The effect is like always whit technology to “make society more organic” (absolutely see: Bertrand Russell — The Impact of Science on Society).
So in the case of Bitcoin the effect will be to optimize the exchange of resources over the internet, and this resources will be, mainly, information.
To see what a good protocol to exchange information can achieve see my last post.
So we will see the born of exchanges of bit of knowledge no more MSc in … or PhDs in …, neither exams, the knowledge will be deeper classified.
But this is not the aspect that I want to see the the aspect is: the end of investment risk and consequently of advertising and interest rate.
I will be as fast as I can in explain, but it will take a little.
Interest arouse from risk of investment, low the risk low the investment of the loan.
Near every object sold on this planet encapsulate an “hidden fee” of the interest, that is the cost of the risk that the financier took to fund the object construction.
Same story on the entrepreneur side, in fact also him take a risk, and consequently a reward for this risk.
So every object cost encapsulate 2 different “hidden fee” in reason of the risk of production and distribution of the object. Then there is another investment, that is advertise the object, this investment is to lower the risk of distribution, but obviously also this is a cost, and so also this is encapsulated in the object cost.
If you think about it all this process is pretty strange: we first have a production and then, eventually, a demand!
It’s likely if moving our body around, we take our eyes close and first move, then, if we crash, we change direction; or better if we give an answer before a question!
Obviously this is risky: it’s crazy!
Unfortunately we aren’t – nay, we were not – an organic system. So we have to try. For our civilization was very difficult just only to know what people will buy, but near impossible to buy a thing before it’s produced!
This is fundraising, we have it now that we can create images of the final product and exchange via the internet money for that product, before even that product will be produced and distributed.
This is a process that will be enabled by default, people will simply do it, every time, and so we doesn’t need a central authority that take a risk to fund, neither an entrepreneur that take a risk: some people what to buy a thing and they produce and buy it at the same time: they save risk-associated costs they just wait a little more. But for the first time there is a democratically way of producing, and so no more propaganda needed to sell more things!
Obviously there is also people, people isn’t a defined product, they can change, doing incredible and unpredictable things, so what’s in financing terms?
(This will certainly have some further development I will talk just about the first and – for me – obvious one)