Cryptocurrency Is Technology

This is something that many overlook. For this reason, I think it important to cover as part of our understanding of what we are involved with.

It is easy to think of cryptocurrency as money. The financial implications are obvious. It is also something the industry promoted over the last 6-7 years, drawing the ire of the establishment. The likes of Gary Gensler are focused upon the monetary aspect of what is taking place.

However, there is a much bigger issue at play. Cryptocurrency is not monetary as much as technological. This is an important distinction. The monetary aspect is only one use case. What is underlying is more powerful.

This sets cryptocurrency on the major curves that we see commonly with other technologies. If we see what took place over the decades, then we see what the future of cryptocurrency looks like.

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Cryptocurrency Cannot Be Isolated

People like to place things in their little containers. This seems to be a way most humans can understand things. We create reference points based upon the knowledge we have and tie new information to that. That means that massive changes are often missed simply because we cannot grasp the seismic shift that is taking place.

Cryptocurrency is not something that can be isolated or operates in a vacuum. It is technological in nature, hence tied to all else that is in play. Thus, we discuss artificial intelligence, quantum computing, energy, or computer chips, we are referring to cryptocurrency. All of these, if they come to fruition, will impact what is taking place here.

This is also true when looking at numbers. People feel that a quadrillion market capitalization on cryptocurrency is asinine. The reality, if we look at the list there, we can see how this is the case. What happens when we are a decade down the road with our computing, communication system, and storage capabilities? How big can these networks be if there are 7 billion people online, housing the computational power in a phone-like device that is presently in the most powerful of computers?

Can you see how this impacts cryptocurrency?

Billions Of Niches

People fail to see the opportunity this presents. What we have is the potential for billions of niches. This requires a complete change in thinking.

If there is the tokenization of everything, opportunities spring up everywhere. There are going to be returns generated that far exceed what is considered "normal" and most are going to be unaware of them.

I wrote about EDS in the past. Here is a project that most are Hive do not know exists. Yet, in spite of that, there are a handful of people involved, earning a steady 35% APR. This is paid out in $HIVE on a weekly basis and contains little risk. It is mostly an automated project at this point, simply collecting money.

Go ask Wall Street types what they would do if they came across a low-risk, 35% APR project? Question them as to how much they would FOMO in.

That is the reality of what is taking place. Technology is extremely deflationary while also creating abundance. This is especially true for the digital realm. We are not approaching 30 years of history of what happens when the Internet takes over an industry.

Look at this list:

music
video/movies
communications
shopping
information

All of these things are abundant. Pick a category and you will find 5 lifetimes (at a minimum) worth of options. There is no way for us to consume/utilize all that is available to us.

Of course, many miss this due to the technology paradox. We do not understand how deflationary things are because we focus upon those areas that are not yet affected. That does not mean that it is not in play.

For example, I had a roommate in college who had a music collection (CDs) that cost over $5,000. Today, that is impossible to achieve. Even if you pay for it, Spotify gives you access to 40 million songs for a base fee each month.

Network Effect

There will be quadrillions generated because we are going to have billions involved in cryptocurrency. Tokenization will mean that everything ends up digitized. It is at that point where we see abundance.

That means financial services are going to be readily available. So will things such as collateral. All of this is in line with technological trends. Automation is going to alter the money making process, providing new revenue streams. This could be from AI, robotics, or something else we havent even though about yet. With the DAO as a business structure, we can see how the ownership model is completely upended.

The network effect creates massive wealth. We saw this with Google, Facebook, and others take advantage of this. They were able to couple massive growth of users with Moore's Law, providing a growing business that cost less to operate over time.

We are going to see the same thing with Web 3.0. This is going to alter the concept a great deal due to the fact that we will see ownership spread out like never before.

This is what technology does.

Article by @taskmaster4450le.

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