Tag: capitalize

Creating An Intention Currency

On January 7, 2011

In the last few articles, I’ve discussed the importance of Intentions as a superior means of storing and exchanging value because of the ability to predict economic outcomes. Only from these conditions can we construct an alternate currency.

For all Intents and Purposes….

Suppose that we suggest that one’s knowledge inventory is a good representation of their intentions to do things. You can test this by strolling through the aisles your neighborhood Barnes and Noble book store and observing your own reactions to the titles as they flash by. Notice how your tendency to act (stop to read the byline or even pick up the book to read the cover) correlates to your organic knowledge, passion, interest, or experience. Notice which sections you tend to linger in and how your eyes float up and down through the shelves, etc.

So let’s say that you studied business in college. We can then say that you have an intention to conduct business. The same holds true if you studied math, engineering, art, music, creative sciences, and/or social sciences. So we can say that a knowledge inventory is an intention inventory – assuming that you are not distracted by ADVERTISING.

Let’s make some predictions:

If you have low knowledge and high interest, your intentions would correlate to those of a student. If you have high knowledge and high interest, your intentions would correlate to those of a teacher. If your have low knowledge and low interest, you would register no intentions. If you have high knowledge and low interest, your intentions are ambivalent.

One step deeper:

If we were to assemble a community’s knowledge and interests on a few bell curves, we could make predictions about what a community intends to produce. If a community has high knowledge and high interest to build airplanes then we can place a value on those intentions in a market.

Now here is where the fun starts:

If we can predict future value, we can create and “intention currency” and capitalize it. That means that we can turn it into a debt instrument and make a promise to pay back the today’s intention currency with future intentions. If we can capitalize an intention currency, we can securitize a combined pool of many intentions and sell “Intention Bonds” that finance today’s intentions with those of tomorrow. Meanwhile, as we build the airplane, we have the incentive to innovate and create new knowledge that we can use to pay off the intention debt in the future.

Preoccupied or unoccupied?

If is sounds crazy, be assured that it happens all the time by corporations, marketers, demographers, politicians and even among some prison inmate populations. Of course they will never tell you this, but unfortunately communities of people, social networks, and all the knowledge inventory sequestered inside corporations or messing around on Facebook have not figured out how to monetize all these intentions for themselves. This is because they are preoccupied by an influence currency called – ADVERTISING

Social Currency And The Innovation Bank

By Admin

On February 13, 2010

In General Information

The real estate market is trashed, money markets are unstable, commodities are in the tank, the banking system is corrupted to the core, inflation is looming around every corner, and the politicians are engorging themselves in a game of Cerebral Gridlock.

Literally, there is no safe place to put your money. Instead, people are investing their productivity in social media – social media is simply a storage device for knowledge assets. Soon it will become a stock exchange for knowledge assets. Investors should not take this lightly – the best place to store your money is in the real productivity of real people.

People are trading knowledge assets in social media. This exchange is denominated by a conversational currency. If we consider the structure of conversations and compare that to both the structure of social networks AND the structure of our financial system, we see a huge opportunity to develop an alternate financial system that can capitalize and securitize knowledge assets in social media.

Ingenesist.com

Music by Phil Felicia

The Great Currency Shift

By Admin

On November 19, 2009

In General Information

I 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,

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!