DirtiCoin value is primarily backed by the value of real estate and real estate related instruments. We call those dirt. It is a digital currency with a real standard. DirtiCoinMinting (the Company) digs in the dirt, so you don’t have to. Dirt is the new gold.
Gold Standard
In 1966 economist Alan Greenspan pointed out to the world the dangers of abandoning the gold standard and embracing fiat currency (Greenspan, 1966). His essay, Gold and Economic Freedom published in Ayn Rand’s newsletter Objectivist, notes the qualifications that must be met to back a currency. Additionally, he points out the confiscation of wealth that arises from deficit spending and inflation.
Previously, there has not been any widely available currency in the world which was backed by anything that remotely met Greenspan’s criteria. DirtiCoin is the first currency in the world to meet his criteria. It would not exist without the economic freedom enabled by blockchain technology.
“In the absence of the gold standard, there is no way to protect savings from confiscation through inflation.”
(Greenspan, 1966)
Greenspan’s Currency Qualifications
“What medium of exchange will be acceptable to all participants in an economy is not determined arbitrarily. First, the medium of exchange should be durable. …is homogeneous and divisible: every unit is the same as every other and it can be blended or formed in any quantity. More important, the commodity chosen as a medium must be a luxury. The term “luxury good” implies scarcity and high unit value.” (Greenspan, 1966)
| Greenspan’s Qualifications | Gold | Real Estate | DirtiCoin (Backed by Real Estate) |
| Durable | YES | YES | YES |
| Homogeneous | YES | NO | YES |
| Divisible (every unit the same as every other unit i.e., fungible) | YES | YES/NO | YES |
| Luxury | YES | YES | YES |
| Scarce | YES | YES | YES |
| High Unit Value | YES | YES | YES |
The Dirt Standard
As you can see from the table above, DirtiCoin meets all of Alan Greenspan’s criteria.
- Durable – DirtiCoin is a virtual currency, so it never wears out. Real estate is clearly durable.
- Homogeneous – Although real estate is not homogeneous, DirtiCoin is very homogeneous.
- Divisible – Real estate can be subdivided, but every unit isn’t the same as every other unit. DirtiCoin is entirely fungible.
- Luxury – For centuries owning real estate was the milestone which differentiated the commoner from the elites. In our world today, you have to reach a certain level of prosperity to be able to buy real estate.
- Luxury – For centuries owning real estate was the milestone which differentiated the commoner from the elites. In our world today, you have to reach a certain level of prosperity to be able to buy real estate.
- Scarce – They aren’t making any more dirt. It is the ultimate, scarce resource. The supply of DirtiCoin is tightly controlled and very limited.
- High Unit Value – The cost to buy real estate begins in the tens of thousands of dollars and goes up from there. That is the real “unit cost.” DirtiCoin denominations range from fractions of a penny up to billions of dollars.
Water and Dirt
When we mint new DirtiCoin the asset ratio immediately slants toward liquid assets. As the Company converts those liquid assets into dirt the asset ratio will move toward a balanced state. How fast we can safely invest in dirt is controlling the amount of DirtiCoin we mint.
Hitting the Mark
At startup the asset ratio of DirtiCoin to real estate will be low. The Company will move quickly to achieve its target ratio of 65% (+/- 15%). In other words, the value of real estate assets held by the Company will meet or exceed 65% of the value of all issued DirtiCoin with an acceptable variance range from 50% to 80%. We hold the difference between dirt investments and the rest of the value of the Asset Ledger (the Ledger) in cash (liquid assets).
At inception the Company holds no real estate. All our assets are liquid. As we mint DirtiCoin and you store your wealth in it, we buy dirt. We buy in select markets across the USA. The first few years we are only buying in the USA. We know this market. Eventually, we will expand into buying dirt in other countries. However, we will likely expand first into areas where language and legal structures are similar to those in the US. Canada, Great Britain, Ireland, Scotland, Australia, and Australia top the list of early candidates. Europe would likely be next. In time, anyplace where people can invest in real estate without fear of unlawful confiscation will not be off limits.
Digital Currency – How Many Hot Dogs Can You Eat in a Minute
Figuring out how fast we can convert liquid assets into dirt is not an exact science. We asked well qualified and successful real estate investors. Based on their experience, it will take 1 to 4 months to convert cash into closed real estate deals. We are allowing for up to a full year for the initial stabilization of our key asset ratios. Initially, this period of market penetration is so long because the Company is creating a network of regional affiliates to source acceptable deals at the same time.
We may extend this initial period if newly minted DirtiCoin gets bought up very fast. A tremendous amount of wealth is being destroyed right now by inflation and volatility. Therefore, many people may rush to store their wealth in DirtiCoin. This might significantly exceed projections. An “embarrassment of riches” might overtax our planned real estate purchasing schedules.
Conclusions
DirtiCoin is backed by dirt. The name means “dirt investing coin.”
DirtiCoin is the best place to store your wealth to protect it from destruction by inflation or volatility.
