@ computational professor daniel martin katz danielmartinkatz.com BLOCKCHAIN, CRYPTOCURRENCY AND LAW professor nelson rosario A BRIEF (AND INCOMPLETE) HISTORY OF MONEY nelsonmrosario.com @ nelsonmrosario BLOCKCHAINLAWCLASS.COM
DANIEL MARTIN KATZ E D U | I L L I N O I S T E C H + S TA N F O R D C O D E X B LO G | C O M P U TAT I O N A L L E GA L S T U D I E S . C O M PAG E | DA N I E L M A R T I N K AT Z . C O M C O R P | L E X P R E D I C T. C O M NELSON ROSARIO B LO G | L AWO F C RY P TO C U R R E N C Y. C O M PAG E | N E L S O N M RO S A R I O . C O M F I R M | M A R S H A L L I P. C O M BLOCKCHAINLAWCLASS.COM L A B | T H E L AW L A B . C O M E D U | I L L I N O I S T E C H - C H I C AG O K E N T L AW
“MONEY IS ANY ITEM OR VERIFIABLE RECORD THAT IS GENERALLY ACCEPTED AS PAYMENT FOR GOODS AND SERVICES AND REPAYMENT OF DEBTS IN A PARTICULAR COUNTRY OR SOCIO-ECONOMIC CONTEXT. “ BLOCKCHAINLAWCLASS.COM
RAI STONES AND YAPESE SOCIETY THE STONES DIDN’T NEED TO MOVE THE YAPESE PEOPLE USED RAI STONES AS MONEY TRANSFERRING OWNERSHIP OF STONES WAS DONE ORALLY BLOCKCHAINLAWCLASS.COM
RAI STONES AND YAPESE SOCIETY IN FACT, ONCE A STONE SANK TO THE BOTTOM OF THE OCEAN WHILE BEING TRANSPORTED AND IT IS STILL CONSIDERED GOOD MONEY BLOCKCHAINLAWCLASS.COM
THE IRISH BANKING STRIKES (1966-1976) MAY 7 – JULY 30, 1966 MAY 1 – NOVEMBER 17, 1970 JUNE 28 – SEPTEMBER 6, 1976 THREE TIMES IN TEN YEARS FOR SEVERAL MONTHS AT A TIME BLOCKCHAINLAWCLASS.COM
THE IRISH BANKING STRIKES (1966-1976) THE STRIKES SHUT DOWN ALL OF THE CLEARING BANKS IN THE REPUBLIC OF IRELAND. THUS, PEOPLE WERE NOT ABLE TO GET MONEY OUT OF THE BANKS BLOCKCHAINLAWCLASS.COM
“Here’s what orthodox economics would have predicted for a country without banks: A collapse in the money supply, a credit crunch, a trade implosion, mass unemployment, an atomized GDP, and the gears of industry and commerce grinding to a crashing halt.” https://hbr.org/2010/11/the-irish-banking-crisis-a-par BLOCKCHAINLAWCLASS.COM
Though the money supply did contract sharply, neither trade, commerce, nor industry came to a grinding halt. https://hbr.org/2010/11/the-irish-banking-crisis-a-par BLOCKCHAINLAWCLASS.COM How? People created their own currencies, to substitute for the collapsing money supply. They kept using checks to pay one another, but then, people’s checks began trading within communities.
In fairness to ‘orthodox economics’ it is not clear what would have happened if the strikes continued indefinitely BLOCKCHAINLAWCLASS.COM OVERSTATED IMPLICATIONS ?
That said, it is still an interesting example of how peer to peer transacting can occur in the absence of central institutions BLOCKCHAINLAWCLASS.COM PEER TO PEER TRANSACTING
THE END OF THE REDEMPTION OPTION BLOCKCHAINLAWCLASS.COM “ON MARCH 25, 1964, C. DOUGLAS DILLON, THE 5 7 T H S E C R E T A R Y O F T H E T R E A S U R Y A N N O U N C E D T H AT S I LV E R C E R T I F I C AT E S WOULD NO LONGER BE REDEEMABLE IN SILVER D O L L A R S . ( 3 1 U. S . C . 4 0 5 A - 1 ) . CO N G R E S S A L L O W E D T H E E X C H A N G E O F S I L V E R CERTIFICATES FOR SILVER BULLION UNTIL JUNE 24, 1968.”
‘NIXON SHOCK’ BLOCKCHAINLAWCLASS.COM T H E N I X O N S H O C K W A S A S E R I E S O F E C O N O M I C M E A S U R E S U N D E R TA K E N B Y P R E S I D E N T N I X O N I N 1 9 7 1 , T H E M O S T SIGNIFICANT OF WHICH WAS THE UNILATERAL CANCELLATION OF THE DIRECT INTERNATIONAL C O N V E R T I B I L I T Y O F T H E U N I T E D S TAT E S DOLLAR TO GOLD.
THE END OF THE GOLD STANDARD BLOCKCHAINLAWCLASS.COM P R E S I D E N T N I X O N E N D E D T H E G O L D STANDARD (AKA BRETTON WOODS) SUCH THAT FOREIGN GOVERNMENTS COULD NO LONGER EXCHANGE THEIR DOLLARS FOR GOLD
IN TERMS OF TRANSACTION THROUGHPUT, CRYPTO HAS A LONG WAY TO GO BLOCKCHAINLAWCLASS.COM “Today’s representative blockchain such as Bitcoin takes 10 min or longer to confirm transactions, achieves 7 transactions per second maximum throughput …”
BLOCKCHAINLAWCLASS.COM “… mainstream payment processor such as Visa credit card confirms a transaction within seconds, and processes 2000 transactions per second, with a peak rate of 56,000 transactions per second” IN TERMS OF TRANSACTION THROUGHPUT, CRYPTO HAS A LONG WAY TO GO
DANIEL MARTIN KATZ E D U | I L L I N O I S T E C H + S TA N F O R D C O D E X B LO G | C O M P U TAT I O N A L L E GA L S T U D I E S . C O M PAG E | DA N I E L M A R T I N K AT Z . C O M C O R P | L E X P R E D I C T. C O M NELSON ROSARIO B LO G | L AWO F C RY P TO C U R R E N C Y. C O M PAG E | N E L S O N M RO S A R I O . C O M F I R M | M A R S H A L L I P. C O M BLOCKCHAINLAWCLASS.COM L A B | T H E L AW L A B . C O M E D U | I L L I N O I S T E C H - C H I C AG O K E N T L AW
@ computational professor daniel martin katz danielmartinkatz.com BLOCKCHAIN, CRYPTOCURRENCY AND LAW professor nelson rosario A BRIEF (AND INCOMPLETE) HISTORY OF MONEY nelsonmrosario.com @ nelsonmrosario BLOCKCHAINLAWCLASS.COM
danielkatz
chiroruxx
stefafafan
sue445
doradora09
eliasnogueira
mii3king
6onoda
dena_tech
orgachem
sbtechnight
kenichirokimura
bonjiri_niwa
aki_iinuma
revolveconf
3n
62gerente
jensimmons
deanohume
mza
marktimemedia
jonyablonski
chriscoyier
marcduiker
ufuk