DNotes 2.0 - Staking, CRISP Interest, DNotes Pay

[TimMarsh]

Another Reason to like DNotes2.0 Moving to Proof Of Stake

Creating content has been a growing industry for decades now, from movies, through television, to websites and online videos. And the majority of this content isn't paid for directly. Instead it is supported by advertising. But as the public gets more wary of the ever increasing psychological techniques used in advertising, and become sick of advertising taking over screen real estate, we're adopting tools to circumvent or block advertising.

So new avenues for paying for content are being explored. One is micro-payments which are now becoming possible due to cryptocurrency reducing individual transaction fees. Another one is renting out computing power for mining coins while enjoying the content being provided. This is the service being provided by Coinhive. They provide code to website managers, which is then run on visiting computers. It is Coinhive's intention or preference that the websites get user permission before doing this, or at least inform visitors to sites running their code that it is running. But they have shown little interest in enforcing this courtesy.

Not so surprisingly, people have found a way to exploit this service and hack into other people's websites to inject the code, for their own profit. As the ars Technica article states, "Ad blocker AdGuard recently reported that 220 sites on the Alexa top 100,000 list serve crypto mining scripts to more than 500 million people."

But even if this system is used ethically and only with user's acknowledgement, it is still likely to be a fail. This is because running the code on a CPU without high-level optimisation, is very likely to earn less in mined coins than it will cost users in electricity. In the comments. Evan_s put it really well. "Add on the overhead of JavaScript implementations running in a browser instead of decently optimized native code and you are even less efficient at mining. This means you are probably spending a fair bit more on electricity than the site is getting for their cut of the value of the bit coins." And then goes on to point out that it will never work because as soon as a basic home setup running java-script through the CPU is profitable, more people will set up much more efficient rigs.

And this is just another example of how the heavy computing load, and its subsequent waste of resources, will eventually make Proof of Work a relic in cryptocurrency's history. If instead POW was creating something of real value, like rendering CGI frames, or analysing data for SETI, I could get behind that coin. But as it stands, the only coins that interest me are the ones using POS.

https://arstechnica.com/information-technology/2017/10/a-surge-of-sites-and-apps-are-exhausting-your-cpu-to-mine-cryptocurrency/

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[Dyna]

Another Reason to like DNotes2.0 Moving to Proof Of Stake

Creating content has been a growing industry for decades now, from movies, through television, to websites and online videos. And the majority of this content isn't paid for directly. Instead it is supported by advertising. But as the public gets more wary of the ever increasing psychological techniques used in advertising, and become sick of advertising taking over screen real estate, we're adopting tools to circumvent or block advertising.

So new avenues for paying for content are being explored. One is micro-payments which are now becoming possible due to cryptocurrency reducing individual transaction fees. Another one is renting out computing power for mining coins while enjoying the content being provided. This is the service being provided by Coinhive. They provide code to website managers, which is then run on visiting computers. It is Coinhive's intention or preference that the websites get user permission before doing this, or at least inform visitors to sites running their code that it is running. But they have shown little interest in enforcing this courtesy.

Not so surprisingly, people have found a way to exploit this service and hack into other people's websites to inject the code, for their own profit. As the ars Technica article states, "Ad blocker AdGuard recently reported that 220 sites on the Alexa top 100,000 list serve crypto mining scripts to more than 500 million people."

But even if this system is used ethically and only with user's acknowledgement, it is still likely to be a fail. This is because running the code on a CPU without high-level optimisation, is very likely to earn less in mined coins than it will cost users in electricity. In the comments. Evan_s put it really well. "Add on the overhead of JavaScript implementations running in a browser instead of decently optimized native code and you are even less efficient at mining. This means you are probably spending a fair bit more on electricity than the site is getting for their cut of the value of the bit coins." And then goes on to point out that it will never work because as soon as a basic home setup running java-script through the CPU is profitable, more people will set up much more efficient rigs.

And this is just another example of how the heavy computing load, and its subsequent waste of resources, will eventually make Proof of Work a relic in cryptocurrency's history. If instead POW was creating something of real value, like rendering CGI frames, or analysing data for SETI, I could get behind that coin. But as it stands, the only coins that interest me are the ones using POS.

https://arstechnica.com/information-technology/2017/10/a-surge-of-sites-and-apps-are-exhausting-your-cpu-to-mine-cryptocurrency/

You are correct, Tim. Conserving precious resources (electricity) is one of the reasons we are switching from Proof of Work (POW) to Proof of Stake (POS).

Micro-payment has been on our radar since the beginning. This has huge potential. It is seemingly easy but instead, it comes with many challenges. With the launching of DNotes 2.0 we are just one step closer.

[DNotes]

[MiningHabit]

Hi MiningHabit,

These aren't my "growth numbers" or projections of any kind, and certainly isn't some scammy investor pitch. You may have missed TimMarsh's post (above), which was the whole reason for the chart:

Tim: "But it is just as likely that DNotes is being used for daily transactions and a single DNote could be worth $4,000."

If DNotes is going to be successful as global digital currency for all, an investment vehicle, next-gen venture capital, used in global trade & commerce, etc, what do you think the marketcap would have to be in 10 years to encompass all those functions? I wanted to answer the math side of the question, but the conservative side of me would only go up to $1,000. 

"Note: I used monthly compounding in the calculations for staking rewards - It may be off a bit, but it will be close. The $1,000 potential price for DNotes in the chart is my conservative example for Tim M's $4,000 price."

