Currency Multiplicity: Social Economic Networks

Cryptocoin multiplicity is just one kind of currency multiplicity in the modern world. More broadly, we are living in an increasingly multi-currency society with all kinds of monetary and non-monetary currencies. First, there is currency multiplicity in the sense of monetary currency in that there are many different fiat currencies (USD, CNY, EUR, GBP, etc.). Second, there are many other non-fiat, non-cryptocurrencies like loyalty points and airline miles; one estimate is that there are 4,000 such altcurrencies [1]. Now there is also a multiplicity of blockchain-based cryptocurrencies like Bitcoin, Litecoin, and Dogecoin. Fourth, beyond monetary currencies, there is currency multiplicity in non-monetary currencies too like reputation, intention, and attention as discussed above.

Market principles have been employed to develop metrics for measuring non-monetary currencies such as influence, reach, awareness, authenticity, engagement, action-taking, impact, spread, connectedness, velocity, participation, shared values, and presence [2]. Now blockchain technology could make these non-monetary social currencies more trackable, transmissible, transactable, and monetizable. Social networks could become social economic networks. For example, reputation as one of the most recognizable non-monetary currencies has always been an important intangible asset, however was not readily monetizable other than indirectly as an attribute of labor capital.

However social network currencies can now become transactable with web-based cryptocurrency tip jars (like Reddcoin) and other micropayment mechanisms that were not previously feasible or transnationally-scalable with traditional fiat currency. Just as collaborative work projects like open-source software development can become more acknowledgeable and remunerable with github commits and line-item contribution-tracking, cryptocurrency tip jars can provide a measurable record and financial incentive for contribution-oriented online activities. One potential effect of this could be that if market principles were to become the norm for intangible resource allocation and exchange, all market agents might start to have a more intuitive and pervasive concept and demonstration of exchange and reciprocity. Thus social benefits like a more collaborative society could be a result of what might initially seem to be only a deployment of economic principles [3].

References
[1] Lietaerm B. nad Dunne, J. (2013). Rethinking money: how new currencies turn scarcity into prosperity. London, UK: Berrett-Koehler Publishers.
[2] Swan, M. (2010). “Social economic networks and the new intangibles.” Online text from the Broader Perspective blog. 
[3] Swan. M. (2009). “New Banks, New Currencies and New Markets in a Multicurrency World: Roadmap for a Post-Scarcity Economy by 2050.” Create Futures IberoAmérica, Enthusiasmo Cultural, São Paolo Brazil, October 14, 2009.

MOOCs The Platform: Education, Vocational Training, and More

MOOCs (massive online open courses) reinvented education in the mode of global accessibility, even faster than blogs and ebooks reshaped the publishing industry. Now in place as a concept and an infrastructure, ‘MOOCs as a platform’ can be used for other purposes, most proximately vocation and training. Already much of MOOC content is an educational-vocational hybrid of learning new things like knowledge and skills for the digital economy in the form of bootcamps and code academies for software programming, web services, mobile applications, and big data science.

MOOCs are a resilience tool for being able to quickly retrain large numbers of individuals that may be displaced in economic shifts such as the increasing automation of the economy (i.e.; self-driving vehicles, machine intelligence supplanting knowledge-worker jobs). More generally MOOCS as a concept category are concerned with ‘in-habbing’ - habilitating anyone into any situation - and ultimately the next-generation of the Internet that facilitates massive online collaboration and social connectivity.

A fun science fiction idea could be artificial intelligence waking up grâce à contemporary digital environments like MOOCs, YouTube (image recognition), and high-frequency trading networks. As a MOOC instructor, the new Turing Test would be determining if your online student is a machine or a person; that is to the degree this question still matters.

Future of entrepreneurialism

The traditional definition of entrepreneurship is expanding to include more creative ways of approaching business, applying business disciplines to social problems and establishing a wider range of success metrics. Four key trends are coming together to facilitate this new era of entrepreneurship: a shift in social consciousness, the democratization of capital, innovative responses to traditional financial systems and the low cost of starting a startup in the globalized world.

