Imagine there's no currency E-Book

Alessandro Raffelini

• Herausgeber: Youcanprint
• Kategorie: Fachliteratur
• Sprache: Englisch
• Veröffentlichungsjahr: 2019

Beschreibung

Imagine there's no currency is a novel about the future of money. The Novel unfolds in the heart of an emerging economy, burdened by the dangers of hyperinflation and the looming prospect of other economic challenges. In a not-so-distant future, the global economy had been ravaged by hyperinflation, wars, and human folly. Only a handful of powerful states held sway over the rest, enjoying economic dominance and privileges. The majority of the world's population languished in poverty, while money had lost its value... It all began when an enigmatic scientist named Dr. Carter made an astonishing breakthrough... In this book, my aim is to provide a comprehensive explanation of the cryptosystem and blockchain technology. I delve deeply into the intricacies of Blockchain and cryptocurrencies, offering readers an in-depth understanding of these innovative concepts. Through this exploration, you will acquire a profound understanding of the current intricate landscape and the potential future developments in both the realms of money and technology. Moreover, I will share my visionary perspective on alternative monetary and economic model about the future of money. Years ago, I had the first insight that gave life to an innovative theory, imagining a possible "market" coexistence between cryptocurrencies and traditional fiat currencies, promoting the creation of potential alternative economic areas. This theory is based on the observation of the lack of a key variable in the Keynesian memory function of money, namely the technological innovation related to money produced precisely by Blockchain and cryptocurrencies. By adding this variable and more, I intuited that, consequently, monetary systems would move endogenously toward alternative equilibrium points between currency and cryptocurrencies with effective functionalities, such as Bitcoin, which I have always considered a possible new form of decentralized money and a potential supranational fractional reserve (optimal points of coexistence equilibrium). From here, I developed a new function of the demand for money and conducted various macroeconomic considerations for the creation of alternative digital systems in specific economic areas, which could coexist with traditional ones, but expanding economic opportunities for various reasons.

Leseprobe

Book index

Imagine there’s no currency

1.      The utopian world of “Imagine there’s no currency”

1.1.      The Novel

1.2.      The RACS

1.3.      The arrest

1.4.      Frankie Reacher

1.5.      The Birth of Bitcoinomic Areas

1.6.      Conclusion

2. The Distributed Ledger Technology

1.1.      Blockchain

1.2.      Digital nodes

1.3.      World Wide Web and Blockchain

1.4.      Cryptocurrency and Blockchain

1.5.      The concept of “network democratized society.”

1.6.      Bitcoin, Ethereum and smart contracts

1.7.      Other emerging Blockchain protocols

Ripple

Hyperledger

Openchain

TRON

Iota

Lisk

HydraChain

Corda

Symbiont Distributed ledger

Chain

BigChainDB

1.8.      Blockchain Can Solve Real-World Problems; but how?

1.9.      Blockchain commercial feasibility

1.10.      The scalability problem of Blockchain

1.11.      The function of money

1.12.      The history of money

1.12.1.      The Gold Standard

1.12.2.      Bretton Woods

1.12.3.      Electronic money vs Cryptocurrency

1.13.      Financial crisis

1.14.      Central Banks and cryptocurrency

1.15.      Tokens, “ICO” vs “STO”

1.16.      Security Tokens

1.17.      Utility Tokens

1.18.      Tokenization

1.19.      Market Capitalization and the “Bitcoin Cash Civil War”

1.20.      The volatility factor

1.21.      The Whales’ factor

1.22.      Stablecoins

1.23.      TaTaTu Token (TTU)

3. Crypto Economy

1.1.      The token utility value

1.2.      Business case: the future utility value of tokens

1.3.      The Model of Coexistence between Fiat currencies and cryptocurrency in an Economic Area

1.4.      The manifesto of the “Crypto Economy.”

1.5.      Keynesian Demand

1.6.      Monetarism

1.7.      The Functioning curve of cryptocurrency

1.8.      The False Dilemma of cryptocurrency

Conclusion

Alessandro Raffelini

IMAGINE THERE’S NO CURRENCY

A NOVEL ABOUT THE FUTURE OF MONEY

“The Model of Coexistence between Fiat currencies

and Cryptocurrencies in an Economic Area.”

Title | Imagine there’s no currency

Author | Alessandro Raffelini

ISBN | 978-88-27867-46-4

© All rights reserved by the Author

Alessandro Raffelini

Twitter: @raffelini

Email: [email protected]

No part of this book may be reproduced without the prior permission of the Author.