This is what I was aiming for in presenting the chart this way:

Tim: "Thanks Chase, for doing the math and presenting it so clearly. I really like it how you broke it down into the increasing number of DNotes due to holding onto the investment, and the increase in value of the total amount of DNotes owned with different projections. Very clear. I often hear how Alan and the DNotes team believe it is important to start saving early, but seeing the numbers, and the impact of compound interest makes that so much more clear."

At the end of 10 years, it shows how many DNotes you have, and you decide what you think the price will be at that time. The 'illustrative' intention of $10, $100, or $1,000, was to make it easy for anyone to calculate a projected potential unit price based on what THEY thought it might be. ie. - if I think DNotes will be $200 each, I only need to double the calculation at $100.

MiningHabit: "Within that context, sl-avik's confusion is understandable. Citing numbers that require 125%-200% compound annual growth rates for illustration purposes....is not terribly illustrative."

Almost every other cryptocurrency has already experienced their massive price appreciation with nothing to back it. DNotes has purposely stayed low key and now has significant value available at a very low price - this is a fact, and nothing more. It is very shortsighted to look at DNotes current price as any indication of where it will be in 10 years.

"Where we are now matters far less than where we are going from here." -Alan Yong

I gotcha. Just saying that illustrations like that can confuse people, and that is exactly what happened with some folks.

And sure, this space is rife with rampant speculation, pump and dumps, and the like. There are a lot of awesome blockchains out there which have experienced appreciation, but it's folly to suggest nothing backs that. Syscoin was 1 cent in early March. And now it's 23 cents. Nothing backs that? Really? Same with Monero, NEM, NEO, and quite a few others.

Really hope the "scammy investor pitch" line wasn't directed at me.

Lastly, appreciate all the work and DNotes community leadership that you do, and I really enjoy all your DCEBrief stuff. I am a big believer in long-term thinking (Bezos' Regret Minimization Framework is a personal totem for me). But let's not pretend that price is completely irrelevant.

[Brandon Cheliak]

Hi MiningHabit,

These aren't my "growth numbers" or projections of any kind, and certainly isn't some scammy investor pitch. You may have missed TimMarsh's post (above), which was the whole reason for the chart:

Tim: "But it is just as likely that DNotes is being used for daily transactions and a single DNote could be worth $4,000."

If DNotes is going to be successful as global digital currency for all, an investment vehicle, next-gen venture capital, used in global trade & commerce, etc, what do you think the marketcap would have to be in 10 years to encompass all those functions? I wanted to answer the math side of the question, but the conservative side of me would only go up to $1,000. 

"Note: I used monthly compounding in the calculations for staking rewards - It may be off a bit, but it will be close. The $1,000 potential price for DNotes in the chart is my conservative example for Tim M's $4,000 price."

This is what I was aiming for in presenting the chart this way:

Tim: "Thanks Chase, for doing the math and presenting it so clearly. I really like it how you broke it down into the increasing number of DNotes due to holding onto the investment, and the increase in value of the total amount of DNotes owned with different projections. Very clear. I often hear how Alan and the DNotes team believe it is important to start saving early, but seeing the numbers, and the impact of compound interest makes that so much more clear."

At the end of 10 years, it shows how many DNotes you have, and you decide what you think the price will be at that time. The 'illustrative' intention of $10, $100, or $1,000, was to make it easy for anyone to calculate a projected potential unit price based on what THEY thought it might be. ie. - if I think DNotes will be $200 each, I only need to double the calculation at $100.

MiningHabit: "Within that context, sl-avik's confusion is understandable. Citing numbers that require 125%-200% compound annual growth rates for illustration purposes....is not terribly illustrative."

Almost every other cryptocurrency has already experienced their massive price appreciation with nothing to back it. DNotes has purposely stayed low key and now has significant value available at a very low price - this is a fact, and nothing more. It is very shortsighted to look at DNotes current price as any indication of where it will be in 10 years.

"Where we are now matters far less than where we are going from here." -Alan Yong

I gotcha. Just saying that illustrations like that can confuse people, and that is exactly what happened with some folks.

And sure, this space is rife with rampant speculation, pump and dumps, and the like. There are a lot of awesome blockchains out there which have experienced appreciation, but it's folly to suggest nothing backs that. Syscoin was 1 cent in early March. And now it's 23 cents. Nothing backs that? Really? Same with Monero, NEM, NEO, and quite a few others.

Really hope the "scammy investor pitch" line wasn't directed at me.

Lastly, appreciate all the work and DNotes community leadership that you do, and I really enjoy all your DCEBrief stuff. I am a big believer in long-term thinking (Bezos' Regret Minimization Framework is a personal totem for me). But let's not pretend that price is completely irrelevant.

I agree, price is important. Too high of a price too early in the development process could be catastrophic for currencies with long term goals of alleviating poverty and offering a monetary alternative to the worlds underbanked masses. While it is easy to get impatient, wanting this to pay off immediately, there is merit in waiting until all DNotes services are deployed, and capable of serving the worlds financial needs, before pushing for massive value appreciation. If we push too soon, before the everyday person is involved, we will simply perpetuate, perhaps even compound wealth inequality.

