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Beyond Blockchain: The Death of the Dollar and the Rise of Digital Currency
The cryptocurrency trend of the past few years has continued to grow despite widespread predictions that it would just be a flash in the pan. Blockchain is suddenly everyone’s favorite buzzword. But what if there’s more to this story than meets the eye? What if Digital Currency is about to change the world in ways beyond our imagination? And what if geopolitical forces our politicians don’t even understand have already inspired China and Russia to use Digital Currency to attack the U.S. Dollar’s dominance over the global financial system? The Dollar has served as the world’s reserve currency since 1944, and the fringe benefits have allowed the U.S. Government to borrow and spend beyond its means and run massive trade deficits for decades. Now China and Russia suddenly have a new lever to use which could upset the global balance of power. Who would have guessed that technology breakthroughs conceived by the inventors of cryptocurrency would hand China and Russia just the weapon they needed to attack the Dollar’s rule over the global economy? The invention of digital cash enables government-issued digital currency systems that could completely modernize the global monetary system. The potential benefits to society are so great that it’s hard to grasp their full magnitude. But a digital currency system introduced by China and Russia could upstage the Dollar and replace it as global reserve currency, causing devastating consequences for the U.S. economy. Which country wins the new digital currency Space Race could change the course of human history. There’s plenty of evidence that China and Russia are already hard at work. The Chinese central bank is aggressively hiring Blockchain engineers, but has been suspiciously quiet about what they’re working on. Sergei Glaziev, economic advisor to Russian President Vladimir Putin is giving keynote speeches to Blockchain conferences. The Chinese central bank filed more digital currency patents than anyone else in 2017. This book explains why China and Russia are suddenly so interested in Digital Currency technology, and more importantly, what they plan to do with it. Time is short for the U.S. Government to wake up and recognize the threat that now looms over the U.S. Dollar’s dominance at the center of the global financial system, and why Digital Currency technology is likely to be the challengers’ weapon of choice to defeat the Dollar. Author Erik Townsend is uniquely qualified to sort this puzzle out and tell the entire fascinating story. In his first career, Townsend was a distributed systems architect – an expert in all the technologies used to create cryptocurrencies. In his second career, he was a hedge fund manager who studied reserve currency status extensively. Townsend first gives readers an introduction to both conventional money and digital currency, then gives a detailed introduction to relevant monetary history subjects, and finally ties it all together and explains how a state-sponsored digital currency system could steal the title of global reserve currency from the U.S. Dollar and change the balance of world power.
254 pages, Kindle Edition
Published November 15, 2018
87 people are currently reading
145 people want to read
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Displaying 1 - 9 of 9 reviews
September 23, 2024
Erik Townsend's "Beyond Blockchain" offers a comprehensive exploration of digital currency technology and its potential to reshape the global monetary system. The author presents a compelling case for why understanding cryptocurrencies is crucial in today's rapidly evolving financial landscape.
Townsend establishes his credentials early in the book, demonstrating his expertise in both technology and finance, which lends credibility to his analysis of this complex subject.
Townsend begins by outlining the original vision behind cryptocurrencies: creating a superior monetary system free from government control. Interestingly, he points out the irony that the U.S. government, often seen as the defender of dollar hegemony, might actually benefit significantly from digital currency technology.
The book provides valuable context on the U.S. dollar's role as the global reserve currency since 1944. This is something I wasn't actually aware of and Townsend highlights growing international discontent with this system, noting vocal opposition from Russia and China, as well as concerns raised by traditional U.S. allies like Germany and the EU.
A strength of the book and a personal favourite of mine, is its clear explanation of fundamental money (currency) concepts. Townsend breaks down the three key criteria for a currency system (store of value, unit of account, medium of exchange) and explores different types of money (commodity, representative, and fiat). This foundation helps readers better understand the potential and challenges of cryptocurrencies.
Townsend delves into the technical aspects of cryptocurrencies, explaining distributed ledger technology, blockchain, and the innovative solutions to problems like double-spending. He also discusses the environmental concerns related to Bitcoin mining and potential alternatives like proof-of-stake systems.
He provides a balanced analysis of Bitcoin, comparing it to traditional currency systems. While acknowledging its innovations, he also points out areas where it falls short of being a complete replacement for fiat currency.
