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.
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.
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.
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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