[DCEBrief]

Ron Paul Concerned About Government Oversight of Cryptocurrencies

https://dcebrief.com/ron-paul-concerned-about-government-oversight-of-cryptocurrencies/

[TimMarsh]

Bitcoin a Safe Haven in Zimbabwe

This recent article by CNN talks about how bitcoin is becoming a safe haven in Zimbabwe. It puts the rush to purchase bitcoin down to a lack of confidence in their local fiat currency. But what I found most fascinating is how the exchange rate for https://golix.io/, their local exchange, is so much higher than the standard rates.

http://edition.cnn.com/2017/10/31/africa/zimbabwe-bitcoin-surge/index.html

Over the last month this exchange has traded a relatively low volume of 115BTC. But their exchange rate sits between US$9,900 and US$10,900 per BTC which is significantly higher than US$6,447 shown by CoinMarketCap. I don't understand how this could be. My only guess is that using their existing financial system makes it extremely difficult to send money overseas.

Another interesting takeaway from the article is this quote from Saxo Bank analyst Kay Van-Petersen. "It's only a matter of time before an emerging or frontier market government decides to adopt a cryptocurrency as a foundation for credibility, transparency, accountability, and attraction of foreign capital."

This might seem like an outlandish statement in any normal context, but Zimbabwe is no normal context. In 2008 the Zimbabwean Dollar was replaced by the US Dollar as a solution to rampant inflation. While successful, it has now resulted in a shortage of US Dollar hard currency, so banks are limiting how much is handed out. Then recently the government began issuing "Bond Notes" which are best understood as a new fiat currency that is pegged to the US Dollar. But black market trading has broken it from its US Dollar foundation and its value is also plummeting.

In such a situation, the cheapest option with the most stability is to embrace bitcoin as a national currency option. This has the added benefit of facilitating foreign trade which is so critical when an economy faces instability. Then, there is also to reasonable probability that the increasing value of bitcoin internationally will result in an increased net worth of the Zimbabwe economy.

Bitcoin is already being used by local traders, but from the article it seems like it is only for large purchases like vehicles. But adopting bitcoin opens the door to exchanging with other cryptocurrencies. If locals became familiar with a cryptocurrency running on a mobile device that had minimal or no fees, that cryptocurrency would quickly become the basis of daily transactions, while bitcoin would be the top-up vehicle, and safe haven for larger funds.

[DNotes]

Hi MiningHabit,

These aren't my "growth numbers" or projections of any kind, and certainly isn't some scammy investor pitch. You may have missed TimMarsh's post (above), which was the whole reason for the chart:

Tim: "But it is just as likely that DNotes is being used for daily transactions and a single DNote could be worth $4,000."

If DNotes is going to be successful as global digital currency for all, an investment vehicle, next-gen venture capital, used in global trade & commerce, etc, what do you think the marketcap would have to be in 10 years to encompass all those functions? I wanted to answer the math side of the question, but the conservative side of me would only go up to $1,000. 

"Note: I used monthly compounding in the calculations for staking rewards - It may be off a bit, but it will be close. The $1,000 potential price for DNotes in the chart is my conservative example for Tim M's $4,000 price."

This is what I was aiming for in presenting the chart this way:

Tim: "Thanks Chase, for doing the math and presenting it so clearly. I really like it how you broke it down into the increasing number of DNotes due to holding onto the investment, and the increase in value of the total amount of DNotes owned with different projections. Very clear. I often hear how Alan and the DNotes team believe it is important to start saving early, but seeing the numbers, and the impact of compound interest makes that so much more clear."

At the end of 10 years, it shows how many DNotes you have, and you decide what you think the price will be at that time. The 'illustrative' intention of $10, $100, or $1,000, was to make it easy for anyone to calculate a projected potential unit price based on what THEY thought it might be. ie. - if I think DNotes will be $200 each, I only need to double the calculation at $100.

MiningHabit: "Within that context, sl-avik's confusion is understandable. Citing numbers that require 125%-200% compound annual growth rates for illustration purposes....is not terribly illustrative."

Almost every other cryptocurrency has already experienced their massive price appreciation with nothing to back it. DNotes has purposely stayed low key and now has significant value available at a very low price - this is a fact, and nothing more. It is very shortsighted to look at DNotes current price as any indication of where it will be in 10 years.

"Where we are now matters far less than where we are going from here." -Alan Yong

I gotcha. Just saying that illustrations like that can confuse people, and that is exactly what happened with some folks.

And sure, this space is rife with rampant speculation, pump and dumps, and the like. There are a lot of awesome blockchains out there which have experienced appreciation, but it's folly to suggest nothing backs that. Syscoin was 1 cent in early March. And now it's 23 cents. Nothing backs that? Really? Same with Monero, NEM, NEO, and quite a few others.

Really hope the "scammy investor pitch" line wasn't directed at me.

Lastly, appreciate all the work and DNotes community leadership that you do, and I really enjoy all your DCEBrief stuff. I am a big believer in long-term thinking (Bezos' Regret Minimization Framework is a personal totem for me). But let's not pretend that price is completely irrelevant.

The price is important, it impacts the growth rate and scaling of DNotes in a significant way. Stabilizing the growth trajectory is an important factor in our upcoming upgrades. If DNotes was, for instance, consistently a dollar, it would give us the fuel and we could more rapidly deploy the DNotes strategy and continue to the growth from there. However, as you said it's much more important over the longer term, rather than over the short term. The price of DNotes is 300+% higher than it was a year ago, that could go down, that could go up, only the open market can determine that.

