b.Passion Business VII - Cryptocurrency Programming

The last part is here:   Passion Business VII - Cryptocurrency (II)

Don't Buy Bitcoins

Don't Buy Bitcoins, Part 2

BITCOIN The Biggest Scam In History?

Money is any object or record that is generally accepted as payment for goods and services and repayment of debts in a given socio-economic context or country. The main functions of money are distinguished as: a medium of exchange; a unit of account; a store of value; and, occasionally in the past, a standard of deferred payment. Any kind of object or secure verifiable record that fulfills these functions can be considered money.

The videos said it all. Bitcoin or any current cryptocurrencies is just rare but not valuable. It has no intrinsic value. There is no legal power to rule its conduct. There is therefore no chance of this cryptocurrency to take off.

As the videos suggested, the present currencies are enforced by the current governments-of-the-day as legal satisfaction of payment of taxes. Any person found not satisfying the legal obligation of paying taxes would be thrown into jail. With such a powerful requirement, how can one not recognize that the issued currency as a medium of exchange.

Therefore, to properly produce a cryptocurrency, one must rely on two basic properties: a legal infrastructure and a store of value.

Cryptocurrency cannot be just a play on number, even the miners of the coins expending large amount of energy and computational infrastructure to maintain the trust system are not considered economically active. Their efforts are useless in the eyes of the economic market. To be rewarded with coins, the miners must participate in economic activities, not just sit around and crunch numbers. They are no economic activists.

So I really enjoy this whole thing. I have spoken to my partner-in-crime and he fully endorsed this passion business. There is therefore a go for take-off.

One side of the total scheme of things was already being implemented in Taiwan before and was forced to close. When the one-sided scheme of things was implemented in full in Taiwan, the direction of things were excellent, they had proper stores and they had trust, the consumers were extremely happy and they commit in the hundreds of millions. But unfortunately, the trust was misplaced. The companies implementing this one-side of scheme closed down one after another and the consumers were extremely annoyed that their monies were not refunded. This caused a huge retracement of market trust. This one-side of scheme collapsed and never return.

From my assessment, even with the one-side of things, the scheme should have already worked beyond one's wildest dream. But, the schemers were dishonest, they took it as a scam scheme god-sent. They scammed the consumers to no ends.

Business can only be conducted using honesty. Honest business means profits can only come normally and not extraordinarily. The good news is honest business will last and feed one for more than a lifetime. The bad news is honest business will need a long time to establish the trust.

Unfortunately, the Taiwanese crowd couldn't see through the scheme of things. This same one-side of scheme was also implemented and tested in HK. Again, the schemers took it as a scam scheme at its best. This one-side scheme of things again fell flat.

If one were to evaluate this one-side scheme of things, one would realize that the business proposition is indeed a sound one. Everybody is supposed to be benefited in full in the end. It is an absolute win-win situation. But, due to external factors, the schemers couldn't maintain their part of the bargain. The scheme becomes ultimately a scam. The schemers couldn't see through the scheme that it is indeed a scheme that would have given the schemers the ultimate dream comes true.

If the schemers couldn't pull through the first half and if the schemers were to include the second half (this is unique as the second half is invented by me), the scheme would be even hasher to the schemers. There is therefore currently no existing schemers that can implement this scheme in full. This scheme is now perfect.

My partner-in-crime was very cute today. He mentioned that we must never include any third party into the scheme no matter how trusted the third party is. I cutely asked why not? He mentioned that the full scheme is too easy to implement and there is no guarantee that that third party wouldn't play us out by collaborating with another merchant. I smiled.

I must say I respected him a lot. I immediately consulted a Taiwanese to understand the true reason in the failure of the first-half of the scheme. After analysing, I realized that the first-half of the scheme failed because the schemers were made greedy after a while when the scheme was successfully implemented for a while. The schemers let their guards down and start to spend a bit more freely. In short, the schemers assumed the status of god and became fearless. As these were blood money, the schemers fell flat on their face.

If ever the second-half of the scheme is to be implemented (never implemented before in the market), the harshness of the scheme would drive even the best market schemers to shame. This is the key reason why the full scheme was never implemented in the market.

There were so many smart schemers in the market, but many schemers unfortunately believing that they were smarter than the market. Unknowing to the schemers, the market is perfectly intelligent. The market can never be outwitted. The collective wisdom would floor any smart alec. Therefore, the only way to survive in the market place is to follow its rule and toe that fucking narrow path.

My partner-in-crime fortunately understood this principle very well. He also influenced me that if we were to keep to the narrow path, we would be rewarded. Anything simple to implement in the market would be punished for being shallow.

Hehehe ... Why then does he then worries that this full scheme would be so easily copied and defeating us? If so many schemers have failed in their half-part before us, what make you think that this scheme when implemented in full would be so easily defeated?

But, retrospectively, my partner-in-crime has one of the most evil minds on earth. He would be the best person in implementing the scheme in full. Having a partner-in-crime like him is indeed my fortune.

In conclusion, I don't believe the scheme in its full flavour would be venerable to attacks or copies, but I do respect my partner-in-crime's concern. My lips are sealed.

