Sunday, April 21, 2013

Can Artificial Scarcity of Data Be Economically Beneficial from the Anti-IP Perspective?

Data is not scarce, but it can be made artificially scarce by: 1) coercive regulation 2) unique individuation and encryption. Resorting to 1) is immoral and hampers economic development, but resorting to 2) can be an instance of entrepreneurial innovation. Suggestion: the creation of what comes to be accepted as a digital non-fiat currency, where each currency unit is a unique string of encrypted data, is precisely an instance of entrepreneurially-created, economically beneficial artificial scarcity of data. A potentially surprising conclusion: economically beneficial artificial scarcity of data is not a contradiction in terms, even from a consistent anti-IP perspective.

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