Ted Talks: The Future Of Money
NehaNarula has an interesting approach to the future of money. She does not see anything inherently valuable about a dollar or a stone or a coin and further claims that it is the human person that has bestowed value on them. Narula’s description of money is that it is a collective story of which people tell each other about value. It is more of fiction.
Advancement of technology has introduced digital money which involves online transactions hence there is nothing physical including investment into mutual funds. It is indeed a powerful concept of innovation within which payment transactions are expedited in seconds regardless of the global location of the recipient.
But large institutions are standing in the way of this innovation
The use of digital money is all about the large financial institutions having to change a few letters and figures in their computers. But however excellent this sounds, there are quite some frictions in the system. For example; one can neither apply for loans nor get paid. The transfer of different money currencies across borders is such an expensive affair.
All this explains how much more these institutions have held captive the freedom of transaction. A lot of their services do not inter-operate, and seemingly, innovation is far from becoming a reality. Narula explains the feeling to be that of the analog world whereby money moved at a speed of human beings whereas it is supposed to run much faster because we are in a digital world.
It’s time we embraced a new phase of money
The future of money is programmable which makes it possible to remove the involvement of humans and institutions and incorporate software. Evolution into this brings in the use of Cryptocurrencies which is digital money that does no require any intermediaries the likes of government or bank. There are hundreds of Cryptocurrencies, but Bitcoin is the most ubiquitous.
The concept of Cryptocurrencies is so powerful that it was at some point classified as a weapon by the US government. Bitcoin miners manage the software which is so safe and secure compared to the financial institutions. This is the first step to global programmable money, an innovation that will facilitate the management of large-scale data.
The internet is already awash with innovation and it is sometimes considered a waste of time. However, it has also played a significant role in increasing productivity. It has created new ways and forms of flexibility hence things are going to change and unfold in a better way.