Topic: Hi! BitCoin Fully Decentralized Hard Asset Backed Bank! (Read 6044 times)

A Great Example from a resent email question.


Question: Are you guys talking about like Star Trek's Latinum?

Answer: Yes, you could say that.  Where in Star Trek you hear and see episodes where no money is exchange, but there are Federation Credits.

You will see throughout the shows though that there is still a standard that applies 'outside of this federation'; and that unit they use is Latinum.

We see it much the same way: Bitcoin is a System and a Unit of Exchange, payment or transfer (Much like the Federation Credits System); but the Real Money is still in the latinum; You may remember always hearing the Ferengi say: "NO, We Demand Latinum".

We hope this has answered your question!

As 1 functional part of everything yes; but that is just one of the processes that would be required; there would a legislative, compliance, regulatory, etc sets of extensions that obviously would have to exist; and which we would love to work on.

A scrip, as an issuance of last resort, in case of let's say power going out, or the bill becoming so exceedingly high that you could not turn on the computer, would be required; though it would not have to be 'paper' necessarily; a chip; a magnistrip card, hard asset sales for recovery; but it's a 'component' of a larger 'unified' set of 'organizations'; decentralized things still need 'transport and transaction' mechanisms; these of course would have to researched as well.

The 'scrip' in this case would be a 'privately issued' currency note; one which is aimed at let's say the bank in canada, or usa, or africa, who has a client to directly interact with eachother, independent of the current systems. Direct Bank To Bank exchanges, transfers, transactions; in any currency obviously for use, and with the 'scrip of our creation' as the unit we peg to.

One sentence:

International decentralised credit union that issues accounts in asset-backed scrip.

Is that what you're trying to say?

I suppose you haven't kept up with the reading; we have already said it is 'in line with a credit union'.

That's called a 'credit union' which already exists.

From another conversation held elsewhere:

Question: So are we using Euro's, USD's, Yen, Pesos?

Answer: No. Let's name our product a Kwatloo, for example. It's a Unit Of Exchange. Just like money, say Euro's, USD's, Yen, Pesos, and the like. The difference is unlike other currencies being linked to eachother, as currencies, we would back our "Kwatloo" with assets.

This is much akin to the Old Gold and Silver standards; which are actually not that old. But the lifecycle of any Paper Money which is Not Asset based is typically between 30 and 50 years. As we see now currencies are starting to devalue, or revalue, the price indexes suggest that we are doing fine, but really you are buying less today then you were just 1-2 years ago. Not because of price increases, but because of product quantity decrease by the manufacturer so they can absorb some cost, to recoup as profit; no one wants to pay $5.00 for a KG of Peanut Butter, but you'll bay $3.99 for 650 or 750 mls, as long as the jar looks the same; it's a trick. This means the price actually increased.

Now, let's say that these "Kwatloo's" were not linked to a dollar, or a euro, or a fiat currency; let's assume they were based on 'things of value'.

Let's say that 1 Kwatloo was worth, as the not too recent times, worth X amount of Silver, or Gold.  And that instead of Gold, or Silver, there was an Internation Exchange Unit which acted the same; like a silver certificate, or a gold certificate. It's really no different than any other currency; excecp that the currency has 'real value'; it is 'worth more than the ink on the paper'.

Let's say then that you went out to pay your rent, which is say $1500.00 USD. Let's say this EU1250.00, or let's say it was 2 "Kwatloos"; it's simply a new type of "real currency". Now let's say you travelled to China, or Russia, or Mexico, or Brazil, and they had an open foreign exchanged that recognized, or had added our Internatinol Exchange Unit; you could theoretically use it anywhere.

If the dollar drops, the Kwatloo would not, if Gold drops, the Kwatloo remains balance or neutral against the counterweights used to valuate it, thus maintaining an evin keel, even in choppy financial waters.

It could be 'transfered' by using Bitcoins equivalent to the Unit; For convenience at this point we simply use the Present Currency Labels as a familiar reference point.

Now - Let's assume the dollar hits 50 cents, and let's assume the yen vanishes, and let's assume that the Renminbi, an eventual gold backed currency comes in, and tears up what's left of the precious few cents on the dollar, the euro, and the gbp. The "Kwatloo", is in a postioin that in succh a case it would weather the storm well, and would be worth the 'let's assume for example's sake' the same value as 1 gram of gold.

But instead of hoking and chaining to One Thing, we would use a variety of things; forming a floating "basket".

A good way to think of it would be to see it as a 'private' currency, for the moment.

If you have any other questiosn, or need further clarification please let us know! Thanks for your interst!

Well see this is where theory and concept work are a lot of fun.

Let's say that you make a transaction, and there was a minimal fee - now this is a just VERY Wild and outrageous example; but none the less makes it rather clear we think.

From your transaction we gain a fee. Now let's assume we use that fee, in part, to buy a packet of seeds. And let's say those seeds are planted, and they yield tomoatoes. In turn the tomatoes get sold. This yields a revenue. After the seed sale and farming and expense, etc., are paid, let's assume there is a profit.

