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The key question: how can we better conceptualize the switch from an economy of scarcity to an economy of abundance? Last night, Leah and I had the fantastic opportunity to fly down to San Francisco to hear Tim O’Reilly speak about the birth of the global mind. As a long time listener of the podcast, […]
While it is conceivable that PayPal could become a ‘financial API’, capitalizing all of the pieces of a production value chain, PayPal, like eBay, is an artifact of the transition to hyperconnectivity, an arbitrageur exploiting imperfections in hyperconnectivity. Once everyone is directly connected, it is possible to transfer capital between peers, without any mediating exchange service.
Given the capital flow restrictions of central banks, fiat currencies can not be employed in transactions crossing international boundaries. Instead, individuals and organizations will begin to develop their own exchange mechanisms, perhaps based on precious metals (a de facto return to the gold standard), but more likely employing virtual currencies: perhaps kilowatt-hours, abstract ‘labour units’, or other measures of value.
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As capital migrates from friction-filled national and international finance markets into hypereconomic frameworks, institutions dependent upon those frictions will be threatened. Banks will not be able to collect interest. Governments will not be able to tax – customs duties and user fees look to be the only ways governments can generate revenue. Courts will not be able to seize assets. The peculiar arrangement of laws and regulations which keep our economic system stable will grow increasingly meaningless. Governments and courts will try to follow capital flows into hypereconomic zones, only to learn that their mechanisms of control and enforcement are poorly matched to such a fluid environment.
Mark Pesce — Hypereconomics
Thirty-seven percent of children between Kindergarten and Year 2 have their own mobile (of some sort), with one fifth having access to a smartphone. By Year 8, that figure has risen to eighty-five percent, with fully one-third using smartphones. […] The next years are an interregnum, the few heartbeats between the ‘before time’ – when […]