Monday, December 23, 2013

Futurism and Digital Currencies

The rise of digital currencies fit the model we described here. Take something niche that used to be in the bailiwick of a single actor, and ask the what-if question "what if, due to technology becoming cheaper / more accessible, everyone in the world could do _____".

Money flow is controlled by central banks. But, what if everyone had access to technology to print their own money? That is essentially what Bitcoin, or Litecoin are. Anyone can "print" their money through a digital mining process.

What does printing money have to do with technology? Well, paper is technology. Keeping track of some numbers on the paper money is technology. When that technology "trickles down" to everyone, all of a sudden ____ is doable by all.

Q&A - 19/6

Bank of England The vast majority of money held by the public takes the form of bank deposits. But where the stock of bank deposits com...