The cryptocurrency markets are collapsing. We saw a sea of red this week which, for the alt-coin world, is nothing more than a continuing trend. Many fear the Crypto-Winter might be returning. My question is when did it ever leave? If Spring came upon us, I missed it.
At times like these, it is best to step back and look at what is going on. Often, a larger picture can carry us through horrific periods like we are in.
Part of this process is getting back to basics. When we look at tokens, it is best to ask ourselves what are the benefits and what problems do they solve.
Tokens are fast. This is where it excels compared to the existing system. Transferring money, especially internationally, is slow. Couple this with the fact that it is very expensive while being wrought with corruption and it is easy to see the advantages of tokens as money. Even a "slow" network like Bitcoin, with its 10 minute blocks, is lightning fast compared to the global banking system.
This is only the tip of the iceberg. Tokens are beyond dispute. What I mean by that is everything is on a public ledger. Anyone who is interested can go through the ledger to get a proper accounting of what is taking place. The blockchain is trusted, eliminating the need for third parties to serve that purpose.
In the world of stocks, this is especially handy. We see an arena where fraud and manipulation are viewed as part of the game. Even honest attempts turn out to be a waste. How many times have we seen more stock in existence than was previously claimed. In other words, there is no idea how many shares of a company are outstanding.
This would not happen with tokens.
Wealth distribution is consolidating in the present system. This is something that most are aware of. With the advent of cryptocurrency, everyday people now are involved to the tune of a couple hundred billion. Since most of that money is NOT in the hands of the elite, who are too busy protecting the existing system, it means that average individuals were able to participate.
In my view, this is only going to expands as we see newer innovations come down the road.
Tokens provide liquidity. We are seeing many start ups targeting non-liquid assets. This will enhance the value of those holdings. There is typically a 10% premium on non-liquidity. When one tries to unload an asset of this nature, there are usually huge fees. Look at the housing market and the percentage that is paid in closing costs. The same is true in the art world where paintings require a huge fee paid to galleries/auction houses.
A great deal of the present financial system was established in the early part of the last century. While there were improvements, the same basic framework is in place. What was once done by hand is now computerized and, possibly, automated. Nevertheless, it is the same system.
Until now.
Source
The introduction of Bitcoin completely changed the game. For the first time, the creation of money was turned over to individuals. Over the last decade, we are seeing the progress to the point where anyone will be able to establish his or her own money. Digital assets are going to be as common place as websites. This should take the wealth of the world and send it into overdrive.
We are going to see a time, probably in the next decade or two, where a lack of money ceases to exist. Today, there is no lack of music or information. Anyone with access to the Internet enjoys those in abundance.
Tokens are ideal for the next generation innovations. Do you think it makes sense to use a Visa card to buy land in a virtual reality game? Does anyone think it makes much sense to link a bank account to said game and wait 5 days until money clears?
The answer is rather clear. Each year, we move more of our physical world into the realm of digital. Augmented, virtual, and mixed reality are starting to emerge. These are ideally suited for tokens.
We are to the point where it is time to start filling our wallets with whatever we can. Those who are holding tokens are going to have many more choices down the road. We are presently awaiting the proper infrastructure to be built before the major innovations take place.
Nevertheless, with an abundance of exchanges, especially decentralized ones, anyone holding tokens is going to be able to participate. As the entire crypto ecosystem grows, it makes everything more valuable. The interconnection of most tokens provides enhanced value as compared to one being isolated on its own.
Money enables for collaboration. Collaboration is the bringing together of people. When this happens, a hivemind begins to form where all progress is exponential instead of linear. Today, with our methods of communication, this can happen between people all over the world.
When I look at the present financial system, I see a total state of decline. Very few people are aware, at the moment, that a better system is being constructed. Basically, the present state of affairs is in the Stone Age compared to where we will be a decade from now.
The existing crypto market is still very small. That opens it up to enormous manipulation. The ratio of wealth in the fiat system compared to crypto is overwhelming. It is just something we have to deal with at the moment.
However, with each passing day, the crypto world gets stronger. Developers are plugging away bringing out new stuff on a daily basis. This is providing a firm foundation. As the technology advances, the situation is going to quickly reverse.
Cryptocurrency is simply a better technology. Unlike times in the past where companies or governments could stop a better technology, this is no longer the case. Cryptocurrency is already out there along with enough open source programs that it will only spread. That means the monopolies that are presently walling things up are about to get toppled.
In the end, there is no stopping the tokenization that is already underway. Even the existing system understands this and is trying to embrace it. Unfortunately for them, they are doing so while attempting to maintain control, something that is impossible.
For this reason, take a deep breath and relax. The crypto markets might be awash with red but it is only temporary. Tokens are going to be how we fund our ventures in the future.
The existing financial structure has too much wrong with it for it to be any other way. In this case, the far superior technology will win out.
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My last buy in to the BTC market was after the 2015 dip at a price of $330CAD per BTC. Not sure what you mean by a bear market. 😆
I Agree The Future is Beautiful @taskmaster4450
When can we see the taskmaster token? 😬
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