Algorithmic Stablecoins

– February 1, 2021

“Efforts to create stability without collateral are ambitious. The evidence that Empty Set Dollar and Dynamic Set Dollar have provided over the last few months suggests they are too ambitious. An algorithmic stablecoin only works so long as its users’ self-referential beliefs persist.” ~ J.P. Koning


The SEC, Cryptocurrencies and Securities

– January 8, 2021

“What are the implications of the Ripple suit for cryptocurrencies in general? Cryptocurrencies with a framework similar to Ripple’s obviously have a problem. Decentralized cryptocurrencies such as Bitcoin and Ether are far away from the situation creating problems for Ripple.” ~ Gerald P. Dwyer


Bitcoin’s Impressive Year in Perspective

– January 6, 2021

“No matter what your opinion is on bitcoin, its financial returns are no longer astronomical. Plenty of upstarts, small caps, established companies and even other cryptocurrencies posted that kind of return in the strange financial year that was 2020. Welcome back to the lower troposphere, bitcoiners ‒ or as the rest of us call it: reality.” ~ Joakim Book


Here’s Why We Tolerate Fake Check Scams

– January 2, 2021

“Solving the problem of job scam checks isn’t as easy as one might think. Changes to a tightly-wound system like the check system involve tradeoffs. You don’t get something for nothing.” ~ J.P. Koning


Digital Currencies and US Dollar Dominance

– December 24, 2020

“Is this the end for the US Dollar as the world’s reserve currency? As Churchill might have said, ‘…This is not the end. It is not even the beginning of the end, but it is, perhaps, the end of the beginning.’” ~ Colin Lloyd


A Simpler and More Accurate Way to Teach Money to Students

– December 10, 2020

“Money isn’t best thought of as a medium of exchange, unit of account, and store of value. Let’s just think of it as just a medium of exchange and a unit of account. For the most part these circles overlap, and the two functions are united. But this isn’t always the case.” ~ J.P. Koning


Why Does Bitcoin Have Value?

– December 2, 2020

“Think of a world without essential third parties, including the most dangerous third party ever conceived of by man: the state and the central bank. Imagine that future and you begin to grasp the fullness of the implications of our future. Ludwig von Mises would be amazed and surprised at bitcoin. But he might also feel a sense of pride that his monetary theory of more than a century ago has been confirmed and given new life in the 21st century.” ~ Jeffrey A. Tucker


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


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


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

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


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