[ANN][NOTE]DNotes - Celebrating DNotes 3rd Birthday - Forum Now Open

[DNotes]

I happen to be very analytical and more result oriented. I often project the end result, or the end game, that I like to accomplish. With a goal that is quantifiable, it is possible to examine various options and pick the best one that gives you the highest probability of achieving your goal with maximum returns.

This philosophy carries over to our development as well. We explore and exhaust all available options before choosing the end design.

[SmokeysGardens]

I happen to be very analytical and more result oriented. I often project the end result, or the end game, that I like to accomplish. With a goal that is quantifiable, it is possible to examine various options and pick the best one that gives you the highest probability of achieving your goal with maximum returns.

This philosophy carries over to our development as well. We explore and exhaust all available options before choosing the end design.

I think it carries back to birth for Dyna!! Remember, he was the one who masterminded Smokeys Gardens's success. I was not even sure what a Daylily was in 2007 when Dyna presented a business plan to grow and sell Daylilies. By 2012, we were among the largest growers of Daylilies in the world. Dyna knew where we needed to go and how to get there. You, (DNotes), were the one who got us to the very top of the list for internet traffic for our websites. Dyna had a plan to be where we are, and had a plan on how to get there. I still remember thinking........this Old Man is crazy to think that we could transition from a 30 year old retail/service operation to a internet-based, mail order business growing flowers!!

I have learned over the past 10 years that I have worked with Dyna to NEVER underestimate his long-range forecasts. I have learned more from him in the last ten years than I did in the previous 30 years as a business owner........Dyna can see the future like Dale Earnhardt could "see the air". Smokeys Gardens and DNotes are just two examples of that.

Smokey

[Dyna]

I happen to be very analytical and more result oriented. I often project the end result, or the end game, that I like to accomplish. With a goal that is quantifiable, it is possible to examine various options and pick the best one that gives you the highest probability of achieving your goal with maximum returns.

This philosophy carries over to our development as well. We explore and exhaust all available options before choosing the end design.

I think it carries back to birth for Dyna!! Remember, he was the one who masterminded Smokeys Gardens's success. I was not even sure what a Daylily was in 2007 when Dyna presented a business plan to grow and sell Daylilies. By 2012, we were among the largest growers of Daylilies in the world. Dyna knew where we needed to go and how to get there. You, (DNotes), were the one who got us to the very top of the list for internet traffic for our websites. Dyna had a plan to be where we are, and had a plan on how to get there. I still remember thinking........this Old Man is crazy to think that we could transition from a 30 year old retail/service operation to a internet-based, mail order business growing flowers!!

I have learned over the past 10 years that I have worked with Dyna to NEVER underestimate his long-range forecasts. I have learned more from him in the last ten years than I did in the previous 30 years as a business owner........Dyna can see the future like Dale Earnhardt could "see the air". Smokeys Gardens and DNotes are just two examples of that.

Smokey

Thanks, Smokey. Coming up with that business plan was the easy part. Fine tuning it and executing it flawlessly was quite demanding. With limited financial resources and a declining economy, it was even more challenging than it should have been.

The success of Smokeys Daylily Gardens is the results of a few winning strategies that are applicable in just about any business, with some adjustments. It is most important to start off with a relentless commitment to be the best in class. You are not a “me too”. You want to be equal to the best you are competing with, at a minimum. Your objective is to be equal to and better than any of your competitors. You commit yourself to do the right thing every time and always remember that your customers govern your success or failure. If your customers want you to be successful, your chances of being successful are greatly improved.

Create an “unfair advantage” over your competitors by going beyond the call of duties, delivering more than you promised and always be respectful and appreciative. Most people prefer to do business with friends, not enemies. Go the extra miles to do things that others won’t do. Slowly build up your resources and capabilities so you that are in a position to do things others can not do. That is the “unfair advantage.”

By exploiting the economy of scale, Smokeys Daylily Gardens, has the machine power to plant and harvest more daylilies in one day than most of their competitors can in the entire season. That is the power of the “unfair advantage.” Of course, it takes a lot more than that for Smokey Gardens to reach this level of success, such as team work, internet marketing, and more. That is a different story for another day when appropriate.

I am privilege to be of help. My skill-set as an entrepreneur will be helpful when we start to promote our merchant account payment processing. I plan to be actively working with smaller local businesses to build up a solid foundation before pushing for prime time. Mass consumer and merchant adoption of DNotes will take at least four years. Doing it right from the start is the key to our success. It takes many building blocks to secure that foundation, and that is what we are working on.

[keemo]

I happen to be very analytical and more result oriented. I often project the end result, or the end game, that I like to accomplish. With a goal that is quantifiable, it is possible to examine various options and pick the best one that gives you the highest probability of achieving your goal with maximum returns.

This philosophy carries over to our development as well. We explore and exhaust all available options before choosing the end design.

I think it carries back to birth for Dyna!! Remember, he was the one who masterminded Smokeys Gardens's success. I was not even sure what a Daylily was in 2007 when Dyna presented a business plan to grow and sell Daylilies. By 2012, we were among the largest growers of Daylilies in the world. Dyna knew where we needed to go and how to get there. You, (DNotes), were the one who got us to the very top of the list for internet traffic for our websites. Dyna had a plan to be where we are, and had a plan on how to get there. I still remember thinking........this Old Man is crazy to think that we could transition from a 30 year old retail/service operation to a internet-based, mail order business growing flowers!!

I have learned over the past 10 years that I have worked with Dyna to NEVER underestimate his long-range forecasts. I have learned more from him in the last ten years than I did in the previous 30 years as a business owner........Dyna can see the future like Dale Earnhardt could "see the air". Smokeys Gardens and DNotes are just two examples of that.

Smokey

Thanks, Smokey. Coming up with that business plan was the easy part. Fine tuning it and executing it flawlessly was quite demanding. With limited financial resources and a declining economy, it was even more challenging than it should have been.

The success of Smokeys Daylily Gardens is the results of a few winning strategies that are applicable in just about any business, with some adjustments. It is most important to start off with a relentless commitment to be the best in class. You are not a “me too”. You want to be equal to the best you are competing with, at a minimum. Your objective is to be equal to and better than any of your competitors. You commit yourself to do the right thing every time and always remember that your customers govern your success or failure. If your customers want you to be successful, your chances of being successful are greatly improved.

