2014년 8월 28일 목요일

[발췌] What is Hub Culture and Ven? They Just Launched the First Digital Currency Bitcoin Fund (2013)

출처: http://forexmagnates.com/what-is-hub-culture-ven-they-just-launched-the-first-digital-currency-bitcoin-fund/
April 30, 2013 by Ron Finberg

※ 발췌 (excerpts):

What is the Ven Currency?

Combine Bitcoin, the Yuan, and Facebook credits, and you get Ven

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In one of our previous reports about Bitcoin, we highlighted the peer to peer (P2P) elements which provide a free method of transferring funds. As such, at its core, Bitcoin is simply a network of joined users who agree to use the same currency. Using that system, we theorized that it wouldn’t be surprising to see other online businesses such as Amazon and Facebook, or banks, leverage their client base to create a uniform method of payment transfer between its members. 

Centrally Backed

Although similar to Bitcoin in that it provides a seamless and free transaction method, Ven contrasts in that it is a centrally backed currency. The product is issued through Hub Culture, who backs the currency by a basket of currencies and assets. As such, for every dollar exchanged to Ven, Hub Culture converts the funds into a mixed bag of assets. The portfolio of assets are held in a custodian account that backs issuance of outstanding Ven. The result is that Ven floats freely against major currencies, but as its value is derived from a basket of holdings, volatility is minimal. Currently, one Ven is worth nearly 10 cents. Because of this, in a small way Ven resembles the Chinese Yuan as it freely floats, but moves slowly due to China pegging its value to a basket of global currencies. (note to self for further research – what would happen if China ever uses its $3.2 trillion in currency reserves to buy Facebook or Google?)

In contrast to a fully floating currency though, at this point there are no official exchanges to convert Ven back into hard currency. The only exception is for merchant members who collect Ven by selling goods through Hub Culture’s site and pavilions and can exchange their digital currency with the group. As such, the goal continues to be the promotion of using Ven across the network; thereby strengthening ties between members and merchant affiliates. Helping trigger this monetary expansion are the so called Pavilion events which provide networking opportunities.

Bitcoin Fund

One of the goals of Hub Culture, and its launch of Ven is to bridge the online and offline world. Stalnaker explained that there are three main advantages that Ven provides; a global currency available utilizing free P2P technology, highly diversified with little volatility, and linked to carbon to promote environmentalism (this is done by including carbon futures in its basket of assets – the more they buy, it leads to higher prices which in theory would lead companies to be greener). According to their claim, by creating a stable and online friendly currency, Ven merchants can take advantage of the opportunity to sell goods globally, with minimal currency exposure risks.

Moving to increase its online exposure and usage, Hub Culture has launched today what it believes is the first digital currency fund (there are a few Bitcoin-only investments). The fund, sold in units of 10,000 Ven ($917) will be investing in both Ven and Bitcoin, with a 50/50 split between the digital currencies. Hub Culture is marketing the product as suitable for ‘speculative investors’, but having the added diversity that comes with combining Ven with Bitcoins. Other points of the marketing page include a “low correlation to Equity/Bonds” and “for Sophisticated/professional Investors seeking higher than average returns.

( ... ... )

Safety Of Funds

Will Ven take off? Part of that equation relies on how large Hub Culture can build its network. Having a small network base, the currency is limited in its use cases. But, the small numbers have allowed Hub Culture to cultivate the proof of concept of the currency. The big question though is just how safe is this network? This is especially so given that Ven revolves around having a central backed system. This contrasts with Bitcoin, and in fact is one of the items that Ven promoters mention when explaining its benefits when compared to other digital currencies.

Like any fiat currency which is backed by the good faith of the government, Hub Culture has been working to elevate its reputation. This is partly done through the launch of the offline pavilion centers that provide users tangible knowledge of the network’s existence and Ven’s buying power. ( ... ... )

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