A key theme throughout the book is the tension between the cryptocurrency community's desire for decentralization and the reality of government power. Townsend argues that while complete independence from government oversight is unlikely, cryptocurrencies will still play a significant role in the future of finance.
The book emphasizes that digital currencies are not just a passing trend but a technological breakthrough with the potential to fundamentally change how money works. Townsend's analysis helps readers understand the broader implications of this technology beyond just its use as a speculative asset.
Conclusion
As a reader, I found Townsend's writing style engaging and appreciated his ability to make complex topics accessible. The book provided me with a deeper understanding of the forces driving the development and adoption of digital currencies.
One particularly thought-provoking aspect was Townsend's call to consider the moral consequences of this powerful technology. He reminds us that with great innovation comes great responsibility.
"Beyond Blockchain" offers a thorough and thought-provoking examination of digital currencies and their potential impact on the global financial system. It's an excellent resource for anyone seeking to understand the broader implications of cryptocurrency beyond just its technological aspects. While the book is dense with information, the information is necessary to truly understand what's at stake but Townsend's clear writing and structured approach make it accessible to both newcomers and those with prior knowledge of the subject. I would highly recommend this book for readers interested in the future of money and global finance.
Townsend establishes his credentials early in the book, demonstrating his expertise in both technology and finance, which lends credibility to his analysis of this complex subject.
Townsend begins by outlining the original vision behind cryptocurrencies: creating a superior monetary system free from government control. Interestingly, he points out the irony that the U.S. government, often seen as the defender of dollar hegemony, might actually benefit significantly from digital currency technology.
The book provides valuable context on the U.S. dollar's role as the global reserve currency since 1944. This is something I wasn't actually aware of and Townsend highlights growing international discontent with this system, noting vocal opposition from Russia and China, as well as concerns raised by traditional U.S. allies like Germany and the EU.
A strength of the book and a personal favourite of mine, is its clear explanation of fundamental money (currency) concepts. Townsend breaks down the three key criteria for a currency system (store of value, unit of account, medium of exchange) and explores different types of money (commodity, representative, and fiat). This foundation helps readers better understand the potential and challenges of cryptocurrencies.
Townsend delves into the technical aspects of cryptocurrencies, explaining distributed ledger technology, blockchain, and the innovative solutions to problems like double-spending. He also discusses the environmental concerns related to Bitcoin mining and potential alternatives like proof-of-stake systems.
He provides a balanced analysis of Bitcoin, comparing it to traditional currency systems. While acknowledging its innovations, he also points out areas where it falls short of being a complete replacement for fiat currency.
A key theme throughout the book is the tension between the cryptocurrency community's desire for decentralization and the reality of government power. Townsend argues that while complete independence from government oversight is unlikely, cryptocurrencies will still play a significant role in the future of finance.
The book emphasizes that digital currencies are not just a passing trend but a technological breakthrough with the potential to fundamentally change how money works. Townsend's analysis helps readers understand the broader implications of this technology beyond just its use as a speculative asset.
Conclusion
As a reader, I found Townsend's writing style engaging and appreciated his ability to make complex topics accessible. The book provided me with a deeper understanding of the forces driving the development and adoption of digital currencies.
One particularly thought-provoking aspect was Townsend's call to consider the moral consequences of this powerful technology. He reminds us that with great innovation comes great responsibility.
"Beyond Blockchain" offers a thorough and thought-provoking examination of digital currencies and their potential impact on the global financial system. It's an excellent resource for anyone seeking to understand the broader implications of cryptocurrency beyond just its technological aspects. While the book is dense with information, the information is necessary to truly understand what's at stake but Townsend's clear writing and structured approach make it accessible to both newcomers and those with prior knowledge of the subject. I would highly recommend this book for readers interested in the future of money and global finance.
April 20, 2020
Such an amazing book about the future of the financial system. The author talks about a new global digital currency that may upstage the dollar as the official reserve currency and international settlement currency.
The first half of the book contains a very well done overview of some aspect of the financial system important to to fully grasp the impact a global scale digital currency can have.
The authors also talk about Blockchain, the history of Bitcoin and his view on how the cryptocurrencies will fare in the future.