Create an “unfair advantage” over your competitors by going beyond the call of duties, delivering more than you promised and always be respectful and appreciative. Most people prefer to do business with friends, not enemies. Go the extra miles to do things that others won’t do. Slowly build up your resources and capabilities so you that are in a position to do things others can not do. That is the “unfair advantage.”

By exploiting the economy of scale, Smokeys Daylily Gardens, has the machine power to plant and harvest more daylilies in one day than most of their competitors can in the entire season. That is the power of the “unfair advantage.” Of course, it takes a lot more than that for Smokey Gardens to reach this level of success, such as team work, internet marketing, and more. That is a different story for another day when appropriate.

I am privilege to be of help. My skill-set as an entrepreneur will be helpful when we start to promote our merchant account payment processing. I plan to be actively working smaller local businesses to build up a solid foundation before pushing for prime time. Mass consumer and merchant adoption of DNotes will take at least four years. Doing it right from the start is the key to our success. It takes many building blocks to secure that foundation, and that is what we are working on.

DNotes's strength is that forces behind it have entrepreneurial background. This background of having gone through the trenches and making sure the next check arrives, loans are paid and that business will be around next year unleashes all sorts of creativity. I saw this in the business world where people with entrepreneurial background will time and again show superior leadership and execution skills and creativity far beyond traditional managers could come up with. I think this background of promoters is a key differentiator vis a vis other coins. Running a business or a venture like DNotes is about products, services, customers, customer service, competition, competitive advantage, team work and many more things that the promoters have vast experience with. I see most other coins focusing on a single aspect i.e. product and there the focus is to find some new trick that others are missing. This in itself does not usually lead to a dominant position. Unfortunately, viral marketing has created success stories like hotmail, facebook etc so people do not think about creating customers, servicing them and growing the business. They just create more features and hope for adoption. Success rate with this approach is very low.

[DNotes]

DNotes's strength is that forces behind it have entrepreneurial background. This background of having gone through the trenches and making sure the next check arrives, loans are paid and that business will be around next year unleashes all sorts of creativity. I saw this in the business world where people with entrepreneurial background will time and again show superior leadership and execution skills and creativity far beyond traditional managers could come up with. I think this background of promoters is a key differentiator vis a vis other coins. Running a business or a venture like DNotes is about products, services, customers, customer service, competition, competitive advantage, team work and many more things that the promoters have vast experience with. I see most other coins focusing on a single aspect i.e. product and there the focus is to find some new trick that others are missing. This in itself does not usually lead to a dominant position. Unfortunately, viral marketing has created success stories like hotmail, facebook etc so people do not think about creating customers, servicing them and growing the business. They just create more features and hope for adoption. Success rate with this approach is very low.

You are 100% correct keemo, inspiring post. Not only is the success rate very low with that type of approach, any level of success may not be sustainable without follow through.

[TeeGee]

The effect of inflation on currency, and why the world may abandon the USD.

- Written in NZ english, written once in a quasi-academic manner, without too much attention to grammar and punctuation - I really just want to get my message out there and get some feedback.

Reserve currency is the term we normally use for the type of money countries use to settle foreign trade accounts. For example, if New Zealand buys goods from Canada, it is likely we would still settle our Balance of Payments using US dollars.

There are two characteristics of a currency that make it useful in international trade: one, it is issued by a large trading nation itself, and, two, the currency holds its value vis-à-vis other commodities over time. It is these two characteristics that drive demand for a reserve currency. The inflationary preferences of the USA FED have been well documented and discussed in this forum. This habitual increase in the monetary supply has caused a comparative loss in value to other commodities, but no viable alternative to a worldwide reserve currency existed, until now.

-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

[Explanation for those new to the theory of inflation - read on if financially / economically literate]

Inflation is a term used to describe the real value of a commodity over time, as opposed to its nominal value. An appropriate example to illustrate this is if you put $100 into a bank that paid 5% interest yearly. At the maturity of a calendar year, you should have $105, or an increase in 5%. In this same year however, the government may opted to print more currency in place of the overwhelmingly unpopular decision to raise taxes. The FED may have increased the money supply to the tune of 3%, and without a corresponding increase in economic productivity, the result is inflation.

The original $100 you deposited into the bank turned into a ‘nominal’ amount of $105, but after accounting for inflation, you are left with an ‘inflation adjusted’ figure of $100 plus 5%, less 3%.

Mathematically it would look something like this.

Year 1 = n1
Year 2 = n2

(n1 x 1.05) x.97 = n2

or:

($100 x 1.05) x .97 = $101.85

Therefore, $105 is actually equivalent to $101.85 when chained to the value of the preceding years ‘monetary value’ in a 3% inflation environment. It would also be fair to say that the Government has imposed a hidden tax of $3.15 onto your wealth in addition to income, business, excise and other regulatory taxes. If you had chosen to not place your money into a savings account, the $100 that you held in cash, would need to increase to $103 to buy the same amount of whatever commodity the next year.

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Here are some links to illustrate the correlation between money supply and inflation:

USA:
http://kapitalcon.files.wordpress.com/2011/02/graph-of-money-supply-and-inflation2.gif
Mexico:
http://www.economics.utoronto.ca/jfloyd/modules/moninfmx.jpg
New Zealand:
http://blog.greens.org.nz/wp-content/uploads/M1-M3-CPI-1988-2013.jpg


Now that this relationship has been illustrated, it may beg to question why everybody hasn’t abandoned the US currency entirely. The truth is, big companies like DuPont are already beginning to settle payments in Chinese Yuan and the Euro. One major factor that has prevented such a swift abandonment of the US dollar, is that other major nations have inflated their currencies too. Japan inflated its yen to a larger extent to what the US has in a feeble attempt to revive its stagnant economy by cheapening its currency in the hope its exporters will receive more Yen than it would have before. The destruction of inflation is not limited to the US, it is one of the political elites favourite means of confiscating wealth from their citizens.


“It is my contention that if any person or organization ever obtains the monopoly right to create money, that person or organization will tend to use this right to the hilt. The reason is simple: Anyone or any group empowered to manufacture money virtually out of thin air will tend to exercise that right, and with considerable enthusiasm. For the power to create money is a heady and profitable privilege indeed.” - Murray N. Rothbard (1992)

There US dollar is susceptible to abandonment, or at best serious decline to multiple threats. I postulate that the first of these is the first major nation that stops inflating its currency.



