Editorial note: I know I said I was going to write about other things, but the following point just occurred to me.
The Fed is currently committed to purchasing $88 billion USD per month in assets.
Regardless of whether you agree with their policy, they should set aside a million dollars per month from that amount (which is so small that it couldn’t be represented in the error bars of their purchase) and use it to purchase BitCoins, on a cost-averaged basis, at whatever the exchange rate happens to be on that day. There’s basically no risk for them at all at that small volume, even if those BitCoins wind up being worthless.
Why, you might ask.
Sounds like a silly (even childish) endeavour for so serious an institution as the US Federal Reserve Bank. After all, the entire BitCoin economy is only a billion and a half dollars.
Here’s the thing: at least some BitCoin enthusiasts believe fervently that BTC is going to be a multi-trillion dollar economy some time soon, and will in the process displace fiat currencies. I would be overjoyed if that were to be the case, but I’ll reserve judgement for now.
At the very least, BTC is a very interesting beasty, and it has some exceedingly useful properties in terms of what the Fed claims to be trying to accomplish.
It would provide a floor for the BitCoin market, in addition to lots of liquidity.
It would ipso facto allow BitCoin to grow into what it theoretically can become. With major involvement, other big parties would feel more comfortable jumping in, more eyes would be on the markets (theoretically driving out the crooked players), and there would be impetus to build scalable exchanges (and to regulate away the pump and dump nonsense)
Key issue, from the Fed’s perspective: It would provide a highly effective trickle down effect to places the current stimulus doesn’t reach – many ordinary people on the street mine BitCoin, which would be made more valuable by the purchase; this would also trickle up to a wide variety of hardware manufacturers (some of them niche) as well.
If (or when) BitCoin finally does become a global reserve currency of sorts, the Fed would have enough of a stake in the market to allow the US economy to still be relevant.
A similar argument applies to all other world economies.
Every motorist knows the pain of a flat tire. The modern low-profile tire is an amazing piece of technology, but it is still susceptible to sharp pieces of metal, carelessly left on a service station floor. Continue reading →
The basic layout of vehicles on the road (in North America, anyhow) is amazingly homogenous. Think about it: there are cars with four wheels, motorcycles with two, and trucks with anywhere from four to twenty-plus wheels (in two varieties – attached and detached cabs).
The last time I saw a three-wheeled T-Rex, it looked so outlandishly exotic, that a crowd gathered around it (the owner had parked it on the sidewalk outside a store). You don’t usually see that even with exotic Italian supercars.
There’s actually a lot of experimentation with wheel plans (i.e. the vehicle equivalent of room plans in a home), but we don’t see it much on a day-to-day basis. Continue reading →
One of the drawbacks with current 3D printing technology is the slow rate at which objects are built up in layers from hot plastic thread. The process of printing objects of any significant size can take hours.
Using a technique similar to airbrushes may speed things up. If the source material is in a fine powdered form instead of a solid thread, and is pushed through the print head (or nozzle in this case) under pressure, then it is simply a matter of determining a way to accrete the plastic into a solid object. Continue reading →
There’s an asymmetry in the data center, and it might be an opportunity for somebody to build a new product line (hint, hint: HP, Dell).
There are plenty of products that consist of a box filled with storage devices – we call them SANs (storage area networks). They’re essentially what allows big data to exist, by packing large amounts of storage into a relatively small space.
In case you haven’t heard, Boeing has been having battery troubles with its new flagship Dreamliner aircraft. The batteries have occasionally been catching fire, and the planes are now grounded until they determine what the issue is.
Hopefully they’ve figured this out already, but there’s one big difference between their on-the-ground tests, and a live flight – the passengers.
I wonder if they’ve tried plugging in a couple of hundred randomly selected laptops into the passenger , and seeing what happens to the electrical system then?
Sounds silly? What if one (or half a dozen) of them has a bad battery, or an electrical short circuit?