Trillions in Free Money, Part II
One of the key attributes that I see in blockchain technology is that there is no defined need for an “exit strategy.” If you speak to angel investors and venture capital groups they raise this point almost immediately. Trying to determine how it is they’ll get their money out of a private company that they’re investing in. What they want to hear is that the firm will do an Initial Public Offering (IPO) or sell to a large competitor once it reaches scale. In many ways these objectives conflict with the founders of the firm as they weren’t necessarily doing it for the money but that they enjoyed the work and wonder to themselves what they’ll do when the firm is sold.
Each holder of the Permission Rights that we distribute with our coin will have the convenience of trading these coins with others immediately. These transactions are safe and secure without the regulatory burden that is required in the stock market. That safety and security is a feature of the blockchain distributed ledger technology. Redundant duplication of transactions in many ledgers across the Internet provide the security that the transaction can be verified at any time. Therefore the feature of an IPO, the liquidity the angel / venture capital investors seek, is available immediately the coins are issued. That’s just the beginning.
I don’t remember the specific details of the YouTube acquisition by Google however speaking in generalities you can see the real value of blockchain technology. The founders of YouTube used the sale of their company to Google as their exit strategy. They were purchased by Google for around $3 billion. The amount is uncertain and not relevant to this argument. If liquidity was what the founders and venture capitalists wanted they would have had that with blockchain technology without having to sell their company. The coins they would have used would have reflected the value of the company for all concerned. However, they would have also been able to choose to hang on to YouTube and realize the approximate $150 billion in incremental value that YouTube has provided to Google today. This value instead being reflected in the coins value and the original owners would therefore have benefited to a much greater degree.
Much of the entrepreneurial value that is created is now being concentrated in the large Information Technology organizations which have the means in which to pick off the promising startup technologies. The system today enables this, and no one really is complaining about it. However, what if the entrepreneurs who were able to start these firms were able to continue on and develop them for the benefit of themselves and their coin holders? That is the value and the key attraction that blockchain is providing the marketplace today. The ability to aggregate millions of participants for your ICO and raise substantial amounts of capital as the other. The Internet is able to aggregate these like minded people and ensure that their investment is safe and secure in the blockchain distributed ledger. Building value for all concerned for the long term.
The coin itself will be issued by its own separate legal entity. It will have its own board of directors, administration, revenues and expenses. These will make up the intrinsic value of the coin in terms of its trading value. The revenues it earns are its share of the differential of the oil and gas price. Its costs are the costs to use the People, Ideas & Objects software. It should be determined if, and it would be my suggestion that the coin holders undertake to pay for the service providers fees on behalf of the producers. This would, in my opinion, increase the value-add that they provide to the oil and gas producers and increase the amount of their percentage of the differential. The coin holders are providing a service to the oil and gas producers. The broader the scope of that service the more valuable they will be to the producer firms.
The Preliminary Specification, our user community and service providers provide for a dynamic, innovative, accountable and profitable oil and gas industry with the most profitable means of oil and gas operations. Setting the foundation for North America’s energy independence. People, Ideas & Objects Revenue Model specifies the means in which investors can participate in our future Initial Coin Offering (ICO) that will fund these user defined software developments. It is through the process of issuing our ICO that we are leading the way in which creative destruction can be implemented within the oil and gas industry. Users are welcome to join me here. Together we can begin to meet the future demands for energy. And don’t forget to join our network on Twitter @piobiz anyone can contact me at 403-200-2302 or email here.