eyeofliberty
07-31-2008, 08:41 PM
This article assumes some knowledge of DGCs (Digital Gold Currencies), and Loom. EoL
How to Monetize Yourself and...
Why You Should! (http://www.escapevelocitypub.com/articles/monetize.html)
by William Maderas
Just an idea I thought I would throw to the wolves for 'feedback'.
None of the characters contained herein are real.
With the assistance of DGC's and Loom, monetizing your goods and services is easier than ever.
If you think of a unit of currency as a 'promise to deliver' it will make this whole thing easier.
Here's one possible example of how it could work:
Bill the bodyguard has decided to monetize his protection service. So he sets up an asset in Loom. He monetizes his service at 1 gram of gold per hour and creates 80 one-hour-of-service units of currency. Remember, each unit of currency is also pegged to 1 gram of gold.
Next he writes a contract that describes the terms of the service backing each unit of his currency and puts the currency up for trade on a public exchange somewhere. Part of the contract terms state that in order to obtain his units of currency a 5% transaction fee will be collected at time of sale by himself. These units of currency will then be 'bearer certificates' for his service by whoever is in possession of them.
He also has included a 'bail out' clause in his contract stating that if he doesn't want to perform the service he will redeem in gold whoever surrenders his units of currency back to him.
He issues and sells the currency through Loom.
Now Greg has decided he needs to go to Bogata and purchases some of Bill's currency units.
He spends the money via a DGC to Bill's 'holding' account and opens a dialog with Bill. Bill says <q>Bogata, sure why not.</q>
But before Greg redeems his currency, his plans change and he no longer needs Bill's service. In fact he needs some DGC to tend to a different matter.
So Greg puts Bill's currency up for sale on a market somewhere, possibly offering it at a discount, since he's in a pinch or doesn't see the need for Bill's service in the foreseeable future.
Ron decides things are heating up where he's at and the need for protection is imminent.
He scoops up Bill's currency from Greg at a discount.
Bill works for Ron and collects all the DGC backing his own currency.
Now a HYIP guy decides he will be needing Bill's service and scoops up 8 one-hour-units on the open market and approaches Bill.
Bill decides the HYIP guy is a goofball who is impossible to protect. So he says <q>sorry, no deal</q>. But now Bill has to redeem gold to the HYIP guy to comply with his own 'bail out' clause. So to protect the reputation of both himself and his currency, he redeems DGC to the HYIP guy and gets out of the obligation. Yet, remember, he still made 5% of the value when he issued the currency.
Now let's say:
Parts of the rest of the world are becoming like Mogadishu and the price of gold is going up against fiat currency.
Prudent investors know that protection is going to be in demand. So among them they purchase all of Bill's currency from him and trade it on a DGC oriented 'bourse'.
Some make the purchase because they think they may either need protection or gold at some point in the future and they're trying to get out from some other commodity or fiat currency.
Current value on a market, value to the individual, future value, historical value relevant to significant events all come into consideration for those purchasing Bill's private currency. In fact that is much of how and why stocks and currencies are traded on the various exchanges around the world.
Now let's take a real world example.
Recently I heard how much everone loved this small independently roasted coffee called Capulin.
So I made inquiries and asked the owner of Capulin coffee if he accepted C-Gold. He told me that although he wasn't currently accepting C-Gold, I might be able to find some Capulin currency $ through the Loom interface.
I had no idea at the time what Capulin currency $ was or how it worked.
I quickly found out that Capulin currency $ was currency created by Capulin Coffee and issued via Loom. It wasn't backed by gold it was backed by coffee. Easy to do since Capulin, unlike Bill the bodyguard, produced a 'good' and not a service.
So I enquired with a person I knew who is involved with Loom. Sure enough, he had some Capulin currency $ and was willing to exchange it for C-Gold, of which he had none.
So we traded C-Gold for Capulin currency $.
I then contacted Capulin and placed an order 'spending' the Capulin currency $ back to Capulin and giving them my shipping address and phone number.
Within 3 business days I was grinding the freshly roasted aromatic beans of Capulin coffee and enjoying the best damned cup of coffee I had had in years!
I liked Capulin so much I was trying to figure out how to get more Capulin currency $ right away!
Other people were also either raving about Capulin coffee or trying to figure out how to get some.
As a result, trade was stimulated, and because Capulin had issued it's own currency, all sorts of other digitalized goods, including digital gold and publications, entered this 'spontaneous market' event.
Deals were hammered out via emails and phone calls and 'capital' changed hands.
Not only did the whole event cause a movement of capital and goods, ideas were born for potential future movement of capital and goods. New contacts and business relationships were made that had not previously existed.
