Aside from tulips, one of the other well-known bubbles is Britain’s 19th century railway mania. This boom in turn led to a colossal crash in 1866, which then led to a revolution in accounting and auditing. He looks at three models for what he calls "promise-based" tokens: tokens with off-chain collateral, tokens with on-chain collateral and tokens with no collateral (what others would call “algorithmic” tokens). In summary then, there are good reasons to welcome what is a genuine paradigm shift in financial markets. The word “revolution” is, in this case, wholly justified because the instruments and institutions will be unlike the ones that have grown up since the industrial revolution.

Source: Forbes February 15, 2021 11:15 UTC