Topic: [ANN][NOTE]DNotes - Celebrating DNotes 3rd Birthday - Forum Now Open - page 186. (Read 814541 times)

Thank you

Thank you Alan, I'll do my best to be helpful member of this community, I believe that dnotes as a totaly free-of-touch currency - is a great need of the global up-of-nationality future community. sure there is and there will be a struggle to strive to the top with many other good currencies. the names of the win in this struggle is: community, cooperation and honesty. thanks again

Here's an interesting article on compliance issues:


Five Recommendations for Bitcoin Companies to Ensure Compliance with the Department of Justice

Recommendations

Here are some specific steps for emerging virtual currency businesses to consider when ensuring their compliance efforts align with DOJ’s guidance and expectations:

It’s Never Too Early. Anticipate compliance issues as soon as possible in the company’s lifecycle. Develop a compliance system at the same time that you are refining your product or service (and well before you interact with customers).

People, People, People. It’s hard to understand cryptocurrencies, and even harder to explain them well to skeptical law enforcement personnel. Make excellent compliance people part of your initial team and include them in important decision-making.

Money, Money, Money. There must be the financial commitment to compliance that is required in this industry space. While DOJ seems sympathetic to the “significant expenditure of resources,” it will not likely go easy on those whom it concludes have skimped.

Think About the Technology’s Regulatory Future. The technology of, and related to, your virtual currency will shape the government’s expectations. Take bitcoin for example. Unlike dollar bills, say, every bitcoin carries its own transaction history. The blockchain is a public ledger of all bitcoin transactions. And new products are being refined that can analyze that blockchain and seek to determine every place a bitcoin has been and perhaps even who transferred or held it. It may become possible to give bitcoin a risk score, since those of suspicious provenance (for instance, those having once been through a mixer or in a dark wallet) could be separated from those that are squeaky clean.

Instill a High-Integrity Culture Now for the Company You Will Become. The government has high expectations for those it views as running “gatekeeper” businesses. The regulatory bar is bound to get even higher as large banks and financial institutions — with their established and highly professional compliance staffs — develop their own virtual currencies. As “gatekeeper” businesses grow, they face pressures to be “ethical” and not simply to meet legal and regulatory minimums. Adopt a broad view of compliance risk that focuses on the risk of misconduct and on reputational risk and then communicate that view clearly and compellingly in the onboarding process.

Full article:  https://bitcoinmagazine.com/21417/five-recommendations-bitcoin-companies-ensure-compliance-department-justice/

Great to have you on board Mati!

That's awesome!!  Congratulations Mati! 

Welcome Mati! Glad to hear you accepted the position, I've heard much about you from my conversations with Alan.

Congratulations to Mati Cohen!!!

Hello everyone! I like to convey our sincere congratulations to Mati Cohen, a new addition to DNotes Leadership Team. We have officially accepted Mati as a DNotes Community Director with initial focus, using his best efforts, to increase DNotes fans on business, employees and students community in Israel and the European region. Mati is a Journalist at Ground Jourbalism/ Ktiv Haser.  I trust that you all will join me to give Mati the warmest welcome and give him our best support.

Thank you all.

Alan

For #2 I don't know the full intention of separating blockchain from bitcoin. Assuming it is to simply record information on a public ledger using reverse verifiable 'blocks' of data, then I would say it is of course possible, but maybe not feasible. If you have a centralized network of miners, that require no reward to secure the network, then I say why not? However, is that better than what we have today? If you want decentralized mining, you will need a reward system for mining on your system (most likely in a similar form to bitcoin).

Without a deep understanding of the use case, we may not be able to accurately answer the question.

It is fun to conceptualize how it would work without a reward token though.

1. This is a spin off of TeeGee's "What effect will Digital Currency have on YOUR business / organization":   How will a global currency affect your business, organization, or government?


2. There have been a lot of headlines on various companies, banks, etc stating that they are interested in the blockchain, but not bitcoin.  The bitcoin community replies 'you can't have one without the other'.  I think this could use a little clarity (with a positive spin).  Can you or can't you?  Pros?  Cons? 

Almost 25,000 on Cryptsy's coin votes and a little over 1,000 to go to get to position 4!

https://www.cryptsy.com/coinvotes

A couple more ideas for articles based on your comments.

Key Differences Between Digital Currency & Fiat - Self explanatory, but could be an important topic.

The Future of Digital Currency Technology - This may need to be refined into more specific topics. However the article could give people the vision of what it might look like in 5-10 years and potentially help people understand why it is important to get involved now.

