My thoughts:

- High transaction costs for various goods and services typically lead
to centralization temporal market monopolies (not even talking about the
government-sponsored ones)
- High transaction costs can be afforded by individuals or groups of
individuals who possess capital and accept risk. These players become the
gatekeepers and *the* *exclusive *third parties.
- As a result, many individuals have little or no mobility within the
market as only a few players are capable of handling these high transaction
costs. Well known duopolies come to mind: McDonald's vs Burger King, Coke
versus Pepsi, Republican vs Democrat, Labor vs Liberal
- Revolutionary technologies that folks like us get excited about (e.g.
3D printing, Bitcoin, mesh networks, DIY drones), directly challenge these
players and the centralized model they operate under. Fundamentally, these
technologies significantly reduce these high transaction costs so
that the *common
man* can start to provide these services for themselves or for a small
group of others. Market mobility is now possible for everyone, rigid
centralized models are disrupted.
- If we were to take a glancing look at the trends, the explosion of
information and communication has catalyzed the development of technology
to break-down high transaction costs. Heavily centralized services
and *exclusive
*third parties have their days numbered. Once the network effect of
these decentralizing technologies outpace the existing centralized order, a
real, peaceful, and perhaps subtle revolution occurs.
- Bitcoin threatens the centralization of the economy by the government
and banks, who have long abused their privileged position to oppress
everyone else. The underlying high transaction costs of enforcing monetary
contracts, protecting vast sums of wealth, loans and high level market
operations, are fast becoming within the reach of every human being. If
trends continue, I foresee the government being permanently banned from the
economic and market order.
- Physical security is one of the ultimate high transaction costs, just
above money itself. This is, in effect, the high transaction cost service
to overcome. For this reason, individuals perpetuate the network effect
that is called 'government', in well-reasoned fear of the alternative
(chaos, criminal gangs).
- I don't know what technological and market solutions will appear to
better protect individuals, so much so that centralized protection services
like the police and military become unnecessary, but I remain optimistic
about the future. I have no desire to use these tools help maintain
antiquated centralized systems.

Regards,

drwasho