Honest Cash VS Bitbacker.io

2019-01-16T03:55:43.000Z Honest Cash

Adrian tweeted that he had set up an account on Bitbacker, which is the crypto alternative to Patreon.  

On Patreon you can decide how your money is divided among creators.  For example, you can give $15/month to Zach Weinersmith and $5/month to Scott Alexander.  Being able to divide your money between them makes sense because you don't value them equally.  But do you equally value Weinersmith's creations?  No, so it really doesn't make any sense to equally divide your money among them.  

Right now on Patreon, since you can't decide how you divide your money among a creator's creations, you can't see which of Zach Weinersmith's comic strips is the most valuable.  Just like you can't see which of Scott Alexander's blog entries is the most valuable.  

But here on HC you can see which of my posts is the most valuable.  

1. Click on my profile… Xerographica 

2. Scroll through all my stories and see which one is the most valuable

3. Scroll all the way back to the top of the page

4. Click on the "responses" tab 

5. Scroll through all my responses and see which one is the most valuable

You will learn that my most valuable post is, for now, Value Polls VS Opinion Polls.

Does it take waytoolong to find my most valuable post?  Yes, and it will take longer and longer as I add more and more stories/responses.  

But it is possible to find my most valuable post!  

Is it beneficial to be able to find and see a creator's most valuable creation? Yes!  Very yes!  So so so so so yes!!!!  This is why HC's model is FAR superior to Patreon's model, which is the same as Bitbacker's model.  

To put it as bluntly as possible, their economic model is stupid.  It's dumb.  It's a market that is only half effective.  

Yes, lots of people use Patreon… just like lots of people use Facebook.  This is simply because they don't yet know that a vastly superior model now exists.

Ok, so Adrian wants money.  Coincidentally, I have money.  What do I want?  I want everybody to be able to easily and quickly find my most valuable post.  This is something that Adrian can make happen simply by making it possible to sort my posts by value.  

If I create a post requesting this function, then I should be able to spend my money on my request/post, and the money would go into HC's wallet.  To be clear, this wouldn't in any way force Adrian to implement my suggestion.  It would just reveal how important this idea is to me.  

The more money that I, and others, spend on this idea, the higher it would be ranked… #HonestCash.  

Am I the only person that wants something from Adrian?  Nope.  Somospolvo wants Adrian to make it possible for us to delete posts.  Maybe Somospolvo thinks that his idea is much better than my idea.  So he spends enough money on his idea for it to outrank my idea.  In return, I spend more money on my idea so that it outranks his idea.  We go back and forth and all the money that we spend ends up in HC's wallet.  

One stone would kill two very big birds…

1. We would reveal our true priorities

2. We would help fund HC

If Somospolvo and I simply give HC money through Bitbacker.io, then we would lose the very valuable opportunity to use the money to communicate our priorities. 

Our priorities really do matter, and they are most accurately revealed by our spending decisions.


RE: Honest Cash VS Bitbacker.io

by @JonathanSilverblood

While I understand the point you are making, the mix of the two is likely the better balance. For example - many who use patreon don't pay for established work - they suppor future work.

It is not possible for them to distribute money according to their perception of the value that has not yet been created - which is why other metrics are used to measure value afterwards, such as likes, retweets and similar.

To me, both of these models have value. The patreon/bitbacker model allows people to understand and predict their future income better which allows them to take more calculated risks - perhaps buying better recording equipment or materials for experiments, or pay for travel costs.

The honest model however, is more honest because the donor has a better understanding of what values it is they are supporting and the risk of future fraud is negated.

Substantial And Specific Feedback

by @Xerographica

Hi, thanks for the response.  Actually I had planned on mentioning your response about bitbacker but somehow I failed to work it into my story.  

The economist Scott Sumner recently blogged about the films of 2018.  He doesn't usually blog about films, he usually blogs about economics.  I'm interested in both topics so I replied to his entry and mentioned a few of my favorite shows.  I also told him about Honest Cash.  And Cent.  

Even though I'm interested in economics and films, I am not equally interested in these two topics.  I am far more interested in economics.  This is because the best economic system will produce the most valuable supply of films, and books, and music, and food, and clothes, and… everything.   

The question is… how should Sumner divide his limited blogging time between economics and film?  In order to make the most informed decision, he has to know how much value each topic creates for his readers.  Patreon would not supply this incredibly useful information, but Honest Cash would.  

If Sumner started blogging on HC, then how we divided our money between his topics would accurately reflect how we want him to divide his time between them.  Maybe his stories about film would receive a lot more money than his stories about economics.  This wouldn't force Sumner to write more stories about film, but at least he would be able to make an accurately informed decision.  

Here's an accessible critique of socialism…

"The management of a socialist community would be in a position like that of a ship captain who had to cross the ocean with the stars shrouded by a fog and without the aid of a compass or other equipment of nautical orientation." - Ludwig von Mises, Omnipotent Government

Patreon is like a compass that is only half effective.  It would inform Sumner how much value his content is creating, but it wouldn't inform him which of his content is most valuable.  This means that it is very unlikely that he would go in the most valuable direction.  Chances are good that the amount of time that he spent blogging about film would be either more than, or less than, his readers truly preferred.  

Like I said, if Sumner was on HC he wouldn't be forced to cater to his readers' preferences, but at least he would know what they truly are. So would all the other writers.  In a market you're welcome to not pick up the $100 dollar bill just sitting in the middle of the sidewalk, but if you don't, it probably won't sit there for long.  

"Likes", retweets and views can certainly provide some feedback, but these can only reveal how popular some content is.  They can't reveal how valuable it is.  Value is a function of sacrifice.  Spending money is a sacrifice.  

A good market will allow consumers to provide producers with substantial (ie monetary) and specific feedback.  Patreon is not a good market.  The feedback is substantial but not specific.  HC, on the other hand, is a good market.  The feedback is both substantial and specific.  HC's compass is far more accurate than Patreon's.  

Let me know if this makes sense.  But in any case, the proof is in the pudding.