Face it, if the water was not clean, and if we did not have a warm place to sleep, or safe roads, or fresh food, reliable energy, Internet technology, bug-free software etc., something like bitcoin, let alone antibiotics, could never have come into existence. This is a fact, the value of all money is derived from the value of infrastructure that supports human productivity. For the avoidance of doubt, simply compare US infrastructure with, say, Haitian Infrastructure.
Infrastructure Finance with blockchain technology should be the financial system that society adopts. The entire planet is now an epic case study in deferred maintenance. The greatest threat to bitcoin, Ethereum, Steemit, and all future great innovations will not come from some oppressive government, it will come from a failure of basic infrastructure.
In 2015, the National Society of Professional Engineers established a task force on blockchain technology for engineering. The working paper has been published here. It calls for a consortium of engineers and the insurance industry – NOT BANKING…yet.
2015-2016 NSPE FinTech Task Force Working Paper http://www.coengineers.com/nspe-fintech-working-paper-on-blockchain-technology/
One of the problems in the cryptocurrency space is that speculation is needed to increase adoption. However, speculation requires volatility, otherwise there would be no spread or arbitrage opportunities and therefore little incentive to to make a bet. Conversely, a productive and sustainable economy requires stability – i.e., low volatility or no volatility. Stability and volatility are mutually exclusive and therefore the incentives associated with each of these crypto-methods are likewise mutually exclusive. At best, we have a zero sum game devolving to a race to the bottom, or at worst, we’ll wind up with the worst of each one, i.e., irrational stagnation.
The NSPE FinTech woking paper suggests a completely different path. The goal is to build a consortium with the Insurance Industry because finance DEPENDS on insurance (not the other way around) and insurance has long term objectives, not short term profit taking. Further, insurability decreases the cost of capital which allows for an organic portfolio of development to emerge. The highest priority applications will be those that decrease volatility. Invariably, these will include basic infrastructure, clean energy, universal education and health care, etc.
Please read the the NSPE FinTech Task Force working paper and provide us with input that we may use in finalizing the final whitepaper. Please vote up this article on steemit to prove to others that a speculative currency is not the only way forward for cryptos. Thank you