value of DNotes Global Inc and what it can be used to produce.

[Chase]

Every once in a while, a great comment shows up from a well informed reader. 


From Forbes:




https://www.forbes.com/sites/jasonbloomberg/2017/06/26/what-is-bitcoins-elusive-intrinsic-value/#7838fdf87194

[Chase]

There is a new report out today from the World Economic Forum on blockchain and cryptocurrencies. I didn't have the time to read much of it, but it seems to be a good 'education' for the decision makers of the world.  It is on my never-ending to-do list...   


Realizing the Potential of Blockchain

A Multistakeholder Approach to the Stewardship of Blockchain and Cryptocurrencies

“The platforms that will win will be the ones that can fulfil
both the operational and the governance requirements
of a range of applications – because you are not going to
move equity settlement, for example, to an environment
that cannot meet the disclosure requirements of capital
markets regulators,” said Jesse McWaters of the World
Economic Forum. “Capital markets regulators are not going
to change their view on what should and should not be
disclosed simply because the process is now occurring on
a blockchain.”

Perianne Boring, founder and president of the Chamber
of Digital Commerce, which has over 100 members from
the digital asset, blockchain and traditional capital markets
industries, said, “At the platform level, efforts to assist with
scaling and interoperability are in most high demand.”

Bitcoin, the largest cryptocurrency and platform by value,
volume and hashing rate (a measure of participation),
started as an experiment in monetary theory, where the
network functioned in service of the bitcoin token of
value. Satoshi Nakamoto attempted to align stakeholder
incentives through the code itself, and the technology
thrived in its early years, blossoming into the ecosystem we
know today.

In our research, we found that code alone has been
insufficient. Open-source collaboration is a great organizing
principle but it’s not a modus operandi for making big
decisions and moving forward. Open-source projects like
Wikipedia and Linux, despite their meritocratic principles,
still have benevolent dictators Jimmy Wales and Linus
Torvalds. To many observers, bitcoin has a governance
crisis. As with all disruptive technologies, competing
interpretations of Satoshi’s vision have emerged. Even
the core blockchain contingent has begun splitting into
different cryptocamps, each advocating a separate
agenda."

https://www.weforum.org/whitepapers/realizing-the-potential-of-blockchain      http://www3.weforum.org/docs/WEF_Realizing_Potential_Blockchain.pdf

[DNotes]

Alan Yong Entrepreneurial History & Guiding Principles on Business Success

https://youtu.be/A23EmXtUHHw

[MiningHabit]

I feel like a sartorial genius, sporting such fancy new threads today at the office....

[TeeGee]

I see a good conversation going on here. I may add my own thoughts / elaborations every once in a while.

Both of you have put forward good cases / reasoning about what is, and what is not intrinsic value. My personal opinion tends to be one that constitutes a 'nearer' and 'longer' term paradigm depending on meeting set conditions regarding trust networks.

Gold in my view has very little, if any 'intrinsic' value. You can't eat it, and looking pretty doesn't really count for anything (that's another subjective value, just like a painting in my view). You can use it for teeth fillings and in some electronics -- for which copper and silver have some advantages as alternatives -- and that's about it. Gold is valuable because it is historically rare, and a subjective cultural value associated to it.

This subjective value then takes us to a medium of exchange value, based on its rarity. It's medium of exchange value, in my view, is the product of the aforementioned cultural subjective value for its use in jewelry etc. This means that people are prepared to receive it as a form of money, for the sake of history, and a relative rarity limited by how much is mined every year. Tim Marsh has very well identified that people will always be prepared to pay a set price for things that they value - whether these things be based in cultural value (art, and jewelry etc), or an obscure skillset, or any other perceived value. Gold is no different than cryptocurrency with respect to perceived value in my view. The applications of blockchain itself, could be argued, to have a value scope much larger than Gold ever can.

So gold and crypto have:
1. A subjective value based on culture and rarity, based on their intrinsic use-case value.
2. A medium of exchange value as currency on top in surplus to 1,
3. A speculative value based on future predicted value that is rooted in predictions on 1 and 2.

We focus on creating an intrinsic value behind DNotes - a token that is mathematically limited in supply, by backing the currency with the profits of a separate company that provides value in the modern world's free-market. This approach exploits the value in real-world services that people view as having subjective value, and those profits are then are funneled back into the ecosystem. Thus by providing subjective value to customers, the return on it is a floor-price value (intrinsic value) along with further subjective value from the reinvestment to create a wider offering of services (wider ability to function of medium of exchange). These offerings will be financial and investment services, turnkey blockchain solutions, banking, VC and crowdfunding, news, and other services. The growth of the separate company (DNotes Global) creates a growth feedback loop into the currency through exploiting 1 and 2 above.

