Digital Feedback Loop

in LeoFinance5 days ago

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Decentralization comes from the metaverse.

I've been coming to the realization that everything in this world is going to be decentralized. Why? Because we can. The benefits of centralization are scaling, efficiency, and strong leadership. However, we've reached the tipping point on that front and can obviously see that diminishing returns have been kicking in for decades.

Corruption is running rampant and the centralized nature of production is the ultimate attack vector. Not only does this create an attack vector in terms of monopoly and ultimate control by a few individuals, but it also creates a huge vulnerability in that recalls for dangerous/defective products become widespread. This threat is increased greatly when we consider that these people will do anything to save an extra dollar.

The problem with decentralizing the physical world is that it is EXTREMELY unprofitable. That was the entire point of centralization in the first place. Streamline the production and make the thing for the cheapest price possible. Decentralization can not compete with centralization in this way. Centralized physical product will always be cheaper than "home made" ones, even if they are lower quality.

This is where the metaverse comes into play.

What I'm coming to understand is that resources in the digital realm are so cheap that the cost of decentralization doesn't really matter. It does not matter that thousands of people are hosting nodes all around the world that all store the same information. The benefit from decentralizing currency, the most corrupt and important asset on the planet, is far far greater than the loss of resources generated by robust redundancy. This exact same concept is on the verge of materializing in the "real world".

Anyone from twenty or thirty years ago would look at what we are doing today and wonder how any of this is even possible. Do you remember when RAM and Hard Disk space (sorry no SSD here) was measured in Megabytes? What about Kilobytes? Back then digital resources were expensive as hell, but technology has magically continued on an exponential pace since that time and everything is different now.

The value from the digital realm is going to bleed into the real world. Yeah, it might be really expensive to grow your own food, purify your own water, generate your own power, and built your own shelter. However, when everyone is a multi-millionaire, and that wealth was generated from the principals of decentralization, they aren't going to care. People will pay the extra money for robust redundancy and the ability to support local community.

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Happy Cows Come From California!

Razor thin profit margins

When we go to the store to buy eggs, many will just look for the cheapest thing without thinking about where those eggs come from. Oh, look at that, the package has a nice picture of farm on it, isn't that sweet? This tactic only works because the means of production is hidden from us. If there was a video (or a blockchain) that showed exactly how the products we buy were harvested/created we'd think twice before buying the cheap stuff. The corners that these people cut and the cruelty to animals is legendary. We greedily consume these products thinking there is no other price to pay; and we are wrong.

By buying and consuming these products, we become complicit cogs in a scheme that will be viewed as essentially Satanic in nature once the walls of these facilities are replaced with glass and transparency reigns supreme. Will we pay twice as much more things to avoid selling our souls to the Devil? I believe we will when the value we generate from crypto and the digital realm is exponentially larger than the price we pay to decentralize the physical world.

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Razor thin profit margins (part 2)

The reason I brought up eggs is that I used to have five chickens myself. I did the calculations, and based on the amount I was feeding them and the cost of that feed, my "homemade" decentralized eggs were costing about 50 cents each.

To turn a profit I'd have to charge even more than that. Of course I was probably simultaneously overpaying on feed and overfeeding the chickens (greedy little goblins) in addition to not having enough land to sustain them with plants I could have fed them with for free. They loved clovers and stuff like that: things that people don't eat can be turned into things that they do. The magic of farming.

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Even my chicken's shit was valuable. One day I was stoned as shit digging for buried treasure in my backyard (because the previous owner was weird like that and he had died there) and I raked all the dried out chicken shit and bedding into a big hole I had dug. After turning this gigantic compost heap a few times and waiting 3-6 months it became the most fresh smelling and effectively powdered dirt/compost I had ever laid eyes on. Plants I would grow with this compost were three times as big and would produce three times as much output as anything else that I had tried.

The thing we have to ask ourselves is pretty simple: What happens when we can basically automate all the drudgery out of this kind of work and have robots and machinery doing all of it? 1000 people all doing the same inefficient farming practices becomes worth it, just like 1000 people all running a copy of the same crypto node is already worth it.

When technology lowers the barrier of entry to near zero, on-site production becomes the way to go. Yes, it's very inefficient but the expensiveness has been cut out of the equation. The quality of the goods will go up because they are not mass produced, and the value of our own health/community is higher than the money we can save by outsourcing this job to a soulless corporation.

The giant MegaCorps out there make this more and more of an easy transition every day. How many more GMO experiments does Monsanto need to do before people reject them? How many more vaccine mandates need to happen before people realize that: hm maybe we shouldn't be trusting Big Pharma?

