Cryptocurrency: An Entirely New Wealth Class
Cryptocurrency is changing everything. At the moment, we are witnessing the foundation being laid for a completely new economic system. The limitations of the past are rapidly being removed.
Tokenization provides digitization. This creates a shift from the physical world to the virtual. The latter operates according to a completely different set of "laws". It places a lot more on an exponential scale.
What we are going to see is enormous wealth generated. This is true for everyone innovation that society comes up with. However, the challenge is distribution. Much of the success goes to a select few.
Cryptocurrency does not completely solve this problem yet it does offer a way to include more people. Those who are trailblazers are going to find out how much financial benefit there is to being early.
Nevertheless, over time, we are going to see a completely new class emerge. This is going to be global in scale and will push people to attain much greater levels of than ever before.
Near Unlimited Reach
The Internet has over 5 billion users. We see this number growing each quarter. Within a few years, the entire planet will have access to this medium. That means that anyone can reach all 7 billion people.
When it comes to network effects, there is little that compares to the potential of everyone on the planet. Successful industries in the past were only able to access a fraction of this. We are going to see the disruption of most industries.
Many wonder when cryptocurrency will go mainstream. At the same time, there are some who forecast what this will be worth. Basically, how much are we really talking about here?
With 7 billion people involved, there is the likelihood we are going to see economic production at a level never seen before.
Paid To Consume
Cryptocurrency is creating a paradigm shift.
Not too far into the future, we will get paid to consume content. This is a marked difference from the old model where people paid for information. The Internet created abundance in this area meaning eyeballs are vital.
Of course that was always the case. However, with the plethora of content being churned out, and rising, we are going to see systems that reward people for reading or watching. The most successful shows, films, or content creators are going to be those with the most profit for their followers.
This lays the groundwork for a new economy whereby those with the vast resources are not the same as the past. People entering the traditional professions, especially when it comes to information or entertainment are going to find that they lack the same opportunities as their predecessors.
Basically, the industry disruption due to cryptocurrency means a lot will try to follow the old model only to find it does not work.
The "attention economy" is only growing. Here is where the power is going to reside.
DeFi All The Way
Anyone who is establishing a foundation will be able to grow that significantly over time.
What is going to take cryptocurrency mainstream?
One of the biggest moves yet to come is the tokenization of real estate. At the end of 2020, it was estimated that the global real estate market was $325 trillion. This is an enormous sum, one so large most of us cannot put our minds around it.
Today, we have an industry that is barely $1 trillion. However, what does that look like when even a fraction of the global real estate is tokenized? We just say a UK developer move into this realm.
What makes all of this so powerful is the fact that people from all over the world will, eventually, be able to participate. Certainly we have to see laws changed which will occur as the industry matures. However, the key is that, through the attention economy, people are going to have the resources to participate.
Imagine being able to invest in 250 properties, all over the world. The entry could be only a few dollars yet one would have stake in some of the most populated cities in the world. As of this moment, most of the global population is excluded.
This is the power of Decentralized Finance (DeFi). Naturally, this applies to a lot more than just real estate. People can do this with any industry.
New Investing Class
We are seeing the creation of an entirely new investing class. In short, everyone is going to fall into this category.
It is logical to presume this is going to change from the way things were in the past. Whereas traditional investing requires understanding things such as cashflow, reading balance sheets, or monitoring different markets, the new investors will understand "what is hot".
Having one's finger on the pulse of trends is really where the major wealth is going to be achieved. Since communities are going to be at the core of much of this, being able to forecast where people are "assembling" is vital.
The old Warren Buffett style of investing is going to be dead. Instead, social tokens could end up being the most valuable of assets. Again, we are in the attention economy and determining where the eyeballs are going is vital.
Cryptocurrency is an enormous opportunity. It is allowing us to remake the entire global economy. This is exclusively resident in the digital world meaning we are going to see numbers that blow everyone away.
We are going to see a new wealth class emerge. This was standard throughout history. However, this time, we will see someone from Silicon Valley along side a kid from Nigeria who makes some wise decisions.
That is the power of cryptocurrency and what is being created. The Millionaire Next Door is going to be someone who using nothing more than a phone or laptop.
Exciting times ahead.
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