- Tuesday, September 8th
- Rooms #1903, 19th floor, National Institute of Informatics
- BitCoin - Better than Money?
- Prof. Guenter Mueller, University of Freiburg
- The presently dominating money system has huge transaction costs. These are the profits of the financial organizations and the speculation in exchange rates and prices. The term financial industry implicates an independence from the real economy. Bubbles show that thisis an illusion. Bubbles happen when too much money is available, and thus money must be destroyed.
CryptoCurrencies can theoretically solve this, and BitCoin is the most advanced cryptosystem. It is not the first, but the most accepted CryptoCurrency. Decentralization by eliminating banks resulted in reduction of transaction cost. Control of money is done by cryptographic algorithms and under the observation of the whole net community in the block chain.
This idealistic picture has recently experienced severe damages. Several criminal cases, like the theft at Mt Gox or the money laundering in Silkroad, but also the limited privacy as well as the in transparent decision making of anonymous centralized bodies to solve doublespending and volatility of exchange rates has caused comments that CryptoCurrency at its present state of developmentsupports rather criminals than normal users.
Isao Echizen, Ph.D.
E-mail: iechizen[at] nii.ac.jp
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