The future of electronic currency
This is particularly relevant, since today we're in the middle of an unprecedented social and technological experiment: moving our entire economy out of metal and paper and into the 'net. I've already had to explain to my four-year old what newspapers are; I imagine he'll have a similarly experience when his children ask why people once carried funny pieces of paper around in their wallet.
Between credit and debit cards, EFT, online banking and NFC, it seems like the days of cash are numbered. Unfortunately, all is not sunshine and roses. The combination of easy-to-search electronic records and big data seems like a death-knell for our individual privacy. Cryptography holds the promise to get some of that privacy back, if we want it.
In this post I'm going to take a very quick look at a few privacy-preserving 'e-cash' technologies that might help us do just that. Read more
David Klemke (@DavidKlemke) writes on his blog a post about the recent exchange rate volatility and other recent developments. Excerpts:
“A rising price is usually a signal of speculative investors gaming the market to turn a quick profit more than it being an indication of market confidence.”
“This kind of price volatility is very much at odds with BitCoin being a proper currency and it’s unfortunate to see history repeating itself here again.”
“BitInstant is a clever little idea using prepaid MasterCard credit cards which are then backed with either real US currency or BitCoins.”
“Hopefully this [additional way bitcoin can be used for transactions] means that the peaks and troughs in BitCoin’s trading price will soon be a lot more tame and then I’ll stop harping on about how BitCoin’s price is the last thing we should be thinking about if we’re serious about it being a currency.”