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I don't like the idea of speculation or that "early adopters" of a currency should be rewarded in the future (because they can sell the currency after a year or two and it will be worth a tremendous amount more).

Isn't that how the majority of variable investments, and investments in general, work? Buy low, sell high (exceptions for derivatives, shorts, etc) Even Real Estate works like this.

UPDATE: Videos now added to this project. Thank you.

Well, I think speculation and investing are two very different creatures, but to each his own!

Perhaps you could enlighten me as to the difference? As far as I understand, as it relates to finance, speculation is defined as "The act of trading in an asset, or conducting a financial transaction, that has a significant risk of losing most or all of the initial outlay, in expectation of a substantial gain." The line that people use to distinguish between a bona fide investing opportunity and a speculative one is largely arbitrary. An example would be buying a house to rent out (considered bona fide) vs buying a house with the intention of flipping (speculative). Both are calculated risks, but since the likelihood of earnings have more of a "guarantee", and there is a longer holding period with the first scenario, it is considered less risky.

The pejorative nature of the term speculation is largely misleading, particularly due to the role played by speculation in preventing the formation of asset-price bubbles.

This being said, I would ask how you are applying the term to this concept? With three ways to grow, and value backed by both market performance and consumer demand, there is a much higher likelihood of continuous growth, with a higher degree of security, than just about any other opportunity. The only way for an investment in SimpleFund to become worthless would be if the market loses 100% of it's value (not probable), while at the same moment every member of the exchange stops trading, and there are no new members signing up. even if any two of those happen simultaneously (statistically impossible) the fund still does not lose it's value. What other investment has those safeguards, as well as the chance to consistently perform 30-80% higher than the market average, with just a 1% total cost ratio, and essentially impossible to defraud from inside or out? If you know of one, let me know so I can buy in.

I understand that it, SimpleFund, is a very different way to think about investing, but that's kind of the point. Here's a statistic about one of the most common forms of investing today, the 401(k).
https://www.youtube.com/watch?v=VXSX7Jw3h8s
Even if SimpleFund only performs at the same market rate in that example, the total fees would be $5,000 or less!! Isn't that a better investment?

Perhaps you could enlighten me as to the difference?

There is definitely a gray area as you say and yes, any definition is slightly arbitrary. I tend to think of investment more as calculating a return over a longer period of time from the fundamental earning power of the asset (which justifies the price paid).

If you predict that others humans are going to buy a stock in large quantities solely based on perceived value of it being worth more without an underlying change in the company's cashflow/assets/progress (which you use to justify buying stock), then I would lump that into the speculation category.

This might explain my view a little better. Warren Buffet interview: It starts at 1:30




If, in your house example, you fixed up the house and then sold it, I would see that as investing because you are improving the fundamental value of the asset. If you are just buying it hoping prices will rise in the future without an underlying change in the cashflow or inherent value of the asset, I would see that as speculation.

Personally, your investment concept isn't for me, but I think it's interesting and wish you the best with it .

Well, I guess we'll have to agree to disagree. Incidentally, the fundamental value of the asset, ScripBucks, is improved continuously in two ways. First, by the appreciation related to the underlying fund. Second, by the reinvestment of 90% of all transaction fee's. The third method of return, sale in the secondary market, is the only piece to which your application of speculation would seem to fit, and is no more speculative than buying and selling any other investment or commodity. Perhaps this will help clarify: http://simplefund.tumblr.com/post/81397 ... an-bitcoin

I understand that it may not be for you, but that's where early adopters come in. They bear the additional risk of an unproven concept. Let's not forget that stock issuance and trading received similar skepticism when originally developed. Most financial offerings tend to be highly scrutinized and viewed with suspicion, and for good reason. Most people know that the system doesn't really work, and that anyone offering a better way is just trying to get more of your money. SimpleFund is on a mission to change the way people view and use money, and the only way to create lasting change is to under-promise, over-deliver, and be as transparent as possible. Thank you for the feedback.

I'm on the lookout for anyone interested in cross-promotion as well. Thanks.