Forget Smartcoins, how about Dreamcoins?

[okidoki]

So... will this product be set up? I think the idea is brilliant and it includes an interest component paid by  the shorter... which I think is missing right now...

Hopefully, if we find a whale who wants to try this.

Why not first establish the asset and its feeds and advertise it later?

[fav]

If I were a whale, a big one, I would be making some math ritht now to have an approximation on the feasibility of this hypothesis.

I'm far from a whale but we know where we can find some. There is  investment forums, website, ... These Whale are just looking how to grow a portion of their capital.

Wouldn't it be a smart move to wright a piece of article on that idea and publish everywhere where ppl have deep pockets ?

They could contact Stan to get in more details if needed.

I'm a poker player, all my decisions are purely statistics.
Let's suppose that writing and  publishing this paper has a 1% chance to find a whale who is willing to try this and the MC reach 1/2M with the added value, smartcoins liquidity increase, awarness, communication and some hype. 
We would have 1% chance to increase 500x our current investment in BitShares. So in the long run, on average,  (repeting this process forever, not feasable obviously) that paper would increase our MC by 5 times.
Let's consider that 20 hours are needed to write it and publish it everywhere we can (with the community help).
Well, anyone with at least 100$ in BTS in its account would gain 400$, so 20$/hour by writing and publishing it. Not bad but maybe not enough to ignite the  fire of your motivation ...
Maybe 50$/h if you have 250$ in bts, or 200$/h if you have 1k$ in bts ... or 1000$/h for the baby whales ?






Sent from my SM-G900F using Tapatalk

great idea, just do it

would be much easier if there was something to show, or tell them where to throw money at. too bad the system is not in place...

[EstefanTT]

If I were a whale, a big one, I would be making some math ritht now to have an approximation on the feasibility of this hypothesis.

I'm far from a whale but we know where we can find some. There is  investment forums, website, ... These Whale are just looking how to grow a portion of their capital.

Wouldn't it be a smart move to wright a piece of article on that idea and publish everywhere where ppl have deep pockets ?

They could contact Stan to get in more details if needed.

I'm a poker player, all my decisions are purely statistics.
Let's suppose that writing and  publishing this paper has a 1% chance to find a whale who is willing to try this and the MC reach 1/2M with the added value, smartcoins liquidity increase, awarness, communication and some hype. 
We would have 1% chance to increase 500x our current investment in BitShares. So in the long run, on average,  (repeting this process forever, not feasable obviously) that paper would increase our MC by 5 times.
Let's consider that 20 hours are needed to write it and publish it everywhere we can (with the community help).
Well, anyone with at least 100$ in BTS in its account would gain 400$, so 20$/hour by writing and publishing it. Not bad but maybe not enough to ignite the  fire of your motivation ...
Maybe 50$/h if you have 250$ in bts, or 200$/h if you have 1k$ in bts ... or 1000$/h for the baby whales ?






Sent from my SM-G900F using Tapatalk

[Stan]

So... will this product be set up? I think the idea is brilliant and it includes an interest component paid by  the shorter... which I think is missing right now...

Hopefully, if we find a whale who wants to try this.

[okidoki]

So... will this product be set up? I think the idea is brilliant and it includes an interest component paid by  the shorter... which I think is missing right now...

[Empirical1.2]

There is no corporation. This will work like a casino with 5% house edge, except there is no house. Shorters will gamble on day-to-day volatility and in long term lose 5% per year. These 5% will be payed to holders.

It is also possible that BTS price will grow in long term. In this case shorters will share 5% of their yearly profit with holders.

Thanks. That actually makes some sense.

I still think that it is (long-term) inevitable that the system will end up in a black swan. You promise exponential payouts, and nothing can keep up with that, long-term.

At some point (possibly many years in the future) SmartCoin or DreamCoin products will mature and growth may stagnate.

At that point a SmartCoin interest payment will cost more BTS than the BTS (for SmartCoin) demand it incentivizes, (Either for BTS or a whale) so at that point I think the payment would have to be curtailed and ultimately ended.