Why? Because everone had some different form of private currency to bring to the trading floor. No one was dependent on only one form of currency. The also all saw the value of the accumulation fo assets and diversification.
People now had capital or goods they didn't have before.
The Loom interface lists the various types of private currency in any given account as 'Assets'. Rightly so. Now I have a Loom account that is portfolioized. My assets are diversified. Each 'Asset' being in the form of a privately created currency. Each currency being a type of 'Promise to Deliver'.
Just for fun take out a dollar, hold it up and see if you can find anywhere on it words stating that your dollar is a 'Promise to Deliver' anything.
The Loom interface also lists transaction pipelines as 'Contacts'. Again, 'Contacts' is a good choice of terms, because I was somehow in contact with everyone I created the transaction pipeline with. New business relationships were established. Dialogs among creative, un-encumbered, and productive people occured and new ideas for future business evolved.
It all sounds awesome, but of course there are critical points to be aware of in all of this.
These business transactions involved two important concerns shared between all parties:
1.Trust - each party had to trust that the party other would or will at some future point make good delivery.
2.Reputation - each party based the amount of trust in the other party on the other party's reputation.
These two points are of vital importance in this type of trading system.
Other illuminating considerations and discoveries were also made.
For instance-
Upon receiving my order at the privately owned postal service I use, I was excited to have received my gourmet Capulin coffee and was also excited to know I had paid for it using digital gold currency and Loom. So, I described aspects of the transaction process to the proprieter. She freaked out! Her concerns were about drug dealers and money laundering. Why hadn't my mind gone there???? I guess my mind just doesn't live there.
Unfortunately, this person was 'shackled' to her lack of knowledge, her feelings of fear and vulnerability, and, ultimately, her narrow perception of economics.
Then, I tried to discuss creating private currency with other people. They were not open to the idea. Ultimately they were afraid to rattle the things that 'shackle' them to a one-currency-equals-one-government-do-as-your-told-or-be-punished way of thinking.
Purchasing a product with privately issued currency through a nearly anonymous highly encrypted interface was one of the most mind expanding experiences ever for me.
Now I could 'trade' currency for currency. I could save assets based on their current and future value, as well as their past value during various types of economic 'events'.
I was no longer limited to a 'one-currency' system.
None of this will matter for those who aren't in the habit of saving or don't truly want a greater level of freedom.
It will only matter for those who insist on controling a greater part their own lives and destinies.
Wow this coffee is REALLY GOOD!
How to Monetize Yourself and...
Why You Should! (http://www.escapevelocitypub.com/articles/monetize.html)
by William Maderas
Just an idea I thought I would throw to the wolves for 'feedback'.
None of the characters contained herein are real.
With the assistance of DGC's and Loom, monetizing your goods and services is easier than ever.
If you think of a unit of currency as a 'promise to deliver' it will make this whole thing easier.
Here's one possible example of how it could work:
Bill the bodyguard has decided to monetize his protection service. So he sets up an asset in Loom. He monetizes his service at 1 gram of gold per hour and creates 80 one-hour-of-service units of currency. Remember, each unit of currency is also pegged to 1 gram of gold.
Next he writes a contract that describes the terms of the service backing each unit of his currency and puts the currency up for trade on a public exchange somewhere. Part of the contract terms state that in order to obtain his units of currency a 5% transaction fee will be collected at time of sale by himself. These units of currency will then be 'bearer certificates' for his service by whoever is in possession of them.
He also has included a 'bail out' clause in his contract stating that if he doesn't want to perform the service he will redeem in gold whoever surrenders his units of currency back to him.
He issues and sells the currency through Loom.
Now Greg has decided he needs to go to Bogata and purchases some of Bill's currency units.
He spends the money via a DGC to Bill's 'holding' account and opens a dialog with Bill. Bill says <q>Bogata, sure why not.</q>
But before Greg redeems his currency, his plans change and he no longer needs Bill's service. In fact he needs some DGC to tend to a different matter.
So Greg puts Bill's currency up for sale on a market somewhere, possibly offering it at a discount, since he's in a pinch or doesn't see the need for Bill's service in the foreseeable future.
Ron decides things are heating up where he's at and the need for protection is imminent.
He scoops up Bill's currency from Greg at a discount.
Bill works for Ron and collects all the DGC backing his own currency.
Now a HYIP guy decides he will be needing Bill's service and scoops up 8 one-hour-units on the open market and approaches Bill.
Bill decides the HYIP guy is a goofball who is impossible to protect. So he says <q>sorry, no deal</q>. But now Bill has to redeem gold to the HYIP guy to comply with his own 'bail out' clause. So to protect the reputation of both himself and his currency, he redeems DGC to the HYIP guy and gets out of the obligation. Yet, remember, he still made 5% of the value when he issued the currency.
