In a world where perfect information supposedly rules across the board, uncertainty certainly poses a challenge to mainstream economists. While some of the tenets of such assumption have been already addressed – via the theory of information asymmetries and the development of the rational expectations school, for example, uncertainty still poses critical questions.
For starters, uncertainty should not be confused with risk. The latter in a nutshell can be quantified using probability theory. Based on existing data and previous behavior, we could
say predict there is a 75 percent chance investments in the stock market can yield a 25 percent reward in say 5 years. This is not the case for uncertainty as here the outcome is entirely unknown. In other words, we have no idea what is going to
My passport seems to profess a deep love for visa stamps. Every time the possibility of travel to another country arises, I can hear its excitement of filling yet another passport page with a brand new and (maybe) shiny visa stamp. The more, the merrier – although blank pages to host additional stamps are becoming scarce, yet again.
Finding an index for all sort of things is one of the traits of our data age. Yes, there is a passport-power index that ranks countries according to visa-free travel. For 2018, Japan and Singapore shared top honors followed by Germany and Denmark. The usual suspects sat comfortably in the basement: Pakistan, Somalia, Syria, Iraq, and Afghanistan. My passport is part of the middle-class having recently risen in the ranks thanks to the addition of the Schengen
A few months ago, as I was finishing a paper on blockchain technology, I received an unexpected comment on Artificial Intelligence (AI from here on in) from one of the peer reviewers. While addressing the overall topic of innovation in the 21st Century, I mentioned in passing the revival of both AI and Machine Learning (ML, not be confused with Marxism-Leninism) as a good example. The reviewer requested the deletion of one of the two terms as, in his book, they were exactly the same. Not so fast, was my prompt reply. In the end, both survived the peer review.
Looking at the history of AI helps shed some light on these concepts. While the AI term was coined in the 1950s, the work of Alan Turing, limited by the use of analog/mechanical computers, can be seen as its launching pad. Digital computers
A silent but intense competition seems to be taking place when it comes to defining blockchain technology. A Google search for the question “What is blockchain” yields over 120 million possible results. This number includes thousands of guides, videos, FAQs and other “educational” material on the subject. A shining example is a video depicting a blockchain expert trying to explain the technology to a 5-year-old kid. Really?
One common trait of all these resources is the lack of agreement on a single and straightforward definition of a blockchain. So take your pick. But, as mentioned in a previous post, this is probably not that relevant. After all, many people use mobile phones on an hourly basis and have no idea how they work. They do not need to, nor do they seem to care about it. The
In a previous post, I pushed the idea that mining is part of the blockchain economy’s real sector. Unlike financial speculation, mining requires investment in hardware, electricity, space, human resources, etc. This also applies to small miners who will undoubtedly have to defray a lower investment amount but can join a mining pool to share mining revenues. Also, miners face intense competition, which reflects the high level of profitability in the sector.
Mining calculators seem to proliferate on the web. Such sites offer potential mining investors a rough idea of how much they can make daily and/or monthly, given the crypto’s current price being mined and the hashing the investors are willing to purchase. For example, I am told that if I buy Bitcoin mining hardware that can compute 100
It has already been three months since I last checked the ICO scene. At the time, I suggested ICOs were probably slowing down. New data seems to confirm this but all points to other trends not detected before. Figure 1 presents the latest data
ending on 31 May. 159 ICOs were successfully completed between March and May raising over 4 billion dollars. The data includes the Telegram wh.ich collected over 1.7 billion dollars in spite of not holding a public ICO phase. Telegram can indeed be seen as a statistical “outlier” making last April the most successful month ever. Note that the number of successful ICOs did not increase overall. March matched February with 57 ICO but was much more skinny regarding resources. April and May are fatter but do not exceed the number of ICOs of the previous
Disruptive. One of the attributes that most use to describe in minimalistic terms the potential impact of new and emerging information and communication technologies (ICTs) in society. While its actual meaning can vary from one person to another, disruption is usually linked to dramatic short-term change where old and obsolete technologies, processes and institutions -not to mention people – will be either replaced or purge altogether, all for the best.
Disruption is thus implicitly connected to the concept of progress, especially to its linear version. Here, progress is seen almost like time is in physics: it always goes forward, and it is impossible to go back and say edit the past. Recent research has challenged the linear conception of progress((See for example Amy Allen’s book, The
Many observers seem to assume blockchain technology is an immovable monolith. While such assumption does help when trying to explain how the technology works to the general public, this is not the case when describing the actual status of the technology.
Rapid and agile innovation is one of the core traits of blockchains, backed by impressive human talent with substantial financial resources, addressing not only some of its well-known limitations but also enhancing its core functionality. Blockchain technology is evolving rapidly and the best way to take stock, for now, it’s via frequent snapshots. In fact, keeping track of blockchain innovations could quickly become a full-time job. In any event, the monolith is not only moving. It is indeed flying at the speed of light.
ICO data for last February is now available and shown in Figure 1 below.
We can immediately see that both the number of ICOs and the total investment volume has decreased. The latter, which amounted to 1.2 billion USD for the month, is 20 percent less than the total for January this year. The same goes for completed ICOs which decreased 21 percent. Among them, only one ICO surpassed 100 million dollars, reaching 150 million. And it managed to distance itself from the runner-up by a cool 100 million.
Figure 2 confirms the decline in total monthly investment but shows that the median declined only slightly or about 1.2%.
Even so, the median investment per ICO is still above 16 million dollars.((The average is much higher but probably not significant as the statistical distribution
I was invited to Canada to discuss my blockchain technology paper. Here are my opening remarks at the panel organized by Government Affairs and IDRC.
Speaking about a seemingly complex subject such as blockchains poses a challenge not only for me but also for you, the audience. More so when the time is scarce. It is probably not the same challenge, however. Perhaps the best way to start this conversation is to take a step back and start with technological innovation. Technological innovation has been around longer than you and me, for sure. But what has changed nowadays is the frequency in which innovation is happening, especially since the dawn of digital computing and electronics.
The Internet is no doubt the best example here. Initially conceived with government support and public