Important Factors Driving Bitcoin’s Drastic Growth in 2020

– November 20, 2020

“The swift growth of Bitcoin signals a number of important financial milestones as well as warning signs. Signals that not only lend some support to the cryptocurrency’s value but also provide important insight into our current state of financial affairs.” ~ Ethan Yang

READ MORE

FedCoin Revisited

– November 19, 2020

“We don’t know whether the Fed would take steps to eliminate cash or impose negative rates on FedCoin balances. We don’t know how it would go about intermediating funds. But such speculations should make one thing clear: there are risks. At the least, we should develop strong institutional checks before permitting the Fed to plow ahead.” ~ Nicolás Cachanosky

READ MORE

Money for the Masses!

– November 17, 2020

“Goldstein treats money like it’s the military: as something we can control, commandeer hither and thither, and that it almost always behaves like we imagine it will. It won’t do.” ~ Joakim Book

READ MORE
dollar, financial crimes

FinCEN and Fed Proposal Means Less Privacy, More Exclusion

– October 29, 2020

“It could very well be that the benefits of reducing the threshold from $3,000 to $250 exceed the costs, defined as the sum of the administrative expenses, lost privacy, and increased financial exclusion. But all of these costs must be included in the final calculation. Not just some of them. As it is, FinCEN and the Fed have not done a sound accounting for their proposal.” ~ J.P. Koning

READ MORE

Two Types of Postal Banking

– October 24, 2020

“It is possible that these prepaid card providers aren’t competing very hard, and thus unbanked households face abnormally high fees. If so, the unbanked population could benefit by having the USPS enter the market. On the other hand, if the market for prepaid cards is already competitive, a USPS card may have problems gaining a foothold, in which case it may not even be worth the effort.” ~ J.P. Koning

READ MORE
bitcoin

Bitcoin Financial Literacy and Crypto-Twitter

– September 30, 2020

“It is sad to see an excited gambler sell their house to go all-in on a longshot, whether that be on lottery tickets or on cryptocurrencies. It is shameful to encourage such behaviors. Cryptocurrencies like bitcoin are a game. Play responsibly.” ~ J.P. Koning

READ MORE
exchange

Money, Markets, and Economic Order

– September 26, 2020

“Provided there is widespread social respect and protection for the institution of private property, we can have both markets and money, and the material bounties they create. But if we fiddle with markets and money, for example by conducting misguided political experiments, we jeopardize the very roots of our economic well-being.” ~ Alexander W. Salter

READ MORE
money

Where Does Money Come From?

– September 7, 2020

“Money makes possible an incredible amount of interpersonal coordination in the market. Rules of private property and contract, of various kinds, predate money. But widespread market integration and economic growth only result when there is a critical mass of people in a single commercial network linked by money.” ~ Alexander W. Salter

READ MORE

AMPLs and YAMs aren’t Monies; They are Gambling Technologies

– August 30, 2020

“It’s hard to see why AMPL or YAM could ever replace a dollar. While the price of these tokens is relatively benign, their quantity fluctuates wildly. So the total purchasing power of AMPLs (or YAMs) held in one’s wallet is quite volatile despite the purchasing power of a given AMPL (or YAM) being stable. Put plainly, these aren’t dollar substitutes.” ~ J.P. Koning

READ MORE
ethereum

So-Called Stablecoins

– August 2, 2020

“Regular consumers are slowly becoming more interested in financial privacy. But they shouldn’t have to rely on systems that ignore the law. A more durable solution is to work towards changing those laws.” ~ J.P. Koning

READ MORE
coin shortage sign

The Coin Shortage: A Big Deal about Small Change

– July 19, 2020

“Our smaller denomination coins cost more to produce than they are worth, and burden our transactions with tedious calculations. Temporarily, due to the virus, some of our businesses are suspending dealing in these coins. Perhaps soon we will replace our coinage with one that makes sense.” ~ Clifford F. Thies

READ MORE
gold standard

That Civilized Relic: A Monetary System as Good as Gold

– July 16, 2020

“The gold standard isn’t perfect. No system is. But it has many virtues. A strong case can be made that it’s the best of all feasible institutional alternatives. As my dissertation adviser, Lawrence White, puts it: The gold standard is still the gold standard among monetary systems.” ~

READ MORE