[TwoCorn]

Bitcoin a Safe Haven in Zimbabwe

This recent article by CNN talks about how bitcoin is becoming a safe haven in Zimbabwe. It puts the rush to purchase bitcoin down to a lack of confidence in their local fiat currency. But what I found most fascinating is how the exchange rate for https://golix.io/, their local exchange, is so much higher than the standard rates.

http://edition.cnn.com/2017/10/31/africa/zimbabwe-bitcoin-surge/index.html

Over the last month this exchange has traded a relatively low volume of 115BTC. But their exchange rate sits between US$9,900 and US$10,900 per BTC which is significantly higher than US$6,447 shown by CoinMarketCap. I don't understand how this could be. My only guess is that using their existing financial system makes it extremely difficult to send money overseas.

Another interesting takeaway from the article is this quote from Saxo Bank analyst Kay Van-Petersen. "It's only a matter of time before an emerging or frontier market government decides to adopt a cryptocurrency as a foundation for credibility, transparency, accountability, and attraction of foreign capital."

This might seem like an outlandish statement in any normal context, but Zimbabwe is no normal context. In 2008 the Zimbabwean Dollar was replaced by the US Dollar as a solution to rampant inflation. While successful, it has now resulted in a shortage of US Dollar hard currency, so banks are limiting how much is handed out. Then recently the government began issuing "Bond Notes" which are best understood as a new fiat currency that is pegged to the US Dollar. But black market trading has broken it from its US Dollar foundation and its value is also plummeting.

In such a situation, the cheapest option with the most stability is to embrace bitcoin as a national currency option. This has the added benefit of facilitating foreign trade which is so critical when an economy faces instability. Then, there is also to reasonable probability that the increasing value of bitcoin internationally will result in an increased net worth of the Zimbabwe economy.

Bitcoin is already being used by local traders, but from the article it seems like it is only for large purchases like vehicles. But adopting bitcoin opens the door to exchanging with other cryptocurrencies. If locals became familiar with a cryptocurrency running on a mobile device that had minimal or no fees, that cryptocurrency would quickly become the basis of daily transactions, while bitcoin would be the top-up vehicle, and safe haven for larger funds.

That last point about cryptocurrencies other than Bitcoin is exactly what I thought when I read that. We all know that Bitcoin may not be the best option for small transactions. It could serve as a longer term store of value, but there is clearly opportunity for another cryptocurrency (or several) to become mainstream for everyday transactions and micro transactions.

[MiningHabit]

The price is important, it impacts the growth rate and scaling of DNotes in a significant way. Stabilizing the growth trajectory is an important factor in our upcoming upgrades. If DNotes was, for instance, consistently a dollar, it would give us the fuel and we could more rapidly deploy the DNotes strategy and continue to the growth from there. However, as you said it's much more important over the longer term, rather than over the short term. The price of DNotes is 300+% higher than it was a year ago, that could go down, that could go up, only the open market can determine that.

Yes! This is exactly what I'm driving at. I don't want this Board to misunderstand me. In the case of DNotes, I certainly hold with Zuckerberg "I'm here to build something for the long-term. Anything else is secondary." The long-term is the core of Bezos' RMF I mentioned above. Alan has the capability to see around the corner. And it's great to see such a solid team driving towards a long-term strategic vision. That's rare in Crypto, as we all know.

But here is my deep point about focusing on price at levels other that the 10-year, 30,000 foot view. It's not an exact analogy, but I think there are a some really fantastic similarities to  the way DNotes and DNotes Global has been structured, and how Berkshire Hathaway kickstarted its otherworldly success in the 60s. It all has to do with a concept called float.

Here is a description of float from a book called the Warren Buffett way:

"In addition to department stores, Diversified Retailing owned a company called Blue Chip Stamps, which provided supermarkets and gasoline stations with trading stamps to give to their customers. Stamps were collected into books and in turn exchanged for merchandise. To purchase the merchandise, the supermarkets and gasoline created a pool of money, or float, which Blue Chip Stamps managed. In the late 1960s Blue Chip Stamps had a float of more than $60 million in unredeemed stamps. This float ultimately allowed Buffett to purchase other businesses including a candy company, a newspaper, and a savings and loan."

Basically, Buffett was able to produce amazing Returns on Capital by leveraging compounding through what is called the Homeostatic Business Model. Here is how Alice Schroeder, the author of Snowball (the only authorized biography of Buffett), put it:

"But in the bigger picture, what Berkshire, Diversified, and Blue Chip [the latter two were eventually merged into Berkshire] really possessed were two things. The first was the homeostatic business model--the idea of grafting float onto a holding company so that it could respond internally to the changing environment. The second was the power of compounding, as float and investments doubled and redoubled over time. The novelty and strength of Berkshire's model cannot be overstated. Nothing like it existed, or would for years to come. 'That was the golden period of textbook capital allocation,' Buffet says".

I see DNotes 2.0 as a kind of float. Which can then be used to further invest in the ecosystem. In Buffett's case when starting up his models with Berkshire, he bought See's Candies. For DNotes, it might be investment in CryptoMoms to take that to the next level. Or whatever it is.

But if NOTE continues to decline in the near-term, there is a lot less float with which to supercharge NOTE 2.0 environmental element. And as you say, nobody knows the machinations of the markets. They will do what they do. So does NOTE pop on 2.0 release? Likely, but also maybe not. Which again then means less float for development. So, near-term price does matter. And I'm glad you see that.


Tactically, this is where my critique of the eye-popping numbers fits in. It psychologically primes NOTE newcomers to confusion, because of the disconnect between right-now price downturns and starry-eyed 10 year out projections. Most folks can't readily cognize that kind of vision.

