Topic: Hi! BitCoin Fully Decentralized Hard Asset Backed Bank! - page 12. (Read 6044 times)

Mayhaps an example.... Pick your favorite commodity, how's tulips, I like tulips.

I deposite a bitcoin in your bank, which on the day I deposit it happens to be worth a tulip bulb. You charge me a fee. You take my fee and, with some black box inhouse currency mumbo in the middle, buy something less than a tulip bulb (you only have less than my deposit in fees, and my deposit is worth a whole bulb, so you can't possible buy a whole bulb). Over time, your less than a whole bulb appreciates and becomes worth a whole bitcoin. You sell your bulb, and now have a bitcoin.  You pay me a share of the gains in interest.  I now have a bit coin and then some.  Sadly, my bitcoin and then some can't buy a whole bulb anymore. So even though I have more bitcoin than when I started, I can't buy as many bulbs, and as I said, I like tulips.  

Due to the fluctuation nature of non-real value currency like crypto currency the sentiment posed is inaccurate.

A currency that is not linked to a Tangible Real Value Unit (liek Oil, or Gold, Or Wheat) has no value.

It would also subject our clients to Unknown Losses, which defeats the saving principle. As if the BitCoin devalued to BELOW the Fiat Exchange you chose we'd be happy to pay you less - but we woulndt' feel comfortable doing so.

We provide a way to associate to REAL Value, not Speculative Valuations.

Thanks for your comment!

I should probably add to the previous post in saying that:

Our Internal Unit of Exchange Increases In Value as the Dollar, Euro, and other Fiat Currencies drop.

This differentiation allows us to leverage our Unit. The resultant difference is proportionally distributed (over a multitude of uses), but as well to form another part of our Interest Payment structure.

Further information is confidential, and not for public disclosure.

Thanks again!

I understood him as if he's not touching people's deposits and he's holding people's assets in Bitcoin and paying them out in Bitcoin there is no need to be valuing them in their exchange rate to to other currencies, i.e you deposit 1 BTC you withdraw 1.04 BTC after a years interest regardless of it's exchange rate in another currency.

Either way is really stupid for different reasons, as you've shown but it'd be nice if he'd clarify.

We use a Multi Chained Commodity Basket to Value an Internal Proprietary Exchange Unit.

This unit is not tied to the Fiat Market, but rather to Commodities, Raw Land Holdings, and other similar and like Tangible Inventories.

The Bit Coin Exchanges to our INHOUSE CURRENCY. This is how we manage the ledger. Payout are whatever our INHOUSE Commodity Chained Unit converts to a FIAT VALUE of which ever chosen country's Unit Of Payment.

BitCoin is simply a TRANSFER mechanism. But due to it's virtual nature and duplicitous monetary aspects can be extended beyond the regular confines of the traditional systems available.

I hope this helps.

To assume things based on incomplete information makes the assumption itself flawed.

And of course, you are entitled to have any opinion you wish. That's your prerogative.

The structures and foundations are sound, and have been working for our 45 active clients very well.

But when BitCoin goes down for 3 days due to loss of electricity, or you loose the charge on a cell phone, or the banks are closed and the exchanges aren't running - we have confirmed that people prefer holding something that IS LINKED TO CASHABLE ON DEMAND item, than a digital piece of coding.

You could still call us, on one of those old land line, or fax us, and request a Withdrawl - which would then be sent via a more direct payment; of course after verification of account holder.

But that would require divulging the internal workings, which of course are not for public disclosure by any company, group organization, or other like or similar entity.

What I will say is this: It's safe to hold something of value, good hard asset value, than something that you simple believe has value because you see the numbers on a stock ticker rising.

Thank you for your comment!

A'ite, bear with me here, cause I'm struggling to follow your business plan. So no fractional reserve lending. Fair enough. Reading through you're other responses I've ascertained you (correct me if I am wrong) intend to pay interest by

• charging fees and returning a portion of that income as interest
• investing a portion of that income in real assets and commodities which you hope will appreciate in value and return some of the capital gains as interest

So to point one, the sum of all fees must exceed the sum of all interest, ergo your clients are net losers if we view point one in isolation. If we include point two, you are making the claim that real assets and commodities will gain value relative to bitcoin. That is another way of saying bitcoin will lose value relative to those assists/commodities.