Youcanprint Self-Publishing

Via Marco Biagi 6 - 73100 Lecce

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[email protected]

“Who controls the food supply controls the people; who controls the energy can control whole continents; who controls money can control the world.”

Henry Kissinger

 

“The choice between cryptocurrency and Fiat money is a false dilemma in which the financial institutions and most of the notable persons seem to be trapped. The distributed ledger technology (DLTs) and its interaction with AI or IoT will benefit all of humankind.”

Alessandro Raffelini

Biography:

Alessandro Raffelini is an accomplished executive director with international experience in Private Equity and Hedge Funds. He currently works in London. Alessandro was born in Genova, Italy, and completed his education at a "classical lyceum" high school. He holds a degree in Economics and has achieved various master's degrees, professional qualifications from prestigious institutions such as Bocconi University and the London Business School.

Over the course of his career, Alessandro has held a variety of managerial and top management positions. He is not only an author but also an insightful analyst in the fields of Blockchain technology and the financial and economic aspects of cryptocurrency markets. Alessandro's unique perspective centres around the integration of blockchain and virtual currencies into diverse aspects of human activities, including payments, communication, information, commerce, and beyond. He envisions a future where virtual currencies coexist alongside national fiat currencies, ushering in a novel monetary and economic model.

Alessandro is the author of the "Model of Coexistence Between Fiat Currency and Cryptocurrency in an Economic Area." This model explores the dynamics and possibilities of how fiat currency and cryptocurrencies can coexist within a specific economic region, offering valuable insights into this emerging financial landscape.

London, November 2017

Imagine there’s no currency

In this book, which I began writing in early 2017, my goal is to offer a comprehensive explanation of the cryptosystem and blockchain technology. I delve deep into the complexities of Blockchain and cryptocurrencies, providing readers with a thorough understanding of these innovative concepts. Through this exploration, you will gain a profound understanding of the current complex landscape and the potential future of both money and this technology.

Moreover, I will share my visionary perspective on alternative monetary and economic model. Years ago, I had an intuition writing a groundbreaking theory that envisioned a harmonious coexistence between cryptocurrencies and traditional fiat currencies creating alternative economic areas. This theory held the promise of ushering in a new era characterized by positive impacts, particularly within specific economic regions longing for stability and growth. At its essence, this theory advocated for the development of mutually beneficial relationships between traditional fiat currencies and dynamic cryptocurrencies, particularly those with attributes like Bitcoin. The goal was to construct highly efficient digital economic zones that could function autonomously, without being subject to the limitations imposed by external economies. This innovative concept had the potential to trigger a cascading effect, infusing vitality into specific regional economies or Economic Areas. These areas were often grappling not only with hyperinflation but also the challenges associated with dollarization, offering a glimmer of hope for their prospects. As time progressed, this theory continued to shine as a beacon of hope for those who believed in a brighter economic future. It is my fervent hope that, one day, in the not-so-distant future, this theory will transcend the realm of dreams and be embraced as a powerful catalyst for change. It has the potential to reshape the economic landscapes of our world for the better. Within the pages of this book, I draft, therefore, a brief novel based on this economic theory tailored for the emerging economies particularly: "The Model of Coexistence between Fiat currencies and Cryptocurrencies in an Economic Area." This theory envisions a harmonious coexistence of cryptocurrencies, (e.g. Bitcoin), alongside traditional national currencies. It capitalizes on the widespread adoption of commercial blockchain applications, creating a seamless economic equilibrium within the marketplace. This equilibrium is particularly advantageous for regions grappling with hyperinflation or the challenges posed by dollarization phenomena.

The cryptocurrency and distributed ledger technologies (DLTs) revolution, as projected by the World Economic Forum (WEF), is poised to generate $1 trillion in new trade over the next decade. This book endeavours to address profound criticisms and issues surrounding blockchain and cryptocurrencies. It particularly delves into the future of cryptocurrencies and presents a strategic approach to Blockchain technology. I employ accessible language to clarify essential terms and concepts related to cryptocurrencies and these distributed technologies.