The dollar is very susceptible to losing its vaunted reserve currency position by the first major trading country that stops inflating its currency. Should China peg the value of its currency to gold, the world may adopt the Yuan as the trading currency. Currently China is buying US debt to prop the US economy up to keep consumer demand for Chinese exports. When China no longer wishes to hold trillions of US debt, demand for the Yuan will increase, and demand for the US dollar will decrease. China, possibly the worlds largest trading nation would diminish its holding of US dollars. Dollars held overseas would begin making their way back to the USA, causing more inflation and subsequent price increases. According to a report by congress “The Use and Counterfeiting of U.S. Currency Abroad”, Part 2. March 2003, 60% of US dollars exist overseas. Even if this were to happen, I don’t think it would take long for Digital Currency to supplant the new, pre-eminent economic superpowers one, albeit the US economy will still be in tatters.

Hayek’s ‘Denationalisation’ of money is the best known proposal for the separation of currency and state. The proposal includes the abolition of legal tender laws that would allow every individual to issue their own currency, whether in paper tickets (which existed at the time), or digital with their own insignia and names. These currencies would run in tandem to the current dollars, euros and yen that have maintained monopolies by the government. This would mean that DYNA could create DYNA COIN’s, Dnotes could develop Dnotes, I could make TeeGeeCoin, drug users PotCoin, and shibes Dogecoin. Hayek also suggested the creation of a bank that would issue ‘ducats’ - gold or silver coins that would be issued to be used to price each new currency. This obviously is an exact map of what Bitcoin is to the current Digital Currency realm, and the Nobel Laureate was very confident that these ‘ducats’ would easily out-compete the over-inflated currencies backed by nation states.

The thing about money is it is not demanded, nor required for its own sake. It is not like a computer or food where people can derive utility from its use. Money is demanded for no other reason than that it already functions as money, when people know it can be used to buy and sell as a medium of exchange. Anybody may issue their own currency, but issuance and acceptance are two very different matters. Nobody will accept a new currency as they might new Iphones and TV’s.

Ludwig Von Mises "regression theorem" showed as far back as 1912, that nobody will accept any currency as money unless it has been previously demanded and exchanged earlier. This would make it obvious that one would need to go back in time to the original transaction that would have made such an entity count as ‘money’. Rothbard (1992) postulates that since something can not have been used as money before its first transaction, it could only have been demanded because it is a ‘non-monetary commodity’ and therefore had a preexisting price, even in the era before it began to be used as a medium.

“In other words, for any commodity to become used as money, it must have originated as a commodity valued for some nonmonetary purpose, so that it had a stable demand and price before it began to be used as a medium of exchange. In short, money cannot be created out of thin air, by social contract, or by issuing paper tickets with new names on them”
(Rothbard, M 1992, The Gold Standard: An Austrian Perspective. Lexington, MA: D.C. Heath, 1985, pp. 1-17 ).

At the time Hayek’s idea was first put forward, it was considered idealistic and unworkable. Printing new names on bits of paper wouldn't make people accept its function as money; the dollar would still reign supreme. It was also said that the removal of legal tender laws wouldn’t work, for the new names would not be able to emerge into currency from first being useful ‘commodities on the free market’ as Von Mises’s theorem suggested they must. This would have left the deeply entrenched government currencies unchallenged as money, and money would not have ended up denationalised at all. Money would remain a function of the state, holding all the citizenry hostage to its theft, and liable to its irresponsible fiscal decisions; there would not be any separation of money and state.

I postulate that Digital Currency has rendered Von Mises’s theorem obsolete. Mining currencies has turned such ‘rewards’ in the form of coins as a commodity, which has already allowed some to break through this pre-requisite to be accepted as money, and truly allowed the denationalisation of money as put forward by Hayek. The blockchain technology will allow us to be truly free from the shackles of our bureaucratic rulers, I will write future pieces soon on how I believe Dnotes fits into this picture. I’m very interested in hearing what the community has to say on such posts, and topics that would both interest and help the community and adoption of Dnotes that I could do research on.

Few references:

[The Gold Standard: Perspectives in the Austrian School. Edited with an Introduction by Llewellyn H. Rockwell, Jr. Copyright © 1992. The Ludwig von Mises Institute. Auburn, Ala. Pp. 116-130; retrievable here: http://mises.org/rothbard/genuine.pdf

http://www.treas.gov/press/releases/docs/counterfeit.pdf

[kanus1113]

TeeGee, excellent post. Very well written and easy to understand.

I'm no economist but I see how exciting digital currencies are from an economic standpoint.
"Mining currencies has turned such ‘rewards’ in the form of coins as a commodity, which has already allowed some to break through this pre-requisite to be accepted as money, and truly allowed the denationalisation of money as put forward by Hayek."
Is it the 'work' aspect of mining or does this statement still hold true in a other forms mining where little or no 'work' is done?

[DNotes]

Wow Teegee! Can't wait to see your subsequent posts on how DNotes fits in the picture from your perspective. Very insightful.

[kanus1113]

Russia plans to ban bitcoin?

http://www.cryptocoinsnews.com/russia-plans-bitcoin-ban-2015/

[Dyna]

The effect of inflation on currency, and why the world may abandon the USD.

- Written in NZ english, written once in a quasi-academic manner, without too much attention to grammar and punctuation - I really just want to get my message out there and get some feedback.

Reserve currency is the term we normally use for the type of money countries use to settle foreign trade accounts. For example, if New Zealand buys goods from Canada, it is likely we would still settle our Balance of Payments using US dollars.

There are two characteristics of a currency that make it useful in international trade: one, it is issued by a large trading nation itself, and, two, the currency holds its value vis-à-vis other commodities over time. It is these two characteristics that drive demand for a reserve currency. The inflationary preferences of the USA FED have been well documented and discussed in this forum. This habitual increase in the monetary supply has caused a comparative loss in value to other commodities, but no viable alternative to a worldwide reserve currency existed, until now.