The bank, having engaged in the producution fo the seed, through perhaps a 'branch of it's operations' like starting small businesses; would be paid a portion of those profits.

The bank then, rather than being solely concerned with gaining money, seeks to gain profits, and redistriute them across the accounts, in a more a humanistic harmonic manner.  Not with One Sole Goal of profits, but to make profits, and share them across the accounts as benefits or bonusus.

As I said wild. But clear.

Why do we need a "bitcoin" bank? If you want to buy something, and you don't have money, you can go to the real bank.
Even now, in "real banks" if everybody goes and try to get their dollars back, the system collapse; imagine how easily is to corrupt a system made of bits.

And there is no reason to "keep safe" my virtual money on a "virtual bank"; no place is safer than my own backup.

Have you ever seen a graph of oil prices?

Edmonton is in a slump, as most of North America, en masse, but there are pockets of great value preservation everywhere if you know what you're looking for; as anyone investing in property would be aware. My acquisitions have doubled in the past 36, which is actually a bit above what I personally had predicted. That's just a good purchase, based on good understandings of the facts and the information as it relates to the risk assessment, profit/loss requirements, and other such elementary decisions; but I'm not locked in to a mortgage, as all my acquisitions are by Private Note, allowing better terms to be negotiated, not being left to the mercy of some merciless broker. it simply suggests that you are in a good pocket, and that there is opportunity in your geographic marketplace, that doesn't mean all of Toronto is doing well, which overall it's not really, but it's resilient, and I must say more resilient than Vancouver, but that is to be expected.

That lessens nothing, that's just smart decisions and utilization of expertise.

But if you found a mortgage available from China, that was willing to finance you, at better terms, and you wanted to transact with them conveniently, BitCoin and and International Trade Unit would facilitate that much better than any current fiat currency can.

But I'm glad you are doing well with your acquisitions, and hope your ROIs will yield what expect them to.

Uh, I dunno about the real estate market in Edmonton, but I closed on the purchase of my condo at the beginning of November, and the market value is already up 40%.  In a 10km stretch of Yonge Street going north from Steeles Avenue, there are..8 condo projects going up, mostly multi-tower complexes, over 20,000 units. Somebody must be buying these condos for the developer to start breaking ground.   The wife and I are considering buying a second unit in our building to use as a rental property.  My brother and his wife are planning to do the same thing. Buy two units here, live in one, rent the other.

The real estate market in the north end of Toronto is alive and doing quite well, thank you.

Pros and Cons to a BitCoin Bank.

Only real pros I can see worth mentioning are:

Faster transactions instead of waiting for 6 confirmations that takes an hour
Encourages more businesses to accept BitCoins for payments
Exchange BitCoin for Dollars
Keep your bitcoins safe (questionable).

Cons I see are:

Potential for corruption
New laws created for government to get their hands into it

Typically when a merchant accepts BitCoin for payment, they wait 6 confirmations, and can take an hour. For online purchases, this is probably no big deal. But if we use this for face to face purchases like in retail stores, are we going to stand at the cashier for an hour to confirm payment? No, that'd be crazy.

This is where a bank, or MtGox, would come in handy, with a system to trade BitCoins with each other instantly.

So you go through the hassle to make an account with MtGox in advance, and wire them some money.

Well, in real life, you also take the effort to go visit a bank, sit down to fill out forums, deposit money, and then wait a few days/weeks to receive your ATM debit card, which can be used to fast, easy, and instance purchases at stores.

Creating a bank for BitCoin would have same benefits, but also allow for corruption, and the government would want a piece of that pie through new laws, etc. Then we're at square one, a free system no longer free.

MtGox already has vouchers that other websites can use (soon can't accept US Dollar vouchers by April 10th due to legal issues in Seattle?). What about similar voucher system that can be used at local retail stores for instant funding/purchases?

Always the cheerful party aren't you Tate. I hope you are enjoying your brew.

Perhaps A Basal Overview of the theories and concepts may be in order at this point. This was written entirely on the fly, so forgive me for being brief and not overly descript.

I's not a grand idea, or anything spectacular; what it is though is an attempt to remove borders. To Modernize.

Let's say that you go out your door, walk across the street, or get in your car, and go to your local bank (A Big Bank, or a Little Community Bank or Credit Union).

You Deposit Your Money to your account, any account you may currently hold.

You make a purchase somewhere; maybe by POS Transaction, or by Cash, or by Check (For those who use them), etc.

This purchase let's say is for a car.

The car has a stick price, a value.

So you get your check book out, or your debit card, or you cash, and purchase your car.

The transaction concludes.

Pretty simple, and it's how the world works at the moment; basic fundamental rudimentary services.

Now, the car has a value, let's say $20'000.00 USD, or EU15'000.00, or whatever.

You find a deal overseas, or locally, or anywhere.

You choose to contact the seller of said item, and they say, sure we'd love to sell you the car.

Excellent, you have saved some money (how you get it to you logistically is not our concern, that's up to you, the import charges imposed by governments, taxes, tariffs, etc, ad infinitum).

But, let's assume you could complete and conclude the transaction in an Internationally Standardized Unit of Exchange. For all intents and purposes let's just call it an International Exchange Unit.