Idk, that make any sense?

[TeeGee]

Bitcoin a Safe Haven in Zimbabwe

This recent article by CNN talks about how bitcoin is becoming a safe haven in Zimbabwe. It puts the rush to purchase bitcoin down to a lack of confidence in their local fiat currency. But what I found most fascinating is how the exchange rate for https://golix.io/, their local exchange, is so much higher than the standard rates.

http://edition.cnn.com/2017/10/31/africa/zimbabwe-bitcoin-surge/index.html

Over the last month this exchange has traded a relatively low volume of 115BTC. But their exchange rate sits between US$9,900 and US$10,900 per BTC which is significantly higher than US$6,447 shown by CoinMarketCap. I don't understand how this could be. My only guess is that using their existing financial system makes it extremely difficult to send money overseas.

Another interesting takeaway from the article is this quote from Saxo Bank analyst Kay Van-Petersen. "It's only a matter of time before an emerging or frontier market government decides to adopt a cryptocurrency as a foundation for credibility, transparency, accountability, and attraction of foreign capital."

This might seem like an outlandish statement in any normal context, but Zimbabwe is no normal context. In 2008 the Zimbabwean Dollar was replaced by the US Dollar as a solution to rampant inflation. While successful, it has now resulted in a shortage of US Dollar hard currency, so banks are limiting how much is handed out. Then recently the government began issuing "Bond Notes" which are best understood as a new fiat currency that is pegged to the US Dollar. But black market trading has broken it from its US Dollar foundation and its value is also plummeting.

In such a situation, the cheapest option with the most stability is to embrace bitcoin as a national currency option. This has the added benefit of facilitating foreign trade which is so critical when an economy faces instability. Then, there is also to reasonable probability that the increasing value of bitcoin internationally will result in an increased net worth of the Zimbabwe economy.

Bitcoin is already being used by local traders, but from the article it seems like it is only for large purchases like vehicles. But adopting bitcoin opens the door to exchanging with other cryptocurrencies. If locals became familiar with a cryptocurrency running on a mobile device that had minimal or no fees, that cryptocurrency would quickly become the basis of daily transactions, while bitcoin would be the top-up vehicle, and safe haven for larger funds.

There will likely be a couple of issues in lower liquidity markets that increase the spread of bitcoin price. If Zimbabwe has forex issues, and bitcoin is seen as a preferred store of value, it will drive the price of the currency up on their exchanges because many more people will want to buy, than are prepared to sell. It would also likely increase the spread (difference between the buy and sell rate). More people will be wanting to buy, and fewer people will be wanting to sell. So that means that if someone wants to buy a bitcoin, they'll likely need to accept somebody's extremely high "asking" price for a Bitcoin. Normally situations like this create great arbitrage opportunities -- but there is little incentive for people to try and sell their bitcoins in Zimbabwe to bring it back down to equilibrium, if it would be difficult for them to then exchange their money back into US dollars / Euros.

[TeeGee]

The price is important, it impacts the growth rate and scaling of DNotes in a significant way. Stabilizing the growth trajectory is an important factor in our upcoming upgrades. If DNotes was, for instance, consistently a dollar, it would give us the fuel and we could more rapidly deploy the DNotes strategy and continue to the growth from there. However, as you said it's much more important over the longer term, rather than over the short term. The price of DNotes is 300+% higher than it was a year ago, that could go down, that could go up, only the open market can determine that.

Yes! This is exactly what I'm driving at. I don't want this Board to misunderstand me. In the case of DNotes, I certainly hold with Zuckerberg "I'm here to build something for the long-term. Anything else is secondary." The long-term is the core of Bezos' RMF I mentioned above. Alan has the capability to see around the corner. And it's great to see such a solid team driving towards a long-term strategic vision. That's rare in Crypto, as we all know.

But here is my deep point about focusing on price at levels other that the 10-year, 30,000 foot view. It's not an exact analogy, but I think there are a some really fantastic similarities to  the way DNotes and DNotes Global has been structured, and how Berkshire Hathaway kickstarted its otherworldly success in the 60s. It all has to do with a concept called float.

Here is a description of float from a book called the Warren Buffett way:

"In addition to department stores, Diversified Retailing owned a company called Blue Chip Stamps, which provided supermarkets and gasoline stations with trading stamps to give to their customers. Stamps were collected into books and in turn exchanged for merchandise. To purchase the merchandise, the supermarkets and gasoline created a pool of money, or float, which Blue Chip Stamps managed. In the late 1960s Blue Chip Stamps had a float of more than $60 million in unredeemed stamps. This float ultimately allowed Buffett to purchase other businesses including a candy company, a newspaper, and a savings and loan."

Basically, Buffett was able to produce amazing Returns on Capital by leveraging compounding through what is called the Homeostatic Business Model. Here is how Alice Schroeder, the author of Snowball (the only authorized biography of Buffett), put it:

"But in the bigger picture, what Berkshire, Diversified, and Blue Chip [the latter two were eventually merged into Berkshire] really possessed were two things. The first was the homeostatic business model--the idea of grafting float onto a holding company so that it could respond internally to the changing environment. The second was the power of compounding, as float and investments doubled and redoubled over time. The novelty and strength of Berkshire's model cannot be overstated. Nothing like it existed, or would for years to come. 'That was the golden period of textbook capital allocation,' Buffet says".

