Skip to content

Mastering the Fiscal Universe

hand-577778_960_720Just what is a state? It's edges... though they may be porous. They've armies for defense... which occasionally are poor or too daring. They've taxes and hierarchies and problems of legality. And with few exceptions they each have a money. And with so few countries on the gold standard, that means that states live according to the premise that those small slips of paper in your pocket really have worth. The unshakable pillars of the world's most powerful markets are held up by our collective belief in the worth of cash. Amusing, but it works.

But what might occur if money itself became a completive marketplace, where any corporation could release its placeholders of worth, and use them to trade goods and services? Useable everywhere without exchange (like the... no... wait... the Dollar is not like that). Nor is the British Pound or the Yen or any single national money. And the Euro is not substantially better, as it is just freely used in the EU.

What exactly might occur in case a non-country currency was launched? Its value would be driven by its approval (religion in its worth), the ease where it could be used to support trades, and the rules which would regulate the supply of that money (supply rules are crucial that you ensure a money neither Inflates or deflates at a speed which would result in a lack of faith in its worth.)

Within an age of virtual publications (Kindle, Nook), virtual telephones (Skype), virtual buddies (Facebook), and virtual computing (cloud), virtual monies were unavoidable. Bitcoin (not bcash / bitcoin cash) is this kind of non-country money, served up in an entirely virtualized way. But can the modern nation states allow these would be challengers to thrive?

Forecast 1: First, a virtual money has questionable controls, meaning that while the aims of its preservation may be said, the people involved in handling the money are able to at their discretion, alter the rules. Second, Bitcoin lacks the traceability which empowers law enforcement to safeguard against money laundering, insider trading, support for terrorist actions, vote buying, political corruption, etc. Maybe then something like Bitcoin could reside as the first non-national cyber-money. Not backed by gold, but maybe better as opposed to Dollar.

Because there are some customers who'll take - even favor - these types of payment and because you'll find transaction fees to be billed for the privilege to spend those eDollars.

Forecast 2: The market's approval of a virtual money will confront a tipping point when enough people take it as an actual holder of worth. Watch for a shoe to drop from an important player in the fiscal sector to suggest the marketplace has been established. Until then, any groundswell will be noodling around the borders, functioning to bring awareness of the marketplace possibility until among the bigger players to determine "it is time."

Forecast 3: Virtual monies will open up vast promotion chances, because wide-ranging adoption will be supported by promotion and promotion, substantially as search is now. Bitcoin speaks of trades being unattributable & untraceable. But that is not the future of the Internet.