Now that Satoshi is a “Davos man”, does that make him “The Man”?
© The Financial Times Ltd 2016 FT and 'Financial Times' are trademarks of The Financial Times Ltd.
Or, why it’s nuts out there
In this series we have thus far presented the economic argument for the introduction of “free money”, whether it be via the rise of private market virtual units or central-bank dropped bundles of helicopter money.
The question which arises, however, is what does it mean when anyone in an economy can self-create money and have it respected without the need for national guarantees? The answer, presumably, is that there is such a shortage of money relative to output that the system flourishes with every virtual unit that’s created by the system — i.e. there is more risk in hoarding output than in distributing it.
And more specifically, that there’s a greater benefit in creating money “no strings attached” than with conditionality attached to it in the form of bank credit money. Read more
Requests have been made, so here is a quick “story so far” on Bitcoin. Consider this a perfect dinner party cheat.
First off, Bitcoin is best described as a virtual crypto/digital parallel currency that is completely decentralised and unregulated (for now) by the current powers that be. It is understood to be the brainchild of one Satoshi Nakamoto, whose identity is alleged to be an alias in its own right. Many people believe the paper behind the Bitcoin system to be some anarchic manifesto purposefully designed to disrupt and destabilise the current economic status quo. Read more
The mobile money/virtual currency arena is getting more and more crowded. And the question remains: will the concept ever gain the critical mass needed to become the next big thing in finance?
From Bitcoin to M-pesa, Square, Paypal, Dwolla and Ven (to name just a few) … the number of new concepts is piling up. Read more