The Individualization of Money

Many Monies

In the future, most companies, most organizations and even some people will have their own currencies. Anyone will be able to become their own central bank.

Exchange and currency conversion will happen instantaneously through our electronic devices, and invisibly, though most currencies will be fully auditable for those of us who want to look under the hood. Many competing currencies create pressure for transparent honesty.

Merging roles of Customer, Investor and Business Partner

A consequence of the individualization of money is that the roles of Customer, Investor and business partners will merge. The distinctions will blur.

customer to investor

Customers, especially those planning prolonged business with a merchant, may keep a reserve of that merchant’s money, thereby becoming investors and becoming richer or poorer based on fluctuating demand for that merchant’s money.

customer, investor -> business partner

Anyone who hold’s an organization’s money, whether customer or investor, gains the incentive to advocate for that organization, because then the value of the money would rise. This is already evident in the crypto space, as holders of a project’s money become willing marketers, advisors, and auditors.

investor -> customer

The preferred method of investing in the crypto space is to simply receive a portion of a project’s unique money as an alternative to formal remittance.

business partner -> investor

Crypto businessmen, often make their biggest gains simply by holding the digital tokens or crypto currency associated with their projects. Some, like Satoshi Nakomoto and Dan Larimer, transform their organizations into Decentralized, Autonomous, Communities (DACs), and step away, letting the community manage itself. Their long term role transforms into that of an investors and customer.

Ethereum Scaling Issues

I’ll reiterate the issue I raised in newsletter #6.  Ethereum was the first smart contract platform that allowed people to issue “tokens” on top of it. 

There are more competitors than I can keep track of:

Neo (China’s Ethereum).


Eos – Emphasis on scaling and ease of use.  Arguably the best scaling solution, since Cardano isn’t live yet.


Waves – a cool project that emphasizes usability. Their wallets also include all the functionality of decentralized exchanges for Waves tokens. So if you install the Waves wallet, you can automatically invest in Waves projects.

Lisk – allows writing contracts in javascript.

Qtum – seems to be focused on business.

Nuls – a new entrant which claims to be an enterprise solution.

and of course, Cardano, which I’ve very bullish on as explained in the previous newsletter.

Anyway, Ethereum has a huge first mover advantage, but there are thousands of project which will come online in the coming months. They’re either going to solve their scaling issues and do great, or it’ll be a slow motion train wreck . . .

. . . and a lot of money and investment depends on this. Will Ethereum solidify their first mover advantage? Or will scaling issues allow it’s many competitors to take over?

Vitalik recently also announced subsidies of between US$50,000 and US$1 million to solve scalability issues.

Yes, they are being worked on. There are many proposals and supporting projects.  Ethereum’s co-founder Charles Hoskinson is skeptical, which is why he’s now building Cardano.

SEVEN things I’ll look for in Crypto and Bitcoin in 2018

1) Will the real price of crypto currencies get dominated by “financialized” paper markets?

There are now Bitcoin Futures trading on the CME and CBOE.  At least two ETFs are being organized, and dozens of hedge funds are participating in the crypto space.

I think the answer is no.  Crypto currencies and their communities are explicitly designed to resist and explicitly wary of middle men and “paper” markets which substitute for real goods.  I think the financialization will firstly bring a lot of new money into crypto, and secondly, lose influence as many people realize that they don’t need brokers.

2) Will Bitcoin finally resolve its latency issues?

Continue reading “SEVEN things I’ll look for in Crypto and Bitcoin in 2018”

A Technology Adoption Curve, mostly

The framing of Bitcoin’s nay sayers is wrong.  These are mostly guys who’ve spent their careers looking at asset curves.  You need to ask whether Bitcoin is following an asset curve, or a technology adoption curve.

It seems self evident to me that it’s a technology adoption curve, with some signs of an asset curve like profit taking and panics.  Over the long run, technology adoption will be the more significant force.

The “bubble” chorus is wrong.  They disregard the utilities of crypto currencies, not the least-of-which is the re-privatization of money.  It’s like saying that the price of Samsung Stock is a bubble, without linking it to the tremendous utility of smart phones.