Tag Archives: Finance

Inflationary Cryptocurrency

I have been thinking about making a cryptocurrency that would be infinity, you’d solve a mathematical problem and earn credits depending on the difficult, everyone would be able to earn credits regardless of the total amount of credits existing. The main challenge would be to convince people to hold those credits, that could be done by creating contracts akin to the ones banks have with one another; you’d have a rate being paid to people holding those inflationary credits. No lottery.

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Bloomberg Quote

If you’re an insider, on this theory, and you know that the price is wrong, you can’t trade until it’s corrected. Just announcing the truth isn’t enough. You have to get the market to believe you.

 

I side with the SEC on this one, their information was more accurate than the market’s(same as having undisclosed material info). Speculators create value by correctly pricing an asset, they should be allowed to work. The question is, should company owners(or their tippees) be allowed to speculate with their own stock? I don’t know. There is probably a conflict of interest here, so there should be some mechanism(not necessarily external) to keep it at check.

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Comment on Bloomberg

” Stephen Zhou • 17 hours ago

Pretty obvious, no profit, no user growth, no expansion, just not worth 31$. Gotta say weibo is way better regardless the govt regulations” on Bloomberg

Every company in China,Russia,Brazil or any other country that blocks foreign competition is nothing but a frail helpless pet that will get eaten as soon as the walls come down. I wouldn’t wage even one penny on them.

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I guess every f…

I guess every financial and economics blogger is required to write a post about Thomas Piketty’s “Capital in the Twenty-First Century,” and I guess this is mine. A key message of that book, and of this Institutional Investor Alpha ranking, is that the major driver of modern inequality is not dispersion of labor income or human capital, but rather dispersion of capital endowments and investment opportunities, and that returns to capital will outpace economic growth and make the rich richer in a way that those who make money from labor can’t compete with. The way to make a lot of money is not from labor income, even the labor of investing other people’s money — successfully or otherwise — at 2-and-20 fees. The way to make a lot of money is by starting with a lot of money and investing it well.

(from http://www.bloombergview.com/articles/2014-05-06/billionaire-hedge-funders-made-money-the-old-fashioned-way)That would be exactly correct if you were to just invert it. Capital is begetting increasingly meager returns while (extremely skilled)labor is making billionaires every year.Investing it well is labor, by the way. Try knowing something that managers/algos don’t already know and tell me if it was easy.

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May 7, 2014 · 11:07 am

Tech shares fall

http://www.bloomberg.com/news/2014-04-25/amazon-falls-as-increased-spending-limits-profit-growth.html

One aspect that may or may not be reflected on those stocks value is that you don’t get as much brand permanency on internet businesses as you do with banks, retailers, and other more traditional companies.

All they have is data, lots of it, flowing in. And talent to analyze that data and target ads better. Once people realize that the vast majority of those analysis do not require a huge amount of data but only smarter ways of collecting samples we may see a decrease in their value.

 

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