Bitcoin Is A New World Country

Sam Abbassi is the founder and CEO of Hoseki, the Bitcoin asset testing service.

De Soto dreams of electric money

Countries in the Global South are not poor because of culture, collective IQ, lack of entrepreneurship, or market orientation; they are poor because they lack formal frameworks around property rights. Hernando de Soto deals extensively with these issues in the “the mystery of capital.” The ability to formalize and express ownership of property is the foundation of capital and wealth generation, and if you think it has something to do with culture, try (as de Soto says) getting into a taxi in Addis Ababa, Ethiopia , or walk through a bazaar in Tehran, Iran, or approach the Golden Temple in Amritsar, India without anyone trying to make a deal with you. The notion that the people of these regions lack the creativity and the “right” culture to generate wealth is inhumane, absurd and totally unconvincing. When you walk out the door of the Hilton hotel in Lima, Peru, you’re not leaving the wonderful world of mobile technology, antibiotics, the Internet and refrigeration behind. The people of Peru have all those things. What you are leaving behind is the magical world of legally enforceable property rights transactions.