History & Future of Money, Currency, & Capitalism

A talk on the history of money, currency, and capitalism from the dawn of currencies, single entry accounting to triple entry accounting and blockchain.

We also derived double-entry accounting from single entry and talked about inflation.

The slides are from my talk at IIT Hyderabad (Mar, 2019)

Transcript

1. Money & Capitalism E-Summit 2k19 | IIT Hyderabad | Mar, 2019 The history & future of @kingsidharth
2. The Economic Organisation of a Prisoners of War Camp A research paper by R.A. Radford bit.ly/TEOPWC_RP
3. Currency
4. – R.A. Radford “But the essential interest lies in the universality and the spontaneity of this economic life; it came into existence not by conscious imitation but as a response to the immediate needs and circumstances.” English: Economic organisation is natural to us
5. …that & counting! 5x = 3x
6. Money, Trade, Currency, & Banks All for
7. Double-entry Accounting A crash course
8. Transaction Amount Bank Transfer from Mom 1,000 -100 -800 Fixed Deposit -50 Balance 50 Single-entry Accounting
9. What do these transactions look like in their accounts?
10. Transaction Amount Bank Transfer 1,000 -100 -800 Fixed Deposit -50 Balance 50 Transaction Amount Bank Transfer -1000 Balance -1000 Transaction Amount 800 Balance 800 Mom’s Account Local Bar’s Account Fixed Deposit Transaction Amount Saved Finally! 50 Balance 50 Your Account
11. Transaction Deposit Withdraw Bank Transfer 1000 100 800 Fixed Deposit 50 Balance 1000 950 Transaction Deposit With. Bank Transfer 1000 Balance 1000 Mom’s Account Local Bar’s Account Transaction Deposit With. 800 Balance 800 Your Account
12. Transaction Deposit Withdraw Bank Transfer 1000 100 800 Fixed Deposit 50 Balance 1000 950 Transaction Deposit With. Bank Transfer 1000 Balance 1000 Mom’s Account Local Bar’s Account Transaction Deposit With. 800 Balance 800 0 Your Account
13. Customer Account Company Account Mom’s Account Your Account Local Bar’s Account Wholesaler’s Account Manufacture’s Account Salary Account Expense Account Profit Account
14. Customer Account Company Account Mom’s Account Your Account Local Bar’s Account Wholesaler’s Account Manufacture’s Account Salary Account Expense Account Profit Account Fixed Deposit Petrol Pump Supplier Salary Expense Investments Owner
15. Governments & Central Banks Minting money & assuring trust
16. The fraud in our entries जब िमयां बीवी राज़ी, तो क्या करेगा क़ाज़ी?
17. Transaction Deposit Withdraw Bank Transfer 1000 100 800 Fixed Deposit 50 Balance 1000 950 Mom Local Bar Petrol Pump Rest of the World Send a copy to everyone
18. Blockchain Distributed triple-entry accounting No need to trust anyone!
19. But it’s expensive!
20. Why would people do the work?
21. Bitcoin Let them eat rewards
22. Bitcoin Currency vs. Asset (Trade) Currency (Invest in) Asset Bitcoin Moves value Yes No Yes Stores value Yes Maybe Yes Has intrinsic value No Yes No Intrinsic Value = has value on it’s own
23. Inflation The rising cost
24. Rs. 100 Rs. 8 (8% Fixed Deposit)
25. Rs. 100 Rs. 8 (8% Fixed Deposit) Rs. 108 Rs. 9 (8% Fixed Deposit) Rs. 115
26. Rs. 100 Rs. 8 (8% Fixed Deposit) Rs. 108 - Rs. 9 (8% Inflation) Rs. 99 You lost money!
27. That’s why you can’t save enough That’s why getting rich is not as same as saving Inflation will eat everything
28. Bitcoin Anti-inflationary currency
29. Bitcoin Only one of the many massively-successful experiments
30. What’s the future? Whatever we build it to be.
31. Economics Finance Accounting Cryptography Computer Science Mathematics
32. Fintech The leading edge of all things
33. Let’s talk kingsidharth