Do you have a dollar on you? I hate to answer questions for nothing.
The transaction cost approach maintains that some projects are easy to finance by debt and ought to be financed by debt. These are projects for which physical-asset specificity is low to moderate.
Cash imposes a huge burden. We don't understand it, as it is not immediately visible. It is a huge burden on society.
Vertical intergration is an organizational response to the contracting difficulties that attend intermediate product markets where trades that are supported by transaction-specific assets are exposed to hazard.
Bigger spreads mean bigger gaps between what buyers pay and sellers receive. For example, a spread of 10 cents a share means that the buyer pays $100 more for 1,000 shares than the seller receives.
Changes like the telephone and telegraphy, which tend to reduce the cost of organizing spatially, will tend to increase the size of the firm.
Just as the Internet brought the cost of disseminating information down by an order of magnitude, bitcoin brings the cost of transferring ownership down by an order of magnitude.
If bitcoin is more expensive or slower than traditional financial systems, people aren't going to use it.
You wouldn't think there was a need for a Coase Theorem, really.
You have to care about the transactional cost. You have to care about the future value. You have to care about maintaining value in your home through repair and maintenance.
One measure for promoting both stability and fairness across financial market segments is a small sales tax on all financial transactions.
