The simplest two color liquidity allocator. I suppose one color could derive from a commodity banker, assume it trades against a finite, known resource. But I digress..
But their is no profit taker, in the two color. The pit boss account is provably bounded. Traders are risk equalized with free entry and exit. OK, there is a variation of congestion priced entry and exit, here I assume absolutely free, and congestion is naturally controlled by pit boss delays in bet processing. Like bitcoin, computer limits are a feed back loop yielding a single fixed point. This is the timeless banker.
In central banking traders will have to bet the government cycles. There is a loop, we give government a monetary power, but we expect government to be a bit unstable for it. We accept the instability, we have quantized the side lobes, gone quarking. Out pit boss has become a gluon. The cost of central banking becomes higher, we have ;legalized the cycle. But we like it a bit, it has a rhythm, time has more meaning.
And we can see that, given trivial transaction costs, the two color system spends the least resources on the pit boss account. If transaction costs become noticeable, traders want government guarantees for money and we end up with central banker, we have to jump the Markov tree. But we do it. It is a mix.
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