Now let's say:
Parts of the rest of the world are becoming like Mogadishu and the price of gold is going up against fiat currency.
Prudent investors know that protection is going to be in demand. So among them they purchase all of Bill's currency from him and trade it on a DGC oriented 'bourse'.
Some make the purchase because they think they may either need protection or gold at some point in the future and they're trying to get out from some other commodity or fiat currency.
Current value on a market, value to the individual, future value, historical value relevant to significant events all come into consideration for those purchasing Bill's private currency. In fact that is much of how and why stocks and currencies are traded on the various exchanges around the world.
Now let's take a real world example.
Recently I heard how much everone loved this small independently roasted coffee called Capulin.
So I made inquiries and asked the owner of Capulin coffee if he accepted C-Gold. He told me that although he wasn't currently accepting C-Gold, I might be able to find some Capulin currency $ through the Loom interface.
I had no idea at the time what Capulin currency $ was or how it worked.
I quickly found out that Capulin currency $ was currency created by Capulin Coffee and issued via Loom. It wasn't backed by gold it was backed by coffee. Easy to do since Capulin, unlike Bill the bodyguard, produced a 'good' and not a service.
So I enquired with a person I knew who is involved with Loom. Sure enough, he had some Capulin currency $ and was willing to exchange it for C-Gold, of which he had none.
So we traded C-Gold for Capulin currency $.
I then contacted Capulin and placed an order 'spending' the Capulin currency $ back to Capulin and giving them my shipping address and phone number.
Within 3 business days I was grinding the freshly roasted aromatic beans of Capulin coffee and enjoying the best damned cup of coffee I had had in years!
I liked Capulin so much I was trying to figure out how to get more Capulin currency $ right away!
Other people were also either raving about Capulin coffee or trying to figure out how to get some.
As a result, trade was stimulated, and because Capulin had issued it's own currency, all sorts of other digitalized goods, including digital gold and publications, entered this 'spontaneous market' event.
Deals were hammered out via emails and phone calls and 'capital' changed hands.
Not only did the whole event cause a movement of capital and goods, ideas were born for potential future movement of capital and goods. New contacts and business relationships were made that had not previously existed.
Why? Because everone had some different form of private currency to bring to the trading floor. No one was dependent on only one form of currency. The also all saw the value of the accumulation fo assets and diversification.
People now had capital or goods they didn't have before.
The Loom interface lists the various types of private currency in any given account as 'Assets'. Rightly so. Now I have a Loom account that is portfolioized. My assets are diversified. Each 'Asset' being in the form of a privately created currency. Each currency being a type of 'Promise to Deliver'.
Just for fun take out a dollar, hold it up and see if you can find anywhere on it words stating that your dollar is a 'Promise to Deliver' anything.
The Loom interface also lists transaction pipelines as 'Contacts'. Again, 'Contacts' is a good choice of terms, because I was somehow in contact with everyone I created the transaction pipeline with. New business relationships were established. Dialogs among creative, un-encumbered, and productive people occured and new ideas for future business evolved.
It all sounds awesome, but of course there are critical points to be aware of in all of this.
These business transactions involved two important concerns shared between all parties:
1.Trust - each party had to trust that the party other would or will at some future point make good delivery.
2.Reputation - each party based the amount of trust in the other party on the other party's reputation.
These two points are of vital importance in this type of trading system.
Other illuminating considerations and discoveries were also made.
For instance-
Upon receiving my order at the privately owned postal service I use, I was excited to have received my gourmet Capulin coffee and was also excited to know I had paid for it using digital gold currency and Loom. So, I described aspects of the transaction process to the proprieter. She freaked out! Her concerns were about drug dealers and money laundering. Why hadn't my mind gone there???? I guess my mind just doesn't live there.
Unfortunately, this person was 'shackled' to her lack of knowledge, her feelings of fear and vulnerability, and, ultimately, her narrow perception of economics.
Then, I tried to discuss creating private currency with other people. They were not open to the idea. Ultimately they were afraid to rattle the things that 'shackle' them to a one-currency-equals-one-government-do-as-your-told-or-be-punished way of thinking.
Purchasing a product with privately issued currency through a nearly anonymous highly encrypted interface was one of the most mind expanding experiences ever for me.
Now I could 'trade' currency for currency. I could save assets based on their current and future value, as well as their past value during various types of economic 'events'.
I was no longer limited to a 'one-currency' system.
None of this will matter for those who aren't in the habit of saving or don't truly want a greater level of freedom.
It will only matter for those who insist on controling a greater part their own lives and destinies.
Wow this coffee is REALLY GOOD!