Satoshi Nakamoto published his theoretical white paper explaining the mechanism of the bitcoin in October 2008. Although the paper is only 9 pages long, it describes one of the most significant inventions in recent years, the blockchain technology responsible for the authentic clearing of bitcoin transactions.
On paper, we could nicely deduce that the Greeks will eventually back down and accept the measures, and the EU won’t budge and will refuse to write off the debt. And behold, this is exactly what’s happening. According to game theory prognosis, however, this cannot possibly go down smoothly.
The game that has been going on for months now between Greece and the EU (as well as the IMF and the ECB) is often called a game of “chicken”. This is a reference to a car challenge, wherein two drivers drive towards each other on a collision course. The one who swerves first is the chicken, and the opponent wins the game. But is it really a “chicken” situation? Where is it headed? We analysed this below using game theory methodology.
The massive economic policy experiment carried out worldwide with a combination of zero interest and money printing is far more terrifying and dangerous, because it is taking place at a systemic level. On the other hand, I can take at least some comfort in the knowledge that if the experiment were to fail, for example leading to economic chaos and soaring inflation, there is an instrument which provides a safe haven because there is a limited quantity of it available, it can function as scriptural money, and yet no authority can seize it, appropriate it or restrict its use.
European money printing is starting off with purchases of government securities. But does that makes sense? Because new money will be channelled to the rich, who will mostly save it rather than spending it and boosting the economy. Is there not a more intelligent way of monetary easing? I think there is.
The institution of basic income reminds many people of socialism. You went to the factory, did nothing, then collected your wages. The difference is that now there is no need to go anywhere for your wages, but the government still interferes seriously with the distribution of income. Yet, basic income allows a much more human capitalism to be created, which continues to be driven by competition, but does not involve extreme poverty.
Bitcoin was the first money in history invented by the private sector and based solely on trust, for example, it is not backed by gold deposits. The initial scepticism about bitcoin was in fact due to the fact that since no one had seen anything like that previously, there were doubts about its viability. No one believed bitcoin. Its creation opened the road for the geniuses of the future to construct a monetary system that works much better than the one currently in place, while providing cutting-edge technology in its services.