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The dinosaurs are signing their own death warrant. Slowly but surely they just keep pushing harder and harder. They think that the people have no other recourse but to submit to their rule. It's getting to the point today that it seems like this escalation is flipping exponential. Crypto/decentralization is literally the only thing we have left to fall back on. Good thing some random anonymous entity created it for us. So weird.

Market watch: $50k Price prediction

I went short on Bitcoin today for the first time ever. Even though I think BTC will be at all time highs ($65k) at the end of the month, we still have one more flash-crash to go to fleece all these weak hands I've been seeing that squirm and squeal on seemingly every 1% movement in the spot price.

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We are still in a bearish moon cycle, and this market got exactly what I said it was going to get: three pumps, the last of which was a little late. Couple this with the fact that we have never tested $50k as a support and it becomes even more likely that we will flash crash somewhere around October 18th. However, this will mark the signal for another two weeks up upward momentum that I expect to reach all time highs. We shall see if my predictions are getting any better.

Conclusion

Value from the digital world is pouring into the real world. The digital world already has near infinite resources which is why decentralization works there. Once those resources and technologies bleed into reality we'll start seeing the shift of decentralized production of physical goods (food/water/power/shelter/logistics are the main ones).

It may cost twice as much to make, buy, and sell decentralized assets, but the quality will be far greater and the trust will be superior as well, in addition to supporting the communities that made us rich in the first place. The dinosaurs have got to go; they had their time. It's our time now.

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Yes, centralization is bad, but in your example of the chip capacities, we have to acknowledge that it was centralized technology that led to the massive digital resource improvement, where a few companies competed against each other. In your scenario where everbody is wealthy enough to buy robots and stuff to farm his own food (a dcrop game in real world), who is providing the technology? The evil megacorps we wanted to overcome?

I thought it was heavily implied that DAOs are going to takeover all functions of government and the corporate economy. Guess not.

A DAO can scale exponentially greater than government and corporations due to reduced corruption; a natural outcome of building on top of trustless systems enforced by unbreakable & transparent contracts.

Reduced corruption? Like on Hive you mean?

I think Jerome paul print enough money. So we can buy everything we need. I trust mister money printer.

I'd argue in this scenario a lot of the chip manufacturing will also be automated and much more abundant. I think the real weakness to this future is going to be finding a supply of rare earth minerals to even facilitate the growth of the automation. If this plays out I think traditional mining will become where the real money can be made since I think it'll be the bottleneck for growth until we can start mining outside our planet.

Like you rightly stated, costs won't matter much for a decentralized community with the way technology is going. It is really fascinating to imagine, and I reckon the blockchain has a fundamental role to play in all this

Are we really going to live in a post-scarcity world?

Every blockchain participant is an optimist in some sense... Some more than others. I believe the chain shows us what's possible, and the steps to get there are not impossible

I think we have to pay twice as much... to further your example/metaphor, big farms are not only a little bit horrible, but they've done untold damage to our health (pesticides, hormones, etc), the environment (clearing land, destroying drinking water, trading manual labour for gas-guzzling machines as well as damaging the soil with relentless tilling and single crops) and as a species we've moved away from the land that keeps us alive. Smaller, community farms have to be the way of the future and hopefully people realise exactly what you've said, that the small financial cost of the products are not the only costs we're paying.

NFT projects like Stoner Cats are teaching the world that community is everything... and the power of the community will eventually win out over the power of particular individuals. It's kind of amazing we've put up with it for as long as we have.

Excellent example with the chickens to demonstrate how automation can reduce costs for real world production changes. I see what you mean there and agree it's going to be a revolution from our current prouduction methods.

I've not really tried trading since my early days in Bitcoin. I'm a degen gambler and its easy for me to get addicted to markets. That being said I just found lnmarkets and have been interested in getting started again. Paired with @v4vapp's lnd.v4v.app, it'd be an easy way for me to use Hive to fund some trades so I'm on the fence about trying it again.

Greetings Friend Hive, I tell you that I really liked your way of justifying the title that you sponsor here, clearly, by achieving another monetary source with its own money channel that does not depend on Dinosaur if not rather on a community or a Blockchain system. You can take everything with more control of distribution achieved a joint benefit within the population, as time passes the cryptocurrency economy materializes, as a sample we have this platform that little by little is able to solidify more and more, grateful for expose your knowledge.

