During the teleconference the jeans-clad entrepreneurs told the Nasdaq suits that they believed the technology underlying Bitcoin would bring about a once-in-a-lifetime seismic shift in the financial industry, shrinking its current profits and workforce but also creating many new markets and opportunities.
This is not the real seismic shift for the Nasdaq suits. The real seismic shift is:
- Economics is not a science
- They do not understand the true nature of money
The first point has never been a secret. The Soviet Union never had their own alternative version of mathematics or science. It would not have been possible. They happily promoted their own alternative version of what they believed is economics. It was never possible for either side to really sink the alternative. We correctly concluded that Soviet economics were bogus. We conveniently forgot to draw the second, inevitable conclusion: capitalist economics is also bogus. Both Soviet and capitalist economics are ideological nonsense. Many people still live in the illusion that only Soviet economics would be bollocks.
You see, economics may have its merits, but it will never be a science. Scientific status means that we are supposed to conduct repeatable experiments in order to look for counterexamples for statements in economics. That will not happen any time soon. But then again, how are we supposed to falsify economic theorems, if experiments are generally not possible? Just by nay-saying?
This situation automatically leads to massive surprises. Nothing in economics ever predicted that something like Bitcoin would be possible. Now that Bitcoin is around, alive and kicking, nothing in economics explains why it works. There may be lots of other methods to organize alternative currencies, but economics cannot the process. The predictive power of economics is simply zilch in that field. You will not understand even the beginnings of what money is, by studying economics. It is the same situation as the ideological ramblings of communist theory failing to predict the fall of the Soviet Union.