Two of the cornerstones of finance are
- Limited Liability Companies
- Stock Markets
LLCs ensure that you cannot lose more than you invest. If you buy $100 of stock you cannot lose more than $100. On the contrary, if investors were indeed liable, investing would be too risky for ordinary people. A small investment in a poorly managed company could make you liable for an enormous debt or criminal offences.
Stock markets add tremendous value to investors. Shares you buy today can be sold tomorrow.Shares that are not traded on a market are practically locked for years until - hopefully - dividends pay back your investment.
The advantages of all this is that anyone can invest, and stock markets add value to investors as well. I believe this has been essential to the economic growth of the past two centuries. The downside is that it is a lot more convenient to invest in large companies. They are favored at the expense of small businesses. Getting listed on a stock market is just too expensive for smaller companies, and LLCs require a lot of expensive bureaucracy.
Counterparty is the solution. The good news is that anyone can register an asset at a very low cost and shares can be traded on the DEX or other ways. Being big is no longer an advantage. You can just as easily invest in the local bakery as in McDonalds. Imagine how beneficial this will be to society.
The challenge is how to combine Counterparty with the existing system. The legal challenges are unknown, and they certainly vary from country to country. My advice is to start small. Experiment. Let your Counterparty asset represent a tiny part of your business, like a discount. Let people invest for example by buying discount cards for a future product. The price of the card today can be half the future discount. Keep your word and build yourself an online reputation. Make sure your investors make a profit. This is the key to long-term success.
Gradually people will discover more ways to combine Counterparty with the legal system. Eventually the assets may represent ownership. Maybe this can be achieved through setting up business abroad, maybe the law will evolve favorable domestically, or maybe it is all ready perfectly legal.