This week’s episode debunks the idea that money is an exchangeable precious metal, or requires some type of mining per many virtual currency systems. Certainly what money is has changed over the centuries, but what it is today is quite clear. Felix Martin’s in his book, “Money: The Unauthorized Biography” makes a convincing argument that money is purely transferrable credit. A telling example was in … Continue reading What is Money?
I’ve taken a few weeks break from the blog, considering what to do next about financial systems. Today’s video though makes clear the major gap I see in blockchain. Trust is at the core of the efficiency of today’s financial and business systems. But blockchain, as developed by Bitcoin, is premised on a “trustless” system. One of the significant promises of blockchain is greater efficiency. … Continue reading Blockchain Gap: Trust and Efficiency
Banking at its core is the process of matching illiquid loans against liquid deposits. Blockchain is very focused on tracking individual items, perhaps loans for example; probably less on tracking individual deposits. Yet this process of matching illiquid loans against liquid deposits does not start by matching loans and deposits individually; one has to assess what the problem looks like in total. Blockchain adds nearly … Continue reading Blockchain Gap: Liquidity Management, the Core of Banking