The digital world is expanding at a rapid pace. This is changing the entire economic and financial system of the world. What was based upon scarcity is now rapidly moving toward abundance.
We see a lot of talk about the Metaverse. While this is likely something that is decades away, there is a point to consider here. The enormity and near unlimited nature of things is worthy to note. This epitomizes the direction we are heading in.
If we contrast this with the physical world, we see something that is moving at a much quicker pace. This is where many of the previous rules of operation no longer apply.
Cryptocurrency is a monetary creation that has the ability to keep up with the pace of the digital world. Since it was constructed in that realm, it follows suit. Thus, we have a situation where there is a near infinite supply of money.
Some will think this is a bad thing. It is why advocates of Bitcoin believe it is the answer to everything. The limited nature of the coin in terms of elasticity means that it cannot keep up with the demands of the digital world.
We cannot monetize the ever expanding digital world with a fixed monetary system. It simply will not work.
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Unlimited Opportunities
When we think of where cryptocurrency stands today, it is amazing. Consider for a second how many choices people have to choose from. There are over 9,000 different cryptocurrencies with who knows how many NFTs. None of these operate in the digital world.
Also ponder how many cryptocurrencies there will be in 5 years. Compare this to the NFTs that will be created. This simply exercise makes us realize there is no limit to how much will be produced.
Of course, not all will have value. In fact, one could make the case that a lot of stuff will end up worthless. That is likely true. We know there will be failed and abandoned projects. However, much will succeed and find use cases.
The number of transactions around the world is increasing. This is the essence of a monetary system. How many times is a monetary unit flowing through the economy? We are now over 5 billion users on the Internet, on our way to having every human connected by the end of this decade.
However, most of the activity online is automated. This is only increasing. That means we are going to see the connected machines take on even more value going forward. This equates into a very interesting situation when most of the transactions are monetized.
Couple this with the creation of digital assets and we can see how this becomes enormous.
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Digital Speed
Let us do another quick mental exercise.
We saw NFTs go for over a million dollars each. Leaving aside whether that is insane or not, there was a real monetary exchange regardless of what used as payment. This means that, at $50,000, it was the equivalent to 20 Teslas.
How long did it take to create this NFT compared to 20 Teslas? What was the time difference?
Naturally, coding and other things went into the development of the NFTs. The same is true for Tesla. Years were spent designing the car, equipment and building of the factory. Once that is completed, the run time is 10 hours. The same is true for the NFT. The difference is that once the set up is done, it might take a fraction of a second to stamp out hundreds of NFTs.
The point here is the pace at which digital creation operates. We can see this concept duplicated hundreds of thousands of times each day. Again, the individual value of any single NFTs might vary yet the collective, over the long-term, will be there. In other words, the money that is going into NFTs over time is going to keep growing.
Here is where cryptocurrency can keep up with the accelerated pace of what is going on. We have a great deal of discussion about the #Play2Earn explosion. Just think about how many NFTs there will be in the form of skins, weapons, and even land. It is essentially an unlimited world.
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Monetary Expansion
As technology expands, we are able to produce more, whether it is in the physical or digital realm. This is something that we cannot debate. What is at issue is who owns the means of expanded production. That is, of course, a different discussion altogether.
With the increase in automation, we need the ability to keep up monetarily. Cryptocurrency does that. Each day it is expanding and growing, attempting to keep pace with all the other advancements happening on the Internet. At this time, cryptocurrency is likely lagging a bit since it is so new. Web 3.0 is going to change that.
The next iteration of the Internet (Web 3.0) is going to revolutionize all these concepts. As we see the monetization of most everything in the digital realm, the potential that was realized by Facebook and Amazon is going to be presented hundredfold. The totality of expansion will far surpass the Web 2.0 giants.
A major portion of Web 3.0 is that most everything that takes place online will have a monetary component to it. This means that Decentralized Finance (DeFi) is going to be interwoven through the entire digital realm. Basically, it turns all activity into a marketable transaction.