-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

[Explanation for those new to the theory of inflation - read on if financially / economically literate]

Inflation is a term used to describe the real value of a currency over time, as opposed to its nominal value. An appropriate example to illustrate this is if you put $100 into a bank that paid 5% interest yearly. At the maturity of a calendar year, you should have $105, or an increase in 5%. In this same year however, the government may opted to print more currency in place of the overwhelmingly unpopular decision to raise taxes. The FED may have increased the money supply to the tune of 3%, and without a corresponding increase in economic productivity, the result is inflation.

The original $100 you deposited into the bank turned into a ‘nominal’ amount of $105, but after accounting for inflation, you are left with an ‘inflation adjusted’ figure of $100 plus 5%, less 3%.

Mathematically it would look something like this.

Year 1 = n1
Year 2 = n2

(n1 x 1.05) x.97 = n2

or:

($100 x 1.05) x .97 = $101.85

Therefore, $105 is actually equivalent to $101.85 when chained to the value of the preceding years ‘monetary value’ in a 3% inflation environment. It would also be fair to say that the Government has imposed a hidden tax of $3.15 onto your wealth in addition to income, business, excise and other regulatory taxes. If you had chosen to not place your money into a savings account, the $100 that you held in cash, would need to increase to $103 to buy the same amount of whatever commodity the next year.

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Here are some links to illustrate the correlation between money supply and inflation:

USA:
http://kapitalcon.files.wordpress.com/2011/02/graph-of-money-supply-and-inflation2.gif
Mexico:
http://www.economics.utoronto.ca/jfloyd/modules/moninfmx.jpg
New Zealand:
http://blog.greens.org.nz/wp-content/uploads/M1-M3-CPI-1988-2013.jpg


Now that this relationship has been illustrated, it may beg to question why everybody hasn’t abandoned the US currency entirely. The truth is, big companies like DuPont are already beginning to settle payments in Chinese Yuan and the Euro. One major factor that has prevented such a swift abandonment of the US dollar, is that other major nations have inflated their currencies too. Japan inflated its yen to a larger extent to what the US has in a feeble attempt to revive its stagnant economy by cheapening its currency in the hope its exporters will receive more Yen than it would have before. The destruction of inflation is not limited to the US, it is one of the political elites favourite means of confiscating wealth from their citizens.


“It is my contention that if any person or organization ever obtains the monopoly right to create money, that person or organization will tend to use this right to the hilt. The reason is simple: Anyone or any group empowered to manufacture money virtually out of thin air will tend to exercise that right, and with considerable enthusiasm. For the power to create money is a heady and profitable privilege indeed.” - Murray N. Rothbard (1992)

There US dollar is susceptible to abandonment, or at best serious decline to multiple threats. I postulate that the first of these is the first major nation that stops inflating its currency.



The dollar is very susceptible to losing its vaunted reserve currency position by the first major trading country that stops inflating its currency. Should China peg the value of its currency to gold, the world may adopt the Yuan as the trading currency. Currently China is buying US debt to prop the US economy up to keep consumer demand for Chinese exports. When China no longer wishes to hold trillions of US debt, demand for the Yuan will increase, and demand for the US dollar will decrease. China, possibly the worlds largest trading nation would diminish its holding of US dollars. Dollars held overseas would begin making their way back to the USA, causing more inflation and subsequent price increases. According to a report by congress “The Use and Counterfeiting of U.S. Currency Abroad”, Part 2. March 2003, 60% of US dollars exist overseas. Even if this were to happen, I don’t think it would take long for Digital Currency to supplant the new, pre-eminent economic superpowers one, albeit the US economy will still be in tatters.

Hayek’s ‘Denationalisation’ of money is the best known proposal for the separation of currency and state. The proposal includes the abolition of legal tender laws that would allow every individual to issue their own currency, whether in paper tickets (which existed at the time), or digital with their own insignia and names. These currencies would run in tandem to the current dollars, euros and yen that have maintained monopolies by the government. This would mean that DYNA could create DYNA COIN’s, Dnotes could develop Dnotes, I could make TeeGeeCoin, drug users PotCoin, and shibes Dogecoin. Hayek also suggested the creation of a bank that would issue ‘ducats’ - gold or silver coins that would be issued to be used to price each new currency. This obviously is an exact map of what Bitcoin is to the current Digital Currency realm, and the Nobel Laureate was very confident that these ‘ducats’ would easily out-compete the over-inflated currencies backed by nation states.

The thing about money is it is not demanded, nor required for its own sake. It is not like a computer or food where people can derive utility from its use. Money is demanded for no other reason than that it already functions as money, when people know it can be used to buy and sell as a medium of exchange. Anybody may issue their own currency, but issuance and acceptance are two very different matters. Nobody will accept a new currency as they might new Iphones and TV’s.

Ludwig Von Mises "regression theorem" showed as far back as 1912, that nobody will accept any currency as money unless it has been previously demanded and exchanged earlier. This would make it obvious that one would need to go back in time to the original transaction that would have made such an entity count as ‘money’. Rothbard (1992) postulates that since something can not have been used as money before its first transaction, it could only have been demanded because it is a ‘non-monetary commodity’ and therefore had a preexisting price, even in the era before it began to be used as a medium.

“In other words, for any commodity to become used as money, it must have originated as a commodity valued for some nonmonetary purpose, so that it had a stable demand and price before it began to be used as a medium of exchange. In short, money cannot be created out of thin air, by social contract, or by issuing paper tickets with new names on them”
(Rothbard, M 1992, The Gold Standard: An Austrian Perspective. Lexington, MA: D.C. Heath, 1985, pp. 1-17 ).

At the time Hayek’s idea was first put forward, it was considered idealistic and unworkable. Printing new names on bits of paper wouldn't make people accept its function as money; the dollar would still reign supreme. It was also said that the removal of legal tender laws wouldn’t work, for the new names would not be able to emerge into currency from first being useful ‘commodities on the free market’ as Von Mises’s theorem suggested they must. This would have left the deeply entrenched government currencies unchallenged as money, and money would not have ended up denationalised at all. Money would remain a function of the state, holding all the citizenry hostage to its theft, and liable to its irresponsible fiscal decisions; there would not be any separation of money and state.

