"I don’t think that the -coins we are seeing now are the last word in digital currency. They are experiments. And I do think there is a bubble in the making, which will burst noisily at some point. But unlike others, I don’t regard this as a bad thing. Just as the dot-com bubble and bust was an essential part of the evolution of the Internet, so the bursting of the -coin bubble, when it comes, will enable a new digitized financial architecture to emerge.
"So bring on the -coin bubble and bust. I want to see what grows in its place."
“Will you tell me how long you have loved him?” asks Jane
Bennet, on receiving the astonishing news that her sister Elizabeth is to marry
Darcy, the rich aristocrat she used to hate. “It has been coming on so gradually, that I hardly know when
it began,” replies Elizabeth. “But I believe I must date it from my first
seeing his beautiful grounds at Pemberley.”
This is from the end of Jane Austen’s Pride and Prejudice. Austen is lampooning the British 19th
century marriage market, in which women (and men) pretended to “fall in love”
when in fact they were marrying for money. But for cynics like me, such a remarkable
conversion has echoes in the 21st century. When someone suddenly becomes
an ardent supporter of an ideology they had previously - equally ardently - opposed,
always follow the money.
So, to Sir James Dyson, inventor of cyclone-technology
vacuum cleaners and ardent Brexiteer. Sir James is frequently heard
expounding his hardline Brexit views on the BBC, which is struggling t…
Last week saw two high-profile corporate failures in the UK. Toys R Us finally went into administration after a stay of execution over Christmas. And private equity firm Rutland Partners pulled the plug on geeky electronics retailer Maplin. Total job losses from both failures amount to something in the region of 5,000 across the whole of the UK.
No-one was particularly surprised by the failure of Toys R Us. The company had proved slow to respond to the rise of online shopping and the trend away from large out-of-town retail outlets in favour of small local shops. In the US, Toys R Us filed for Chapter 11 bankruptcy protection (the American equivalent of administration) in September 2017. Despite the American company's insistence that its European operations were not affected, it was almost inevitable that the UK subsidiary would eventually follow suit. British consumers are shifting to online shopping every bit as rapidly as consumers across the Pond, and the trend towards loca…
For over a century now, the world has lacked a genuinely international means of payment. This is partly due to decisions made at the Bretton Woods conference in 1944, when the US dollar was adopted as the principal international settlement currency, rather than John Maynard Keynes's suggestion of an independent global currency that he called "bancor". Although the Bretton Woods gold-backed structure ended in 1971, the US dollar became ever more dominant.
In 2008, the dollar's global reach enabled an American financial crisis to spread to the entire world, causing a deep recession and long-lasting malaise. Ever since, there has been a deep longing for a more stable international financial system, one which didn't depend on debt, wasn't dominated by the US and was immune to political whims. Some have called for a new Bretton Woods, or even for the return of the classical gold standard.
Bitcoin emerged from the financial crisis as a fledgling international dig…