Please help me make a billion dollars!
Posted: Wed May 01, 2013 9:05 pm
Hi all,
I've had a problem on my mind for a while, sharing it here in the hope that you guys will have some interesting thoughts. If I can solve this problem it will undoubtedly make me one of the richest people in the world, so I will take good care of you when I make my first billion
If you'll allow me to get theoretical for a moment...
Imagine there is a commodity, let's call it X.
There is a set of people for whom X is an unwanted by-product of a production process, similar to engine exhaust or nuclear waste. To these people, X has negative value - such that they willingly pay a company to have their supply of X destroyed.
There is another set of people for whom X has positive value - they have a demand for X and they will pay a company to manufacture it for them. The company manufactures X, from scratch, at their own expense, and sells it to paying customers.
Now, in this hypothetical world...wouldn't there be a lot of money to be made by a someone who can bring together the company that is destroying X and the company that is manufacturing X, and have the X simply get transferred from the people who don't want it to the people who do?
It is my claim that X is a real thing - it is RISK.
People and businesses buy all kinds of insurance to eliminate risk. Insurance companies basically "destroy" the risk by pooling it with many other independent risks (this is a bit of an oversimplification but you get the point). In addition, investors often accept lower returns in exchange for reduced risk - look at what a GIC pays these days compared to stock market returns.
Meanwhile, gamblers have a demand for risk. Slot machines, craps tables, lotteries...the only purpose of these things' existence is to create random outcomes on which to gamble - i.e. to "manufacture" risk out of nothing.
So, is there any way to bring together the "risk haters" and the "risk lovers"? For example, a special slot machine whose outcomes are tied to miniscule second-to-second fluctuations in a financial market somewhere halfway around the world?
Any ideas?
If you want to call me a nut, please do so in another thread...serious responses only here please
I've had a problem on my mind for a while, sharing it here in the hope that you guys will have some interesting thoughts. If I can solve this problem it will undoubtedly make me one of the richest people in the world, so I will take good care of you when I make my first billion
If you'll allow me to get theoretical for a moment...
Imagine there is a commodity, let's call it X.
There is a set of people for whom X is an unwanted by-product of a production process, similar to engine exhaust or nuclear waste. To these people, X has negative value - such that they willingly pay a company to have their supply of X destroyed.
There is another set of people for whom X has positive value - they have a demand for X and they will pay a company to manufacture it for them. The company manufactures X, from scratch, at their own expense, and sells it to paying customers.
Now, in this hypothetical world...wouldn't there be a lot of money to be made by a someone who can bring together the company that is destroying X and the company that is manufacturing X, and have the X simply get transferred from the people who don't want it to the people who do?
It is my claim that X is a real thing - it is RISK.
People and businesses buy all kinds of insurance to eliminate risk. Insurance companies basically "destroy" the risk by pooling it with many other independent risks (this is a bit of an oversimplification but you get the point). In addition, investors often accept lower returns in exchange for reduced risk - look at what a GIC pays these days compared to stock market returns.
Meanwhile, gamblers have a demand for risk. Slot machines, craps tables, lotteries...the only purpose of these things' existence is to create random outcomes on which to gamble - i.e. to "manufacture" risk out of nothing.
So, is there any way to bring together the "risk haters" and the "risk lovers"? For example, a special slot machine whose outcomes are tied to miniscule second-to-second fluctuations in a financial market somewhere halfway around the world?
Any ideas?
If you want to call me a nut, please do so in another thread...serious responses only here please