My vision, encapsulated in the novel "Imagine there's no currency," which also serves as the title of this book, strives to provide a viable solution to the prevailing dogma. This dogma, often voiced by economists and central banks, claims that cryptocurrencies are marred by inherent contradictions, rendering their widespread use as money implausible. Contrary to this criticism, I believe it represents a "false dilemma." There is no doubt in my mind that the future will be shaped by new technologies capable of supporting a different monetary system in the next two decades. To achieve this goal, I propose that companies engaged in the crypto space should collaborate with financial institutions rather than competing with them for dominance. The mass adoption of cryptocurrencies and DLTs applications can only be realized by productively and profitably involving existing institutions in the evolutionary process of embracing these novel forms of decentralization and assets.

In simple terms, the choice between cryptocurrency and fiat money is a "false dilemma" in which financial institutions and many prominent figures seem to be ensnared. Blockchain technology, coupled with its interaction with AI and IoT, holds the potential to benefit all of humanity.

The novel of "Imagine There's No Currency" serves as an inspiring testament to the power of visionary thinking and the potential for a world where the pursuit of wealth is replaced by the pursuit of purpose and community. It challenges us to reevaluate the role of money in our lives and imagine a future where the currency of the heart and the currency of compassion hold more value than any banknote ever could.

1. The utopian world of “Imagine there’s no currency”

 

1.1The Novel

The Novel unfolds in the heart of an emerging economy, burdened by the dangers of hyperinflation and the looming prospect of dollarization. In a not-so-distant future, the global economy had been ravaged by hyperinflation, wars, and human folly. Only a handful of powerful states held sway over the rest, enjoying economic dominance and privileges. The majority of the world's population languished in poverty, while money had lost its value. The stronger economies controlled the fate of weaker ones, and ignorance prevailed. This is the story of a nation's journey towards stability and self-reliance, guided by a visionary economic theory - "The Model of Coexistence between Fiat and Cryptocurrencies in an Economic Area." Indeed, once upon a time, in a not-so-distant future, humanity found itself in the midst of a remarkable digital and anthropological transformation and financial crisis. It all began when an enigmatic scientist named Dr. Carter made an astonishing breakthrough. Dr. Carter had spent her entire career studying the intricacies of economics, searching for a way to alleviate the world's financial disparities and eliminate the corrupting influence of money raised by Central Banks, corrupted politicians and businesses. One crisp autumn morning, while sipping her coffee in the quiet of her laboratory, Dr. Carter stumbled upon a radical idea. She believed that if she could create a region and a system where people no longer needed only one currency to exchange goods and services, the world would become a more equitable and harmonious place using Blockchain and a new form of money. He called this coin: Bitcoin. Dr. Carter dedicated her life to studying economics and exploring the potential of a new technology based on a global decentralised innovative ledger and money (cryptocurrency). She envisioned an economic region where currencies were not restricted to a single unit but existed in a dynamic ecosystem with other with real functionalities, enhancing economic flexibility and fairness. After years of tireless research and experimentation, she introduced the world to Bitcoin. This innovative money was designed to operate on a decentralized blockchain network, free from the influence of central banks and governments. Bitcoin's transparent and immutable ledger ensured trust and security, making it a revolutionary force in the world of finance. She also assembled a team of like-minded scientists, economists, and social visionaries. Together, they worked tirelessly, developing a groundbreaking technology to create a new ecosystem based on Bitcoin known as "Resource Allocation, and Contribution System" (RACS).

RACS, was Dr. Carter's brainchild. It was a radical departure from traditional economic systems. Its primary objective was to evaluate and recognize each individual's unique skills, talents, and resources. Then, it efficiently rewarded them with this groundbreaking cryptocurrency called Bitcoin, which could be used to acquire goods and services. What truly set RACS apart was its commitment to redistributing a portion of these rewards to those in the community who needed it most. As RACS began to take shape, it brought about a profound transformation in society. People's motivations shifted from a relentless pursuit of personal wealth to a deeper sense of purpose and community. This innovative system recognized and rewarded individuals for their meaningful contributions, whether they were artists, educators, healthcare professionals, or entrepreneurs. In other words, In the midst of this digital and economic revolution, RACS emerged as a catalyst for profound societal change. It wasn't just a new economic system; it was a shift in collective consciousness. As the system took root and gained momentum, it sparked a transformation in people's motivations and priorities. Gone were the days when personal wealth accumulation was the driving force behind individuals' actions. RACS had introduced a new paradigm, one where people found purpose and fulfilment in contributing to their communities. This groundbreaking system acknowledged and celebrated the diverse talents and skills of individuals from all walks of life.

