[ANN][DGC][FBD] Free Bank of Digitalcoin ~ Risk Averse DGC Investments

[ethought]

They are essentially writing a call option with no option premium.  Nobody in the investment community does that because it is a money losing proposition.  Why do you think there are no similar services for Gold or Silver?  Except for an outright scam, a company would be out of its mind to guarantee cash refunds on purchase of a highly speculative investment.

Don't forget - as I understand it the basis of the whole idea is to build interest in DGC itself, by providing risk free entry into holding / trading DGC. This would surely benefit DGC as a whole on a far greater scale than just what the bank makes in profit. So if it works and people invest heavily in DGC because it is a risk free investment it would be mission accomplished with the extra bonus of a small percentage of fees as profit.

[1714829933]

1714829933

[1714829933]

1714829933

[r32godzilla]

They are essentially writing a call option with no option premium.  Nobody in the investment community does that because it is a money losing proposition.  Why do you think there are no similar services for Gold or Silver?  Except for an outright scam, a company would be out of its mind to guarantee cash refunds on purchase of a highly speculative investment.

Don't forget - as I understand it the basis of the whole idea is to build interest in DGC itself, by providing risk free entry into holding / trading DGC. This would surely benefit DGC as a whole on a far greater scale than just what the bank makes in profit. So if it works and people invest heavily in DGC because it is a risk free investment it would be mission accomplished with the extra bonus of a small percentage of fees as profit.

Yep one of the things a coin needs to break out and become more popular is great services. This could very well be one of those great new services that puts dgc out in front and sets it up for the future. Can't wait to see it in action.

[yufu571]

cool ！

[krasnyoktyabr]

First, you must agree that it is a zero-sum game.
If the buyer can't lose money, the bank can't win money.
If the buyer can win money, the bank can lose money.

The loophole is

Scenario :
(the bank has initially 0BTC)
The investor purchases 10,000 DGC for 10 BTC with a 5% fee, making the total purchase 10.5 BTC :
The bank purchases 10,000 DGC with the money from the  contract, and sells those 10,000 DGC to the investor for 10.5 BTC
(the bank has now 0.5BTC)

1) First the price of DGC doubles
The bank still have 0.5 BTC.
A new investor purchases 5,000 DGC for 10 BTC with a 5% fee, making the total purchase 10.5 BTC :
The bank purchases 5,000 DGC with the money from the contract, and sells those 5,000 DGC to the investor for 10.5 BTC.
(the bank has now 1 BTC)

2) Then the price of DGC drops in half
The investor sells back the 5,000 DGC for 10 BTC, losing 0.5 BTC for the initial fee (the bank covered 95% of the losses) :
The bank sell 5,000 DGC with the money from the contract, and obtains 5 BTC.
Then the bank gives 10 BTC to the investor.
(the bank has now 1+5-10 =  -4BTC).

The bank wins nothing when the price goes up, but loses when it goes down.

You have it wrong. It is absolutely impossible for the bank, if run correctly, to have a negative BTC balance.

The bank will not use the BTC from a contract until said contract has expired.

Also, it is not a zero-sum game. The investor is risking 5%. The bank will always increase its BTC holdings in this scenario.

[r32godzilla]

First, you must agree that it is a zero-sum game.
If the buyer can't lose money, the bank can't win money.
If the buyer can win money, the bank can lose money.

The loophole is

Scenario :
(the bank has initially 0BTC)
The investor purchases 10,000 DGC for 10 BTC with a 5% fee, making the total purchase 10.5 BTC :
The bank purchases 10,000 DGC with the money from the  contract, and sells those 10,000 DGC to the investor for 10.5 BTC
(the bank has now 0.5BTC)

1) First the price of DGC doubles
The bank still have 0.5 BTC.
A new investor purchases 5,000 DGC for 10 BTC with a 5% fee, making the total purchase 10.5 BTC :
The bank purchases 5,000 DGC with the money from the contract, and sells those 5,000 DGC to the investor for 10.5 BTC.
(the bank has now 1 BTC)

2) Then the price of DGC drops in half
The investor sells back the 5,000 DGC for 10 BTC, losing 0.5 BTC for the initial fee (the bank covered 95% of the losses) :
The bank sell 5,000 DGC with the money from the contract, and obtains 5 BTC.
Then the bank gives 10 BTC to the investor.
(the bank has now 1+5-10 =  -4BTC).

