Posted by: crudbasher | May 15, 2013

The Disaggregation of Finance?

When I started this blog back in Jan 2010, I was trying to investigate how education will change based on new technology. However, when I work on a big problem like that I tend to expand my view to look for root causes. This lead me into the ideas that our education system should reflect the society it is in, and that society has changed a lot since the current education system was created. The biggest changes in society I believe are being driven by my theory of disaggregation, which I define as how society is being reorganized from one based on physical proximity of resources, to one based on information relationships.

I’ve written about 855 posts so far and so when an idea comes along that I haven’t thought of I feel like I missed something. I also get excited. 🙂 Here’s what I missed.

(cc) kiss kiss bang bang

(cc) kiss kiss bang bang

First came Kickstarter. It is a website that allows people to propose projects and have people contribute funding to help get the project started. What makes this different is it takes the role of a bank or investor. Next came Bitcoin. This is a digital currency. People can actually buy them and they go up and down in price but they are not controlled by any government.

This past week came news of creating their own currency. You can buy Amazon Coins with real money and then buy Apps and such on This isn’t really that big of a deal because it’s just an abstraction of real money. You can see this any time you go to a video game arcade (yes they are still around). When you go there you buy Tokens from a machine. It helps hide the real cost of the games.

But what finally blew my mind is this story from Singularity University Beyond Banks? Peer-to-peer lending is on the upswing, Google dives in. It’s a great article that talks about new businesses that allow people to lend money to other people without the intermediary of the banks. I mean, why not? Turns out, like proved, you don’t have to have a store to sell things. Perhaps you don’t have to have a building to be a bank? It’s the disaggregation of finance and somewhat blindsided me. Still, it makes perfect sense according to my theory.

As the big banks add more fees and offer zero interest rates, perhaps people will start moving to alternatives? We will see.

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