Few unclear things about the digital coin proposal

[ShwangShwing]

Hello
I have few unclear things about the digital coin system.
First thing I don't get is how would you track the current amount of money you have? If your employer is not issuing credit coins then it's probable that you will have some mix of different coins. So how do you know at a moment what buying power you have?
Second: How is the value of the different credit coins calculated? What does buy/sell ratio mean? If someone sells a coin, another one is buying it, so how would this formula work?
Third: How will this system handle secretly planned going out of business company flooding the market with its credit coins? I mean if the owner of some successful company decites that it's time to retire what would stop him from doing this and how will it affect the system?

I was thinking it could be a good idea this monetary system to be integrated into some massive online game. There it could be implemented a lot easier than in real world.

[Paul Grignon]

Question 1
"First thing I don't get is how would you track the current amount of money you have?"

The software would automatically tally the Perpetual Coin value of your Credit Coin to give you your total.  This would fluctuate somewhat from day to day as values change, just as it would if you held accounts in several different national currencies today.

Question 2
"How is the value of the different credit coins calculated? What does buy/sell ratio mean?"

The PC value of a Credit Coin is determined in real time by the current offers to buy/offers to sell ratio on an online Coin market.  If a million Toyota Coins are offered but only 950,000 Toyota Coins are being sought after to buy Toyotas...  then today, Toyota Coin is worth 0.95 PC.  Tomorrow might be different.

Question 3
" How will this system handle secretly planned going out of business company flooding the market with its credit coins? I mean if the owner of some successful company decides that it's time to retire what would stop him from doing this and how will it affect the system?"

If you're going to secretly self-destruct your business, why not borrow 10 million dollars from a bank, take it out in cash and disappear?  Now the bank has a 10 million dollar loss and that puts all the depositors' money at risk.  So the taxpayer has to guarantee bank losses with deposit insurance and ultimately bailouts.

In The Credit Coin version of this scenario, the equivalent amount of Credit Coin issued would be a huge red flag, the Coin would immediately devalue.  Only those who voluntarily accepted it would absorb the losses.  Credit Coin holders would have a legal right to sue for liquidation of the company and seize and distribute its assets.  Coin holders would be ahead of the shareholders in the lineup.

No one else would be involved, no deposit insurance, no bailouts.

"I was thinking it could be a good idea this monetary system to be integrated into some massive online game."

I think as a game it would be so simple it would be boring and meaningless.  A game-like demo would be good though.


Paul Grignon