Friday, June 21, 2019

Sandboxing the oil discount coin

The oil discount coin is traded by a risk adjusted participants in the oil market. It is a 'private' credit system, used to extend credit with discount coins when unexpected inventory volatility happens.  So, a tanker surplus in one region allows tankers to accept discount coins as payment, a penalty for being out of balance.  Oil producers trade the coin.

The key is risk adjusted, players with proportional investment, measurable.  I dunno how to create a collateral system here, one that matches the sudden over and unders. I dunno how many colors, tanker v oil well v pipeline? Structure the coin as an insurance contract, a digital master of the oil business. I dunno how to do that.  Well, not exactly that, but that is a Watson thing, it happens at the box boundary. A machine, and if your are a member, a machine that runs the discount con pits. Only a Watson can manage that entry and exit.

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