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« on: February 08, 2014, 05:15:57 am »
I've seen stock market games where users are allocated a given number of points they can buy imaginary shares with. Then they see which users guessed the best stocks by looking at how much money they would have earned in the real world if they had invest a dollar for each point. Over time some users clearly rise to the top and prove they have a track record of successfully predicting the best stocks. Then, they consider giving the top ranked players REAL money to invest, of which they split the profit.
Now this is an interesting idea but there are two main things that can go wrong.
1. The top ranked users may have merely won by luck, and would not likely repeat the success.
2. The investor is a bad person and purposely takes the real money and 'loses' it by sending it to a bad investment which the investor alone profits from (embezzlement).
To solve the first problem, the number of successful predictions should be great enough that it is unlikely to be by chance alone. To solve the second problem, the investor may have to pass a background check and have some disclosure, and the group as a whole would have to determine if something is a good investment or not.
I think if you had a class of successful investors you can eliminate a lot of risk by having one that nominates an investment to be separate from those that vote on the investment. If the investment idea passes, then the group can determine how much to allocate.
Think of it like the (US) government and how it secures the public through the checks and balances of the three branches. Separation of the powers ensures a safer outcome.
In our case, everyone would work together to maximize share price, earnings, and dividends.
I'm new to protoshare but really excited about it. Please send tips:
Protoshare: Pfd7yVHojcWvcLeDCSmKPo77QD3EgZ3r8F
Btc: 19ZEhBMWtsntY4Kc8wPAkYfekYgCvJVh4Q
Doge: D9XzmPpHSAcfWn4VdBF93HC6pq4k7df1iT
Thanks! Matthew