I see DNotes 2.0 as a kind of float. Which can then be used to further invest in the ecosystem. In Buffett's case when starting up his models with Berkshire, he bought See's Candies. For DNotes, it might be investment in CryptoMoms to take that to the next level. Or whatever it is.

But if NOTE continues to decline in the near-term, there is a lot less float with which to supercharge NOTE 2.0 environmental element. And as you say, nobody knows the machinations of the markets. They will do what they do. So does NOTE pop on 2.0 release? Likely, but also maybe not. Which again then means less float for development. So, near-term price does matter. And I'm glad you see that.


Tactically, this is where my critique of the eye-popping numbers fits in. It psychologically primes NOTE newcomers to confusion, because of the disconnect between right-now price downturns and starry-eyed 10 year out projections. Most folks can't readily cognize that kind of vision.

Idk, that make any sense?

Firstly, I love the quote from Zuckerberg: "I'm here to build for the long-term. Anything else is secondary." It was in part this mantra, and focus on strategy to achieve the long-term goals that I detected in the early DNotes community forum that led to my direct involvement.

I also really like the business acumen you're referencing in compounding growth of an ecosystem. I haven't read snowball, but I have decided to now read it.

It is a great feature of this forum that the main focus isn't 24/7 about what the price is doing as is common in other forums that are heavily dominated by near-term price speculation. Chase's compounding interest example was helpful in some senses -- crypto is very volatile in low-liquidity markets that can mean rapid gains for holders well in excess of the interest earned, and this in turn compounds the earnings from interest paid out from the blockchain in 2.0 even further. But in respect to a high value price point, it's likely the market price would be much more stable, and I would guess that a lot more of the gains would come straight from interest rewards the higher the price went. I think the illustration is helpful from a potential future visualisation of the dollar-denominated interest that could earn in a 'more fixed' and higher liquidity market, and we all know what has happened to many crypto in this industry once the market discovers them. Of course nobody knows what will happen with the DNotes price, but over the long-term we are very confident.

The float concept is a great mention to compound and grow a business, and DNotes currency will likely play a significant role in funding expansion of DNotes' ecosystem, which has been designed to syngergistically and internally compound growth into all the parts of its inter-connected system. That said, for the moment, and up to this point, the DNotes ecosystem has been 100% paid for by its co-founders. This has meant significant outlays both monetary, and even more so in time and experience (and just imagine what Alan could charge as a private consultant, or CEO of a large company?). This is the investment and effort that kickstarts the ecosystem (lest chicken/egg scenario).

The float will be one of the potential tools used to grow the system going forward, but all of the pieces in the engine need to move in alignment for the system to be ready to rapidly scale. In lieu of the DNotes 2.0 upgrade completion (which includes a DNotes Vault revamp), we are not yet spending big on advertising to make our plans known to everyday and institutional investors. Once DNotes 2.0 is complete, the other parts of the engine will rev into gear, and the engine will turn on to create a self-sustaining model for growth. This will mean more attention for DNotes, and likely a higher price at the market, which then compounds investment internally in the ecosystem (higher intrinsic value), which can lead again to higher prices, and more investment in development. The float and the business work in unison to build up the other, but unlike most ICOs, the engine must be completed and turned on before it can begin to propel the vehicle forward. Before the engine turns on, it is entirely funded by its creators.

[Dyna]

Bitcoin a Safe Haven in Zimbabwe

This recent article by CNN talks about how bitcoin is becoming a safe haven in Zimbabwe. It puts the rush to purchase bitcoin down to a lack of confidence in their local fiat currency. But what I found most fascinating is how the exchange rate for https://golix.io/, their local exchange, is so much higher than the standard rates.

http://edition.cnn.com/2017/10/31/africa/zimbabwe-bitcoin-surge/index.html

Over the last month this exchange has traded a relatively low volume of 115BTC. But their exchange rate sits between US$9,900 and US$10,900 per BTC which is significantly higher than US$6,447 shown by CoinMarketCap. I don't understand how this could be. My only guess is that using their existing financial system makes it extremely difficult to send money overseas.

Another interesting takeaway from the article is this quote from Saxo Bank analyst Kay Van-Petersen. "It's only a matter of time before an emerging or frontier market government decides to adopt a cryptocurrency as a foundation for credibility, transparency, accountability, and attraction of foreign capital."

This might seem like an outlandish statement in any normal context, but Zimbabwe is no normal context. In 2008 the Zimbabwean Dollar was replaced by the US Dollar as a solution to rampant inflation. While successful, it has now resulted in a shortage of US Dollar hard currency, so banks are limiting how much is handed out. Then recently the government began issuing "Bond Notes" which are best understood as a new fiat currency that is pegged to the US Dollar. But black market trading has broken it from its US Dollar foundation and its value is also plummeting.

In such a situation, the cheapest option with the most stability is to embrace bitcoin as a national currency option. This has the added benefit of facilitating foreign trade which is so critical when an economy faces instability. Then, there is also to reasonable probability that the increasing value of bitcoin internationally will result in an increased net worth of the Zimbabwe economy.

Bitcoin is already being used by local traders, but from the article it seems like it is only for large purchases like vehicles. But adopting bitcoin opens the door to exchanging with other cryptocurrencies. If locals became familiar with a cryptocurrency running on a mobile device that had minimal or no fees, that cryptocurrency would quickly become the basis of daily transactions, while bitcoin would be the top-up vehicle, and safe haven for larger funds.