In the last chapters the author finally talk about how a global stage digital currency might be created, the infrastructure architecture needed (with a good analysis on permissioned distributed ledger systems) and an integrated digital sovereign bond Market.
Overall I believe it was an interesting look into the future, I recommend this book. 5/5 stars.
The first half of the book contains a very well done overview of some aspect of the financial system important to to fully grasp the impact a global scale digital currency can have.
The authors also talk about Blockchain, the history of Bitcoin and his view on how the cryptocurrencies will fare in the future.
In the last chapters the author finally talk about how a global stage digital currency might be created, the infrastructure architecture needed (with a good analysis on permissioned distributed ledger systems) and an integrated digital sovereign bond Market.
Overall I believe it was an interesting look into the future, I recommend this book. 5/5 stars.
May 21, 2020
Very good book that describes quite extensively the current monetary system and how it could be enhanced by incorporating digital tokens instead. What is bitcoin and its inner workings is also satisfactorily explained. The book explores the possibility of a new digital currency becoming reserve one instead of the dollar. The possibility of digital fixed income assets like bonds is also explored.
One of the contentious premises of the book is that the open, distributed ledger technology will not be welcomed by future governments as they will use permissioned, centralised ledger. The author even see the current cryptos being outlawed in the future.
Overall a very good read and recommended for people interested in banking, economy, investing and finances.
One of the contentious premises of the book is that the open, distributed ledger technology will not be welcomed by future governments as they will use permissioned, centralised ledger. The author even see the current cryptos being outlawed in the future.
Overall a very good read and recommended for people interested in banking, economy, investing and finances.
March 23, 2020
I'm quite familiar with all the concepts included, but haven't seen them all put together like this.
A far as computerizing the financial system we are at the "programming with assembly" stage and trying to build our first OS; DOS thought, not a modern OS. If you don't understand the analogy you'll probably get left behind in the coming decades. I will continue to watch the blockchain/cryptocurrency space.
A far as computerizing the financial system we are at the "programming with assembly" stage and trying to build our first OS; DOS thought, not a modern OS. If you don't understand the analogy you'll probably get left behind in the coming decades. I will continue to watch the blockchain/cryptocurrency space.
December 31, 2020
A Very Plausible Vision of Changes to Come
This was a great book that lays out the basics of crypto currencies and developments that are likely to occur with a global blockchain payment system. As Erik astutely points out, these could be either be very good or very bad for individuals / citizens.
Hopefully knowing these changes are coming will give me a leg up on understanding them when they arrive.
This was a great book that lays out the basics of crypto currencies and developments that are likely to occur with a global blockchain payment system. As Erik astutely points out, these could be either be very good or very bad for individuals / citizens.
Hopefully knowing these changes are coming will give me a leg up on understanding them when they arrive.
April 26, 2021
Great book on the future of central bank digital currency
If you are MacroVoices fan, you will love this book as I did. Super interesting take on the future of central bank digital currency, what it might mean for Bitcoin and the US$.
If you are MacroVoices fan, you will love this book as I did. Super interesting take on the future of central bank digital currency, what it might mean for Bitcoin and the US$.
January 4, 2023
This book explains very well the why and how of US future government ran digital currency that is bound to happen. It is also a great education on the workings of the current monetary system both in the US and abroad. Thanks for writing this book!
April 23, 2023
a great primer on digital currency
A very big help for anyone seeking a basic understanding of crypto, digital currency and related issues. Would love to see an updated version that discussed more recent developments
A very big help for anyone seeking a basic understanding of crypto, digital currency and related issues. Would love to see an updated version that discussed more recent developments
February 11, 2021
Great foundation for anyone interested in the broader possibilities of crypto in finance
Exceptionally well explained for the layman
Candid account of the first 10+ years of crypto and DLT
Concise summary of currencies and central banks
Well reasoned opinion for what comes next
Free of crypto hype, but does include candid hopes and fears
Exceptionally well explained for the layman
Candid account of the first 10+ years of crypto and DLT
Concise summary of currencies and central banks
Well reasoned opinion for what comes next
Free of crypto hype, but does include candid hopes and fears
Displaying 1 - 9 of 9 reviews