179. Sustainable
I got a very good question from Ronald Brian O'gwal: How sustainable is the business really?
When I am saying that all members will become millionaires, I am not saying that all members will have a bag full of dollar notes. We are not creating any new notes.
No, our members will have BitGold to a value of a million dollar or more. If then all of us want to exchange the BitGold to cash, we cant. Because we can only sell BitGold if there is someone who wants to buy them.
But what makes this system so profitable is that we all have a very strong incitament to keep our BitGold. We have two types of members, Spenders and Investors.
If you are a spender and want to exchange your BitGold to cash as soon as possible, there must be an investor that are willing to give you cash in exchange for BitGold.
The price is set by the market, if most members want to sell, the price will be low and if most members want to buy, the price will be high.
The thing is that there are stronger reasons to have BitGold than cash. Yes, cash can be spended, BitGold cant be. On short terms, the spenders are the winners and the investors are the losers.
The cash that the spenders are taking out from the system is paid by the investors. But in the long run, the investors will be the ones with huge assets and tremendous power.
The investors will build up huge values in BitGold and they will not need to turn these values into cash even. Because when our system becomes huge, BitGold can be used as direct payment.
All people in the world will be part of the same system and our money will be accepted everywhere. There will be no need of traditional money. Because nobody wants to have them.
There will simply be no reason to have the old money. The new money gives a daily income, savings in BitGold grows fast, the money can be used everywhere. There will be safer, faster and cheaper to transfer this money. We will aviod exchange fees, transfer fees and even taxes.
So when I am saying that we all will be millionaries, I mean that we will have BitGold to a value of millions of dollars. However, if you will turn all your BitGold into cash as soon as possible, you will exhaust your resources. You will not become millionaire. But you will still get the daily Global.
So to make it clear. This is not magic. Spenders get cash and is paid by the investors but as time goes by, most of our members will build up savings in BitGold. We will appreciate the value of BitGold and we will hesitate before spending them.
As our money become accepted as payment in a gradual process, we will start to pay with BitGold. With time, our members will see our money as real money and cash as some old-fashion outdated form of unattractive money.
Once again, when it comes to cash, our system is a zero sum game. If you earn cash from this system, another member must pay you. But in return, you are giving your BitGold to the investor and as time goes, BitGold becomes the real money and what you has spend is no longer there.
Hope you understand the system better and thanks to Ronald Brian O'gwal for posing an important question. Comment to the photo: With time investors will build up huge savings while spenders will exhaust their resources.
I got a very good question from Ronald Brian O'gwal: How sustainable is the business really?
When I am saying that all members will become millionaires, I am not saying that all members will have a bag full of dollar notes. We are not creating any new notes.
No, our members will have BitGold to a value of a million dollar or more. If then all of us want to exchange the BitGold to cash, we cant. Because we can only sell BitGold if there is someone who wants to buy them.
But what makes this system so profitable is that we all have a very strong incitament to keep our BitGold. We have two types of members, Spenders and Investors.
If you are a spender and want to exchange your BitGold to cash as soon as possible, there must be an investor that are willing to give you cash in exchange for BitGold.
The price is set by the market, if most members want to sell, the price will be low and if most members want to buy, the price will be high.
The thing is that there are stronger reasons to have BitGold than cash. Yes, cash can be spended, BitGold cant be. On short terms, the spenders are the winners and the investors are the losers.
The cash that the spenders are taking out from the system is paid by the investors. But in the long run, the investors will be the ones with huge assets and tremendous power.
The investors will build up huge values in BitGold and they will not need to turn these values into cash even. Because when our system becomes huge, BitGold can be used as direct payment.
All people in the world will be part of the same system and our money will be accepted everywhere. There will be no need of traditional money. Because nobody wants to have them.
There will simply be no reason to have the old money. The new money gives a daily income, savings in BitGold grows fast, the money can be used everywhere. There will be safer, faster and cheaper to transfer this money. We will aviod exchange fees, transfer fees and even taxes.
So when I am saying that we all will be millionaries, I mean that we will have BitGold to a value of millions of dollars. However, if you will turn all your BitGold into cash as soon as possible, you will exhaust your resources. You will not become millionaire. But you will still get the daily Global.
So to make it clear. This is not magic. Spenders get cash and is paid by the investors but as time goes by, most of our members will build up savings in BitGold. We will appreciate the value of BitGold and we will hesitate before spending them.
As our money become accepted as payment in a gradual process, we will start to pay with BitGold. With time, our members will see our money as real money and cash as some old-fashion outdated form of unattractive money.
Once again, when it comes to cash, our system is a zero sum game. If you earn cash from this system, another member must pay you. But in return, you are giving your BitGold to the investor and as time goes, BitGold becomes the real money and what you has spend is no longer there.
Hope you understand the system better and thanks to Ronald Brian O'gwal for posing an important question. Comment to the photo: With time investors will build up huge savings while spenders will exhaust their resources.