Bitcoin: Financial Deepening and Currency Internationalization

Bitcoin: Financial Deepening and Currency Internationalization

http://jpkoning.blogspot.com/2013/02/financial-deepening-and-currency.html Much of the conversation about bitcoin adoption focuses on its use in goods and services transactions. Breaking bitcoin news , for instance, draws attention to the fact that the Internet Archive will be giving employees the option to be paid in bitcoin. This focus on brick & mortar transactions means that the role that bitcoin financial instruments—stocks, bonds, and derivatives—have to play in promoting bitcoin adoption often gets overshadowed. I'm currently reading Barry Eichengreen's Exorbitant Privilege which goes into the mechanics of what it takes to create a truly international currency. Eichengreen points out that prior to World War I the dollar played a negligible role relative to the pound sterling in world markets, but by the mid 1920s it was the dominant unit for invoicing payments and d...

Full article: http://themonetaryfuture.blogspot.com/2013/02/bitcoin-fin...