Cryptocurrency, Theory and Africahead Ipparts (AFA)
Marquard Dirk Pienaar
When moneys are valued, two theories can be considered. The theories are Supply and Demand Theory and Quantity Theory.
Most cryptocurrencies and most fiat currencies, cannot be valued with the Quantity Theory, because of the large numbers of indivisible units relevant.
At university (1987) I was taught, the Supply and Demand Theory determines the value of money. Around 1994, logic however showed me something different. The following formula formed logically. The ZAR/USD exchange rate = USD value of South Africa, divided by the number of ZAR units in circulation. This theory cannot be applied to a reserve currency like USD, because no currency to divide USD by, exists. Around 2010, whilst researching Accounting for Ideas, the book, A History of Money from Ancient Times to the Present Day by Glyn Davies confirmed the existence of my logic, with the term “Quantity Theory” of money. I will probably always recommend Glyn Davies’s book because of the comprehensive sketch of the history of money in the context of other history. The book is relevant today and much can be learned from the time, centuries ago, when generating own currencies was applicable. Glyn’s research about the USA and UK, and the ways, moneys were formed, are very interesting. Hopefully the history of authorities, monopolizing the forming of money, won’t repeat.
Why is the Quantity Theory logical? It is logical because the values of shares are determined by dividing the valuations of companies, in other currencies, by the numbers of shares (own currencies) issued. Isn’t a company share a more accurate more advanced form of money than fiat currency? According to Intequinism it is. According to Intequinism, all money will in future be formed with the Quantity Theory in mind and cosmological Supply and Demand Valuations will have less influence. Reasons being, the ideas Truth and Love exist above all.
Two theories, valuing money with, relate to the philosophical distinction between ontological and cosmological views. The Supply and Demand Theory is cosmological. The Quantity Theory is ontological.
At Africahead the Quantity Theory is primarily used to value Africahead Ipparts (AFA). The Supply and Demand Theory is also considered because of the real influence of cosmology. Only 480’000 AFA, with two decimal places, were authorized and formed. Thus, for valuation purposes, in the future, when all authorized AFA will have been issued, only 48’000’000 ipparts (indivisible units) will be applicable. For now, only 25’000 AFA, or in another word, 2’500’000 ipparts, are relevant for valuations of AFA. The value of 1 AFA according to the Quantity Theory, is, 48% of the Africahead brand, divided by 25’000 AFA. The reason is, only 25’000 AFA will be issued during the Initial Coin Offering, or maybe less, if 500’000 USD is raised, before 25’000 AFAs are issued. Issued AFA is backed by 48% of the Africahead Brand.