Of course, understanding how money is really a tool that was developed so people could transact, we see how massive expansion in an unlimited realm fuels even more growth. In other words, the resources are available to fund whatever is needed. This kickstarts innovation by orders of magnitude.
It is a difficult concept to wrap our minds around since we are all conditioned in the economics of scarcity. This is what the world ran on, at least from our perspective. We lacked the ability to engage in "balance sheet banking" which fostered the near infinite expansion of money, presenting huge opportunities for wealth. Actually, even in that realm there were major limitations.
The digital world eliminates most of this. If we take the Metaverse idea and think of how we will progress towards it over the next few decades, we can easily see how quickly things will expand.
This is just another example of how cryptocurrency cannot be stopped. It is the only monetary system that is designed to keep pace with the expanding digital world. Nothing that was created before this can keep up.
It is why we are going to increasingly see a massive shift over the next decade. The only way to stop this is to cease advancing the Internet, something that is not going to happen.
Blockchain makes derailing the advancement impossible.
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Two years ago, someone told me the world is gradually moving faster and soon we'll be going at the speed of light. I love the idea and today, I am happy that I am a part of Web 3.0 all thanks to Hive, and that there is so much embedded in this digital space that I'll be benefiting from.
The metaverse, NFT, cryptocurrency, everything working hand in hand to move the digital world faster.
It's a whole new world, and the fact that it's a decentralized economy makes it uneasy to stop.
I am hoping that we'll soon get out of our scarcity mindset and see the future from here so we'll position ourselves well enough to be a part of it.
Just look at the rapid progress online gaming made in the last decade. This is not operating in a vacuum. The concept is going to evolve into the next generation web, which is 3.0. We are already seeing how monetization and ownership is entering the picture.
This is going to get very interesting rather quickly.
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The entire world is shifting towards cryptocurrencies and it's acceptance as a legal tender. My major issue about some parts of the world, most especially, Sub-saharan African is that they're moving backwards in their policies concerning digital currencies. Last year instead of the Nigerian government to suspend the ban placed on cryptocurrency transactions within the country, they initiated the worthless eNaira and called it a digital currency. Maybe, they don't understand the upwards movement that the entire globe is experiencing. It overwhelms me when I see art works that are worthless becoming so petronised as NFTs. To me digital currencies are the solutions to our financial demands. Thank you
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Ignore governments. In a decade, they will have a lot less influence.
It is up to the African in that region to understand the opportunity before them and how it can benefit them individually. When enough do this, it will mean there is going to be a shift.
After all, when billions of people around the world are involved, it becomes to big to stop.
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Thanks for the encouragement. I'm already in the Crypto train and I'll do much efforts to encourage my cycle of friends to join me, with this the population is getting large and we'll take over the Africa and join our kinds all over the world.
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We are changing lives on Hive. Hopefully that is a message that you can spread to your circle of influence.
There is a lot going on here and it is exciting for anyone who is involved. This is much bigger than any of us.
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That is all. 💥
LOL
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Interesting read. I agree with your argument that digital future will have unlimited transactions fuelled by ever growing cryptocurrencies. It is not easy to visualize how that will happen as we all are marred by the limitation put into our head as we are educated by the traditional system. Web 3 engagements and early adoption of the new economy will help understand things better. I need to read more.
It is a major shift in mindset. That is for sure. Most of us are not indoctrinated in this realm. It is a learning curve for us.
The size that things are reaching is beyond the comprehension of most of us. That is why they do not believe the potential numbers when presented them.
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I really hope I am around a few more decades to see how and where this keeps going. It's nice to see more people have the opportunity to get ahead because of all these digital assets being created. And the digital assets are a bit easier to maintain than physical ones.
You and me both. I echo this sentiment.
There is so much taking place with technology that it is exciting. To enjoy it, we need to be around for it. Hopefully some of that life extension stuff starts to take off.
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That will be a really good thing! Staying in away from crowds and socializing here on Hive will help that along as well. My Dad is 91 and still going pretty strong so I have a good chance of being here to watch more of this unfold. Have a great weekend! 😀
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So if you think about it in that kind of way, which I have allot lately, we are really bringing back the barter and trade system but in a whole new way. The dollar obviously has been a failed experiment in monetary policy, but still reigns as king. With digital assets, we are creating all kind of new ways to trade value for value. It's exciting times we live in being on the forefront of a financial revolution.
