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Moneyness, Utility, and Network Effects…..and Blockchain?

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Regarding digital currencies, like Bitcoin, I’m told that the real game changer is “blockchain”- the technology that makes Bitcoin work (so-to-speak) and which I don’t pretend to fully understand. I’m pretty sure it’s part of your idea about network effects and the possibility of totally decentralized private ledger.

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Posted by (Questions: 20, Responses: 56)
Posted on 10/16/2017 4:36 PM
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You are so right. The distinction between government money and bank-money is nonexistent for all intents and purposes. In fact, virtually all money is bank-created money via private loans. This is no secret, just an indigestible concept for the public. This is called endogenous money, created within the system. Monetary reformers have understood this for almost a century. One of the problems with bank-created money is that it is not available for public purpose except via taxation and borrowing. Macroeconomic modeling by economist Kaoru Yamaguchi, (see Money and Macroeconomic Dynamics) demonstrates that this money lent into the economy is inherently unstable and will always lead to booms and bust. Interest rates become pro cyclical and lead to wild swings in the economy as we see decade after decade.

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Posted by (Questions: 0, Responses: 33)
Answered on 10/16/2017 8:41 PM
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The blockchain is different from the coin itself. Think of these things like patents. The coin is just the name of the patent and the corresponding brand under which it trades. But the blockchain is the specific code for that coin that makes the it different from the other coins. It is the actual technology that gives the patent value. So, the blockchain for Filecoin determines how the network is operated and maintained for file storage while the blockchain for Bitcoin is different in that it determines the record of payments are stored for the Bitcoin payment network.

So, they’re different, but intertwined.

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Cullen Roche Posted by (Questions: 10, Responses: 1771)
Answered on 10/18/2017 7:58 PM