I postulate that Digital Currency has rendered Von Mises’s theorem obsolete. Mining currencies has turned such ‘rewards’ in the form of coins as a commodity, which has already allowed some to break through this pre-requisite to be accepted as money, and truly allowed the denationalisation of money as put forward by Hayek. The blockchain technology will allow us to be truly free from the shackles of our bureaucratic rulers, I will write future pieces soon on how I believe Dnotes fits into this picture. I’m very interested in hearing what the community has to say on such posts, and topics that would both interest and help the community and adoption of Dnotes that I could do research on.

Few references:

[The Gold Standard: Perspectives in the Austrian School. Edited with an Introduction by Llewellyn H. Rockwell, Jr. Copyright © 1992. The Ludwig von Mises Institute. Auburn, Ala. Pp. 116-130; retrievable here: http://mises.org/rothbard/genuine.pdf

http://www.treas.gov/press/releases/docs/counterfeit.pdf

Thank you very much, TeeGee. This is excellent research work with great insights. We appreciate your contributions, including the lengthy research materials you have already provided to me separately.

A good understanding of currency or money is helpful in making investment decisions. TeeGee’s quasi-academic version provides a much more in-depth prospective on the dynamics of currencies, including how foreign trade accounts are settled. The US dollar has been the currency of choice for decades because of the dominating size of the US economy and the relative stability of the US dollar.  Being widely available across the globe has also been an important factor.

Value is relative as to what you can exchange it for, such as gold as a commodity currency. From a global prospective the aggressive monetary policy of the Federal Reserve has caused the US dollar to loss significant value in the recent years, leading to continued lost of confidence. As TeeGee pointed out, “this habitual increase in the monetary supply has caused a comparative loss in value to other commodities, but no viable alternative to a worldwide reserve currency existed.”  Could digital currency, such as DNotes, be the viable alternative currency?  In my opinion, it has the potential but it may take decades to happen. In the meantime, even as a supplemental global currency, the potential is huge.

We will continue to focus our discussion on “store of value.”  There should be little debate that the rich are getting richer, leaving many of the less fortunate to a life time of struggle for financial freedom. We are not just positioning DNotes to be a viable alternative currency but also as an investment opportunity for many to gain some financial freedom. There are no assurances that we will be successful. Potential high return investment often comes with high risks, including situations that may be beyond our control. As always, invest with caution and not to exceed what you can afford to loss.

Preserving and growing the value of the “extras” that are stored away for emergency, college funds, retirement, and others, are important considerations. To gain financial freedom one day, your objective is not just to preserve the value of your investment but to grow it. The higher the rate of return achieved, the more successful you will become.

There are many investment opportunities. For purposes of our discussions, we are limiting our coverage to investment in gold, US $, Bitcoin, and DNotes. Following all my posts, dating back at least a couple of months is important, as I will only make brief mention of certain subject matters that I have previously discussed in details.

Getting in on the ground floor before a major uptrend makes a huge difference. In the case of investing in gold, perfect timing would have been buying gold at $300 per ounce and selling it at $1900 per ounce eleven years later. No one is that good. A few might have done that because they were lucky.  The ability to determine if the uptrend has maxed out with limited potential for further gain and a near term decline in value are also important considerations.

I believe that further price appreciation of gold in the foreseeable future is not likely. Its rapid value appreciation has maxed out. It is still a good store of value but not an “over-weight” for any investment portfolio. Hence, more and more professional investors will reduce their gold holdings in favor of investing in digital currency. TeeGee has just made a good case that the value of the US dollar is likely to continue to loss value relative to its purchasing power measured against the value of other commodities. Long-term store of value using the US dollar is not a good choice. You are more likely to get behind than get ahead.

In my next blog, I will be making a case that the value of Bitcoin may have maxed out over the near term. Subsequent posts will discuss why DNotes could be the next best store of value since gold. A large family of saving plans using DNotes as a Store of Value will be introduced over the next few months. I encourage our stake holders stay well informed on our “CR.I.S.Ps” program and be a participant as much as you can.

[SmokeysGardens]

I have a plan for my daughters a portion of my daughters college.  She's 4 so that will be in 2028.  Today I purchased 5 ZenHashlet Solo's from GAWminer. Hashlets are 1 MH/s Cloudminers costing about $20.95 and are paid out in BTC daily for those not familiar. These mine on one of various different multipools, I use the Zenpool because they are the most profitable. They have been averaging about 0.0005611525 BTC ($.266875) per day after maintenance costs.  You can set these up in a mater of minutes and they can be set to reinvest the mining profits automatically toward more miners at a 5% discount.  Now assuming the pool can retain it it $.26 profit per unit each day and the price of a hashlet remains the same and is readily available, you will have 507 in a years time producing $131.82 Daily in BTC or $48,118 per year. If you cash out half of that and invest it cautiously and retain the other half strategically in crypto you should be able to have a nice chunk of money for college set aside.  14 years worth for me I'm hoping she can go to the University of her choice, and come out of it completely debt free and as a graduation present have a mining farm that will hopefully still be producing a nice little profit for he to start out with.  Anyone interested in Hashlets let me know and I'll be happy to try and answer any questions.

This is an interesting read.

http://www.cryptocoinsnews.com/wagepoint-us-companies-can-now-pay-employees-bitcoin/

I would love to get a portion of my paycheck in bitcoin.

Perhaps, one day we can offer you a choice; USD, Bitcoin or that one with "reliable long-term appreciating value." Or would you prefer to have your DNotes deposited in one of our family of CR.I.S.Ps. What is that? Stay tuned.

That sounds like a great plan. It is easy to forget that if a little is added to your savings everyday it amounts to something every year. After many years it becomes quite sizable. An attractive compound effect is very favorable over the long-term. I just hope that your assumptions will continue to hold true. Sometimes, there are many things beyond one's control. As a good investment practice, it is a good idea not to put all your investment (all eggs) in one basket.

As part of an overall investment portfolio, it is a good investment strategy to allocate a small percentage (5% to 10%) to be invested in high risk/higher return situations. Unfortunately, this is the area where the most mistakes are made.

Selecting high risk candidates is extremely difficult. There are always more bad selections than good selections. Of course, you want to pick the right ones. Otherwise instead of getting ahead, you fall behind.

It is extremely important to take your time, be as objective as you can, and continue to narrow down your selections. Don’t let your emotion get the better part of you. Excitement is not a guarantee of high returns. Don’t buy into the claim that this is a once in a life time investment opportunity. The same person could be making the same claim on a different investment the following week.