Dr. Carter believed that by harnessing the power of blockchain technology and RACS, we could create a fairer, more equitable world. A world where the pursuit of knowledge, creativity, and community betterment took precedence over unchecked greed and economic inequality.

1.2. The RACS

The emergence of RACS and the shift towards a new economic model a long with Bitcoin was not without its fair share of challenges and skeptics. This innovative system, designed to promote fairness and equality, encountered resistance from powerful entities deeply entrenched in the existing financial structures. To them, RACS represented a direct threat to their vested interests, and they were not willing to relinquish their control without a fight. The battle for the widespread adoption of Bitcoin, and the new economic model it embodied, had just begun. It was a journey fraught with obstacles, intrigue, and no shortage of opposition. These powerful adversaries used their influence and resources to cast doubt on the feasibility and sustainability of such a transformation. Media outlets, many of which had financial ties to the existing order, ran negative stories and painted Bitcoin as a risky experiment that could lead to economic chaos. Lobbyists and policymakers aligned with the status quo worked tirelessly to undermine the credibility of this new system. They raised concerns about security, stability, and the potential for misuse, sowing seeds of doubt in the minds of the general population.

Despite these challenges, those who believed in Dr. Carter’s vision and the new economic model remained steadfast. They recognized that true change often faced resistance from those who benefited from the status quo. They were determined to navigate this turbulent landscape and demonstrate that RACS and Bitcoin could not only function effectively but also bring about positive societal change. As the battle for adoption unfolded, it became clear that this was not just a financial or technological revolution—it was a battle of ideologies. It was a struggle between those who sought to maintain the old, unequal order and those who envisioned a more equitable and inclusive future.

The journey ahead would require unwavering determination, collaboration, and resilience. RACS and the new economic model were not just experiments—they were the embodiment of a vision for a fairer, more transparent, and community-driven financial system. And those who believed in this vision were ready to face whatever challenges came their way.

In this world of digital transformation and economic upheaval, Dr. Carter's vision was both a beacon of hope and a target of contention. As she continued to refine RACS and advocate for its widespread adoption, she became an enigmatic figure at the centre of a global revolution, a symbol of change and progress in uncertain times. RACS empowered individuals to pursue their passions and talents without the constraints of financial limitations. The system recognized and rewarded creativity, innovation, and the betterment of society. This newfound economic freedom allowed people to live fulfilling lives and contribute to the well-being of their communities.

In this new ecosystem, the concept of "community" took on a profound meaning. People supported one another, knowing that their collective efforts were essential for the prosperity of all. RACS along Bitcoin fostered a spirit of cooperation and collaboration that transcended traditional economic barriers. RACS empowered individuals to pursue their passions and talents without the constraints of financial limitations. The system recognized and rewarded creativity, innovation, and the betterment of society. The newfound economic freedom ushered in an era where individuals could lead more fulfilling lives and actively contribute to the well-being of their communities. Within this transformative ecosystem, the very essence of "community" took on a profound and revitalized meaning. People from all walks of life understood that their mutual support and cooperation were fundamental to the overall prosperity of the collective.

RACS played a pivotal role in nurturing this sense of unity and collaboration that transcended the conventional economic boundaries. The spirit of cooperation became the guiding principle of this new world. People were no longer driven solely by self-interest or the pursuit of personal wealth. Instead, they recognized that their individual contributions were interlinked with the success and welfare of their fellow community members.

Artists thrived as their creations resonated with an audience that appreciated and valued their work. Educators found renewed purpose in nurturing the minds of the younger generation, knowing that their efforts contributed to a brighter future for all. Healthcare professionals were no longer burdened by administrative complexities but could focus on providing care where it mattered most. Entrepreneurs were encouraged to innovate, knowing that their ventures could improve the quality of life within their communities. The traditional barriers that had separated economic classes and professions began to dissolve. People recognized that their collective efforts could create a society where every individual had the opportunity to thrive, regardless of their background or circumstances or where they were born. It was a profound shift in perspective—an understanding that individual success was intertwined with the success of the whole community. In this new world, wealth was no longer measured solely in monetary terms. It was measured by the richness of relationships, the depth of purpose, and the well-being of all community members. People derived immense satisfaction from contributing to a greater good, knowing that their actions had a positive ripple effect on society as a whole.