It’s all part of the great cycle of life. When man realizes that they we are all fighting over a simple construct “virtual currency” then we can move forward. Sadly, some of the older generation wants a world that simply no longer exists. It’s always good to go with the flow of things..some will learn this lesson too late however. :)

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Razor thin profit margins can also be an issue. If the supply line isn't robust enough, you will still lose money if things get stopped somewhere.

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Yeah the whole COVID thing has really shown how fragile the supply lines are.
Further proof that centralization continues to increase their own diminishing returns.

did you hear about this natural asset companies being launched from NYSE? im thinking maybe we'll have to pay for each cubic centimeter of oxygen we breathe...or maybe the nitrogen emitting from yr chicken poo will get taxed
https://www.kiplinger.com/investing/esg/603451/natural-asset-companies-nacs-a-new-tool-for-esg-investors

Whitney Webb had a more "critical" piece on it that i just stumbled upon on Twitter

Haven't heard of it. Sounds like yet another extension of carbon taxes.
Luckily the future is libertarian and permissionless.

I've been calling for Oct 25th to be a major day. We shall see.

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What happens when we can basically automate all the drudgery out of this kind of work and have robots and machinery doing all of it? 1000 people all doing the same inefficient farming practices becomes worth it, just like 1000 people all running a copy of the same crypto node is already worth it.

Welcome to the deflationary age. That is what makes me laugh about the Church of Inflation led by Peter Schiff and his followers.

They have no clue the impact of technology on, well, everything. I have an article coming out tonight that spells out the trend in food. Very interesting stuff.

The reality is that if it werent for all that many consider bad, they would still be mailing physical letters to each other and placing long distance phone calls to communicate.

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Crypto/decentralization is literally the only thing we have left to fall back on. Good thing some random anonymous entity created it for us. So weird.

To be honest. Weird. But we love it.

The world is really changing so fast, the best way to profit from the world changing, is to change and adapt to its changes. Decentralization is about to be one of the best things that happened to us

Well this is where i find disagreement in some of the author writings on this subject. First i wanna say after reading your article i do this quite often a few times a month. However after reading this article i went thank goodness i own a farm. However i could see a government controlled world where the powers that be close in on that.

For example i got a farm but it would mean nothing without having access to water on it. Several years back they city tried to take our wells. We fought back and won. However even in controlling my water they could still control me. They could charge me for the water and my monthly cost would shoot up. So they could do alot but so far we remain victorious.

Now the reason i'm saying all this is that what you all do here in crypto and what you write about. Are entirely different things. Like for example you're speaking about abundance and technology lowering cost.

However you do understand our tech already does that. That we don't live in as much a world of scarcity as you think? That there are many things we can afford. That everyone could pretty much live middle class atleast in western nations and 1st world nations. That the only reason they don't is based on your political ideologies and attitudes and you all are the same people here you were there lol. That's why your distribution sucks so bad and you still have so many distribution issues and security issues. Because the mining farms are still centralized to a great degree. Every measure of crypto mining i'd say is centralized. so are the exchanges so is the wealth and in some cases even the development and technology.

So your writings are far off from what actually goes on. It is only political ideology in many of these examples why there is suich lack of economic prosperity and cost of goods and services. This is not a labor issue or resource issue. Many studies have been done on this. So if it's not that what is it? It is you all when you come in crypto or go anyplace you manifest the same political ideologies that are the hold up lol.

Nothing else is.. It's not the government its you. lol. Now you can say well it's miseducation which it is. However your examples you all do here to me promotes more of it. In crypto you all still have the residue of a corporatism society which never works. it will never work.. now some have said well the centralization lead to greater development but do we really know that?

I mean under hitler.. did the autobahn not get developed. Under the ussr were not a superpower, lol. What about China? I'm not saying those are idea situations in their government makeup. All i'm saying is that proves that the narrative is false that corporatism is what creates value and invention and all these things which i think are false. In fact it's kinda in some sense the opposite. It's the corporatist attitude in crypto that in a sense is hindering it. That mindset is the opposite of the mindset of abundance. Crypto is dominated by a scarcity mindset for absolutely no reason lol.

Crypto should be free just like the internet was free. how much the internet cost you? sure you pay a small fee per month or considerably small for what you get .. which is pretty much all human knowledge just about. so the internet is almost free. in some places it is free.

So what you all are doing in crypto the blockchain which we don't have to move into a future of setting men free. It's no reason it can't set you free now but the exception of how you all move. what you all believe. what you all push and promote and i can tell you this. what you all do is part of that corporatist mindset it's no different. i know it when i see it. that's what's holding the show up people like you and some others.

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