If you have a choice, give preference to the ones that already has a demonstrated track record consistent with their claims or missions. Most businesses failed to deliver what they represented in their business plan.  

If you are fortunate enough, getting in on ground floor opportunities can make a huge difference. Let us take a closer look at Bitcoin and DNotes value appreciation tracks:

Bitcoin:

01-03-09         Genesis block established

10-05-09      Exchange Rate  published $1 = 1,309.03 BTC

05-22-10      Pizza  purchased with 10,000 BTC = $25
                   or $1 = 400 BTC

09-12-13      $132.59 = 1 BTC  (exactly one year ago)

09-12-14       $471.71 = 1 BTC   (Today)

DNotes:


02-18-14   Genesis block established

02-26-14   1st Day on Exchange closed at $1 = 400 DNotes
                Once it settled (30 days) $1 = 2,000 DNotes

09-12-14   $1 = 200 DNotes  (Today)


This is just to demonstrate that picking the right investment and investing at the right time can make a huge difference.

Bitcoin is not going away. It will remain as the backbone of our industry for years to come and as demand grows its value will increase. For long term investors Bitcoin is a good store of value. However, it is already priced to perfection with limited potential for near-term price appreciation. DNotes could be a better choice. Stay tuned for my next blog.

     This post hit home for me on the "Store of Value" point Dyna has been explaining to us. On the surface, Bitcoin looks like a fantastic Store of Value, until you look deeper into it. The daily price of Bitcoin is very volatile. Dnotes has not only shown more increase in value as the coin ages, BUT...the important part: DNotes has been STABLE. Stability is as important as increase in value.

     Bitcoin took over a year to increase 10X, Dnotes has done that in six months, and remained stable, with higher highs and higher lows than Bitcoin. Bitcoin has been a great store of value, up until now. Bitcoin may have maxed out.

     What if you would have if you would bought 10 bucks worth of Bitcoin 16 months after release? You would have bought 4000 Bitcoins for 10 bucks! What is it worth four years later? Almost Two Million Dollars!! If you compare Bitcoin with DNotes, the first difference you will see is the difference in Price Stability. In fact, compare ANY coin to DNotes and the first thing you will notice is the Price Stability of DNotes. No other coin has it. When we realize that Price Stability is CRITICAL to be considered an acceptable Store of Value, and Store of Value is CRITICAL to widespread acceptance, then DNotes is the ONLY candidate for widespead acceptance, as of now.

     When you look at the Bitcoin example above, ANYONE that knew ANYTHING about crypto-currency would buy 10 bucks worth of DNotes, for not only their kids and grandkids, but for EVERY family member! (Even the brother-in-law that borrows from ya all the time!).

Price Stability = Good Store of Value. Good Store of Value = Merchant Acceptance. Merchant Acceptance = Widespread Use. Widespread Use = Returns BETTER THAN BITCOIN!!

Buy DNotes for the family. You could very well be a Hero, and everyone's favorite Aunt or Uncle!!

Smokey

[Chase]

This may be a lot of Bitcoin immediately dumped on the market for fiat currency...


"United Way Becomes Largest Nonprofit to Accept Bitcoin"

http://www.coindesk.com/charity-united-way-worldwide-now-accepts-donations-bitcoin/

[Dyna]

This may be a lot of Bitcoin immediately dumped on the market for fiat currency...


"United Way Becomes Largest Nonprofit to Accept Bitcoin"

http://www.coindesk.com/charity-united-way-worldwide-now-accepts-donations-bitcoin/

This will help speed up the adoption of digital currency and that's good. Unfortunately it will negatively affect Bitcoin's price stability if a large amount of Bitcoin is dumped in the open market. Such unintended consequences will dampen Bitcoin from further price appreciation over the near-term. In my opinion, at around $500, the price of Bitcoin has limited upside potential and a higher probability of drifting downwards to the low 400s over the near-term.

My long-term out-look on Bitcoin is optimist. In may take a couple of years to get over some of the growing pains. Any investment portfolio that includes a selection of crypto-currencies should include Bitcoin. However, smart money will also add some DNotes to that basket to capture potentially very high returns.

DNotes is very supportive of charity fund raising using digital currency. However, we are sensitive to potential unintended consequences resulting from instant dump. We are committed to minimize such negative impact by way of smart contracts and other arrangements.

[DNotes]

Everyone must be on the exchanges trading today. We need to make the forums just as exciting lol.

[mrbum805]

Hi Dyna. First off i hate writing, i'm horrible at it and im not to knowledgeable in cyber currencies. But i just wanted to say, I do appreciate your posts with all the wonderful outlooks/insights/plans. I think there are lots off people reading them like me. if im right it does help to keep posting and if not today, there will be a day were it will come into play. Dnotes will be a step ahead at that point with the information already out there. It allows people to truly understand the extent that dnotes is taking to be the "currancy of the future", how hard the team is working, and the brilliance of it all. I really like this idea of teaching kids and college students how to save there money with dnotes were they might even possibly seeing a lot of growth in their savings.

Also people may feel like they'll be cluttering up a clean insightful form and holding back from posting. Especially people like me that aren't all that knowledgeable and want to jump into these intense conversations. just a thought.



And TeeGee all i can say is WOW! and thanks for the dedication behind that post

looking forward on hearing some more great info from you guys, thanks and keep up the good work!

[kanus1113]

This may be a lot of Bitcoin immediately dumped on the market for fiat currency...


"United Way Becomes Largest Nonprofit to Accept Bitcoin"

http://www.coindesk.com/charity-united-way-worldwide-now-accepts-donations-bitcoin/

This will help speed up the adoption of digital currency and that's good. Unfortunately it will negatively affect Bitcoin's price stability if a large amount of Bitcoin is dumped in the open market. Such unintended consequences will dampen Bitcoin from further price appreciation over the near-term. In my opinion, at around $500, the price of Bitcoin has limited upside potential and a higher probability of drifting downwards to the low 400s over the near-term.

My long-term out-look on Bitcoin is optimist. In may take a couple of years to get over some of the growing pains. Any investment portfolio that includes a selection of crypto-currencies should include Bitcoin. However, smart money will also add some DNotes to that basket to capture potentially very high returns.

DNotes is very supportive of charity fund raising using digital currency. However, we are sensitive to potential unintended consequences resulting from instant dump. We are committed to minimize such negative impact by way of smart contracts and other arrangements.

