I (Shall Gladly) Accept The 2016 Nobel Prize In Economics On Behalf Of …

November 22, 2015 Nemes Random

Almost 25 years after getting my PhD in Finance from the University of Chicago, I finally heard from the Reward Committee for the Sveriges Riksbank Reward in Economic Sciences in Memory of Alfred Nobel– widely known as the Nobel Reward in Economic Sciences. No, I was not awarded the reward– I was not anticipating to. The committee has actually welcomed me to nominate someone for the 2016 Reward. I feel recognized. Frankly, this is as close as I am getting to the Nobel Prize. The names of a few deserving prospects quickly flashed through my mind. The names that a lot of people in the Economics career would agree with, Paul Romer who is at NYU, Doug Diamond at the University of Chicago, Steve Ross at MIT– the normal suspects– for their influential work in 1970s and 80s. In all probability, they will receive the extremely desired reward sooner or later.I then started believing whose concepts are likely to have a disruptive impact in the twenty very first century. The name of the inventor of Bitcoin unexpectedly jumped up in my awareness and I have not been able to get it from my mind considering thatever since, Satoshi Nakamoto.

Who is Satoshi Nakamoto? We do not really know.Where does he work and which country does he stay in? We don’t understandhave no idea.

Which academic journals in the field of Economics or Financing has he published his research in? Not in any of the reputed journals that would try to find– American Financial Review, Journal of Political Economy, Journal of Finance, Econometrica.

Has he released anything? Yes, a nine-page white paper titled, Bitcoin: A Peer-to-Peer Electronic Cash System that he published on the Web on May 24, 2009.

So, why does he be worthy of the Nobel Reward in Economics? I make certain the Nobel Committee who delegated me– among a couple of hundred others, to suggest nominees for the Prize– would want to understandneed to know. Am I being somewhat whimsical in choosing a total outsider, Satoshi Nakamoto, for Economics Reward just as possibly Romain Rolland was when he chose, Sigmund Freud for the Nobel Prize in 1936 – not in Medication however – in Literature.No, in truth, I am entirely severe in recommending Satoshi Nakamoto for the Prize. The creation of bitcoin– a digital currency– is nothing brief of revolutionary. Lots of physical currencies have actually been made use of historically– from beads, sea-shells to precious metals such as silver or gold, to even consumables such as cigarettes in times of run-away inflations, to sports cards. Paper moneyPaper currency, or exactly what is officially understood as Fiat currencies, are exactly what are now common all over the world with various regions and nations issuing their own currencies for facilitating trade and exchange.
Bitcoin, the currency, in some cases described as Digital Gold, on the other hand is digital and exists purely as a mathematical object. It provides numerous advantages over both physical and paper currencies. It is protected, relying on almost solid cryptographic code, can be divided into millions of smaller sized sub-units, and can be moved safely and nearly instantly from one individual to other individual on the planet with access to internet bypassing federal governments, central banks and financial intermediaries such as Visa, Mastercard, Paypal or office banks eliminating time hold-ups and deals costs.But beyond

showing the possibility of producing a dependable digital currency, Satoshi Nakamotos Bitcoin Method has spawned exciting innovations in the FinTech area by showing how numerous monetary agreements– not simply currencies– can be digitized, firmly verified and saved, and moved instantaneously from one party to another. The implications of this are immense. This will likely develop an open, decentralized, public facilities for moving both money– as Stellar.org is attempting to develop – in addition to other wise agreements– as Ethereum.org is trying to promote– as easily as email however with security and almost no deals expenses. The cover and a lead story in the October 31, 2015 concern of the Financial expert publication discuss this well and in some detail.Not just will Satoshi Nakamotos contribution alter the method we believethink of money, it is likely to overthrow the role central banks play in conducting monetary policy, damage high-cost cash transfer services such as Western Union, get rid of the 2-4 % deals tax imposed by middlemans such as Visa, MasterCard and Paypal, get rid of the time-consuming and pricey notary and escrow services and indeed transform the landscape of legal contracts entirely. Numerous markets such as Banking, Finance, Law will see a huge upheaval. The consumers will be huge beneficiaries and indeed the bad and marginal areas of the society will gain the benefitsprofit of monetary and social inclusion in the coming decades. I can barely thinkthink about another development in Economic and Finance in the last several years whose impact exceeds the well-being increases that will be engendered by Satoshi Nakamotos fantastic, path-breaking invention. That is why I am choosing him for the Nobel Reward in Economics.Suppose that the Nobel Committee is convinced that Satoshi Nakamoto is worthy of the Reward. Now the problem it will face is the best ways to call him to reveal that he has actually won the Reward. The typical protocol is that the committee obtains the recipients telephone number and calls the person to reveal that she or he has won. However in this case, no one truly understands who is, where he lives or what his telephone number is. However that does not mean he does not exist. He does. He exists online. He can be notified by calling him online simply the same way individuals have communicated with him in the past and he has anonymously communicated with the computercomputer technology and cryptography neighborhood. If he accepts the award, he can verifiably communicate his acceptance. He will more than likely not appear in personface to face– and reveal his real identity provided that he has selectedopted to remain anonymous all his life– to accept the award in Stockholm, Sweden in the official event

in December. I would be happy to go and accept the Prize on his behalf. What about the approval speech? That wont be any issue either. He can compose his speech, digitally sign it and send it to me securely. I would, of course, rehearse and provide it on his behalf at the Reward ceremony.Finally, there is the issue of the Reward moneyCash prize. No, I am not wishing to get the cash just due to the fact that I accept the award on his behalf and provide his approval speech. The Nobel committee can quickly buy bitcoins for the award

cash from any reputed online Bitcoin exchange and move it to him immediately. A really early bitcoin deal suggests that the bitcoin address 1HLoD9E4SDFFPDiYfNYnkBLQ85Y51J3Zb1 most likely comes from him. Naturally, he could easily and verifiably let the committee know which address he wants the cash to be moved to. Satoshi Nakamoto already remains in property of numerous hundred million US dollars worth of bitcoins so the added reward moneycash prize may not indicate much to him. Just if he desires, the committee might likewise move the reward cash to my bitcoin address, 165sAHBpLHujHbHx2zSjC898oXEz25Awtj Mr

Nakamoto and I will settle later on.

Economics,

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