From citizentekk.com – June 13, 3:16 PM
Commodity money was first—gold, precious metals, things considered inherently valuable. Next came political money—fiat currency, banknotes, things that had value because they were backed by governments and legal systems. Now there’s math-based money—money controlled only by protocols and algorithms. Harnessing and maximizing the power and potential of these new math-based systems is going to be the big story in finance for decades to come.
The Future of Money and Bitcoin by Chris Larsen, CEO of OpenCoin – citizentekk –
The ultimate promise of math-based systems is to bring the principles of the Internet to money. Money is information and the Internet is the greatest information engine of all time. The missing link was a money protocol. The Hypertext-Transfer-Protocol allowed the Internet to share text and graphics. The Simple-Mail-Transfer-Protocol made communication free and instantaneous. Each of these protocols had a seismic impact on our reality. The Ripple Protocol and others like it will have a similarly profound effect. Independent businesses using shared protocols will be able to do businesses directly without requiring third-party services. Fragmented networks will become unified and frictionless. Old business models will be disrupted and new ones will become possible.
Phi Beta Iota: Be very afraid. Mathematics is what created the derivatives bubble. Google is best in class with computational mathematics, and not to be trusted. The US Government has no clue what computational mathematics means — they are still trying to get a grip on “digital security” as a concept — and cannot be relied upon. Meanwhile, the Internet has been captured by corporate interests (along with the Supreme Court) so all of these righteous ideas are facing a very long struggle against a dominant paradigm that demeans the 99% in favor of the 1%. Until a truly Autonomous Internet and a full-up Open Source Everything society are established, BitCoin will be on the edges….and perhaps the next candidate for one of those politically-directed IRS audits.