Saturday, December 7, 2013
A bit more about my cash shredder ATM
My ongoing commentary on Bitcoin solved a puzzle, namely how can a completely artificial intelligence Bitcoin central banker dispose of paper fiat. It would need to do so if it were a price equalizer, since it would always be the more accurate currency, it would deflate paper currency systems, eat their cash. So I invented the reverse ATM. The user inserts cash and gets a Bitcoin card recharged. But some of the cash is shredded, inside the machine, unknown to any human.
What happens to the shredded cash? Well shredded cash is still valuable, as a negative measure, and must be protected inside the machine. I have modified my invention to keep the shredded material inside the machine, unobservable, for as long as a year, while the cash may be taken out and returned to the bank anytime, and accounts balance. Hence, the human interaction between the actions of the AI machine in deflating paper is much delayed relative to cash accounts. The goal is to prevent human opportunities in arbitrage with the AI central bot.
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