And, let's say that BitCoin was used for transactions, instead of Cash, Check, POS, etc, etc., ad infinitum.

Now: There are some (well lots of) systems which inter-operate; there are governments and their laws, fees, levies, etc, etc., there are regulations, there are foreign exchange rates, there are a plethora of intricacies - but they only apply to the present systems that are currently in place).

Now: Let's assume this Inter-nation Exchange Unit could be bought, sold, purchased, traded, just like cash today, just like paper, but not paper. Rather a Virtual Unit, that used BitCoin for Transactions and Clearing.

Then: How is there government participation - they will want their money, a cut, a tax, something - you'd be right. Also, isn't there foreign exchanges, handling charges and fees, etc, etc., - yes, of course.

But let's say you did not transact in the currency of the nation; but rather the currency of the globe. A real fungible, tangible item. And that BitCoin was the Universale Conversion Unit.

Now: let's say that banks were not buildings, not places, but rather exactly what they are suppose to be - banks. A place store value, hold value, transfer value securely, and perhaps earn interest. But, that bank was not on a street - rather it was a Virtual Kiosk.

So: You could go online, to your smartphone, or perhaps a brick and mortar (as purely virtual banks at this point absolutely bring rise to a mistrust, if nothing else due to power outages, virus, hacks, etc, etc, so a Brick n Mortars will absolutely be required, what form they would take has not yet been determined).

Now: Let's say there are hundreds of thousands; a bank of your choosing; like a credit union; but not in any 'country' per say; but rather as an Internodal Network. You can select, choose, use any "banking facility you choose" - pretty good competition and real price setting mechanisms come about. Rather than concentrated work pools of 1000's in 1 location, there could be 100 in 10 locations, servicing maybe 1000-5000 clients (numbers not dtermined yet); and that institution (which of course we be a registered and regulated institution with their country) simply allowed world wide clients, instead of simply off shores, or suffering banking account opening restrictions.

Let's say a person from an other country (an immigrant) chooses to move and relocate to another country; wouldn't it be more convenient to keep thier local account that they've always had? And what if it was cheaper for them to bank there, and paid them interest; in contract to let's say a local brick and mortar in the new country.

But this is all preliminary; we've only been thinking about this as Bitcoin is gaining popularity, and are seeing how a new system of "little globally placed banks as independent operations, decentralized" would compare, or place, versus the old system and the security and valuation issues with Bitcoin until it stabilizes.

No Big Stuff right now - just thoughts, and seeing if there is interest. (yes, this is not a detailed overview).

But it is an idea in decentralization and globalization through independent 'banking systems' via a global network, strung together by bitcoin. Which we find facinating. But we do not know enough about the whole BitCoin thing, and are learning, and exploring at the same time.

I hope this puts some of you at ease.

Forget the coffee! It's Saturday night, i'm drinking beer buddy! If you where here i'd take you to the bar and we could discuss your plan in greater detail. Then we would figure out how the first investment your bank would make would be in my flying sheep-pig

Interesting. But we have set forth no plan.

Thus far, we have made no more than suggestions, comments, statements, and we assess the feedback.

Yes, there is a plan.

No, we have not put it here.

But, you may do as some of the others and choose to mislead yourself to whatever final conclusion you want.

The reason the thread is still alive, is because there is interest. The poll will confirm that there is interest. But just because some people choose not to participate in the conversation here in public, does not mean we do not watch how many times this thread is viewed, bumped to the top, replied to, and participation in the voting poll.

But, you sit back and have your coffee and your entertainment from all you read as much as you want.

Now that is something that I would invest in - ahead of this.

How the hell is this thread still alive? I thought it was a joke to pass some time and posts in order to get out of the newbie area? I could come up with a better business plan breeding sheep and pigs together that fly.

I think we've finally found someone with a less coherent "business plan" than dank.

After re-reading major portions of the thread, and yes I will get to other entries as time allows, but thank you for this posting, contributor.

This is a valid question which requires answering and a solution.

So, what is it you NEED (OR THINK you need) in relation to services that would:
1) Provide you to maintain your purchasing power
2) Provide you with access and movability of funds
3) How would you prefer to transact? In Bitcoin? A Currency? Or, an Account which held an Equivalent Value to a currency you Choose (Here let's assume you live in the US and wish to bank in Euros, or were in Europe and wished to bank in the US; for exemplars).
4) What do you find difficult or inconvenient about your day to day banking?
5) Are you happy with the fees you are paying?
6) Are you currently being paid interest?
7) If there was a solution available that would provide you with preserving real value and purchasing power, but you could easily use bitcions - then was kinds of fees would you find acceptable (you can provide any ranges you wish)
And any further comments you'd like to bring up to discuss, so we can apply our it to our models and see how your Responses would play out, in turn allowing us to refine our structures and foundations.
9) If you could change 3 things immediately about the way you bank (or transaction for purchasing or transfering money) what they be?
10) Would you like to bank in another currency than your local currency?

We'd Love To Hear From You! Either here in public, or you can email your answers to [email protected] !

Thanks again for your comment!

You mad? You sound mad.