Realizing money is just another broken supply chain with no particular special properties. Just a lot more people interested in mystifying it
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It’s a “problem” because some people derive large rents from incumbent distribution of money. A new distribution pattern would work for everybody except them. It’s not pure rents, there’s function too. Money flows via banks for good reasons. But those reasons have unraveled.
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The good reasons are that under normal conditions, there’s often a lot more need to move money at concentrated scales. They serve the need for 10 moves of a billion $ rather than a billion moves of $10. But that picture has changed.
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The normal unit economics of money are: bespoke and robust at large unit size, standardized and fragile at small unit size. New supply chain spec: robust and bespoke at small unit size. Quickly get $10 -$1000 to anyone in *hours to days* based on processing of personalized data.
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Need to think about velocity of money in a 2d space of unit size and transaction costs (not “cost of capital” which is a separate, narrower thing). Money needs to get much smarter in the low-unit-size/high-velocity quadrant so it can move more flexibly.
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Analogy: we shop for consumer-grade money ay the level of 19th century pre-supermarket general stores. Very low volume, velocity, variety. We need the e-commerce equivalent of money. An amazon of money which can deliver personalized money lots to the last mile.
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Chamath’s viral CNBC rant on “don’t bail out the billionaires” is currently a moral argument. It needs to be a supply chain argument. Nothing against the billionaires. They are just not the priority. Preserving their rents is simply the wrong supply chain problem statement.
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End of conversation
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With enough inflation they are substitutable.
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Well, just as devil’s advocate: part of the utility of (fiat) money comes from people’s willingness to “believe” in it as money. TP’s utility is inherent in the product. Inflation expectations of people has gotta distort money sup. chain dynamics, right?
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