Tagged: Bitcoin

Posts

• 

  What's Holding Back Blockchain Finance? On the Possibility of Decentralized Autonomous Finance

  Despite the rapid innovation of the past decade in adapting blockchain technology to new uses, financial intermediation remains elusive except in basic and highly collateralized forms. This paper considers the prospects for lending and financial intermediation on the blockchain. For its various forms, ranging from collateralized direct lending to fractional-reserve . . .
• 

  The Blockchain and Economic Organization

  There are two things necessary for regular human exchange: 1) a way to keep track of balances, how much one has contributed versus taken, and 2) a way to prevent people from running consistently negative balances – i.e. to prevent theft and fraud. Over the course of human history and economic development, . . .
• 

  Smart Contracts: Killer Enabler for Stable Value

  Piers writes that stable-value cryptocurrencies are necessary for smart contracts to take off. I’d like to stake out the reverse claim: that smart contracts are necessary for stable-value crypticurrencies to take off. Background on the Stablecoin Problem I’ve argued in the past that fractional reserve banking is an essential part of a . . .
• 

  Helicopters and the Neutrality of Money

  Models of monetary expansion, following Friedman (1969), tend to abstract away from the relative price effects of monetary policy by assuming that the central bank distributes money directly to agents via helicopter. However, in light of the recent entertainment of helicopter drops as a potential monetary policy tool, this paper . . .
• 

  Cryptocurrency and the Problem of Intermediation

  The volatility of Bitcoin has caused many to dismiss its potential. Bitcoin is, however, very similar to another money commodity with an essentially rigid supply that saw much greater historical success: gold. The paper considers the factors that allowed currencies on the gold standard to adjust their short-run nominal supply . . .