Point 3 is more a mathematic trust model of game theory. The more value is built into a system, the higher expectations for future value become. The higher expectations for the future become, the more this speculative value rises, and thus subjective value (1) use value (2) rise today as the network becomes more widely known and accepted.

Ergo, subjective value and medium of exchange value increases lead to speculative rises, which feeds back into more exposure and network effects, bringing us round circle to even more subjective, and medium of exchange value.

So speculative value can loosely be seen as part of this growth loop trajectory. But expectations can not be controlled, though perception can be managed, and a math game of trust must be played. Trust is therefore an economic primitive; it is as basic to economic transactions as self-interest. DNotes works to be trusted, and this trust helps to maintain expectations of the future. I know this is a lot of logical sequential flows and re-used terms, but I need to explain it in steps.


----------------------------------------------------------------------------------------------------------------------------------
 
While I'm here, I might as well touch a little more on medium of exchange value for those interested. Enter Bancor's astute observation supposedly worth 150m in ICO sales: the "double coincidence of wants" problem.

Money is required because of an economic problem called the "double coincidence of wants". Before money there most exchanges that didn't involve violence were done through barter. The problem with barter was that a person who wanted to purchase something also needed someone else to want what they had to offer.

This creates a search cost. In a single attempt to trade, you must spend time finding someone who coincidentally wants what you also want. If you don't have what they want, you need to find something that they DO want, and then try trade for that first... but then of course you need to find somebody who has that... and what if they don't want it? The cycle repeats ad infinitum.

So:

J = the number of goods in the economy
J²= The possible combinations of trade in the economy.

J² - J = the possible trading combinations for you (because you won't be trading with yourself).

Ergo: the probability of finding a trading partner who has what you want is 1/J² - J) on any given attempt. And J² - J is the mean number of attempts before you'll find this "double coincidence of wants" for a given encounter (a successful trade).

So, if there are 100 goods in the economy:


The chance you'll find what you want in a single attempt: 1 / 100² - 100 = 0.0001%
The mean number of attempts until you find what you need: 100² - 100 = 9900

Now, back to the search cost component... if "a" is the amount of time that it takes you to find what you want (let's say 1 hour), so a = 1, then the equation is:

a(J² - J) = 1(100² - 100) = 9900 hours...



Enter the fiat monetary system:

1. You acquire money, then you trade the money for whatever you want. There are two transactions (so a=1, so search costs are 2aJ). Everybody accepts money, but they still have to 'want to' trade with you.

The probability that you'll find what you want: 1/J = 1/100 = 1%
Mean number of searches to find it: J = 100

There are only

Search costs = 2aJ = 2 x 1 x 100 = 200.

Viola. Now, the higher the number of products offered in the system, the larger the time saving made by using money than using barter.


So this is basically bancor's 150m ICO idea - solving this problem for currencies by having a 'reserve currency' that has no current value to act as a reserve to save you search time - which manual exchanges already do. They want to be the people who save you time because they view each cryptocurrency as a "barter" system, even though at any time any of us can go to an exchange and know exactly how to get whatever currency we want - search cost is literally a few clicks away. They have other ideas on how to reduce the spread between crypto - but I'm still doubtful their model can work. Even if Bancor tokens become worth a lot. The "PhD" economists who agree with their model are mainstream economists who are always last to figure out what is going on in the world, and hold PhD's in "science fiction" economics, which is why they'll be watching bancor with a keen interest. So listen to whoever really.

[TimMarsh]

I feel like a sartorial genius, sporting such fancy new threads today at the office....

Wow! Thanks for posting the photo. It looks like a good clean print too. I'm pleased with how well the grey shows up on the dark shirt too. Nice and subtle. Now you just need to make a badge, with a QR code for your DNotes payment address, to pin on.

[TimMarsh]

[...]
So gold and crypto have:
1. A subjective value based on culture and rarity, based on their intrinsic use-case value.
2. A medium of exchange value as currency on top in surplus to 1,
3. A speculative value based on future predicted value that is rooted in predictions on 1 and 2.
[...]
So, if there are 100 goods in the economy:


The chance you'll find what you want in a single attempt: 1 / 100² - 100 = 0.0001%
The mean number of attempts until you find what you need: 100² - 100 = 9900

Now, back to the search cost component... if "a" is the amount of time that it takes you to find what you want (let's say 1 hour), so a = 1, then the equation is:

a(J² - J) = 1(100² - 100) = 9900 hours...

I really like how you enumerated the value aspects of an item used for a medium of exchange. It made discussing it further much simpler.

