It also shows what happens in an environment without insurance.
If one thinks long and hard about this, one might conclude that the entity insuring such exchanges needs an entire agency of men in black, a standing army, some nuclear missile subs, and hundreds of billions, if not trillions, in reserves. Or, it could be another kind of organization of comparable power.
If I were the leader of an oil-rich state, I'd look into a system of bearer bonds based on cryptocurrency. Some alliance of nations might be able to become the virtual Switzerland of the 21st century, not with mountains to protect it, but complete dispersion and redundancy of its financial resources instead.
Actually, the entity best suited to back, insure, and police a cryptocurrency is the United States. A hybrid fiat/cryptocurrency with those kind of resources behind it would be invulnerable. However, this would just increase the hegemony of the US. (Ironic, that the US could further cement world domination by losing control of individual transactions.)
If one thinks long and hard about this, one might conclude that the entity insuring such exchanges needs an entire agency of men in black, a standing army, some nuclear missile subs, and hundreds of billions, if not trillions, in reserves. Or, it could be another kind of organization of comparable power.
If I were the leader of an oil-rich state, I'd look into a system of bearer bonds based on cryptocurrency. Some alliance of nations might be able to become the virtual Switzerland of the 21st century, not with mountains to protect it, but complete dispersion and redundancy of its financial resources instead.
Actually, the entity best suited to back, insure, and police a cryptocurrency is the United States. A hybrid fiat/cryptocurrency with those kind of resources behind it would be invulnerable. However, this would just increase the hegemony of the US. (Ironic, that the US could further cement world domination by losing control of individual transactions.)