Hello Mark and infovortice2013. Thank you for your confidence and support. It should not be a surprise that I  have continuously added more DNotes to my investment portfolio. I know that a few other people have been doing that too. We have actually increased our purchase but there has definitely been an increased supply of DNotes being dumped at Polo. It gives me a bad feeling when this started at the same time when I could not withdraw my DNotes from Allcoins. None of my 4 emails has been responded to. This is the dark side of our industry. From my personal experience alone; first it was CryptoRush, then Mintpale, and now Allcoin. This gives us even more reasons to be very cautious and focus in building our own ecosystem, which I believe is not priced in, making DNotes significantly undervalued.

you doing same that me !!!  next step make fatter retirement plan

Gotta enjoy yourself:

bought a little NOTE when the price dipped the other day.

The price stayed down, so . . . I bought a bit more.

Then yesterday -- the price was enticing. So I bought some Note.

But it was still cheap . . . so I bought one more packet.

I just wanted to mention your idea is very creative TeeGee. Outside the box thinking is something we appreciate.

Bad title, but pretty good article here.

‘People Are Just Too Stupid to Use Bitcoin Right Now’

The biggest obstacle for Bitcoin’s mainstream push is not the technology itself but rather the public’s ignorance of the true nature of money. To fully grasp the advantages of Bitcoin, one must first understand the current financial system and, to some extent, the history of money and banking as a whole.

“Ignorance is always afraid of change.”

- Jawaharlal Nehru

"People are just too stupid to use bitcoin right now,” I overheard someone argue at a bar a few weeks ago as we were discussing the potential of cryptocurrency. “Society’s understanding of where money comes from is the real challenge.”

Sure, this statement is crass and may sound like the premise of a bad joke, but after giving it some thought, I recognized an iota of truth: the public is ignorant of the other advantages offered by a trustless, decentralized, peer-to-peer system of payment because they do not grasp the inherent flaws of the current financial system and, more importantly, how money is created.

The Bitcoin ecosystem is still in its infancy and has received much criticism. We often hear that Bitcoin-related software is still too kludgy, complicated and not “Grandma-friendly.” Then there are the hoops a person must jump through to actually acquire bitcoin, not to mention the media-induced association with dark markets, drugs, and “illegal activity.”

Simply put, unless you are a contrarian or a tech-savvy rebellious teenager, there is little to no incentive for a regular person in the developed world to use Bitcoin compared to the tried and tested method of swiping plastic at the register.

Where Does Money Come From?

When asked, most people can paint you an abstract picture of how money comes into existence, i.e. the government or the central bank “printing cash,” while completely unaware of the for-profit private banking sector. In fact, 97% of all money is created by banks via fractional reserve banking.

Moreover, this ignorance extends far beyond the layman. For example, 71% of British MPs did not know where money comes from in a 2014 poll conducted by Positive Money.

“MPs have no chance of understanding the house price bubble unless they know these basic facts about money,” said Ben Dyson, founder of Positive Money. “The financial crisis was caused by banks that created too much money and lent it recklessly. We’re now in danger of repeating the same mistakes.”

[...]

Continue reading...

http://cointelegraph.com/news/115020/people-are-just-too-stupid-to-use-bitcoin-right-now

This is a great post, creating middlemen to facilitate transfers is only a short-term solution to individual currencies lacking the infrastructure to be standalone services. Over time, DNotes will have the infrastructure built, and I'm sure will offer many of the same services that third parties are currently offering for Bitcoin. Middlemen are indeed expensive, imagine how hard it would be for a bank to compete with a company that provides lending, investment and bank processing opportunities with near zero transaction costs!? A profit model would still exist, but one that does not penalise what the company / currencies core purpose is - value transfer. Fees merely decrease the number of transactions.

Hypothetically, Imagine if DNotesVault processed USD into DNotes (hopefully for free), then allowed all transactions to be free from there on in using DNotes, a currency people can rely on for stability and use for merchant payments? A 1% commission could be made when people take their DNotes OUT of the network and into USD (to fund further growth, and protect value). That would mean more incentive for customers to leave their money inside the network. DNotesVault could one day become a bank (which I'm sure would be extremely expensive to set up - could partner with a bank?) and allow people to engage in either p2p lending in DNotes OR pay interest on deposits, taking interest from borrowers. Given the steady (but ever decreasing) supply of new coins in the network, this could put some 'upwards pressure' on DNotes value - because lenders would need to find DNotes to pay back their loan. This would mean lenders would need to pay back the initial principal of DNotes borrowed PLUS interest (which I imagine would only be available to purchase from an exchange like DNotesVault could one day become, unless the borrower is a merchant accepting DNotes - by which time transactional use is being achieved).