The above being true, what your are counting on is (through your doing or the pressures of the market place) bitcoin will depreciate relative to goods and services. You will then arbitrage the difference and pay a proportion of that arbitrage to your clients. Meanwhile, your clients will have lost a (necessarily larger) portion in depreciated coin. So at best, you're cushioning the depreciation with interest. At worst, you've some scheme in mind to cause the depreciation. Either-way, it's not clear to me how your clients end up with more value over time, even if they end up with more coin.

Perhaps I misunderstood your "Yes" reply to Mike Christ's question:
I took that to mean that you would accept USD deposits.   If it's strictly bitcoin in and out then I believe there wouldn't be a legal problem with anonymity. Certainly there isn't a technical one.

I think you still haven't answered my first question, the point of which is to gain some confidence that you are not a scammer by demonstrating a realistic business model.  How can you possibly pay interest out on funds that you say you will not touch?

That's right it is - but until we have a dedicated team in place (which requires funding) and we have equipment (which requires funding) and we have a team that can Administrate that function of setting up a few rigs and go hardcore mining - we are only 3 people. Donations help us add: Hardware, Team Members, Software Purchases, Legal Consults, 3rd Party Professional Hires, and a multitude of other required parts to project.

I suppose if someone offered us $10'000.00 worth of TIME that would to just as good!

Thanks for your question!

So why you need donations if your mining? You only need 7.407BTC for $10,000

Not at all - ITS PART OF IT'S GREATNESS!

I suppose that I should point out - as we have touched on mining - that this forms part of our Returns Structure; Afterall - When we mine coins it's a little bonus for all of us! (But that's just one very small part - but it is a very real part of the system that allows us to provide interest payments!)

Thanks for your question!

I am curious; how do you pay interest without engaging in fractional reserve lending or otherwise debasing the currency through the money multiplier effect? Doesn't this undermine Bitcoin's raison d'etre?

Great Questions - With Simple Answers!

We do not "transact or conduct business in any "REAL OR PHYSICAL Fiat Currency", no paper money ever changes hands.

Let's give an example.

Assume you were in the basement of your house.  And (most of you who are up to date will know this as Mining, or Rigging), but you sit there in your basement, and all the doors are closed. You sit in your PJ's and you are running a little piece of software called a BitMiner. It works on your computer, at home, in your house, in your basement, and all of a sudden you get a DING over your speaker. YOU Found A BitCoin!

Well that BitCoin has value. It is available to TRADE INTO any Fiat Currency, yes. But DID YOU GET IT FROM Fiat Currency NO. Tada! The magic has begun.

Now you go and spend that BitCoin. Say 1 Coin (about $120.00 USD), and you buy a little Tablet PC, a cheapo one! Now, did you pay ANYTHING Equivalent to A Fiat? Or Did the Transaction ORIGINATE FROM FIAT? No - not at all.

The BitCoin ORIGINATED from your computer at home! You did not receive any external payment for it. Thus - it's NOT FIAT, and CANNOT BE DEEMED TO RESULT from a FIAT Currency.

Suffice it to say the rest of it is very legally technical. But - IT IS LEGAL!

Now, let's say you want to have a 'common association to it' - well you can THINK of your BITCOIN in TERMS of VALUE "related" to a Fiat Currency - Yes. But that's just for Ease and Convenience of use. For your convenience.

But - If you decide that you want to store the bitcoin you got from your computer as a Euro, or a USD, or a GBP does NOT MEAN IT IS! It's simply for you to have a something that's easy to count in your own books, ledgers, or for use when thinking about how much to pay for something - IT'S YOUR CURRENCY! Not Ours.

