The Future Of Money

The Combination of Virtual Reality and High Performance Computation has now made possible a multidimensional value comparison that transcends money as a valuation metric. Consider the state of the world economy as represented by a single point in a multidimensional space. This creates a vast data space that cannot be understood without sufficient computation and representation technology. This geometric concept is the basis of building a navigable value space in virtual reality making it possible to effectively analyze the economy in multiple dimensions.

The quality of money as a measure of value is dependent upon trust. Truth in value is the basis for establishing trust. Monetary manipulations of value have eroded trust. Fortunately with the application of technology, it is possible to dispense with monetary based valuation and replace it with a multidimensional comparative analysis.

The technologies of VR and computation have developed to a level capable of revolutionizing the way we measure value. In particular, truth in relative value can better be established in a multidimensional representation, not possible with previous generations of technology.

Truth needs to be defined concisely for computation to be applied to it in an effective manner. Monetary value is the most concise possible truth based upon the volume and accuracy of available data. The philosophical definition of truth is polarized along the line of two properties, coherence and correspondence. Newly developed algorithmic methods can quantify these properties in financial data.

The need for multidimensional valuation is best demonstrated in the foreign exchange markets. Within domestic financial markets, all products are priced in the national currency and all valuations appear one-dimensionally, changing in time. However, in the foreign exchange markets, currency values are ratiometic, changing in two dimensions simultaneously. The question immediately arises, which currency is changing value? 

The key to correct valuation is in the ability to represent financial data ratiometrically in a multidimensional space. This does away with monetary pricing units and allows for analysis along any vector in the valuation space.

This problem is solved mathematically by representing relative value as a single point in multidimensional space. The change in value in any given interval can then be understood as a single vector in that space. The concept sounds simple enough, but without advanced technology in computation and multidimensional immersive representation, the problem remains intractable.

The means of exchange can be arbitrary, whether ledgers are kept on blockchains or in books. Correct valuation will enable fluid economic transaction at a level not possible on a one-dimensional basis. Multidimensional valuation will obviate money as a store of value.

GEV is a tool developed to solve the problem of understanding and analyzing the vast multidimensional space of comparative financial valuations. To demonstrate the power of this technology we first considered the simplest case. The units of valuation across the global economy are the regional fiat currencies. The relative value of these currencies can vary dramatically over the course of time. With this fluctuation, the price of all products valued in those currencies is distorted. The effect of the currency pricing units is to obscure the true value of those products on a comparative basis. Multidimensional analysis can recover the true value of those products in light of distortions in the pricing units.

God's Eye View (GEV) provides a new mechanism for establishing valuation by applying the emergent technologies of virtual immersion and high performance computation to better analyze truth in comparative value.