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The wild west of crypto': Where's my money now?

Benjamin Nickolls
October 24, 2018
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The wild west of crypto': Where's my money now?

Benjamin Nickolls

October 24, 2018
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Transcript

  1. CRYPTO != CRYPTO Cryptography: the use of mathematics to obfuscate

    data Cryptocurrency: the use of mathematics to make it difficult to fake stuff
  2. BLOCKCHAIN vs. B(OL)LOCKCHAIN Blockchain: a reasonable technology for distributed, varifiable,

    append only data types Bollockchain: a blatant attempt to misappropriate blockchain technology as a brand
  3. MACROECONOMICS Two actors, both with the ability to create goods

    worth 1c A buys 5 things from B, who buys five things from A. GDP is 10c A decides to save 1c, B cannot sell 1c worth of goods or spend 1c. GDP is 8c (20% lower!)
  4. MONEY IS A LIE 90% of money is created by

    banks Notes you use and bank reserves account for other 10%
  5. GOVERNMENT Require debt to exist Constrained not by solvency but

    inflation and forex Use monetary and fiscal policy to alter speed of economy
  6. MONETARY POLICY Manipulation of bank reserves and interest rates to:

    Maintain a healthy payments system Encourage or discourage lending (creation of credit and management of inflation)
  7. FISCAL POLICY Government redistribution of private money: Taxation (pure redistribution

    of bank credits) Bond issuance (net creation of new asset with no corresponding private liability)
  8. GDP IN MR Two actors, both with 5c loans made

    by their banks The government target inflation of 2%, your money is worth less tomorrow The bank sets interest of 2% because the government influenced them, your debt is accumulating You turn your 5c loan into products worth 10c and sell them, as does your friend. What's GDP?
  9. TOKENS Store of value (lol!) Stablecoins (pegged currencies) Payment (you

    pay for X in this) Security (used to represent a real world asset) Governance (used for decision making) Discount (get discounted services) Work (staked) tokens (stake your work, get rewarded if good) Burn and mint (spendy inflation control)
  10. PROOF OF X Proof of work (aka numberwang) Proof of

    consensus (impossible with unknown participants) Proof of stake (what's your measure of success? how long term?) Proof of brain (wtf?)
  11. ERC20 (WTF COINS) Brave: Basic Attention Token. Publishers are paid

    by advertisers, users paid by advertisers, users pay publishers they like. Numerai: Stake numerare with your market predictions, earn numerare if successful. Steem: publishers paying content providers who are paying in... memes?
  12. 16.74m BTC minted on 18th Dec 44,352 coins minted in

    the 308 days between 18th Dec and y'day 0.2% inflation in that time remove 2% inflation of USD 196B transferred in BTC alone 111B in ETH HOW MUCH?
  13. WHERE IS IT? Where was the productivity in BTC? Extraction

    by founders, traders, capitalists The biggest transfer of wealth from the many to the few?
  14. THE VENTURE MODEL Burn $ for users Gain users until

    next X no matter the cost IPO while hiding details Sell stock Repeat
  15. Tokens can be used for good Inflationary spending can be

    used as a force for good All the power of a sovereign monetary system, with all the responsibility too. BUT
  16. SOURCES Cullen O'Roche's 'Understanding the Monetary System' Fabric.vc's 'State of

    the Token Market' Ben Laurie's: 'Decentralised Currencies Are Probably Impossible' A lot of other sh*t on the internet...