Archives For Economics
The purpose of this post is to explain in simple terms why cryptocurrencies are not a currency, not an asset, not a store of value, and not an investment. With apologies to the guys from the film Swingers, cryptocurrencies are (so) money.
What is Money?
Money was invented to be a physical (and now digital) representation of productive energy. Whether it is the energy from sun, soil, water and toil used to grow an ear of corn, or the labor and resources expended in painting your house, the energy spent practicing and performing music, or getting your CPA so that you can attest to a client’s properly reported financial statements, it’s all derived from energy and it all has a dynamic value when measured in terms of money. Blockchain miners might agree with that run-on sentence. Is there a difference between currency and money? With regard to cryptocurrencies, that may be the crux of the problem.Continue Reading...
I feel that in 2016 we find ourselves on the precipice of so many major technology-driven transformations that it was impossible for someone like myself not to be overly self-indulgent in better understanding the many trends and their driving forces. If you appreciate the magnitude of what’s coming, you’ll understand I chose the term ‘precipice’ for good reason. Life in 10 to 20 years will be quite different than it is now. Though it may seem to some in 2025 0r 2035 that the evolution was gradual, the impact will probably be lumpy to many.
As has been the case with previous tech driven change, there will be positive and negative impacts, but I believe that the impacts will be felt more soundly by wide swaths of the population than in prior times. Imagine what life will be like the day after cancer is cured. Imagine how many drivers will lose their profession once self-driving vehicles become the norm. Imagine how good you will feel when a high performance pill is taken that has been personalized to your genetic makeup. Imagine the financial markets when the world turns to the bitcoin currency standard. Imagine the perfect prime rib steak being grown in a lab without the collateral damage of bovine methane that contributes to global warming. Imagine the townspeople arriving with their pitchforks as described by Nick Hanauer if economic disparity is left to grow unmanaged. Imagine being able to solve almost any problem perfectly by buying some cheap AI over the web. Then imagine the person who you used to pay to solve that problem wondering what they are going to do for income and how they will pay off the loans on their PHD.Continue Reading...
The answer to all world problems that will manifest themselves in grave ways in coming generations can be summed up in one word: Innovation. – Ed Rodriguez