I wonder if an organization like the United Way would even think to consider the impact they would have on the price when selling off their bitcoin.

[phildonovan]

Hello people!

I'm a keen libertarian from New Zealand. I met TeeGee online whilst having massive debates against liberals and conservatives on facebook. He's a brilliant buddy of mine. I thought his post before regarding crypto-currencies was excellent and I hadn't heard of Hayek's denationalisation of money. Very informative. Anyway, just wanted to say hello and I hope you guys are well.

If you guys are on facebook, which I'd perfectly understand if you aren't, it'd be great to connect up and have some discussion there too.

Is there anyone here who programs in Python? We're currently building a website for an group TeeGee and I are setting up and need a bit more expertise. I'm learning but have to juggle other jobs.

Regards,
Phil Donovan

[keemo]

The effect of inflation on currency, and why the world may abandon the USD.

- Written in NZ english, written once in a quasi-academic manner, without too much attention to grammar and punctuation - I really just want to get my message out there and get some feedback.

Reserve currency is the term we normally use for the type of money countries use to settle foreign trade accounts. For example, if New Zealand buys goods from Canada, it is likely we would still settle our Balance of Payments using US dollars.

There are two characteristics of a currency that make it useful in international trade: one, it is issued by a large trading nation itself, and, two, the currency holds its value vis-à-vis other commodities over time. It is these two characteristics that drive demand for a reserve currency. The inflationary preferences of the USA FED have been well documented and discussed in this forum. This habitual increase in the monetary supply has caused a comparative loss in value to other commodities, but no viable alternative to a worldwide reserve currency existed, until now.

-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

[Explanation for those new to the theory of inflation - read on if financially / economically literate]

Inflation is a term used to describe the real value of a currency over time, as opposed to its nominal value. An appropriate example to illustrate this is if you put $100 into a bank that paid 5% interest yearly. At the maturity of a calendar year, you should have $105, or an increase in 5%. In this same year however, the government may opted to print more currency in place of the overwhelmingly unpopular decision to raise taxes. The FED may have increased the money supply to the tune of 3%, and without a corresponding increase in economic productivity, the result is inflation.

The original $100 you deposited into the bank turned into a ‘nominal’ amount of $105, but after accounting for inflation, you are left with an ‘inflation adjusted’ figure of $100 plus 5%, less 3%.

Mathematically it would look something like this.

Year 1 = n1
Year 2 = n2

(n1 x 1.05) x.97 = n2

or:

($100 x 1.05) x .97 = $101.85

Therefore, $105 is actually equivalent to $101.85 when chained to the value of the preceding years ‘monetary value’ in a 3% inflation environment. It would also be fair to say that the Government has imposed a hidden tax of $3.15 onto your wealth in addition to income, business, excise and other regulatory taxes. If you had chosen to not place your money into a savings account, the $100 that you held in cash, would need to increase to $103 to buy the same amount of whatever commodity the next year.

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Here are some links to illustrate the correlation between money supply and inflation:

USA:
http://kapitalcon.files.wordpress.com/2011/02/graph-of-money-supply-and-inflation2.gif
Mexico:
http://www.economics.utoronto.ca/jfloyd/modules/moninfmx.jpg
New Zealand:
http://blog.greens.org.nz/wp-content/uploads/M1-M3-CPI-1988-2013.jpg


Now that this relationship has been illustrated, it may beg to question why everybody hasn’t abandoned the US currency entirely. The truth is, big companies like DuPont are already beginning to settle payments in Chinese Yuan and the Euro. One major factor that has prevented such a swift abandonment of the US dollar, is that other major nations have inflated their currencies too. Japan inflated its yen to a larger extent to what the US has in a feeble attempt to revive its stagnant economy by cheapening its currency in the hope its exporters will receive more Yen than it would have before. The destruction of inflation is not limited to the US, it is one of the political elites favourite means of confiscating wealth from their citizens.


“It is my contention that if any person or organization ever obtains the monopoly right to create money, that person or organization will tend to use this right to the hilt. The reason is simple: Anyone or any group empowered to manufacture money virtually out of thin air will tend to exercise that right, and with considerable enthusiasm. For the power to create money is a heady and profitable privilege indeed.” - Murray N. Rothbard (1992)

There US dollar is susceptible to abandonment, or at best serious decline to multiple threats. I postulate that the first of these is the first major nation that stops inflating its currency.



The dollar is very susceptible to losing its vaunted reserve currency position by the first major trading country that stops inflating its currency. Should China peg the value of its currency to gold, the world may adopt the Yuan as the trading currency. Currently China is buying US debt to prop the US economy up to keep consumer demand for Chinese exports. When China no longer wishes to hold trillions of US debt, demand for the Yuan will increase, and demand for the US dollar will decrease. China, possibly the worlds largest trading nation would diminish its holding of US dollars. Dollars held overseas would begin making their way back to the USA, causing more inflation and subsequent price increases. According to a report by congress “The Use and Counterfeiting of U.S. Currency Abroad”, Part 2. March 2003, 60% of US dollars exist overseas. Even if this were to happen, I don’t think it would take long for Digital Currency to supplant the new, pre-eminent economic superpowers one, albeit the US economy will still be in tatters.

Hayek’s ‘Denationalisation’ of money is the best known proposal for the separation of currency and state. The proposal includes the abolition of legal tender laws that would allow every individual to issue their own currency, whether in paper tickets (which existed at the time), or digital with their own insignia and names. These currencies would run in tandem to the current dollars, euros and yen that have maintained monopolies by the government. This would mean that DYNA could create DYNA COIN’s, Dnotes could develop Dnotes, I could make TeeGeeCoin, drug users PotCoin, and shibes Dogecoin. Hayek also suggested the creation of a bank that would issue ‘ducats’ - gold or silver coins that would be issued to be used to price each new currency. This obviously is an exact map of what Bitcoin is to the current Digital Currency realm, and the Nobel Laureate was very confident that these ‘ducats’ would easily out-compete the over-inflated currencies backed by nation states.

The thing about money is it is not demanded, nor required for its own sake. It is not like a computer or food where people can derive utility from its use. Money is demanded for no other reason than that it already functions as money, when people know it can be used to buy and sell as a medium of exchange. Anybody may issue their own currency, but issuance and acceptance are two very different matters. Nobody will accept a new currency as they might new Iphones and TV’s.