May this full scheme see light in 20 years' time. Welcome to the $200trn Scam.

b.Article - Queen Elizabeth's cash crisis: Monarch 'down to last million'

Queen Elizabeth's cash crisis: Monarch 'down to last million' 
Published January 28, 2014 FoxNews.com 

June 2, 2012: Britain's Queen Elizabeth II and Prince Philip arrive for the Epsom Derby at Epsom race course, southern England at the start of four-day Diamond Jubilee celebrations to mark the 60th anniversary of the Queen's accession to the throne. 

Queen Elizabeth II of Great Britain is apparently one royal who is no longer flush. 

According to The Daily Telegraph, a report by the House of Commons' Public Accounts Committee has found that the Queen's financial reserves have reached a "historic low," dwindling to 1 million pounds ($1.66 million) from 35 million pounds ($58 million) in 2001.* 

The Committee's report has placed the blame squarely on the Queen's advisers for overspending in a manner out of line with the austerity measures that have been adopted by Prime Minister David Cameron's government. According to the Telegraph, the royal household only managed 5 percent efficiency savings over the past five years, while some British government departments have cut their budgets by up to 33 percent. In the 2012-13 fiscal year, the report found that the royal household received 31 million pounds ($51.4 million) in taxpayer funds, but spent 33.3 million ($55.2 million), dipping into the reserves in the process.* 

Margaret Hodge, a Labour MP who chaired the committee, told Sky News that the financial mismanagement has resulted in two of the Queen's most famous residences falling into disrepair, with no contingency plant to pay for the backlog of repairs.* 

"Forty percent of [the royal estate] needs something doing to it," Hodge said. "The boilers at Buckingham Palace haven't been replaced for 60 years. Windsor Castle has problems with the bedrooms and the Royal Picture Gallery has buckets to catch the water coming through."

Hodge also called on the Treasury to "be actively involved in reviewing the Household's financial planning and management," which she claimed it has failed to do.* 

A Buckingham Palace spokesman the Telegraph that repairing the royal palaces was "a significant financial priority" and claimed that the royal household had doubled its income since 2007.* 

Interesting Video (Please watch the entire show):    THRIVE: What On Earth Will It Take?

My Comments:
(Passion Business VII - cryptocurrency) 

This article and the video is so interesting. It presented in no uncertain terms that the fiat currency is accelerating the erosion of value. The video said it in completeness: "This erosion by printing more fiat money every single year is making the value you held on to in terms of the currency you hold is reduced every single year. It guaranteed the currency printer will rob and eat you for free."

With this grim circumstance, the cryptocurrency I am proposing would be successful beyond my wildest dreams. Hopefully I don't get in the way of too many bureaucracies. My partner-in-crime is concerned with the ultimate security of the system. I am proposing the most difficult hash codes - SHA-3 2048 bits (four times more than the current 512 bits). In time, it will be able to automatically handle even more complex hash functions.

As long as the system don't get hacked and multiple mirrors set-up, I am sure we would be resistant to physical and cyber security breeches. We would have time to perfect the system, as the bureaucracies need time to catch up. Finally, I have re-engaged my cyber business. I lost it about 20 years ago. Now it is all coming home. Thank You, partner-in-crime.

b.Passion Business VII - Cryptocurrency (II)

The last parts are here:   Passion Business VII - Cryptocurrency   and   Exploration - Fiat Currency

Before the new spring, already so happening. Never has my partner-in-crime supported an idea so out-rightly. When I explained the idea behind the cryptocurrency (hoping to drill it into a passion business), he was bored claiming that it will take a genius to work the algorithm. When I explained the concept of fiat currency (just an business exploration), he immediately pointed out these are two very different animals. After further explanation, the latter meant a totally different thing. He pointed out that one thing - xxxxx (for inner ring only). I was floored. He drew blood from the concept just like that. I was silent for a while.

He then suggested he will initiate the programming in good time. As programmers, I believe we belong to the original breed. His programming is scarily good. Finally, we have a mobile phone app in good time. He claimed this is a huge project on its own. I was pleased.

When I rehashed the concept to a friend. She immediately pointed out that it meant only one thing - xxxxx. I was flabbergasted. How can I be so dumb as to the true meaning of my discovery?

This concept has been on my mind for the better of 10 years. I have done talking, programming and negotiations, but yet I never manage to bring to fruit. Although this time it is still on paper. But, our progress is way, way ahead. Together with my partner-in-crime, we already saw its possibilities.

My friend after so many years has also grown in business feelings. She was a lot more agile in her criticisms.

Not a bad start indeed ... 黑皮 New Year.

b.Exploration - Fiat Currency

The last part is here:   Exploration - Town Planning (II)

I am feeling so brillant today. I think I have cracked the concept of fiat currency.

(From Wiki)
Fiat money has been defined variously as: 

• any money declared by a government to be legal tender.
• state-issued money which is neither convertible by law to any other thing, nor fixed in value in terms of any objective standard.
• money without intrinsic value.

The term derives from the Latin fiat ("let it become", "let it be done", "it shall be").

