I guess the Protoshares guyz from Invictus are trying to create something of this kind, though they are using some other coin...
In fact, we could already start such a bitcoin share approach on some company doing purely bitcoin business today.
Any voluntary?
Topic: Bitcoin IPO [BIPO] and how bitcoin will reach 1 trillion USD (Read 697 times)
This is a great idea. Without jurisdiction I think it can at least operate similar to mutual funds. Anyone can invest money into the bitcoin address backing the shares, but spending any coin from the bitcoin address requires a voting procedure taken by all the share holders or from the board members. An alt-chain can be used to implement trading of shares, board election, voting, and liquidation before going bankrupt. The investment of the shareholders can be protected on the protocol level.
A fund can do alot more things than a single person holding bitcoins in a single bitcoin address.
A fund can do alot more things than a single person holding bitcoins in a single bitcoin address.
All the alt-coins are bitcoin copies with features. The added value of most alternative coins is close to zero if we look at them as currencies. Just a speculative fuss. Alt-coins that have added value improve on either transaction speed, and/or security, and/or anonymity, and/or algorithm. But from a currency point of view bitcoin is already fast enough, secure enough. The anonymity improvement is an important feature, but I would assess that 80-90% users don't require it. The algorithm improvement is a more debatable thing. From a currency point of view, I would say it has no value (whether it is SHA or scrypt or cummingham, what do I care?).
There is a tremendous added value in creating business backed coins (or shares).
There is a tremendous added value in creating business backed coins (or shares).
The total market cap of all cryptos will go well into the trillions until we stop pricing things in fiat. Count on it.
That said, what percentage of all cryptos will bitcoin make up is debateable.
That said, what percentage of all cryptos will bitcoin make up is debateable.
Dear cryptomen!
I would like to share with you one vision I had on how Bitcoin will reach valuations above 1 trillion USD.
Bitcoin offers great transparency thanks to its blockchain. If you want to know how much bitcoins came or went out of a given block, you can easily see it. So if I am a business that only conducts its affairs in Bitcoins through a given publicly published bitcoin address, all of my real results will be clearly visible. That is every one on earth will be able to see how much I spend bitcoins to earn more bitcoins. The history and dynamic will also be visible. Therefore, if I am a company doing business only in bitcoins I could issue shares that will represent a piece of the business. The issue process is totally decentralized. It would be like releasing any of the alternative currencies, but as a difference, all the coins would be pre-mined and the name of the coin will be the name of the company. The owner of the business would own the premined coins/shares and could decide day by day how much of his capital he would sell. Accounting details and investor relation reports could be hard coded into the coin/share algorithm, or they can be simple publicly published.
Some of advantages of this approach:
- The abilitiy to own a share of a business wherever it is located (no need to go Stock Exchanges like NYSE, LSE, etc where not all companies are listed, ability to buy small/medium businesses).
- The ability to monitor yourself the real profitability of the business (transparency)
- Very low or zero transactions fees to sell or buy these stocks (decentralized stock exchange).
- The opportunity to trade these stocks 24/7
- The opportunity to receive bitcoin dividends.
Now the problems.
To live only on bitcoins, you would need to receive all your payments in bitcoins, and pay all your bills in bitcoins. The first part is feasible today, the second part is I think almost impossible. No government would accept tax payments in bitcoins for instance. Or paying utlity companies in bitcoins must very seldom possible. So you would need at this stage to have a bitcoin bridge company or bitcoin conversion/processing bank. This bank would convert all of your outgoing bitcoin payments to the currencies required and transfer them to the required bank accounts. The same bank would process all the payments received in non-BTC to convert them to BTC and transfer them to your bitcoin address. Such exchanges are starting to exist but for now they are concentrated on bitcoins exchanges for retail traders. Bitcoin processing centers are a must for bitcoin stocks to appear.
Any legal business must be incorporated under the laws of a given country. So such bitcoin companies would need to find jurisdictions that would accept them. Most probably at this stage the easiest path would be to find some tax heaven country and get it to update its jurisdications to regulate bitcoin companies. Another possibility is to have dual accounting in well established countries - one accounting in the local currency and the second in bitcoins.
Once the legal and processing issues are solved, we would see a meteoritic rise in bitcoin valuation since it will be backed by a real economy like today dollar, yen, sterling are backed by the economy of their respective countries.
I would like to share with you one vision I had on how Bitcoin will reach valuations above 1 trillion USD.
Bitcoin offers great transparency thanks to its blockchain. If you want to know how much bitcoins came or went out of a given block, you can easily see it. So if I am a business that only conducts its affairs in Bitcoins through a given publicly published bitcoin address, all of my real results will be clearly visible. That is every one on earth will be able to see how much I spend bitcoins to earn more bitcoins. The history and dynamic will also be visible. Therefore, if I am a company doing business only in bitcoins I could issue shares that will represent a piece of the business. The issue process is totally decentralized. It would be like releasing any of the alternative currencies, but as a difference, all the coins would be pre-mined and the name of the coin will be the name of the company. The owner of the business would own the premined coins/shares and could decide day by day how much of his capital he would sell. Accounting details and investor relation reports could be hard coded into the coin/share algorithm, or they can be simple publicly published.
Some of advantages of this approach:
- The abilitiy to own a share of a business wherever it is located (no need to go Stock Exchanges like NYSE, LSE, etc where not all companies are listed, ability to buy small/medium businesses).
- The ability to monitor yourself the real profitability of the business (transparency)
- Very low or zero transactions fees to sell or buy these stocks (decentralized stock exchange).
- The opportunity to trade these stocks 24/7
- The opportunity to receive bitcoin dividends.
Now the problems.
To live only on bitcoins, you would need to receive all your payments in bitcoins, and pay all your bills in bitcoins. The first part is feasible today, the second part is I think almost impossible. No government would accept tax payments in bitcoins for instance. Or paying utlity companies in bitcoins must very seldom possible. So you would need at this stage to have a bitcoin bridge company or bitcoin conversion/processing bank. This bank would convert all of your outgoing bitcoin payments to the currencies required and transfer them to the required bank accounts. The same bank would process all the payments received in non-BTC to convert them to BTC and transfer them to your bitcoin address. Such exchanges are starting to exist but for now they are concentrated on bitcoins exchanges for retail traders. Bitcoin processing centers are a must for bitcoin stocks to appear.
Any legal business must be incorporated under the laws of a given country. So such bitcoin companies would need to find jurisdictions that would accept them. Most probably at this stage the easiest path would be to find some tax heaven country and get it to update its jurisdications to regulate bitcoin companies. Another possibility is to have dual accounting in well established countries - one accounting in the local currency and the second in bitcoins.
Once the legal and processing issues are solved, we would see a meteoritic rise in bitcoin valuation since it will be backed by a real economy like today dollar, yen, sterling are backed by the economy of their respective countries.
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