Ludwig Von Mises "regression theorem" showed as far back as 1912, that nobody will accept any currency as money unless it has been previously demanded and exchanged earlier. This would make it obvious that one would need to go back in time to the original transaction that would have made such an entity count as ‘money’. Rothbard (1992) postulates that since something can not have been used as money before its first transaction, it could only have been demanded because it is a ‘non-monetary commodity’ and therefore had a preexisting price, even in the era before it began to be used as a medium.

“In other words, for any commodity to become used as money, it must have originated as a commodity valued for some nonmonetary purpose, so that it had a stable demand and price before it began to be used as a medium of exchange. In short, money cannot be created out of thin air, by social contract, or by issuing paper tickets with new names on them”
(Rothbard, M 1992, The Gold Standard: An Austrian Perspective. Lexington, MA: D.C. Heath, 1985, pp. 1-17 ).

At the time Hayek’s idea was first put forward, it was considered idealistic and unworkable. Printing new names on bits of paper wouldn't make people accept its function as money; the dollar would still reign supreme. It was also said that the removal of legal tender laws wouldn’t work, for the new names would not be able to emerge into currency from first being useful ‘commodities on the free market’ as Von Mises’s theorem suggested they must. This would have left the deeply entrenched government currencies unchallenged as money, and money would not have ended up denationalised at all. Money would remain a function of the state, holding all the citizenry hostage to its theft, and liable to its irresponsible fiscal decisions; there would not be any separation of money and state.

I postulate that Digital Currency has rendered Von Mises’s theorem obsolete. Mining currencies has turned such ‘rewards’ in the form of coins as a commodity, which has already allowed some to break through this pre-requisite to be accepted as money, and truly allowed the denationalisation of money as put forward by Hayek. The blockchain technology will allow us to be truly free from the shackles of our bureaucratic rulers, I will write future pieces soon on how I believe Dnotes fits into this picture. I’m very interested in hearing what the community has to say on such posts, and topics that would both interest and help the community and adoption of Dnotes that I could do research on.

Few references:

[The Gold Standard: Perspectives in the Austrian School. Edited with an Introduction by Llewellyn H. Rockwell, Jr. Copyright © 1992. The Ludwig von Mises Institute. Auburn, Ala. Pp. 116-130; retrievable here: http://mises.org/rothbard/genuine.pdf

http://www.treas.gov/press/releases/docs/counterfeit.pdf

Hi TeeGee,

Since you asked for feedback, your post is highly informative. Insight from Hayek etc. are great. Beauty of academic research is that once an economy is postulated, all results follow mathematically. Any academic research/paper that draws any conclusions by creating a theoretical economy on paper, with agents and their incentives well defined and with agents acting rationally is indispensable. Your post lends more credence to the belief that digital currency will play a major role in the years to come. Any other papers you can cite that have thought through relevant issues would lead to more conviction.

[DNotes]

Hi Dyna. First off i hate writing, i'm horrible at it and im not to knowledgeable in cyber currencies. But i just wanted to say, I do appreciate your posts with all the wonderful outlooks/insights/plans. I think there are lots off people reading them like me. if im right it does help to keep posting and if not today, there will be a day were it will come into play. Dnotes will be a step ahead at that point with the information already out there. It allows people to truly understand the extent that dnotes is taking to be the "currancy of the future", how hard the team is working, and the brilliance of it all. I really like this idea of teaching kids and college students how to save there money with dnotes were they might even possibly seeing a lot of growth in their savings.

Also people may feel like they'll be cluttering up a clean insightful form and holding back from posting. Especially people like me that aren't all that knowledgeable and want to jump into these intense conversations. just a thought.



And TeeGee all i can say is WOW! and thanks for the dedication behind that post

looking forward on hearing some more great info from you guys, thanks and keep up the good work!

Thanks! We hope everyone feels comfortable posting here. I can certainly see where you're coming from, the interaction and feedback is necessary as well.

[Dyna]

Hi Dyna. First off i hate writing, i'm horrible at it and im not to knowledgeable in cyber currencies. But i just wanted to say, I do appreciate your posts with all the wonderful outlooks/insights/plans. I think there are lots off people reading them like me. if im right it does help to keep posting and if not today, there will be a day were it will come into play. Dnotes will be a step ahead at that point with the information already out there. It allows people to truly understand the extent that dnotes is taking to be the "currancy of the future", how hard the team is working, and the brilliance of it all. I really like this idea of teaching kids and college students how to save there money with dnotes were they might even possibly seeing a lot of growth in their savings.

Also people may feel like they'll be cluttering up a clean insightful form and holding back from posting. Especially people like me that aren't all that knowledgeable and want to jump into these intense conversations. just a thought.



And TeeGee all i can say is WOW! and thanks for the dedication behind that post

looking forward on hearing some more great info from you guys, thanks and keep up the good work!

Thanks! We hope everyone feels comfortable posting here. I can certainly see where you're coming from, the interaction and feedback is necessary as well.

Thanks, Mrbum805. Your feed back and comments are well appreciated. We are here to communicate as a community and not to judge how well one articulates the English language. Your comments are touching and inspiring, expressing how you personally feel about DNotes and the community behind it.

Feedback and comments are very important to us. Our preference is to be able to accurately and objectively response to the needs of our community and stakeholders. We make serious efforts to be consistent with our messages and express them with the best clarity possible. However, it is not always easy, since we all have the inherent human tendency to inject self-serving biases.

Digital currency, by itself is a very simple concept, when its functions are limited to speculative trading and a few medium of exchange transactions; far from fulfilling the basic functions of money. Unfortunately those are exactly what digital currencies are able to claim today. It is very apparent that there are many obstacles and constraints preventing digital currencies from fulfill all the functions of money, at a minimum. Technically, it can outdo the functions of money. That is what DNotes is positioning itself to accomplish.

DNotes is making an extra effort to share our vision and knowledge with our community and stakeholders. With the unrelenting support of our stakeholders, especially our large stakeholders (anchor wallets or good whales) we are aggressively seeking to expand our user base by introducing a large family of CR.I.S.Ps. This is a very important program to the success of DNotes. Be sure to follow them closely with your utmost support and participations.