The Boiling Frog
- Martin Enlund
- 9/26/24
The boiling frog is a simple tale that illustrates the danger of gradual change: if you put a frog in boiling water, it will quickly jump out to escape the heat. But if you place a frog in warm water and gradually increase the temperature, it won’t notice the change and will eventually cook itself. Might the decline in cash usage be construed as an example of this tale?
Make money real again!
- Martin Enlund
- 6/19/24
Why is counterfeiting problematic? Most respondents to such a question would likely come up with the following answers: 1) it could undermine trust in the financial system, 2) counterfeit money could fund criminal activities, 3) counterfeit money could cause inflation. Historically, inflation referred to an increase in the money supply, unlike today when economists and lexicographers have re-defined it to mean rising prices). However, these answers may overlook the bigger picture.
Bitcoin and the waterwheel
- Martin Enlund
- 3/31/24
Biologist Stuart Kauffman introduced the concept of the “adjacent possible” in evolutionary biology in 1996. A bacterium cannot suddenly transform into a flamingo; rather, it must rely on small exploratory changes (of the “adjacent possible”) if it is ever to become a beautiful pink flying creature. The same principle applies to human societies, all of which exemplify complex systems. It is indeed challenging to transform shivering cave-dwellers into a space travelers without numerous intermediate steps.
Pride comes before a fall
- Martin Enlund
- 3/31/24
The Governor of the Swedish Central Bank, Erik Thedéen, recently expressed significant skepticism about Bitcoin and cryptocurrencies as a phenomenon, dismissing Bitcoin as “an instrument for pure speculation.” He also pointed out that if there is no possibility to expose oneself to Bitcoin in the Swedish financial system, it might end up “more in criminal hands.” The European Central Bank is on the same track. In a recent blog post, they amused themselves by comparing Bitcoin ETFs to “the Emperor’s new clothes.”
We are all Josef K
- Martin Enlund
- 11/24/23
TL;DR: We are increasingly treated like Josef K, the protagonist in Franz Kafka’s novel The Trial. Perhaps not by the usual legal system but within the ‘shadow judiciary’ of major corporations’ user agreements and the regulatory framework of the financial sector.
