Please be advise that an improved version is now found at www.depositoffer.com. It is undergoing tests now so please supply your comments. The following shows the schema for making an offer in depositoffer.com
We expect that we will be in BETA this 10 Dec 2013, so far we added other currencies - Yuan, Euro, AUD and Bitcoin. And is hopefully Islamic compliance with interest marked as profit. That is to say the depositor knows exactly in currency amount the return and the % or profit is merely an approximation.
Talking about Bitcoin, this is my take. I think BTC is the biggest deal nobody saw coming when bitcoin leaps to USD 1000. Obviously for those who are looking at the news one may ponder how could a few bits of data costs that much ? A string of bits of data approx gold ? That is a difficult question as gold can be used as hedger of inflation, USD but difficult as a currency while as bitcoin is useful as a currency and being limited in supply good as an inflation hedger against USD. Bitcoin is born out of necessity, ie to remove from the preying eyes of government (like cash) and whims of regulators (more and more critical as regulators seem to have see every problem sticking out like a nail). I dare to say that after the financial scandal and bailout, most people are sceptical of their government of the day is not one for the people any more but big corporations. Cryptocurrency like Bitcoin in a sense is unregulated and the only qualifier is to mine Bitcoins in order to use it, ie one has to put your PC or something more powerful to mine those Bitcoins. The value is determined by supply and demand (note that bitcoin is not the only cryptocurrency around) but bitcoin is currently the flavor of the month. I still remember years ago when banana was short in supply in Australia, the price was so expensive that it cost about USD 2 for one piece of banana (local). The lesson here is that anything in short supply will attract demand and hence speculators pouring money so the next sucker will buy to keep the price up. History however shows that what goes up must come down..at least with a commodity that is freely traded, is this the same for a cryptocurrency ? Economics 101 says if there is a substitute then price will not be sustainable and equilibrium will find its way to a lower price. The closest currency is LTE but is not a replacement either save for its functionality (unregulated and transferable), the difference can be say to be between USD and CAD except without the banks in the middle. Which is my next point, do we need banks ? If there is Bitcoin or something similar is widely adopted (with some tweaking on the supply side linking to economic realities but without human intervention) then it may be universally acceptable. Banks will still be needed as intermediary to financing but barely as such functionalities could also be coded (I have done this in one of my patents by auction means to distribute funds and to proportionate the risk in part with the participant - lender is also borrower-the roles determine by auction means). This is not too far from reality as borrowers of funds often ended up as lender (depositors) as well albeit with different banks. In effect, while we have many banks, none of them are really competitive resulting in duplications of costs. They may even collude together as seen in the LIBOR scandal for their self-interests and that of their shareholder, belatedly. In short an alternative eco-system may be needed.Add a comment