We are nearing the sunset of fiat currency. This means that government control over the masses is going to start loosening up in a major way.
The problem with large,slow, monopolistic institutions is that they often do not see the threat posed to them. They tend to be reactionary which, in a technologically advancing world, puts them at peril.
Some are speculating that central banks wanted to wait until they saw if people adopted cryptocurrency before entering the game themselves. To me, this is akin to Blockbuster waiting to see if people used streaming before getting into it. This is exactly what happened and we know the result of that.
Few are paying attention to one of the biggest shifts that is taking place on a global scale. They are operating under passe models because that is what they always did. Government statistics go back decades. In the rapidly shifting technological environment, they are quickly becoming useless.
Beliefs are hard to change. Few are open enough to question what they believe and be willing to discard it. Sadly, this is why human adoption tends to be a lot slower than technological advancement. People simply gravitate towards the idea that things will be basically the same.
We are seeing a chance in the nature of money. This is going to affect all things, on a micro and macro level. Thus, statistics like GDP are about as useful as a sundial.
Cryptocurrency is going to fund a lot of innovation in the future. The world is witnessing a major shift in economies due to technology. By its very nature, this is deflationary. Over time, it simply gets less expensive. This allows for more innovation that repeats the process.
When things become very inexpensive, they become abundant. The last 20 years provided us with many examples of how this took place. The typical example used is semiconductors. As chips get less costly, the use of them exploded. We saw the same thing, however, with information, communication, music, and video. We are now seeing it with money.
The driving force of all this was the advancements in those areas that fall under the "laws of Informational technology". We see this exemplified on the following chart. Notice the areas that saw major drop in prices over the decade cited. All of them have the IT component to them.
Of course, there are those areas that have not witnessed this. At the top of the list is education and healthcare, two areas that affect most American households. This, of course, are two industries that did not see a great change in how they are doing things. This is all changing.
The advancements in IT over the last few decades is going to be repeated with chemistry and biotech. Each of these areas is already showing impact with the cost of genome and batteries plummeting.
What this means, according to the normal metrics, growth is going to be hard to get. Using the Blockbuster example, we can see how the present stats miss a lot. When we went to the video store, we saw the creation of the DVDs, rental of the store space, hiring of employees, gas to get to the store, and electricity used all as contributing to GDP. As the video rental industry grew, this added to it.
When Netflix came in and eliminated the likes of Blockbuster and Movie Gallery, all that GDP disappeared. Suddenly, there were no DVDs being stamped out. Video rental stores became vacant. Nobody was driving there so the gas was not used.
Yet, people got access to more videos than they could ever watch, and for a nominal fee. Basically, instead of getting three videos on rental, people got enough video to watch every hour of the day.
This is the model we are going to see repeated over and over.
Look at most industries and the same is either starting, or about to. The education and healthcare sectors are still holding strong to the old ways but the next decade is going to see change there. Others such as drug research, construction, manufacturing, transportation, and energy are already seeing the first stages of radical change.
What this means is there is going to be a lot of money required to keep growth going. As more of the global economy moves towards a zero marginal cost basis, which is common with digitization, the downward pressure is going to be great.
And this is where cryptocurrency steps in. Right now it is in its infancy so the impact, collectively, is not there. This is going to change as millions of more projects come online, most with their own currency. Economic growth in this fashion is going to take place as millions of mini-economies show up. This is the path to an abundant society.
Of course, what is going to happen to all that money? Is everyone going to be chasing Lambos? Not likely. As we are already seeing, there are many industries which require a ton of funding. For example, longevity research is in need of hundreds of billions of dollars. The same is true for space projects. It is going to require a similar amount of money to further the energy conversion. Even something as simple as Internet satellite is a $20-$30 billion proposition.
As technology grows, it requires more money. At present, it is eating up more of our economy than ever before. This will only continue as we see everything connected, sensored, and providing data. This will filter into manufacturing and food production, radically changing those industries. Of course, this is a good thing since we need a lot of each to pull the rest of the world out of total poverty.
