Karim here from My-Currency. Thanks for taking a look at what we are up to. Admittedly, our model is a radical departure from current practice so easy to misunderstand. Also, we are doing a lot more that using people to get values. We are also using markets (and other things) to help agents create a virtual reputation so that they can connect with clients online. We also have at least one other big card to play so stay tuned.

I guess the bottom line for me on this, as should be apparent by now , is that the best way to get a value is to ask people. People are the market. So if you ask people, you are by definition, getting a market value. Is it true that the price of a property is determined, at the margin, by the final buyer. However, that buyer is just trying to pay $1 more than another buyer to secure the house. Of course, the buyers can’t see each others offers so it is probable that the final buyer grossly overpays. We have all heard of or experienced the stories of the next bidder being a mile away from the winner. Sad.

So you may be thinking, ‘what about the seller’. Well…is the industry just representing sellers? Do you have any doubt that if people *believed* pricing transparency was in place that transaction volume would explode? (hint: you shouldnt)

I’m not a pro on markets. And I acknowledge that Karim certainly is. I’m just confused as to how it will work on the scale My-currency is using.

It certainly is a different approach, one which may work if they find the right entry point. But, buzz can only get you so much traction. I think we’ll see a new strategy or a buy-out of their technology in the future.

But, I could be wrong.

I should note that Hollywood Exchange, a well know and respected prediction market, for instance, has been nailing every single Oscar winner for the past decade.
http://slashdot.org/articles/06/08/07/1821232.shtml

For starters: http://en.wikipedia.org/wiki/The_Wisdom_of_Crowds

Cheers!