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Bit Coin fascinates me not because it is a get-rich-scheme or a convenient way to buy weed off the grid, which I don’t smoke, but don’t mind if anyone else does, or because I’m a Libertarian with gold on hand, I’m not. Bit Coins are the perfect storm heading our way, and the perfect opportunity.

Bit Coins or Bit currencies are the tip of the “Fat Tail.” Fat tails “are events that appear highly unlikely to occur but that are earth-moving when they do.” Bit coin is the Cat 5 hurricane coming to you and me in the next five to ten years. It could be your best friend or your worst enemy depending on how world wide acceptance shakes out.

Bit currency is an emergent electronic payment system similar to Pay-Pal, which is an over simplistic way towards explaining it but about the best I can do. It’s an electronic money system whereby we all could become merchants. It’s a system where a few law abiding entrepreneurs now pay for a pizza or buy a WordPress site or sell yard sale items without a credit card or without cash. It’s a money-medium that’s convenient for not-so law-abiding people to buy and sell items, or move money they don’t want traced. It’s a money system without bill collectors. It’s permanent; you can’t get your money back. All sales are final.

Speculators are drawn to it. It has a future. It’s security is okay — that is until you cash out your cyber bits in exchange for dollars. That’s a crack in the system right now. There are robbers waiting to take your money when you cash out. It helps if you’re tech savvy. And, oh yea, speculators may try to crash the currency so they can buy it back from you when the price drops like it recently did. Or you may lose your encrypted back up file or accidentally wipe it out, and your Bit coins are gone. Yet, this nascent system is the tail end of the hurricane.

Since it’s an emergent system, it’s also similar to a snowflake or a termite cathedral or DNA replication or Wolfram’s computations where a pattern begins simply but generates complex designs over replication. Like DNA something pleasing might come from it like a baby or like the termite cathedral something not altogether likable. Emergent systems like Bit Coin don’t emerge in a vacuum, they bring other systems to the forefront with them, hence complexity.

Eric Schmidt, Googleplex person, says that by 2020 the entire world will be online. If so, we will want to buy and sell from our neighbors, which will include the entire world, which will require other emergent systems as helpers. If that’s so, a fairly secure Bit currency is going to be necessary, a stronger Maker culture will most likely be put in place, and a faster transportation system might have evolved.

We’ll need a world wide communication system to propel the buying and selling, and making, and a same day world wide system for delivery of concrete goods, and a maybe an unsettling shift in government. But like termites when disturbed governments are self-organizing, and seem to fare well after turmoil, coming back stronger and we should hope, more democratized.

A fairly secure Bit currency: Fairly secure but not absolutely secure Bit currency with a fast connection, and maybe free phones, is all that’s keeping us from buying instant art from an African artist in Timbuktu or hand knit wool socks from North Korea (well maybe more). The network doesn’t need to be absolutely secure, just secure enough. If products were cheap enough that I could afford to lose money on a small percentage of my purchases or sales, then it would would work as a currency. If we accepted a small loss it could work. It might be called fuzzy accounting for Bit currency instead of bank or credit card accounting where each penny is accounted for, and an over-priced transaction fee is charged.

A healthy Maker culture: Couple Bit currency/micro payments with a home or community based, Maker printer, and an artist living in Timbuktu, Africa, could send me her sculpture plan, created in her village, or the North Korean, homemaker could send me his sock design created in his village, ready to print anywhere in the world on a Maker printer in any suitable medium, be it yarn, wood, plastic, or steel. Or if the fat tail is really fat, and imaginative, those original North Korean socks could be delivered same day by a transport fueled with a NASA UW fusion rocket recently proposed to reach Mars within 30 days. Far fetched, maybe, but … I’m still waiting for my robot.

So, why should Bit currency matter to you and me? Bit currency is an emerging technology that’s going to revolutionize commerce. It may not stay in the present form but mutate into something we haven’t anticipated yet. Whatever it is when Bit Coin was unleashed it was like going through a gate that had a one way spring, there is no going back — Bit currency is here, and it’s a reality. Oh, yea, there are going to be Bit currency billionaires made just like railroad moguls and oil barons. Wouldn’t you like to be one of them.

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