Tuesday, March 7, 2017

Colored coins with sign

My Russian mathematician wants to change some semantics so the three color problem is easily solved. The idea is to go back to the Nick Rowe idea that green coins are assets, red coins liabilities, in the economy. Then we can do color combinations to get at a white theory of three color trades the way we have amber for two color.  So, we all do triple entry accounting, at least one color amortizes in, and one color amortizes out; the spin sign of the other determined by elimination.

Now can our smart wallets to triple entry accounting? Dunno. How does this change pricing? Well, price tinting comes into play. If you got blue and red coins; Walmart might be specifying purple pricing today, that means more blue and less red.  Likely Walmart has a blue tax payment coming up. But in either case, both sides have to add or subtract from yellow, the third account.  Coins have to be conserved across color, how does that work?

Remember, these are really pseudo coins, stand in for a full three color currency system.  But the cash card are carrying tinted coins, I guess they can be composed into primary colors.  A puzzled only my mathematician understands.

Why triple entry accounting?

Assets and liabilities for the household or firm are summation of semi-random events in the common currency. All the semi-independent goods distribution nets are measured in a sequence ot two color FX markets, and stock prices. So, the consumer does not carry the 'oil coin' as if the economy needed to track oil flows for some reason.  The 'oil coin' is intermediated for us by a series of two color trades.  So, the first answer is, neveer, who needs it.  But the second answer is maybeJapan and Singularity 2.0

Japan would use three color currency because their economy has a strong pass thru component, they are international traders.  Then the economy has a nearly independent domestic trade. Given the situation, a tinted coin would, then any given trade, register the international and national component separately.   But, three color pricing is something only a bot could do.  Its potential is the ability to isolate grouping by uncovering their implied 'co-tint'  Such an auto trader would always keep the Japanese yen properly insured as it is trade in FX markets.  But each POS in Japan, and all the bond trading and stock trading machines would have to update to Version 2.0, Redneck Pit System..

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