Saturday, December 7, 2013

Disposing of paper fiat permanently

Continuing my ongoing invention of the Bitcoin anonymous cash shredding ATM. The Bitcoin central bot operates these machines, accepting cash and dispensing Bitcoin onto smart cards. The BankerBot hides the shredded cash from the human for a long period, keeping it in a special vault inside the ATM. But the shredded cash vault is still finite, it will still develop a service time when it is emptied, and become part of the paper counting system again. Brokers will have to keep shredded paper reserves.

Here I further destroy the paper cash in the reverse ATM. I modify the shredded cash vault to have microbial action on the fiat that turns it into a gaseous product, which is vented into atmosphere. If the microbial action is energy generating, then the release of gas from the vent can be made undecodable, no real gas measuring device can get much signal from it. Vioula!

But wait, you say!
The humans will just monitor the queue in each of the reverse ATM machines, then subtracted the nomianl cash taken from the estimated cash inserted. I have no objection, just points: 1) Monitoring queues is a productivity enhancing activity, likely making the fiat more valuable, and thus defeating the Bitcoin bot into a better equilibrium. 2) Humans hide their ATM transactions 3) When the transaction queue is observed, the observations will be estimated, ex-ante, by the Bitcoin bot, which has world wide intelligence after all. Hence, their is no way for the human to outwit the bot.
 
Smart Cads, a simple model
Smart cards do not need to call the bank and report each transactions. Two simple smart cards can securely act like variable cash by talking to each other, and maintaining their own security. So I take out mine, you take out yours, we punch in a number on the card machine and insert our cards. The smart cards, being very convenient cash, is subject to all the same counterfeiting problems of cash. But they are hard to counterfeit, and store owners can demand ID and signature as back up. But it is a very efficient cash made possible because of the digital vault inside the lines of code in a battery operated chip, in the card.

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