Ethereal Value and the Cryptofuture (The Economic Definitions, #3) / The Economic Definitions (ePub)

Ethereal Value and the Cryptofuture is the final book in "The Economic Definitions" trilogy, after "The Definition of Money" and "The Definitions of Value"; which are required reading to fully understand this book. As it stands, traditional measurements of value have trouble dealing with describing value in the information realm. Yet we still value some digital things. Where does that value come from? And what is it based on? Those are the values I've dubbed Ethereal Values; values that don't exist within reality in any way, shape or form, but nonetheless do exist. Using this newfound knowledge, I reveal the first quantifiable ethereal value, meaning the very first value that we all commonly share as a species, put into numbers. A value that, because we all share it deeply, has a universal value to us, and therefore can serve as a backing for the first true completely digital sound money system.

Cryptocurrency is used to do it, hence the second part of the title. Yet I also use a chapter in my book to explain exactly what is wrong with first generation cryptocurrency. But rather than do away with "Proof-of-work", the labor performed by the computers is redirected, intertwining two systems together in order to justify the value of the work performed, thereby inventing Proof-of-work 2.0: "Proof-of-Value", as the work done to verify the network is value-justified.

With this, it becomes possible for a cryptocurrency like Bitcoin to scale in speed, security AND decentralization at the same time. It is considered the holy grail of crypto, and this system achieves it. But it goes beyond this. It takes into account economic realities, and bases the size of its money stock directly on economic activity automatically. The larger the economy grows, the larger the money stock grows. If the economy shrinks, the money stock shrinks. Through this system, Inflation and Deflation become solved.

Ultimately, using the properties inherent to the base network, an interconnected 2nd layer system is created which invents and allows for Trustless Central Nodes, through yet another new concept called Distributed Functionality; allowing anybody with a spare computer to set up a trusted central processing node, and grow big enough to challenge VISA and PayPal in the end. The system scales profitably, while using the base network for forced trustless mathematical audits to ensure trustless operation.

Yet, it's still not an exact set way of doing things. I offer an economic framework within which multiple ways of doing things can co-exist. It uses Bitcoin and other open source software as a base, specifically so many existing cryptocurrency could adjust their system to the knowledge found in this book.

As long as one adheres to the rules laid out in the books, anyone with programming skills could set up a currency that CAN compete with Gold, Fiat, or ANY OTHER SYSTEM to become the next global reserve currency! It is superior money, even to gold, that could even power The Federation of Planets!

Even if one wishes to stay out of the future power struggle altogether, this book will still allow one gain a much deeper understanding of how value should apply to cryptocurrency and virtual assets in general. If nothing else, it's the end to a fascinating character study of humanity, ending in describing the very core of all problems in western society today.