virtual currency

Cory Doctorow In Seattle

by Dan Robles on May 18, 2010

Cory Doctorow in Seattle sponsored by The Stranger (Newspaper)

Cory Doctorow in Seattle sponsored by The Stranger (Newspaper)

Activist, Science fiction writer, and blogger Cory Doctorow spoke at in Seattle to a full house at the Sunset Tavern in Ballard. He performed a reading from his latest book, “For The Win”. Cory has an interesting sense of abstraction. He’ll spot a trend – or collection of trends – and extrapolates them into the future dutifully revealing all the complexities of the human condition.

For The Win

His reading centered on the “exploitation” of young adults who are hired to play online games where they work to achieve levels, rewards, virtual currency, and game status which is then sold to rich Western players. Some players become highly valued for their knowledge inventory of game world monsters, strategies, power points, and the uncanny ability to assess the knowledge inventory of their opponents who’ll get suckered into a virtual dual with predictable consequences. The kids literally “mine gold”. As always, gold corrupts the most innocent hearts resulting in situations and behaviors at least as strange as the game itself.

The Activist

Cory has long been an activist for digital publication rights and rules. Not surprisingly, the Q&A was dominated by privacy, security, and exploitation of information issues. Cory recently closed his Facebook Account which caused quite a stir in the blogsphere. Ironically, every big name in world-class privacy violation had recently been in the news for Mr. Doctorow to eloquently spit roast on an open flame. It was quite entertaining.

There is a reason that it’s called Monetization

While Mr. Doctorow did not specifically mention this, what struck me most was hearing him talk around this emerging battle for control of people’s information. While this idea is not new, the reasons behind it may be new. As Money is losing it’s capacity to store and control value, human knowledge is increasing it’s capacity to store and control value – this is hugely accelerated by social media. The desperate attempt to control people’s information is really a proxy for the desperate attempt to control knowledge, therefore to re-control the value that money once represented.

Unfortunately, controlling information also destroys value.

People actively participate and share on social media to achieve levels, rewards, and status which is then sold to corporations in the form of predictive marketing by third party aggregators like Facebook. Some people become highly valued for their knowledge inventory of real-world game perils, influencers, and social mavens and become celebrities of the craft. Many develop the uncanny ability to assess the knowledge inventory of their opponents who get suckered into a virtual dual with predictable results.

Suddenly the News started sounding like one of Cory’s Science Fiction Novels…

Event Sponsored by: The Stranger

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The Great Currency Shift

by Dan Robles on November 19, 2009

Dollar FallI am seeing an increasing amount of articles and ideas related to an alternate financial system. The continued traditional media narrative implies that the current system is unstable and corrupted with insider deals, Ponzi schemes, bribes, and high profile acquittals of financial crime. The underlying age-old assumption is that the wealthy (merchant class) will win and the rest of us (the working class) will lose.

Keep in mind that the Mexican peso crisis was not caused by a foreigners, it was the internal wealth leaving their own currency for safe haven elsewhere that sparked the run on the Mexican Central Bank. The absence of a currency other than the dollar and the integration of the dollar among all other currencies is the only thing keeping that from happening in the US. But this may change.

1. Either a new global currency (like a garden salad of currencies and/or commodities) will arise as a ‘less-risky’ diversified alternative,

or

2. A virtual currency will arise from any number of new developments in social media.

Of course the first option seems far more realistic. But keep in mind that the nature of “Disruptive Innovation” is where the dominant player does not even see the disruptor until it is too late. The thing that social media has not yet figured out is how to capitalize and securitize an alternate currency. But we are getting close. After that, the rest is easy because money is simply a social agreement. What would you rather hold, debt backed currency or innovation backed currency?

Nobody can really say that the entire 65 trillion dollar world economy is not vulnerable to a disruptive currency. Please review The Next Economic Paradigm for a complete specification of Innovation Economics. Thanks!

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Can Twitter Fuel a Run on the Banks?

November 16, 2009

Suppose someone puts together a Twitter campaign for everyone the withdraw their money from a single financial institution who just handed out big bonuses? At best, those bonuses will have to be recalled to keep the doors open. At worst…

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Is Virtual Currency a Problem?

November 15, 2009

Half insightful synthesis and half tongue-in-cheek, this article suggests that virtual currency may impact the current monetary system. The conclusion is brilliant suggesting that the national debt could be paid in virtual currency.

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Is the Credit Score Obsolete?

November 12, 2009

The justification is that credit rating did not predict or help avoid the last crisis, so what good are they? The new twist: The bankers put their personal and corporate reputations on the line. If you trust the banker, you can trust their bond.

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A Local Currency Primer; Comfort Dollars

November 2, 2009

As more corporate and governmental institutions fail to meet the needs of society, people will need a currency that they can trade among each other. If the dollar fails, the need will be dire.
The difficulties that will ultimately limit such enterprise is the inability to capitalize and securitize a social currency.

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Can Twitter Fuel a Run On Banks?

October 30, 2009

Suppose someone puts together a Twitter/Facebook campaign for everyone the withdraw their money from a single financial institution who just handed out big bonuses? At best, those bonuses will have to be recalled to keep the doors open. At worst, people will find an alternate currency to store the “value” that is destroyed by a bank run.

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Banking on the Past

October 27, 2009

Holy shit, did you understand any of that? Guess what – nobody else did either and bankers are wondering why nobody wants their “currency”. Currency is a conversation, a social agreement, a community organizer – if nobody know what it is, people are going to start trading something else.

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Counting Eyeballs

October 26, 2009

The Advertising Industry has some serious problems. Ad agencies are having a difficult time understanding the modern advertising space with the limited, if not worthless, paradigm carried over from the days of radio; the CPM.

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1,000,000 More Become Invisible, Powerless, and Marginalized

October 8, 2009

Millions upon millions of Americans are now wondering how they are going to safeguard the health and welfare of their families and property. As these people lose their “money” they become increasingly invisible, powerless, and marginalized – except for one single, solitary, beacon of earthly influence. Social Media.

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Will Facebook Currency Intermarry with the US Dollar?

September 15, 2009

Facebook is testing a virtual currency, because it’s cool and they can do it. They are not alone, the gaming industry has been at it for a long time for people who want to be more “productive” in the game space.

There is no mention, however, whether a Facebook currency could be used as a medium of exchange in the event of hyperinflation and the crash of the US dollar. I can find nobody, writing anywhere today, that is willing to cross this proverbial line in the editorial sandbox.

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Social Media and Flip-floponomics

August 28, 2009

Flip-floponomics is a term that I just coined with this post which means:

1. A traditional business method flipped on it’s back to reveal a new business method
2. A mirror image of a previously accepted economic paradigm
3. sing. n; flip-floponom; A phenomenon of flip-floponomics.

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