That last point about cryptocurrencies other than Bitcoin is exactly what I thought when I read that. We all know that Bitcoin may not be the best option for small transactions. It could serve as a longer term store of value, but there is clearly opportunity for another cryptocurrency (or several) to become mainstream for everyday transactions and micro transactions.

Great observations, TwoCorn. Looks like Bitcoin will continue to lead the industry in market capitalization but there are opportunities for other digital currencies like DNotes to fill the missing gaps and “become mainstream for everyday transactions and micro transactions.” This is a vital component of our long term strategic mission as reflected in our roadmap. DNotes is firmly committed to meet the full functions of money – a prerequisite to gain mainstream acceptance in global commerce.

There will also come a time when specific strategies will be deployed to facilitate currency stability. This is one of the biggest challenges confronting our industry. It will take significant resources and great strategic executions of various proprietary programs. We are best positioned to make it happened. However, we don't have to do much until DNotes is fairly valued. I trust that it is going to change in 2018 when the next phase of DNotes kicks in. Expect us to be very aggressive in promoting the DNotes business model already in the works for four years by then. We have already developed a massive amount of written materials and videos that are searchable and verifiable.

[Dyna]

The price is important, it impacts the growth rate and scaling of DNotes in a significant way. Stabilizing the growth trajectory is an important factor in our upcoming upgrades. If DNotes was, for instance, consistently a dollar, it would give us the fuel and we could more rapidly deploy the DNotes strategy and continue to the growth from there. However, as you said it's much more important over the longer term, rather than over the short term. The price of DNotes is 300+% higher than it was a year ago, that could go down, that could go up, only the open market can determine that.

Yes! This is exactly what I'm driving at. I don't want this Board to misunderstand me. In the case of DNotes, I certainly hold with Zuckerberg "I'm here to build something for the long-term. Anything else is secondary." The long-term is the core of Bezos' RMF I mentioned above. Alan has the capability to see around the corner. And it's great to see such a solid team driving towards a long-term strategic vision. That's rare in Crypto, as we all know.

But here is my deep point about focusing on price at levels other that the 10-year, 30,000 foot view. It's not an exact analogy, but I think there are a some really fantastic similarities to  the way DNotes and DNotes Global has been structured, and how Berkshire Hathaway kickstarted its otherworldly success in the 60s. It all has to do with a concept called float.

Here is a description of float from a book called the Warren Buffett way:

"In addition to department stores, Diversified Retailing owned a company called Blue Chip Stamps, which provided supermarkets and gasoline stations with trading stamps to give to their customers. Stamps were collected into books and in turn exchanged for merchandise. To purchase the merchandise, the supermarkets and gasoline created a pool of money, or float, which Blue Chip Stamps managed. In the late 1960s Blue Chip Stamps had a float of more than $60 million in unredeemed stamps. This float ultimately allowed Buffett to purchase other businesses including a candy company, a newspaper, and a savings and loan."

Basically, Buffett was able to produce amazing Returns on Capital by leveraging compounding through what is called the Homeostatic Business Model. Here is how Alice Schroeder, the author of Snowball (the only authorized biography of Buffett), put it:

"But in the bigger picture, what Berkshire, Diversified, and Blue Chip [the latter two were eventually merged into Berkshire] really possessed were two things. The first was the homeostatic business model--the idea of grafting float onto a holding company so that it could respond internally to the changing environment. The second was the power of compounding, as float and investments doubled and redoubled over time. The novelty and strength of Berkshire's model cannot be overstated. Nothing like it existed, or would for years to come. 'That was the golden period of textbook capital allocation,' Buffet says".

I see DNotes 2.0 as a kind of float. Which can then be used to further invest in the ecosystem. In Buffett's case when starting up his models with Berkshire, he bought See's Candies. For DNotes, it might be investment in CryptoMoms to take that to the next level. Or whatever it is.

But if NOTE continues to decline in the near-term, there is a lot less float with which to supercharge NOTE 2.0 environmental element. And as you say, nobody knows the machinations of the markets. They will do what they do. So does NOTE pop on 2.0 release? Likely, but also maybe not. Which again then means less float for development. So, near-term price does matter. And I'm glad you see that.


Tactically, this is where my critique of the eye-popping numbers fits in. It psychologically primes NOTE newcomers to confusion, because of the disconnect between right-now price downturns and starry-eyed 10 year out projections. Most folks can't readily cognize that kind of vision.

Idk, that make any sense?

Firstly, I love the quote from Zuckerberg: "I'm here to build for the long-term. Anything else is secondary." It was in part this mantra, and focus on strategy to achieve the long-term goals that I detected in the early DNotes community forum that led to my direct involvement.

I also really like the business acumen you're referencing in compounding growth of an ecosystem. I haven't read snowball, but I have decided to now read it.

It is a great feature of this forum that the main focus isn't 24/7 about what the price is doing as is common in other forums that are heavily dominated by near-term price speculation. Chase's compounding interest example was helpful in some senses -- crypto is very volatile in low-liquidity markets that can mean rapid gains for holders well in excess of the interest earned, and this in turn compounds the earnings from interest paid out from the blockchain in 2.0 even further. But in respect to a high value price point, it's likely the market price would be much more stable, and I would guess that a lot more of the gains would come straight from interest rewards the higher the price went. I think the illustration is helpful from a potential future visualisation of the dollar-denominated interest that could earn in a 'more fixed' and higher liquidity market, and we all know what has happened to many crypto in this industry once the market discovers them. Of course nobody knows what will happen with the DNotes price, but over the long-term we are very confident.

