Do you have change for a 20?
What once seemed like a totally legitimate question is now sort of dated. We are now in the era of near-instant and exact transfer of capital. what does the future hold for the US dollar or any currency for that fact?
E-commerce has opened up a new market that even Adam Smith might be perplexed by. The global increase in connectivity of markets through e-commerce has brought about an era that challenges traditional currencies. Today products can be produced China shipped on US ships and sold in European markets. so what does this mean for consumers and nations?
As we look to the future we see an increasingly cashless society. I am interested in learning more about bitcoin, an online internet protocol currency. Bitcoin is based on digital markets, essentially 1s and 0s. If this sounds strange just ask yourself what is the cash in your wallet based on. The gold standard was done away with the New Deal. So the US currency is based on GDP and therefore is liquid.
It was only a matter of time until a new generation of capitalists understood this and harnessed it for the creation of a new and more widely accepted currency. To many current economists, the idea of Bitcoin seems strange because it is unregulated by a central bank.
Could bitcoin be the most widely accepted currency in international markets? what will that mean for national central banks.? Could this mean an international reboot of a new capitalism? The idea of an international currency driven by our technology and global connectivity provides an omminous but also mystifying future.
If cash simply seemses to not exist does it make it easier for state actors to determones ones over all weaelth, make tax decision, levy taxes, and make financial haircuts int times of crises?
This is a a graph of the number of digital bitcoin transactions.