At the same time, fractional ownership is going to open the doors for billions. This is going to provide innovators and entrepreneurs with access to resources they never had before. At the same time, individuals are going to be able to invest small sums in many different "moonshot" projects which, over time, could provide a handsome return.
In other words, the game is about to get a lot bigger. Instead of being solely in the hands of Wall Street type companies and a handful of large venture capitalists, we are going to see the pool expand to billions of people. They are going to have access to hundreds of trillions in crypto and digital assets. This is going to provide the basis going forward.
And the timing on this is perfect since the technology machine is very hungry. It is going to require an insane amount of money over the next few decades. The present system is simply incapable of providing this since it is locked in to the old methods.
Cryptocurreny and digital assets are going to change all of this.
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Posted via Steemleo
That graph is clearly not correct, or else extremely confusing. Cars have definitely not gone down in price in that time - I bought a new car in 2007 for 27k with no haggling and today a new current model of the same vehicle is 40k. And I know TVs have come down a lot in price, but not more than 100% - stores do not pay you to take a brand new TV.
When looking at technology in terms of pricing you have to factor in the performance. So, using the television to illustrate, we see the televisions of today bigger, better resolution, and improved processing. Thus trying to compare a 8 year old television and saying it should be free today is not comparing apples to oranges. What you get is a magnitude of at least double what you bought X number of years ago.
Same thing with a car. Do you remember when you had to get rid of a car at 50,000 miles because, if not, it was cooked by 100K? How about when you had to change out the braked every 25K miles? To start, we see a lot of improvements in the longevity of a car. Cars made in the last few years can go 200K rather easily, many hit 300K. And things dont go wrong like they use to.
Then couple in the fact with all the automation and intelligence in the car as compared to even a decade ago. Like the television and computers, the IT aspect of cars keeps expanding.
Posted via Steemleo
It is my feeling that one indication that society has made the shift which you allude to is when we stop hearing the use of crypto currency and hear instead crypto tokens. You do not seem to see a post-capitalism era as an outgrowth to crypto token adoption. You seem to envision more of the same with the bullet point of government having less input over the economy.
We are at the most efficient and productive period of manufacturing in our known history. There are enough resources and production at this moment to take adequate care of all peoples of this planet. The one big thing holding it back is the boom and bust of capitalism and how it creates poverty from abundance.
When tokens have a one use and one user policy; earned by some activity; then we will see less amassing and a fairer distribution of wealth in my opinion.
the article contains so many important information and points,the society really needs cryptocurrency to make things much easier for them and also be able to adapt to this new fast innovations which are going on the financial and technological world....
Posted via Steemleo
The thing I find a little disturbing about some of the information in the chart above is the subtext that education and healthcare (and related) is taking on the nature of being treated as privileges rather than basic essentials... more and more people are being priced out of those markets. Hopefully you're right, and those things will change.
As for the cost of housing (which is most people's single largest expense) that seems misleading, mostly because the cost of insurance and taxes on homes have skyrocketed with the housing bubbles. The basic cost of our actual housing hasn't changed much (relative to other things) but in the past 10 years, the cost of our property taxes is up 110% and the cost of our home insurance is up more than 150%....
=^..^=
Posted via Steemleo
I've always gleaned value from your blogs. Thank you. Certainly, this posts need a share for many to come to the awareness of the truths embedded here.
Posted via Steemleo
lol stfu
Something about education costs seems way too inflated. Perhaps going to a college to pay dorm housing and pointless electives can be replaced with online targeted education. Just learn the skill you need and get to work in one year instead of four years.
Posted using Partiko Android
I agree with you a 100% on this:” Economic growth in this fashion is going to take place as millions of mini-economies show up. This is the path to an abundant society.”
But do you think governments and those in power all over the world are ready to lose their ”money factory"?