Bitcoin and Beyond: Exclusively Informational Monies

Abstract

The famous new money Bitcoin is classified as a technical informational money (TIM). Besides introducing the idea of a TIM, a more extreme notion of informational money will be developed: exclusively informational money (EXIM).The informational coins (INCOs) of an EXIM can be in control of an agent but are not owned by any agent. INCOs of an EXIM cannot be stolen, but they can be lost, or thrown away. The difference between an EXIM and a TIM shows up when considering a user perspective on security matters. Security for an EXIM user is discussed in substantial detail, with the remarkable conclusion that computer security (security models, access control, user names, passwords, firewalls etc.) is not always essential for an EXIM, while the application of cryptography based information security is unavoidable for the use of an EXIM.Bitcoin seems to meet the criteria of an EXIM, but the assertion that "Bitcoin is an EXIM", might also be considered problematic. As a thought experiment we will contemplate Bitguilder, a hypothetical copy of Bitcoin, cast as an EXIM and its equally hypothetical extension BitguilderPlus.A business ethics assessment of Bitcoin is made which reveals a number of worries. By combining Bitguilder with a so-called technical informational near-money (TINM) a dual money system, having two units with a fluctuating rate, may be obtained. It seems that a dual money can remedy some, but not all, of the ethical worries that arise when contemplating Bitcoin after hypothetically having become a dominant form of money.The contributions that Bitcoin's designers can potentially make to the evolution of EXIMs and TIMs is analyzed in terms of the update of the portfolio of money related natural kinds that comes with Bitcoin.

Architectural Adequacy and Evolutionary Adequacy as Characteristics of a Candidate Informational Money

“…Only by changing one's theory of money, or one's approach to applying that theory, the adequacy judgement for a specific candidate money may be changed. A positive judgement on architectural adequacy needs to incorporate a detailed view on what kind of money, that is what subset of the functional moneyness criteria as mentioned in [3] is supposed to be met, an MLIC might possibly constitute.…”

“…In [3] moneyness has been portrayed as a multidimensional notion. Each money can be thought of as a member of a space of possible monies.…”

“…I assume that within the EXIC's some systems are much better than other systems in guaranteeing the anonymity of system users. 3 Strictly informational commodity (STRIC): A strictly informational commodity differs from an EXIC only by allowing and possibly supporting information based authentication. Misleading that authentication is legally permitted (though it constitutes a misuse of the design objectives of the underlying system).…”

“…Promising to pay and not paying for instance cannot be punished in any manner, except the refusal to interact with the same person once more (modulo authentication). 3 The recent advance of negative interests in the Eurozone has brought about a renewed interest for cash as it provides one with a way of storing money without the risk of being punished by negative interest rates. The anonymity of cash greatly contributes to that capability of it.…”

“…In [3] and [4] it has been argued that the phrase informational money may be helpful for understanding moneyness issues about systems like Bitcoin as first described in [14]. However, the notorious question whether or not Bitcoin constitutes a money is certainly not solved by simply asserting that it constitutes an informational money rather than a conventional money.…”