Shift in social consciousness
There is a great attitude shift underway towards sustainability and social responsibility. Al Gore, Paul Hawken and others have helped to put global warming, carbon neutrality, poverty and equity firmly on the international agenda. Part of the new social consciousness is also about effectiveness and accountability. Cycling the bottom of the pyramid out of poverty requires getting target populations actively involved. Loans are better than aid.

Democratization of capital
The ability to have more granular attribute knowledge about all economic transactions has triggered the demand to direct capital and consumption based on these affinity attributes. People are willing to pay on average 5-10% more for their attribute choices, for fair-trade, organic and local items, for hybrid cars and for blended value or double/triple bottom line financial returns.

Innovations to the traditional financial system
The shortcomings of traditional financial systems, their hierarchical nature, the lack of universal access and cyclic failures like the current mortgage crisis are triggering innovative solutions such as…

• Microfinance and P2P finance (for example, Kiva is currently active in 40 countries and lending about $750,000 per week)
• Socially Responsible Investing and social capital markets including social venture capital as offered by GoodCap
• Timebanks, gift economies and other non-monetary currency solutions
• Alternative payment mechanisms like developing country cell phone networks as money transfer systems

Low cost of starting a startup in the globalized world
The increasingly low cost of starting a startup makes a whole new tier of businesses possible: the LAMP software bundle provides free technology infrastructure, APIs replace business development and blogs and community interaction replace marketing (social networks become an overlay, a property of every website) and virtual world interactions replace face-to-face meetings.

Capital markets evolution

A confluence of factors is impacting capital markets: first, the repeated failure of traditional financial markets (“Fed puts lipstick on Bear Stearns’ pig”) to provide capital and accurately-represented non-fraudulent investment products and their subsequent bail-out by taxpayers, second, the great shift in cultural attitude towards sustainable and socially responsible capital use (“Global 100 Most Sustainable Corporations” and “Beyond the Green Corporation”) and third, the inexorable expansion of technological capability and the entrepreneurial ideas that exploit it.

Business Model Spectrum
The expansion of technological capability is allowing business models to evolve and expand and is the topic of long-tail meme-founder Chris Anderson’s new book, Free. Digital business costs such as bandwidth and storage have become so inexpensive that it is essentially free to provide an increasing number of web-based services. Some of the new business models include:

1. Alternative monetization - competitive pressures suggest offering services for free and monetizing other aspects such as attention (traffic) and reputation (links).
2. Freemium - a combination of free plus premium services. It may be in the open source software model (free software, fee-based up-sell for implementation, customization and support services) or the flickr model where the small group of paying customers (1%) subsidizes the free offering for the others (99%).
3. Indirect model – a wider application of third-party supported offerings (formerly TV and radio, now search engines, website content and sponsor and gambling-supported free Ryanair flights).

Consumer Financial Services 2.0
Context, culture and appropriateness are important properties of social networks. FaceBook, MySpace, LinkedIn, Pownce, Jaiku and Twitter are not the place to talk about money but financial social networks are.

It is quite possible in the future that social networks will be the accompanying community feature to any website or topic area.

Finance 2.0 websites offer financial services and a venue to create and interact with the user community around them. For example, Wesabe, Expensr, Mint and Geezeo provide expense aggregation and management. NetworthIQ, Boulevard R, and Zecco provide investment and financial planning services. Several of these Financial Services 2.0 companies are being featured at conferences such as O'Reilly Media's Money:Tech, BarCampBanks and Finovate. As with many technologies, age-tiering is apparent as under 30s enjoy the benefits of aggregated financial services while those over 30 await a higher level of security. Yodlee and BITS are working to establish industry standards for financial information access via tokens and credentials, similar mechanisms will be needed for digital health information.