The bank wins nothing when the price goes up, but loses when it goes down.

You have it wrong. It is absolutely impossible for the bank, if run correctly, to have a negative BTC balance.

The bank will not use the BTC from a contract until said contract has expired.

Also, it is not a zero-sum game. The investor is risking 5%. The bank will always increase its BTC holdings in this scenario.

Yeah sounds pretty logical to me. I'm sure Baritus has been over all the scenarios many times before even starting work on this great new service.

[rapidfire187]

Please Donate some Crypto

BTC:
1GvMzgTgXikgHF9zEjsNaBPxwTBdvKD3jU
LTC:
LMZ5aQSXixu2yFoqtBfPiqjsqY3iF8W6NH
FTC:
6yhYJ4onCSNpSXrMPpQ7HfD6F7bv5N47Va
DGC:
DH1VCqWVffyT65k3NZRBh7zpGmfWh9tq3x
PXC:
PnpaD36FWRBrqBd4XeoJh8yLhNsDpzrNxw
ARG:
ANhTeKu8NaeqUySgiV6PZiWKAZL5XpiEZZ
WDC:
WdmU2g4xZMRLkX2jJ2149e2V9m23eCfm9Q

I think DGC definitely has a future

[qiuness]

when is the launch date set?

[CLains]

This bank is like a huge buywall, which will keep price from falling.

Price will keep going up and so the biggest problem will be to get enough DGC into the bank.

Baritus explained that the following will retain liquidity:

1. Shareholder involvement
2. Fees
3. Loans

Shareholders invest expecting a return, and this return is proportional to the fees charged by the bank. The people who loan money to the bank do so also in proportion to the fees charged by the bank.

So how does the bank determine the fee? This seems like the most crucial question. If it is too low, for instance, shareholders (and people giving loans) will simply buy DGC from the bank instead of investing in it.

[pr9me]

Still taking donations!

You should only donate to proven DGC-represented addresses posted by baritus or others on the team. Everything helps!

Lets take DGC to the next level...

[icyak]

Please Donate some Crypto

BTC:
1GvMzgTgXikgHF9zEjsNaBPxwTBdvKD3jU
LTC:
LMZ5aQSXixu2yFoqtBfPiqjsqY3iF8W6NH
FTC:
6yhYJ4onCSNpSXrMPpQ7HfD6F7bv5N47Va
DGC:
DH1VCqWVffyT65k3NZRBh7zpGmfWh9tq3x
PXC:
PnpaD36FWRBrqBd4XeoJh8yLhNsDpzrNxw
ARG:
ANhTeKu8NaeqUySgiV6PZiWKAZL5XpiEZZ
WDC:
WdmU2g4xZMRLkX2jJ2149e2V9m23eCfm9Q

I think DGC definitely has a future

all your posts are just begging and posting wallet addresses into free-giveaway topics...
is there possibility how to buy directly shares od DGC bank?

[baritus]

There won't be a way to purchase shares in the bank directly until it's launched. The bank will now likely be added directly into the exchange itself.

That way users and merchants can exchange, process payments, and hedge all in the same place.

Shares of the exchange are available until August 5th through the fundraiser thread: https://bitcointalk.org/index.php?topic=262648.0

[r32godzilla]

There won't be a way to purchase shares in the bank directly until it's launched. The bank will now likely be added directly into the exchange itself.

That way users and merchants can exchange, process payments, and hedge all in the same place.

Shares of the exchange are available until August 5th through the fundraiser thread: https://bitcointalk.org/index.php?topic=262648.0

Sounds great having it all on the one site. Looking forward to it!

[qiuness]

ETA on this?

[Xmansk]

I have got a question. Is this bank taking some legal issues into concern? Some money laundering prevention in DGC exchange? Several exchanges had problem with this. Traditional bank needs to have a license, although this will not be a traditional bank, is it legal?

[erk]

Is this project still alive?

[Xmansk]

Is this project still alive?

...
The bank will now likely be added directly into the exchange itself.

That way users and merchants can exchange, process payments, and hedge all in the same place.
...

[cosmoo]

friendly bump

[1369]

This is a GREAT idea, looking forward to using your service! (& you should absolutely be able to profit from this, it would burn you out & collapse if it wasn't worth your while)

[EdwardWitten]

Bump?

[r32godzilla]

Project is still alive. Its scheduled for phase 2 after the release of CryptoAve.