This view point may seem strange. I wasn’t going to post it because many might not understand or agree in this fiat generation. But oh well… I’ll put it out there as a seed idea.
I made a post called Rabbits VS Turtles over a year ago. Part 1 of the post talks about two kinds of currency: Rabbits, Turtles.
If (Safecoin = Rabbit) then (PUT Balance = Turtle)
PUT Balance
It is often referred to as: balance, allowance, ledger, account. Technically, your PUT balance is really a promissory note, meaning the SAFE Network promises to give you X GB of SAFE storage. That note is consumed once you upload/PUT data onto the Network.
PUT Balance = Promissory Note
SAFE Storage = Physical Commodity Consumed
From my point of view, the infrastructure for divisibility is already in place. If people can transfer specific amounts (1GB, 1MB) from their PUT Balance, then we have quasi-divisibility and a turtle currency.
Here’s the theory
Safecoin = Ideal Store of wealth (maybe deflationary)
PUT Balance = Ideal Spending currency (probably inflationary)
- Safecoin can only be converted one-way into PUT Balance (promissory notes).
- PUT Balance can be exchanged for stable Fiat Value.
Instead of sending Safecoin, you send (SAFE TB), (SAFE GB), (SAFE MB). Let’s look at that in relation to the rest of the world. I’m going to pull some numbers from this post.
Sending 1 (SAFE MB) can be understood as $0.00006 in fiat terms.
Sending 1 (SAFE GB) can be understood as $0.06 in fiat terms.
Sending 1 (SAFE TB) can be understood as $60 in fiat terms.
This value above is derived from average physical hard drives (HDD) on the current market. It should be higher when adding “cloud storage” utility. But I cannot calculate that without a live Network.
This is already a very small denomination and is likely to get smaller as the market increase storage capacity. Consider that the current market world wide already understand what GB and MB is, and can value it relatively close to their own fiat currency.
Regardless of Safecoin speculation, (SAFE GB) remains relatively stable in fiat terms… This is important because many businesses need to convert back into their local currency to pay their bills.
What’s the catch?
This only works if (SAFE GB) can be traded on exchanges for other currencies.
What about Safecoin investors?
They will cheer for this idea IF Safecoin buys more (SAFE GB) in the future. They will hunt me down if it goes the other way. I’ll have to hide in a cave if that happens.
EDIT: Based on discussions below regarding different storage tiers (TB, GB, MB, KB), it’s easier to group label them as XXX (SAFE GB) which is most common in this generation. It will change when (SAFE TB) becomes the new medium.
PUT balance example…
1TB is expressed as “1000 (SAFE GB)”
1GB is expressed as “1 (SAFE GB)”
1MB is expressed as “0.001 (SAFE GB)”
Fiat conversion example…
Multiply (SAFE GB) to the average (GB) fiat price.
1TB = 1000 x $0.06 = $60
1GB = 1 x $0.06 = $0.06
1MB = 0.001 x $0.06 = $0.00006
Please note the above examples are “baseline values” only. SAFE storage will have added value due to SAFE Network utility from APPS and Content. This gives us a good place to start.