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Not sure that is the case but it appears to be the common sentiment. That said, most dont truly look into what is taking place.
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Well we can say the experiment continues, but isn't looking too good, at least in the eyes of people looking at the problem. The issue is that the governments hold the main monopoly on the money supply and basically force the use of their chosen currency. So with that, the dollar hasn't failed yet because the most people are still trading their time and effort for the stuff without the knowledge that there is a better way. So it may not be a completely failed experiment yet, but it is failing due to the lack of trust. It's just a matter of time.
I am curious, have you ever seen a chart or something where they compare the number of transactions that have happened the past three years with crypto versus the past couple of decades in the traditional system? It would be interesting to see how those compare to each other.
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I don't think there would be enough data to really make that comparison at the moment, plus, in the traditional world, there are still WAY more transactions happening on a daily basis, it still completely shadows anything we are doing currently. We are still in an extremely small but growing bubble of users. As things become easier for people to use and understand, it's going to explode. We are seeing this now with NFTs.
I would say things are increasing on both the centralized and decentralized platforms.
So it is up to us to keep conducting more in the decentralized world. As users increase, that will really add to the entire decentralized base.
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Yeah, I know historically it would probably be hard to get that info. It likely isn't something that they were tracking back then. It will be interesting to see if there are comparisons in the future. Kind of like the reverse of how much money they have printed in the last three years compared to the initial introduction of paper money.
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You would have to track a company like Visa or Mastercard and do a comparison for something like that, at least that is what I would think, I don't know... lol...
Ah, okay. I was just thinking of like bank to bank transfers or at least one end of the transaction being a bank, but I can understand what you are saying. There maybe isn't really an easy way to compare the two.
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Now you are talking about the SWIFT network along with the Repo market. However, the data on SWIFT, since it is controlled, is not really out there clearly.
It is hard to find a lot of this data since they are controlled by different companies or industries.
Nevertheless, with all the digital, we know things are increasing.
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Before cryptocurrency renders SWIFT irrelevant, more and more nations will find ways to circumvent SWIFT. It's not the only game in town when it comes to processing transactions, even though USG still pretends that it is.
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No but when you look at Blocktivity, you can see the transactions are miniscule in comparison.
What is important the transactions increase overall, even on the centralized systems. We know, for example, that stock trading just keeps increasing.
Another thing to keep in mind is that cryptocurrency trading and associated transactions are just increasing.
The more we do on Hive, the more transactions that occur.
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The fact that the digital realm is unlimited is sometimes unthinkable. Most government institution feels that Crypto is fallible because its backed by nothing. But this endless impossibilities with NFT and all makes it inevitable. Its so exciting
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People who claim that do not realize that the entire monetary, financial, and economic system is built on trust and confidence. It is manmade hence it is what we believe in that matters.
Throughout history, lots of different systems were developed to appease this. Cryptocurrency is just another step in the evolution.
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Turning traditional economics upside-down and wrong-side-out!
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That is true. We are seeing the economic world changing completely.
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Spot on!!!
You get me psyched about the future every time you cook these posts
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I am glad. Hopefully that carries over into your activiy and engagement with others.
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This is another food for thoughts.
The world is ever expanding and there's need for monetary expansion as well. From the look of things, only crypto can be this expansive in nature while still retaining value. Expanding or increasing the supply of Fiats often result in a devaluation of the currency.
Just like you have said, this is another reason why cryptocurrency cannot be eliminated.
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It is impossible to eliminate it. We are seeing things moving too quickly.
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But will the governments ever cease trying to stop the train?
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Of course not. But if the train is running them over, what difference does it make what they do?
In the end, they couldnt stop the Eurodollar system. Now we are seeing the same ledger based banking system being created, just with distributed ledgers instead of non-transparent ones by the bankers.
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The fact is just that they feel threatened knowing that this technology gives power to the citizens.