Now - if you deposit a Virtual Cryptocurrency, to a Virtual Ledger, that is a Virtual Transaction. It has no Physical Origin. But if we tell you that we are going to give you 30 SLATOVSKIES for your 1 Bitcoin that is a LOT more complicated than saying that we'll give you $120 US Dollars, or $100 Euros.

I hope that gives you a brief explanation on Virtual Transactions. It's also why we call ourselves an Outfitter and NOT a Bank. Bank is just an easy Common Term of Reference. But we are an Counting House (much like an accounting firm), the units we use to designate accounts a Proprietary Unit Exchange Unit.

Thanks for your questions and comments!

OK, so you don't touch the deposits in any way and interest is paid from investing (somehow) the transaction fees?  How about this instead?  I'll save you the trouble of keeping track of my bitcoin and I'll keep it where I know it's safe (in my safe), then I'll pay you a small fee in place of the transaction fee, in exchange for which you pay me at some indefinite point in the future what I would have earned in interest on the deposit.   That should be equivalent, right?

Also, wondering how you can provide anonymous accounts that transact in fiat currency without running afoul of the anti-money laundering laws.

We cannot divulge internal workings, as they are proprietary.

But thank you for your question!

Our Project is Best Described: as a Global MutiCurrency Exchange Counting House.

We take your deposit. Enter it in a Ledger (in a currency of your choosing - let's assume a Euro) ... so you deposit EU20.00 Euro worth of BitCoins. We enter it on OUR EURO Ledger as EU20.00; and apportion it to a physical asset. The cash is right there, but it's now tied to something physical!

So if you want your cash - you put in a withdrawl request, and we conver that EU20.00 Ledger Value for your Deposit, into the Then Current Exchange for Bitcoins, and pay it directly to your wallet.

You can then use them to pay for Good or Services, Cash them out into Currency via Mt.Gox, CaVirtex.com, Bitinstant, or at a Local Bitcoin Trader, or even on Ebay, for whatever currency you need, or want.

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While Your Money is On Deposit, it will earn interest according to the Tier (or Aging) of your account on our Ledgers.  When you hit a Tier you trigger an Interest to be paid on your Ledger Value.  So if you have EU20.00 on your Ledger, you'd get EU20.80, assuming you are at 4%. You can keep saving, or cash out via An Exchange, A BitInstant PayCard, OKPay, or  Direct to your bank via PayPal (also care of BitInstant).

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As BitCoin ATM and BitInstant Paycards get released to the public you'd get even more use out of your money, and the added convenience of multiple points of withdrawl and direct pay use!

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I hope this helps, and thanks for the question!

cool scam bro

You may find it awkward that it takes $10'000 to start this up - but it does. The first thing we need to is obtain Software and Hardware for testing. We are not rich - and we have a lot tied up in this already. Donations help us move forward and allow us to scale the project according to targets.

A new system takes time to set up and to figure out the glitches so we can roll out a strong foundation from which to build up from.

There are stages to the project, just like in any Project Management time line. Because we use our assets as a security base from which to ensure we can guarantee deposits, these cannot be liquidated to start the project.

Donations are by choice and entirely voluntary, so please do not donate if you are not comfortable with doing so.

As to the suggestion about a Multinational Operation it must be understood that without Brick and Mortars (Buildings, Offices, Kiosks, etc etc) and staying 100% digital through a virtual banking setup does one HUGE thing - IT REDUCES OVERHEADS. This means that our costs do NOT include running 5000 offices, but rather 1 office at this point. And As we grow, the project grows. When we can open another Office, we will. And then we'll need people to come work with us - which will provide another positive return from our setup.

It's not about rolling it out all at once. It's about baby steps. In a new age, we must tread slowly and carefully these waters so we don't screw up anything along the way, and so that when we hit a glitch (because we will) that we can fix it - and prevent it from becoming systemic.

I hope this provides you some clarification, and thanks for your comment.

The important question then: if you're not investing the capital you accrue via deposits into assets then in what form are you holding people's deposits?

Futhermore, how is it relevant to any of your account holders what you do with the fee money they pay? There is no need to guarantee people's deposits against loss if you are not investing them.