The Ingenesist Project

The Next Economic Paradigm

Tag: Egypt

Another Opportunity To Observe Social Currency

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On August 23, 2011

In General Information

(I am sitting on a panel at SIBOS 2011 in Toronto Sept 19-21st speaking on the subject of New Economies – this post represents the angle that I take on the subject)

With images of people rushing into the Libyan dictator’s compound like the current from a great tsunami reshaping the landscape in a matter of minutes, I reflect on the obvious metaphor.  A quick Google search on “Social Current” reveals almost nothing – except “Social Issues and Current Events”.  Well, close, but not quite…

I hate to break the news to folks but Social Current and Social Currency are the exact same thing.

For example, the ex-Egyptian President had plenty of money and plenty of oil, and plenty of guns  – all the markings of wealth and power.  Yet he was challenged and defeated by Social Currency. If there were a strict market driven conversion factor for Egyptian Social Currency, it would probably comp out at around 100 Billion dollars. So there is a conversion factor in case anyone is interested.

Will the real economy please stand up

Anyone who does not believe that social currency exists today and is actively traded, stored, and exchanged in quantities far greater than financial currency, is looking in the wrong end of their binoculars.  In fact, I would go so far as to say that the economy denominated in social currency is far greater than the economy denominated in financial currency.

Dollar spelled backwards is….

In the past, I have used the word “Rallod” as a placeholder for all VALUE that is NOT directly articulated with Dollars.  In fact, we could say that the Sun delivers Rallods to planet Earth and humans harvest what are called “natural resources” which are then converted to Dollars for storage, trade, and exchange.  The problem is that Rallods don’t have a financial “system” of their own. Rallods have been invisible – until now.

Money can’t buy me Love…

Not to get too fluffy here, but try to produce an airplane, a sandwich, or a surgical procedure without intellect, creativity, compassion, empathy, ethics, social values, or community awareness.  None of these things show up on the typical Wall Street Financial report balance sheet.  However, the absence of these things can quickly shows up in the liabilities column when confronted by social current.

Syria is in the midst of a social currency conversion process as are Greece, Tunisia, London, Israel, and France, etc.  Not to mention Yemen, China, Iran, and quite notably, the United States.

The Challenge then is to articulate ALL value in an economic system.

I believe this to be the genesis of the next economy.  I can also say with quite a bit of optimism, that it is well underway, we have past the point of no return, it’s a done deal, we are all interchanging Rallods and Dollars every day.

People are learning how to store, and exchange Rallods.  They really are – in fact, that’s where the majority of innovation in the world is occurring today.

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New economies
Is money the only form of transaction value and wealth? What about social currencies? We will expose you to new thinking on new economies such as the trust economy, the intention economy, the relationship economy, the social economy and the ethical economy.

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May The Best Currency Win

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On February 10, 2011

In General Information

If I was a very wealthy person and I wanted to put my money in a hedge fund that protects me from all possible future outcomes or perils in the financial industry – I would be looking for a fund denominated in social currency.  Should things go wrong, the only place you can go for support will be your immediate community.  After all, you can’t eat Gold.

The Cradle of Civilization, again?

Egypt has demonstrated with astonishing clarity in a remarkable twist in human social evolution how this game plays out.  The dictator may have all the money, but the military has all the social currency – domestic AND international.  What do you think every dictator wishes that they had more of right now: guns, money, or social currency?

What would happen in the U.S. if…

…government austerity measures stop funding education, health care, police protection, and the legal system?

Social media applications will move in to fill the void.

….if inefficient industries like the travel industry, publishing, advertising, politics, academia, and financial services hold their customers hostage by acting as the gatekeeper?

Social media applications will pull the gate down.

…if government, industry, and academia can no longer innovate ways to increase the productivity of people in their community?

They will become irrelevant as people will adapt to manage their own productivity on a platform of social media.

The Great Conversion Factor

Off on the horizon, a truly remarkable new financial system is taking shape.  This system will accomplish one very important task – it will provide a conversion factor between financial currency and social currency.

Every political gridlock, corporate controversy, wikileak, and dictator challenged by their own people is adding one more piece of infrastructure to this new financial system.  Each piece will soon join together to complete the chain required to define the social currency and the form of human productivity that will support it.   Hang on grandchildren, we are getting close.

The effectiveness of this currency will not be in it’s ability to replace the dollar, rather, it will be in the ability to convert between Dollars … and Yen, Euro, Pounds, Renminbi, Dinar, Rupee, etc., in the same Game within which world currencies exchange with each other today.

May the best currency win.

(Editors note: The above post is #5 in a series [1], [2], [3], [4], [5] introducing The Value Game to a new class of business methods.  The first real world application is Social Flights; a collaborative production / consumption game being deployed to the market.  If this works, the new business method class will be generalized throughout the economy to catalyze the convertibility of social currency.  Please join us at The Future of Money and Technology Summit in San Francisco on february 28th 2011 where we will unveil the work to the technology community)

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Game Over

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On February 2, 2011

In General Information

The first law of Gaming: If you can’t win a game playing by the rules, stop playing the game, or change the rules. It would seem that Egyptians would add a corollary “Change the Rulers”.

This is not trivial.

Billions of people are walking the planet Earth with the nagging feeling that they cannot win their game playing by the rules they are given.  If America was once the shining beacon of opportunity where hard work and perseverance were the main ingredients of success, and Americans are feeling that they can’t win playing by the rules, then you can expect two things to happen:  People will stop playing the game, AND the rules will change.

Interactive Entertainment

Looking on the sunny side, we see Gaming companies achieving astonishing valuations in Silicon Valley.  What is even more remarkable is that a similar thing is happening concurrently with Travel, Coupons, and Alternate Currencies.  Many people stand back aghast at the sheer size of some of these bets; $120M for Tripit, $5B worth Zynga, $6B for Groupon, $50B for Facebook.  The Market capitalization of Apple ($320B) is almost 2 times greater GDP of Egypt ($188B).

It would be foolish to underestimate the value the gaming component – now called “Interactive Entertainment” – as enabled by the Internet.  Gaming is an extremely mathematical science where designers predict the probabilities that a player will favor one strategy over another.  The better these prediction become, the more interactive and, ostensibly, the more entertaining a game becomes – at least to some people.

The Calculus of Gaming

It is no coincidence that the calculus of gaming and the knowledge assets deployed to the gaming industry are functionally identical to financial and marketing industries such as banking, insurance and demography.  Banks set the price of money based on the probability that you can pay it back (credit scores).  Insurance companies set the price on premiums based on the probability that you will experience a loss (actuarial data).  And Demographers predict what you will buy and who you will vote for. After all, a Bank is really just a game that bets that you will win and an insurance company bets that you will lose, and demographics keeps the game, well, unfair.  But together, they all hedge each other’s risk, not yours.

Watch The Integration, closely

From prior articles; The Travel industry is a proxy for how and where ideas are spread.  The Coupon Industry influences human behavior to accelerate the disruptive innovation and to create new value simultaneously. The Gaming Industry will define the rules by which the new game will be played and provide the ability to predict when, where, and how to value social capital. When the integrated is complete, the ability to capitalize and securitize a new social currency (next article) will emerge to hedge, and then replace, the dollar.

Game over.

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(Editor’s note: The above post is #4 in a series [1], [2], [3], [4], [5] introducing The Value Game to a new class of business methods.  The first real world application is Social Flights; a collaborative production / consumption game being deployed to the market.  If this works, the new business method class will be generalized throughout the economy to catalyze the convertibility of social currency.  Please join us at The Future of Money and Technology Summit in San Francisco on february 28th 2011 where we will unveil the work to the technology community)

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