The transformation brought about by RACS was not just economic; it was a transformation of the human spirit. It awakened a sense of shared responsibility and a commitment to the common welfare. It was a world where the well-being of the individual and the prosperity of the community went hand in hand. As this new ecosystem continued to evolve, it became evident that the possibilities were limitless. The journey toward a fairer and more inclusive future was marked by challenges, but it was also illuminated by the collective determination of those who believed in the power of change. In this world, the bonds of community were stronger than ever, and the potential for progress knew no bounds.

The world watched this experiment with bated breath as the RACS system was introduced. Initially, there were skeptics who doubted its feasibility, fearing chaos and disorder. But as the days turned into weeks, something extraordinary began to happen. People started to collaborate and share more willingly. Communities became tightly-knit, as individuals began to see the value in helping one another. People pursued their passions and contributed to society without the burden of financial concerns.

1.3. The arrest

As the years passed in this utopian world without traditional currency, a curious phenomenon began to emerge. It became increasingly clear that Bitcoin, it couldn't entirely replace the role of traditional currency in certain aspects of the global economy. Fiat currencies, like the dollar, euro, and yen, were still in use for international trade and as a unit of account for large-scale economic activities because the stronger States wanted to ban it. Bitcoin, on the other hand, had firmly established itself as a decentralized money and a reserve in some small nations and was more and more clear that the original theory was right. The key was the coexistence between Fiat and cryptocurrencies. However only a part of the world had embraced this revolutionary paradigm shift. Some nations, particularly those struggling with hyperinflation and economic turmoil understood how much Bitcoin was valuable to create Bitcoinomic Economic Area. In a twist of fate, the very existence of Bitcoin and the coexistence of fiat currencies provided a lifeline to these struggling nations. As their fiat currencies spiralled into hyperinflation and dollarization, their citizens and enterprises turned to cryptocurrencies like Bitcoin to preserve their wealth and trade with neighbours. Bitcoin's decentralized nature made these regions immune to the financial mismanagement, inflations politicians, wars that plagued these countries with wicked monetary and fiscal policies.

But Dr. Carter's groundbreaking work had not gone unnoticed, and it had attracted the attention of powerful entities deeply entrenched in the existing financial structures. They viewed her innovative ideas as a direct threat to their vested interests. In a move to protect the status quo, Dr. Carter was arrested on charges that sent shockwaves through the emerging movement.

Her arrest sparked widespread outrage and protests from supporters of RACS and the new Economic Model. People from all walks of life, who had experienced the positive transformation brought about by this system, rallied behind Dr. Carter. They saw her as a symbol of hope and progress, someone who had dared to challenge the established order for the greater good of society.

The battle for the adoption of RACS along Bitcoin and the new Economic Model had just begun, and it would be marked by legal battles, political intrigue, and public demonstrations. Dr. Carter's arrest became a rallying cry for those who believed in the potential of this revolutionary approach to economics.

1.4. Frankie Reacher

While in jail, Dr. Carter found herself in an unexpected encounter with a brilliant and charismatic individual named Frankie Reacher. Unbeknownst to him, Frankie was destined to become the next President of the United States, the most powerful and influential nation in the world. Their meeting behind bars would set in motion a chain of events that would reshape the course of history. Frankie started as a skeptic, unsure about the potential of cryptocurrencies like Bitcoin and the new Economic Model proposed by Dr. Carter. However, as he witnesses the positive changes these innovations bring to society, she undergoes a profound personal transformation. He had watched from the sidelines as the movement inspired by RACS and the new Economic Model gained momentum. The arrest of Dr. Carter had galvanized him to take a more active role in the fight for change and he was arrested too. During their time in jail, Dr. Carter and Frankie engaged in deep and passionate discussions about the future of their country and the world and the role of money. They shared a common vision of a more equitable and just society, one where the benefits of the digital and economic transformation were shared by all, not just a privileged few. As their bond grew stronger, they hatched a daring plan to bring about the widespread adoption of RACS and the new Economic Model. With Frankie's charismatic leadership and Dr. Carter's groundbreaking ideas, they believed they could ignite a global movement that would challenge the existing power structures and usher in a new era of economic freedom and social justice.

After a long and arduous battle, Dr. Carter and Frankie were finally released from jail. Their imprisonment had only strengthened their resolve to bring about the widespread adoption of RACS and the new Economic Model. They emerged from captivity with a renewed sense of purpose and a growing following of supporters who believed in their vision.