Bitcoin is indeed a rather surprising mix of frightfully clever ideas and frightfully simplistic mechanisms, as I argue in a recent paper. You can dismiss bitcoin as a doomed monetary experiment, but you must not pass over the opportunity to let your imagination run with it as it can shake some basic assumptions you have on how financial systems must work. Might there be some lessons in there for how to 'fix' what's broken in our financial system? Take it as an invitation to dream about the following three questions, which are based around the three basic design premises of bitcoin.
First: What if digital money was something that I could hold for myself and pass onto others, without necessarily having to go through a licensed financial institution? You can't do that now: you cannot hold digital money without becoming a customer of Citibank, PayPal or M-PESA. We've been delivered into their hands, and yet they do not necessarily see it their business to serve everyone. It didn't use to be that way: you can hold coins and bank notes by yourself, there is decentralized management of that. What if we held the option to serve ourselves financially with electronic payments, on a peer-to-peer basis, even if only as a countervailing power or last resort?