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"Upstream" with Erik Torenberg cover image

E46: Lyn Alden on How Money Works

"Upstream" with Erik Torenberg

NOTE

The Power Shift with Speed in Communication and Financial Transactions

The introduction of the telegraph enabled global ledger updates at the speed of light, creating a new variable: speed. This empowered those controlling ledgers to monopolize fast long-distance value transfers, shifting power towards entities that could communicate at the speed of light. As a result, assets had to be abstracted and centralized to keep up with the accelerating global commerce. This power shift favored banks and central banks, defining the dynamics of the 20th and 21st-century financial systems.

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