Programmable Savings As Universal Insurance
When the world starts using hard non-depreciating currency, people will keep savings in it instead of risky or non-liquid investments like jewelry, houses and stocks.
If the currency is programmable (Bitcoin), then the savings are programmable too.
Programmable savings can be used as a great collateral in all sorts of social interactions.
When two persons sign a contract they can mutually lock up some portion of their savings “in the air” as a collateral without using any third party for that and without relying on a powerful dispute mediator (maybe only for consultation, but not for enforcement). Each party can destroy both collateral deposits which creates an incentive to peacefully resolve disputes to mutual satisfaction.
In crowdfunded project every person on the receiving side can lock up part of his savings (that can be affected by stakeholders) before taking any amount from the fund. The collateral is released when it is “resold” to further party down the production chain.
Today directors, managers and presidents of publicly-traded companies and governments have control over not only their own money (salary and dividends), but also over someone else’s money insured only by reputation and highly inefficient government law enforcement. Programmable collateral makes it possible that every piece of resource controlled by non-owner is fully insured with real cash.
Programmable savings allow world to be much safer without any need for brutal violent intervention.