From: Vincent Cate <vince@offshore.com.ai>
Date: Thu, 31 Jul 1997 22:27:36 +0800
To: cypherpunks@toad.com
Subject: Re: uncensorable net based payment system?
In-Reply-To: <Pine.LNX.3.95.970731094524.8479A-100000@online.offshore.com.ai>
Message-ID: <Pine.LNX.3.95.970731094534.8114D-100000@online.offshore.com.ai>
MIME-Version: 1.0
Content-Type: text/plain




Adam Back <aba@dcs.ex.ac.uk> said:
>Then I can have some net cash savings backed by the rights to 1Tb of
>bandwidth at 100 Mb/sec.  100 Mb/sec for 3 days.
> 
>A problem with this is that the market prices of the assets is
>continually dropping.  How do I hedge against this.  Can I buy futures? 
>Sell 100 Mb/sec for 3 days now in exchange for 200 Mb/sec for 3 days in 1
>years time at an predicted equivalent value? 

I could imaging making a currency backed by "megabytes of data transfered"
to and from my server here in Anguilla.  This could be to run a web page,
mailing list, or whatever.

But you are right that it is an asset continually dropping in value, so
it is an odd thing to back a currency with.  Would only want to keep
enough money in it to do what you currently wanted to do, not as a long
term investment.

I could imaging just gradually increasing it so that $0.25 for 1 megabyte
today became $0.25 for 1.1 megabytes in 3 months, or something like that.

Interesting idea...

  --  Vince