As for your bartering example, for the purposes of this discussion it was fine, but it did make it look completely unworkable unless you were the fishing tribe trading fish with the banana tribe and nothing else. Feel free to re-post the formula where there is a society of 100 people. There are 100 item types. Each person has 10 item types to trade, and 10 desired item types. The 100 item types all sit on a bell curve of the number of people that possess one. The same bell curve is used for the number of people that desire one. And the time it takes to ask if any of my ten items have trade potential with any of your 10 items is 1 minute. We're all at the market on market day.

My guess is that this formula will get your transaction time below the 9,000 hours mark.

I can understand how your example incorporates feedback loops that amplify market activity. It also focuses attention on aspect (2) which DNotes has the most influence over. How simple is DNotes to trade for goods and services? How simple can it be in the future? What is the minimum achievable time to get there?

I think a good starting point to answer the 'ease of use' aspect of (2) is to list the known barriers, and then determine what is being done about breaking through them.

a) Mobile functionality.
--1 All offline trade is done outside of the house, so a mobile device capable of exchange is required.
--2 Mobile devices are battery dependent so software must use minimal power.
--3 Mobile devices have limited storage, so partial chain transactions must be possible.
--4 Data can be expensive via network, but cheap via WiFi, so data usage must be optimised to reduce cost.

b) Adoption rate.
--1 To trade DNotes for product or services, both parties must be able to give and accept them. This requires a level of user adoption.

c) Speed.
--1 Traders won't want to spend more than a few seconds confirming that the transaction has been successful.

d) Cost
--1 The customer, trader, or both, will have to accept a minimal transaction cost, or in some other way contribute to the network that maintains the service and does the work.
--2 People are happy to pay a fee or percentage for convenience and security. This value proposition will influence adoption and usage rates.

e) Visibility - clarity
--1 Seeing how much you've got and what you've spent needs to be as simple as glancing into a purse.

f) Privacy
--1 Many people don't care if you can see that they bought bread. But just as many have personal lives where their purchase history, or just the shops they frequent, can be a cause of embarrassment.

g) Confidence
--1 Knowing that the money in your wallet will be worth something when you wake up tomorrow.
--2 Knowing that your money won't disappear if a company, server, or software crashes.
--3 Knowing that the only way to get your money is with your consent.

h) Web services and plug-ins
--1 How easy it is for website developers to implement a payment portal.
--2 How easy it is for hosted users like those on Wordpress to implement a payment portal.

i) I'm sure I have not thought of everything.

Having a comprehensive answer to these questions, including a projected timeline would be really interesting. But I also understand DNotes' policy of doing, not hyping and claiming.

[Dyna]

I feel like a sartorial genius, sporting such fancy new threads today at the office....

That is really cool, MiningHabit. Imagine that one day we all go to a DNotes convention wearing a DNotes T-Shit and all going shopping with a DNotes Multi-currency card. That will be awesome. The world is changing rapidly but the process of change is challenging and can be quite complex, especially, when money, regulatory constraints, "old-school", the establishment, etc are involved.

DNotes is much more than just a decentralized digital currency. Unfortunately, on the surface, we are just like any other digital currency - an open-sourced copy of Bitcoin - the pioneer. Launching a digital currency or a "digital asset" is the easiest part. With a few thousand dollars it can easily be dressed up to look like a $10, $20 $100 million (bill) (ICO). It has been done with much more to come. Frankly, our industry is getting overwhelmed and becoming quite confused. It is becoming nearly impossible to find the "rough diamond".
Invest with caution.

I am spending a lot of time getting ready to officially launch the book web site -  https://fourpillarsofbusinesssuccess.com/ This is one of DNotes Global, Inc's assets. Although I have personally spent a whole year writing the book as well as spending a significant amount to get it published, 100% of the sale proceeds are going to the company. Perhaps, just as important Chapter 15 of the book is about the DNotes' story. Don't under-estimate the enormous long-term value the book can bring to the party - contributing some real intrinsic value. Check it out from time to time as new contents are added. This is one of our strategic building blocks and they are all linked to give us powerful synergistic impact.  

[DNotes]

I feel like a sartorial genius, sporting such fancy new threads today at the office....

Wow! Thanks for posting the photo. It looks like a good clean print too. I'm pleased with how well the grey shows up on the dark shirt too. Nice and subtle. Now you just need to make a badge, with a QR code for your DNotes payment address, to pin on.

Looking good! I agree it pops out more than I expected on that color.

[DCEBrief]

Burger King to Accept Bitcoin in Russia

https://dcebrief.com/burger-king-to-accept-bitcoin-in-russia/