You can participate in the evolution of Internet enabled virtual capital that will enable entrepreneurs all over the world to develop and build businesses to improve their lives and the lives of the citizenry in these impoverished areas. In the Economist article it says, “Mobile money also provides a stepping stone to formal financial services for the billions of people who lack access to savings accounts, credit and insurance. Although, for regulatory reasons M-PESA accounts do not pay interest, the service is used by some people as a savings account. Having even a small cushion of savings to fall back on allows people to deal with unexpected expenses, such as medical treatment, without having to sell a cow or take a child out of school. Mobile banking is safer than storing wealth in the form of cattle, gold, in neighborhood savings schemes or by stuffing banknotes into a mattress. In the Maldives many people lost their savings in the tsunami of 2004.”
My plan is to start either a Hedge Fund or a Private Capital Group that will invest half of its capital in Bitcoins or other equivalent virtual currencies and the other half in enterprises. The Bitcoins will be utilized to provide capital to third world entrepreneurs and the dollars will be used to invest in going concerns and early stage ideas that have relevance in the virtual world. At this point I want you to let me know if you would like to know more about this opportunity when I have it fully planned and structured. I expect to be able to do that within 4 to 6 months.
Be sure to read the following article and the two attached articles.
The problem with the current worldwide financial system is that it doesn’t reach the most impoverished people who live a subsistence day-to-day-to-day life where there is no currency and no real monetary system. In late 2009 I sent many of my clients an article from the September 24, 2009 issue of The Economist titled The Power of Mobile Money. The article discussed how mobile phones had evolved in a few years to become tools of economic empowerment for the world’s poorest people. The “currency” in cell phones are prepaid minutes which are called “Top Ups.” The top ups are retained in the users account which means they will not be consumed by their phone use so that they can be stored away. I have attached a copy of the referenced article for your review. And don’t forget that the article itself was written in September 2009. You should also do a search on M-PESA or its parent Safricom, which will give you more information of how fast this unique financial system using prepaid call minutes has grown between 2009 and today. In addition it will convince you that Internet based currency is a really big innovation that is creating a huge investment opportunity. In the following Star Tribune article it says “In its fourth year of circulation now, the decentralized online-only form of money has evolved from a libertarian-styled geek curiosity to a contender for becoming the first digital currency to go truly mainstream. There are now more than 11 million “coins” created worth more than $1 billion. Lumpy and volatile as it is, the math-based cash is one of the fastest rising alternative currencies in a world filled with them.” In the attached Business Week article it says “A Bitcoin’s not so much a thing as an understanding, a balance in a decentralized general ledger, or ‘account log.’ Bitcoins are created as the side effect of a great deal of meaningless computational work. That is, the computer could be working on protein-folding, or processing images, or doing something else with its time, but instead it’s being used to ‘mine’ Bitcoins – searching for mathematical needles in a networked haystack. Once the needle is found, a ‘block’ of Bitcoins is born. Bitcoins live in a bit of software known as your ‘wallet.’” Later it says Bitcoin is no different than an exchange traded fund that has a mix of non-US currencies as a hedge against the entire global currency system and no exchange is needed, unless you want to convert your Bitcoin into an actual hard currency. What is extremely noteworthy to me is that virtual currencies will ultimately allow entrepreneurs to leverage themselves. For example a person who is a house painter could raise capital on their talent. That will also be the case for those who live in the developed world that have no access to capital. Virtual “cloud based” money is a huge evolution in the world of commerce and is an enlightening moment in history. These types of Internet based innovations are great for LocaLoop because they cannot work unless there is ubiquitous mobile, 4G, high-speed broadband Internet connectivity available all over the world and particularly in the underserved world.
Following is a copy of an article in the Sunday, June 9, 2013 issue of the Star Tribune newspaper titled Bitcoin has more staying power than other digital currencies. Also attached is a pdf of an article from the April 1- April 7, 2013 issue of Business Week titled The Bitcoin of the Realm. Both articles are about Bitcoin which is a form of virtual cash. I have predicted for the last several years that the Internet would replace credit cards and that is happening in a big way today. I have also predicted that the Internet would ultimately replace cash. And Bitcoin is very likely going to be one of the major players among virtual money enterprises.
The advantages that are gained by transferring credit cards to smart device apps is the elimination of credit card processing fees (i.e. the middleman) and link you directly to a specific bank (the issuer of the credit cards.) This gives both merchants and credit card users a better and less expensive deal. And, in app form, it is more secure and much safer from harmful credit card theft.
You may think it is a stretch to leap from a very complex worldwide money system to a virtual cash system that is backed by nothing other than the willingness of others to accept it as payment for goods and services. You also have to understand that the most fundamental and basic commerce throughout the world is still done through barter. International trade for centuries was based on barter and began to change with the invention of coins. Originally coins were valued based on their content of precious materials, particularly silver and gold. Ultimately that led to the evolution of storage facilities to hold your surplus coinage which evolved into banking. And then banks began to pay depositors interest so that the bank could use what are called “footings” or deposits to produce more money to lend and to acquire hard assets (gold, silver, etc.) which would create additional value for added loan capability. The evolution of banks led to the creation of banks for banks. The creation of a Federal Bank for banks in the U.S. became a reality after the Revolutionary War thanks to the wisdom and insistence of Alexander Hamilton. His idea was genius and really allowed the newly established U.S. Government to borrow from major banks in Europe and Great Britain and to print money to pay its debts. Thus was born “the full faith and credit” doctrine that propelled the U.S. into becoming the biggest economy in the entire world in a little more than 100 years from its founding.