While I don't know about a combo DreamCoin, I don't think this will cause a black swan if it's applied to SmartCoins like BitUSD because customers should be quite sticky... 

Customers are fairly sticky & first year bonuses are very successful at creating long term account holders for a very low cost.  In the UK it is/was controversial but very successful...

The Fair Banking Foundation reckons that 3.78 million savers over the past five years had money in accounts paying attractive short-term bonuses, but who failed to move their cash once the deal ended.

Hopefully we could keep ours going for many years during the growth phase and once it's fully tapered traditional banks will be well into negative territory and zero yield would actually be attractive especially once SmartCoins had greater utility and combined with all their other great features as well.

Once the system has been bootstrapped though, BTS growth/value will hopefully come from a range of products servicing the SmartCoin market & possibly trading fees etc.

[Stan]

In the end, it is exactly what BitShares was build for.

Shares are purchased because they can be used to build something that there is demand for.

When there are a trillion Sumos in circulation what do you suppose the BitShares ecosystem will be worth?

What will it's prospects be to double again?

What will the marketing budget be at that time?

[xeroc]

I still think that it is (long-term) inevitable that the system will end up in a black swan. You promise exponential payouts, and nothing can keep up with that, long-term.

I share these concerns.

I also think that it's a dangerous game to play, because it contains a positive feedback loop which will increase BTS volatility. Higher BTS volatility increases the risk for *all* smartcoins.

On a different thought, the other bitassets (once liquid) will probably help to smoothen out volatility. The pricefeeds just need to have all liquid markets added (with volume) .. i am not yet fully convinced about this positive feedback loop to be catastrophical.

[pc]

Looks like the good old forum is still the better place for a discussion... :-)

There is no corporation. This will work like a casino with 5% house edge, except there is no house. Shorters will gamble on day-to-day volatility and in long term lose 5% per year. These 5% will be payed to holders.

It is also possible that BTS price will grow in long term. In this case shorters will share 5% of their yearly profit with holders.

Thanks. That actually makes some sense.

I still think that it is (long-term) inevitable that the system will end up in a black swan. You promise exponential payouts, and nothing can keep up with that, long-term.

I also think that it's a dangerous game to play, because it contains a positive feedback loop which will increase BTS volatility. Higher BTS volatility increases the risk for *all* smartcoins.

[Stan]

PRECISELY!

[yvv]

Well peter made a valid point.

I think the questions are:
* is this just sone kind of corporate money used mainly for internal case but is open to the public
* who actually pays the 5%? Is it new users or maybe fractions of the profits made by the corporation, seen as a necessary cost for their very own currency
* would people outside the corporation be interested to use this it all?

There is no corporation. This will work like a casino with 5% house edge, except there is no house. Shorters will gamble on day-to-day volatility and in long term lose 5% per year. These 5% will be payed to holders.

It is also possible that BTS price will grow in long term. In this case shorters will share 5% of their yearly profit with holders.

[xeroc]

Well peter made a valid point.

I think the questions are:
* is this just sone kind of corporate money used mainly for internal case but is open to the public
* who actually pays the 5%? Is it new users or maybe fractions of the profits made by the corporation, seen as a necessary cost for their very own currency
* would people outside the corporation be interested to use this it all?

[Stan]

Lots more discussion on this topic may be found on Steemit, including this "ponzi scheme" concern which quickly went down in flames (all modesty aside).

https://steemit.com/bitshares/@Stan/the-power-of-5#@cyrano.witness/re-stan-the-power-of-5-20160623t210949238z

Huh? What flames? Your own response is the only one.

True, I was the one politely wielding the flamethrower... 



What did you think of the answer to the ponzi accusations?
That's what I was looking for feedback on here.

[pc]

Lots more discussion on this topic may be found on Steemit, including this "ponzi scheme" concern which quickly went down in flames (all modesty aside).

https://steemit.com/bitshares/@Stan/the-power-of-5#@cyrano.witness/re-stan-the-power-of-5-20160623t210949238z

Huh? What flames? Your own response is the only one.

[yvv]

These shity links on steem never work.

Mark > Right click > copy paste > convert to lower case > open

FTFY