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History & Future of Money, Currency, & Capitalism

King Sidharth
March 31, 2019
140

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)

King Sidharth

March 31, 2019
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Transcript

  1. Money & Capitalism
    E-Summit 2k19 | IIT Hyderabad | Mar, 2019
    The history & future of
    @kingsidharth

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  2. The Economic Organisation of a
    Prisoners of War Camp
    A research paper by R.A. Radford
    bit.ly/TEOPWC_RP

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  3. – 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

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  4. …that & counting!
    5x = 3x

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  5. Money, Trade,
    Currency, & Banks
    All for

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  6. Double-entry
    Accounting
    A crash course

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  7. Transaction Amount
    Bank Transfer from Mom 1,000
    -100
    -800
    Fixed Deposit -50
    Balance 50
    Single-entry Accounting

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  8. What do these transactions
    look like in their accounts?

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  9. 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

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  10. 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

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  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 0
    Your Account

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  12. 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

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  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
    Fixed Deposit
    Petrol Pump
    Supplier Salary
    Expense
    Investments
    Owner

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  14. Governments &
    Central Banks
    Minting money & assuring trust

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  15. The fraud in our
    entries
    जब िमयां बीवी राज़ी, तो क्या करेगा क़ाज़ी?

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  16. 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

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  17. Blockchain
    Distributed triple-entry accounting
    No need to trust anyone!

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  18. But it’s expensive!

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  19. Why would people
    do the work?

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  20. Bitcoin
    Let them eat rewards

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  21. 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

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  22. Inflation
    The rising cost

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  23. Rs. 100
    Rs. 8 (8% Fixed Deposit)

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  24. Rs. 100
    Rs. 8 (8% Fixed Deposit)
    Rs. 108
    Rs. 9 (8% Fixed Deposit)
    Rs. 115

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  25. Rs. 100
    Rs. 8 (8% Fixed Deposit)
    Rs. 108
    - Rs. 9 (8% Inflation)
    Rs. 99
    You lost money!

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  26. That’s why you can’t save enough
    That’s why getting rich is not
    as same as saving

    Inflation will eat everything

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  27. Bitcoin
    Anti-inflationary currency

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  28. Bitcoin
    Only one of the many

    massively-successful experiments

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  29. What’s the future?
    Whatever we build it to be.

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  30. Economics
    Finance
    Accounting
    Cryptography
    Computer Science
    Mathematics

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  31. Fintech
    The leading edge of all things

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  32. Let’s talk
    kingsidharth

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