While gold- or silver-backed representative money entails the legal requirement that the bank of issue redeem it in fixed weights of gold or silver, fiat money's value is unrelated to the value of any physical quantity. Even a coin containing valuable metal may be considered fiat currency if its face value is defined by law as different from its market value as metal. 

The Nixon Shock of 1971 ended the direct convertibility of the United States dollar to gold. Since then, all reserve currencies have been fiat currencies, including the U.S. dollar and the Euro.

The countries around would never agree to revert back to non-fiat days. But, the people around the world is keen to protect their purchasing power, but the government are keen to erode them. The push-pull will go on forever.

The power of wealth comes from the number of goats or camels one possessed during the Egyptian times. Even gals/slaves were exchanged in terms of goats per gal/slaves. Everything is exchanged based on assets per exchange. This type of exchange protects the purchasing power.

But, when fiat currency was introduced, primarily because the government-of-the-day refused to honour their part of the bargain by honouring value. The government-of-the-day just want to suck value off their people. Short of a better way, the government-of-the-day just do it fiscally.

There are not many things one can invest in:

• Shares - The company corrupts and cons your investments by paying themselves high salaries, first class tickets and share options.
• Commodity - Easy to buy. Volatile. Fun. But, when you want to encash they kill you with very high administrative fee.
• Insurance - This life insurance is a joke. Easy to buy, Good on paper. But, when claiming they give all sorts of reasons as their investment returns are not guaranteed. Fuck them.
• Forex - This is just pure gambling. The winner is the gambling house.
• Bonds - This is the worst investment. Fully manipulated by the government-of-the-day.  
• Coins/Notes/Old Paintings/Stamps/Artifacts - Useless. Easy to buy. Difficult to sell.

To protect one's purchasing power is key to the problem sum.

My Solution:

This can apply to any commodity.

I got this inspiration from Bitcoin.

Assuming I have 10 sheep. Each sheep is priced at say, $50 (Assuming I bought it for $25). I sell them each at $50 in year 0 to 10 investors as perpetual sheep. Each investor would receive a certificate stating they owned 1 perpetual sheep. These sheep after 1 year would give birth to some more sheep. Some sheep might also die. But, that's the farm's problem. The farm will feed these sheep. Pander after them. Cut their fur for sale. Based on preliminary assessment, the fur and the offsprings more than compensate the keeping and feeding of the sheep on the farm land. This must be the case, else the farmer will quit.

At the end of the year 1, the farmer would announce some dividends in terms of number of sheep per perpetual sheep (say 1-10% of the perpetual sheep), hopefully this dividend would improve the investment value. Each year, each sheep would be worth more in terms of fiat currency, which protects the purchasing power of the investor. The dividend is definitely a bonus to the investment vehicle.

In bitcoin concept, the "miners" are the farmers of the sheep. While the "coins" are the perpetual sheep which are way more valuable.

These perpetual sheep can be traded or exchange for other valuable goods or fiat cash. The choice is absolutely free-forming.

Every year, the investor is given an opportunity to convert the perpetual sheep to other form of assets, such as perpetual birdnest.

In the event you wish to take delivery of the sheep, the farmer will let you into the farm and based a random generator, you may collect your sheep free-of-administrative-charge. There shall be no hustle.

Going back to Egyptian time is key. Modern concepts are bullshit in protecting value.

For those of you more intelligent people out there, try applying this concept to birdnest and give me your feedback. Thank you. 黑皮 New Year.

b.Passion Business VII - Cryptocurrency

The last part is here:   Passion Business I - Taste

One of the latest trends now in internet is the creation of cryptocurrency. The most famous being Bitcoin. Search it, read about it and digest it in full from the internet. There are millions of literature on it.

This trend is the next wave in internet. Learn it, master it and lord over it.

Although I have ear-marked it as the passion business VII, my hands are so full now that I can't really exercise this business-type with personal attention.

So if you are reading this topic, done research totally on it and concluded that it is the next wave. Then, write to me. I might be interested to create another cryptocurrency with some of my small funds.

The key problems faced by the bitcoin are:

• It is highly speculative. It goes from US$13 in Jan 2013 to US$1,100 (Dec) and then plunged back to US$800 right now (Jan 2014). Merchants don't like such volatility.
• It has very low volume, i.e., 10 million coins in circulation.
• Since each coin is so expensive now, merchants would shy away from transacting in it.
• Low merchant penetrations.
• It doesn't have a good conversion table against other currencies. A cryptocurrency is only good if it can easily be convertible into other currencies.  

Our cryptocurrency must solved the above short-falls:

• It must not be speculative, its value must be deterministic for a reasonable period of time.
• It must be able to grow according to demand for use of coins.
• A good deterministic conversion table against other fiat currencies.
• Able to trade and accepted by common merchants.
• Must have deflationary features.

This my dream coming true for micro-payment system. I have been playing with this idea for at least 20 years. Maybe now is a good time to pull the rabbit out of its hat.

This project if placed in an after-burner may not take off. So be warned. Internet is a fast-paced business, which I don't always like. That is why I am not too keen to participate using my personal time. Off-handed fund is alright for me though.