The innovation that will shape the coming year, I think, will be the consumer use of digital currencies, such as Bitcoin and its derivatives. Companies such as ChangeTip, BitWall, BitPay, and Coinbase – as well as other digital wallets that make use of cybercurrencies or loyalty-points/miles currencies – will empower creators and consumers of content and wrest some power from the Amazons, Alibabas, and Apples. This will upend our current kludgy financial system and ignite an explosion of disruptive innovation.
Is our current financial system "kludgy"?
As you may have guessed, I love technology, but I shy away from electronic payments that involve my smartphone.
The idea of a currency, purely based on bits and bytes is where I draw the line, and the problems Bitcoin had last year was enough to convince me it's not a good idea.
Currencies will be the topic of a Wednesday Second Life session, and we will be reading the following text in a future Monday session.