I haven't thought this through in detail or anything, but crypto banking could work in some ways to protect the value of crypto, thanks to people needing to purchase more of the crypto than they borrowed to pay back to lenders. One issue with this, is that depending on the amount of lending, and upwards pressure the repayment purchases at exchanges creates, would mean that borrowers could end up paying much more (in terms of USD) than they originally intended when they took out the loan. This could be easily communicated though, and wouldn't matter much if DNotes had a massive market cap in the billions. The free-market would be pretty good at deciding what the appropriate interest rate offered etc would be, and because crypto is net-positive, there won't be any threats to the eco-system because in the crypto world, having 1 DNote deposited in your bank, means your bank can only loan out 1 DNote. In the current banking world, $1 means a bank can lend $10 or more.

At the end of the day, nobody knows what it would look like, because we only have 'logic' and 'behavioural science' to base theory on.

I need to stop before I get too far into thinking about what the future could look like. I should probably write down some thoughts before I forget about them though...

What would a crypto-currencies stability look like, if there existed an algorithm that automatically manipulated the exchange fees on both the buy and sell side of a proprietary crypto exchange?

Bear with me, this could be horrendously stupid, and I tend to think it up as I go along (really should be doing other things too, but this is more interesting):

Imagine TeeGeeCryptoExchange is the only place where TeeGeeCrypto can be bought and sold. TeeGeeCrypto has a desired 'trading range' of (+/-) 1% daily, and +/-(5%) on 30 day moving average.

Now, fees are charged when people buy TeeGeeCoin with USD, and also when people sell TeeGeeCoin for USD. For simplicities sake, let's say that TeeGeeCryptoExchange charges 1% to both buyer and seller that are trading TeeGeeCoin with one another, for a total profit of 2%.

Now, TeeGee's mathematical algorithm that he is no-way-near smart enough to program notices one day, that the desired trading range is beginning to test the bottom end of the 5% change in value over the last 30 days. As the value of the coin gets closer and closer to -5% change over the last 30 days, it changes the fees placed on both buyers and sellers accordingly to 'soften' selling pressure, and 'encourage' buying pressure.

When trading is steady, 0% change - 1% fee to buyer, 1% fee to seller.
When trading is pushing price down by 1% - 0.75% fee to buyer, 1.25% fee to seller
When trading is pushing price down by 3% - 0.25% fee to buyer, 1.75% fee to seller
When trading is pushing price down by 5% - 0% fee to buyer, 2% fee for seller

And of course the other vice versa:
When trading is pushing price up by 1% - 1.25% fee to buyer, 0.75% fee to seller... and so forth

TeeGeeCryptoExchange makes a fixed 2% profit on each crypto transaction regardless of the fee's charged. Normally with markets, as the price changes, more people are prepared to buy or sell, depending on which way the market moved and vice versa. With this method, I'm provisionally thinking that the demand and supply of TeeGeeCoin could be to some degree, manipulated using fees, rather than having demand/supply change only due to changes in price (if stability is the goal).

Now what if it was a really horrible day at the exchange, and TeeGeeCoin drops 10% because not enough sellers were put off by the increased fees charged, and not enough buyers were interested by zero fees?

Well...

When trading is pushing price down 10% - Buyer awarded 3% fee charged to seller, 5% fee for seller. (TeeGeeCryptoExchange retains 2% of fee)

As in, the seller is charged 5% for further trying to tank the price (which hopefully trading vicissitudes continue to lessen with the fee structure anyway), and 3% of that 5% is paid to the buyer, to improve buy depth. TeeGeeCryptoExchange earns a continual 2% commission from every transaction, and fees are awarded to buyer / seller when market imbalances exist.

Anyway, just a casual thought / model to base some future ideas on. I was particularly interested in shifting demand/supply from price, to fees. The consistent fee retained by TeeGeeCryptoExchange, regardless of fees charged to buyer / seller would mean interests lie in stability. The model would also allow sustainable growth over time. Perhaps an exchange out there is already doing this?


Yup, I'm done. Feel free to comment.

Back again and cell phone issues resolved.

Thanks again Kevin, I'm sure all the CRISP kids will appreciate it!

Good to see ya on the forum, I know you have been pretty busy this time of year.

     Happy to do so! Mrs Smokey and I have been spending every daylight minute in the Daylily Garden. Our "Crunch Time" is from middle of May to the Middle of August. We dig, split into single plants and re-plant over a half million Registered Daylilies in those three months! That is about 15 acres of Daylilies. Been keeping an eye on you guys, but the garden is keeping me very busy.

"Uncle Kevin"
(aka Smokey)