The float concept is a great mention to compound and grow a business, and DNotes currency will likely play a significant role in funding expansion of DNotes' ecosystem, which has been designed to syngergistically and internally compound growth into all the parts of its inter-connected system. That said, for the moment, and up to this point, the DNotes ecosystem has been 100% paid for by its co-founders. This has meant significant outlays both monetary, and even more so in time and experience (and just imagine what Alan could charge as a private consultant, or CEO of a large company?). This is the investment and effort that kickstarts the ecosystem (lest chicken/egg scenario).

The float will be one of the potential tools used to grow the system going forward, but all of the pieces in the engine need to move in alignment for the system to be ready to rapidly scale. In lieu of the DNotes 2.0 upgrade completion (which includes a DNotes Vault revamp), we are not yet spending big on advertising to make our plans known to everyday and institutional investors. Once DNotes 2.0 is complete, the other parts of the engine will rev into gear, and the engine will turn on to create a self-sustaining model for growth. This will mean more attention for DNotes, and likely a higher price at the market, which then compounds investment internally in the ecosystem (higher intrinsic value), which can lead again to higher prices, and more investment in development. The float and the business work in unison to build up the other, but unlike most ICOs, the engine must be completed and turned on before it can begin to propel the vehicle forward. Before the engine turns on, it is entirely funded by its creators.

Fantastic response, TeeGee. You said it better than I would have.

Now that you mentioned it, yes, DNotes has been 100% privately funded without ever asking for any donation from our community. This allows us to always do the right things that we believe are in the best interest of our stakeholders and never have to worry about the price of DNotes. Thanks to my business partner, Kevin and Smokeys Gardens for their generosity in making many things possible. We will soon have a daylily registered and named "DNotes". Of course, we already have a book published with a chapter dedicated to the DNotes Story.

We have been building an amazing engine (business model) without having to ask for permission. And that engine is about to turn on.

[DCEBrief]

CME Announces Plans for Bitcoin Futures, Bitcoin Price

https://dcebrief.com/cme-announces-plans-for-bitcoin-futures-bitcoin-price-soars/

[popeye95]

CME Announces Plans for Bitcoin Futures, Bitcoin Price

https://dcebrief.com/cme-announces-plans-for-bitcoin-futures-bitcoin-price-soars/

Tho we know BTC price will increase toward the end of the year but with the uncertain of B2X, it really hard to predict this time.

[TimMarsh]

CME Announces Plans for Bitcoin Futures, Bitcoin Price

https://dcebrief.com/cme-announces-plans-for-bitcoin-futures-bitcoin-price-soars/

It will be interesting to see what effect this has. I'm certain that there are millions of potential investors who would love to allocate a small percentage of their portfolio to bitcoin futures as a high risk—very high yield investment. At the moment, these investors are blocked from investing because the techniques required to securely hold bitcoin outside of an exchange require a level of technical skill that is beyond them, or at least beyond their confidence level. The other block is that bitcoin has a dreadful history of coin loss at the exchange due to hacking or collapsing. So owning bitcoin on or off an exchange is problematic for these potential investors.

Enter into the market the trusted name of CME, and the familiar process of investing, and we could see a percentage of investments moved over to bitcoin. This would then require CME to purchase that bitcoin (wouldn't it?) and if it is as popular as the potential seems, I can see it having some upward pressure on the price. But how much pressure is beyond my skill to determine.

CME Group has a market capitalisation of US$46 billion. And bitcoin has a market capitalisation of US$114 billion.
CME daily futures trading volume is 13 million. This is a tiny fraction of bitcoins 3,377 million.

So, unless I'm completely off track, which is likely, a change of behaviour for CME customers of say 1% of their average investments, would be such a tiny fraction of current daily bitcoin trade that it may not even be noticed. But maybe it is the psychology of CME getting into the market at all that is raising expectations.

https://ycharts.com/companies/CME/market_cap
http://www.cmegroup.com/market-data/volume-open-interest/exchange-volume.html
https://coinmarketcap.com/currencies/bitcoin/

[BTCWise]

BTCWise is also working on four pillars social media graphics. Please have a look and let us know your comments and suggestions:

Looks awesome BTCWise!

Hi Chase, thank you very much for the positive feedback. I am very happy that you like the Four Pillars of Business Success design. A lot went into these designs. Mostly because I want to see DNotes succeed. Thanks again my friend.

[sl-avik]

on Git last updates 15day and 9day for FrontEnd, so what real progress in this direction?
 you really working on code?

[BTCWise]

BTCWise is also working on four pillars social media graphics. Please have a look and let us know your comments and suggestions:

Looks awesome BTCWise!

Excellent work! I love it. Thanks a lot, BTCWise.

Hi Dyna, Thank you very much for the wonderful feedback. I am glad you loved the design. I am happy to contribute my time and skills towards the success of DNotes. You guys are doing a wonderful job btw.

Almost 70 videos with transcripts and bullet points are being produced for the membership site with a completion date of 12/31/17.
This will be followed by an aggressive PR campaign and supporting advertisement. We are offering free membership till the end of 2019. A monthly membership fee of $10 will apply thereafter. 100% of the revenue including book sales will go to DNotes Global, Inc.

Could you please tell me a bit more about the membership site. Is this a DNotes related website and what will the content be? Also, I would like to offer my transcribing services for the videos.

Im looking forward to hearing from you. Regards,