Bitcoin – The Digitization of Money

Money and finance has been an integral part of human civilization ever since the advent of trade. Over time, although taking many forms, from salt to gold coins to paper bills, money has almost always had a physical basis. With the advent of fractional reserve banking, however, and the introduction of digital technology and accounting – finance has become much more complex than its roots on ancient trading caravans. The latest major innovation – Bitcoin – has presented an even more complex system – that without even any central banking authority – has been able to connect digital participants through the internet using an entirely new currency and a mechanism for controlling fraud and inflation. Today we explore the advantages – and perils – of utilizing this new technology, as well as how things have evolved to this point with the introduction of computerization in finance.

— timeline —

-1950- Diners Club introduces the first charge card in the United States
-1950s- IBM mainframes deployed across a variety of back office banking applications
-1960- first patent on ATM technology issued
-1971- NASDAQ establishes the world’s first electronic stock market
-1974- SWIFT system developed for international financial transfers
-1980s- personal computing revolution introduces home accounting, spreadsheets, tax software
-1989- Fair, Isaac introduces the first national personal credit score (FICO) system in the US
-1993- Ed Codd cites OLAP at offering multi-dimensional data cubes as business intelligence technology
-1994- K. Aufhauser & Company offers online stock trading
-1998- Paypal, WebMoney created as online systems for payment
-2009- Bitcoin software first released by Satoshi Nakamoto

— references —

– Debt: The First 5000 Years, Graeber (2001)
– SIFIs – https://en.wikipedia.org/wiki/Systemically_important_financial_institution
– Bitcoin Introduction – https://bitcoin.org
– SWIFT banking system – https://en.wikipedia.org/wiki/Society_for_Worldwide_Interbank_Financial_Telecommunication
– Shadow Brokers reveal NSA leaks – https://arstechnica.com/security/2017/04/nsa-leaking-shadow-brokers-just-dumped-its-most-damaging-release-yet/

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s