Shockingly, some government officials are secretly investing in crypto.
Funny sect of people 😆
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Yes that is true. We do see some that are afraid of crypto because it threatens their power.
Of course there is another section that sees the opportunity and how they can be enhanced. Look at Miami, so far $22 million mined with a $5 million payout already.
So the countries that are not in great shape can take advantage as El Salvador is trying to do.
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With this, we can say that the determining factor for every governments decision is the "mindset" each have about the crypto technology.
For places like El-salvador, they see it as a medium for financial growth.
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It was a great article. The crypto world is unstoppable now. everyone should realize this. I believe that only Metaverse will be a part of our lives in the near future, not decades later as you might think. The speed of technology can sometimes surprise us. People are frantically waiting for this
The processing power at the edge will not be available for decades. Hence to have the Metaverse experience, we are doing to require a lot more processing power than we have now.
It is really simple math. The amount of processing cannot create the Ready Player One experience, or even close to it.
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Just that Crypto currency has made things easy even in transaction. There's alot of opportunity in Crypto currency.
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@taskmaster4450 curious if you're familiar at all with iota and if yes your thoughts on it.
I am not very familiar with it. One of those projects that was hyped up during the ICO craze and havent heard much since. I think there were bad tokenomics.
However, unless there is a lot of activity, I dont delve too much into a project.
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You can also think about how many cryptocurrencies will actually be gone in 5 years. Not even necessarily the ones that you would imagine.
Similar to the dot com era.
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It's surprising to me how many people don't understand that a fixed money supply can't last and there's a reason every gold standard ever has failed. But this is why I say Bitcoin is a store of value for the digital world. It will always be a good place to park your digital cash when things get hairy or you're not sure what else to do but it will never be anything more than that.
Re: means of production. I think as automation in the physical world becomes better and our physical needs are replaced by digital means, the things we fight over now like food and housing will become owned by governments and handed out "for free". They will become less culturally important except as a show of wealth for the few that can afford what becomes scarce.
The pace of the expansion of value in the digital realm however will be impossible to keep up with in the physical realm so people spending their time earning and investing outside of it will fall behind. Quickly. Investing and earning in the digital realm vs the physical will become like when doctors in Cuba start driving cabs because driving around the middle class tourists pays substantially more than being a doctor to the poor.
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The future is coming...
That unlimited money can be divided among people all over the world.
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we have seen that crypto has changed the financial system for the ordinary person
yes ooo, it is true. digital is taking over the world now.
Everything is going to go digital but I am wondering how the internet will look like in the future. After all, we already see that high frequency trading is keeping the stock market with liquidity. However FB crashed and we saw that even these machines can't fully front-run the sides. Do you think more things will continue to be automated out?
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Quantum computers are supposed to be magnitudes more powerful than anything else once they are put into mass production. It only makes sense that some will be made specifically for the needs of traders and investors alike.
As long as the electricity keeps flowing, the switchover to cryptocurrencies followed by continued growth is just a matter of time.
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Italics added.
This is cryptocurrency we're talking about. This is digital money. I know I need more sleep since I'm a night owl, but how can it be that these don't operate in the digital world? I'm missing something here.
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Great insight here! Our current economy and monetary structure are rather limited, hence the battle to embrace value apart from scarcity. This new model is multi-faceted, there will be the aspect of scarcity but there will be many more definitions and forms of attributed value.
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Cryptocurrency is indeed a revelation to how legal tenders can be exploited. Over the years it’s been fiat transactions taking the center age , now with the advent of crypto there will be a change to that. Pretty amazing!!
Your vision is tempting but there is no such thing as infinite growth in the finite world we live in. How do you reconcile your vision with the shortage of natural resources that are available to build the very physical infrastructure that makes the digital world work?
This is like looking into a crystal ball to see the future of crypto currency, NFTs and all, in a Web3.0 digital world, and you were quite informative and equally stimulating, lots of questions. You painted a future digital world which is just round the corner for me, that cannot do without a crypto currency takeover, in which all, big tech and countries must prepare timely to be part of it or virtually go burst.