Why Crypto?
Do you believe cryptocurrency is not an asset class? That the market is a bubble, and will explode with ferocity, causing financial devastation to everyone invested? There’s much more to the cryptocurrency market than meets the eye.
This article is meant to illustrate a clear image of how a decentralized future could look. I find myself explaining the content of this article daily to friends, family, and colleagues that are becoming increasingly interested about what lies ahead for this new asset class.
I am not a registered financial advisor, nor am I encouraging any investment. This article is strictly educational and written from my own speculation and personal expertise as a long-time investor and researcher of the digital marketplace.
It is my objective to spark conversation with and between you all so that we can move into the future educated as a collective with a common and clear objective that will yield expected outcomes.
If you’ve been wondering what the big picture is, and why cryptocurrencies are the talk of the year, this article is for you.
There are many parts to the puzzle, more like layers of puzzles built on top of each other, that need to be understood to be able to recognize what Bitcoin and the digital asset marketplace’s future value may be. You hear about institutions including Visa, PayPal and MicroStrategy making aggressive moves into Bitcoin, and the world is following suit. Why?
A Global Digital Economy
The foundation for a Global Digital Economy is being built beneath your feet.
Governments are racing to maintain and regulate a massive transfer of wealth into the “brand new” digital asset class, where growth has accelerated due to factors created by the coronavirus pandemic as well as Bitcoin’s natural halving cycle.
A looming mass adoption of an ecosystem that provides previously untapped utility to the global population can be felt by many, and on the other hand many have yet to realize what is to come.
People across the globe have been learning from growth pains ushered upon society during the pandemic. Many of these struggles see a cure in an increasingly decentralized future that enables new opportunity, financial freedom and a hedge against inflation. The money flow proves it.
A decentralized marketplace is different from the traditional marketplace because it enables equal opportunity for any potential investor to buy and sell any asset peer-to-peer at will without needing permission. Centralized governments, businesses and organizations cannot dictate any decentralized market. Instead, protocols are valued and operated by the users of each specific ecosystem that provide the liquidity within them.
Blockchain + 5G = Web 3.0
Blockchain and 5G are the main inventions driving the creation of internet 3.0, the 3rd iteration of the internet. Web 3.0 will be a decentralized ecosystem on the internet with built in digital currencies that will enable the next generation of our digital economy.
In this new digital economy anyone can spend and earn in a plethora of new ways. Individuals and businesses will be able to exchange nearly anything with anybody, anywhere, with assets and funds that are settled instantaneously, without permission and (relatively) for free.
I look forward to a peer-to-peer trading society as an opportunity to revert the burdens of centralization to a society more similar to how indigenous people’s peer-to-peer trading operated. A fully mature decentralized trading network would eventually remove the need for a middle man from any transaction. Sounds efficient, right?
Envision a future society where content creators of all types are properly and easily rewarded for the value they provide.
A future where anyone can invest in and be rewarded with interest for owning parts of a digital ecosystem while supporting the ecosystem and being compensated for it’s growth at the same time.
Imagine a society where many people work for themselves, specializing in their field, being contracted for their work by anyone; a startup, large corporation, an individual; who could be on the other side of the globe, and get paid instantly for completed work.
These examples are hardly scratching the surface of what’s to come. Imagine the future value of what decentralized finance, decentralized insurance and real estate has to offer.
People Invent The Future
It is May 5th, 2021 at 1 P.M., and the market cap for all digital currencies is $2.35 trillion dollars, up 6% from a day ago.
The entire market for digital currency is getting legitimized before our eyes, with Bitcoin and Ethereum spearheading the charge. Digital currencies must be legitimized and adopted by society, the general population, to enable the creation of a next generation globalized digital economy.
Legitimizing digital currency must proceed internet 3.0. Developers need legitimized digital currency to fund the creation of highly functional digital applications for every business sector from finance, to tokenized real estate, to gaming. These digital currencies will be built into all ecosystems on the next generation on the internet.
The 3rd iteration of the internet will be a decentralized internet. It will contain decentralized applications, social media structures, finance, real estate, insurance and much more. Each ecosystem is governed and owned by it’s users and the value they provide and exchange. As you notice, this is the same case for digital currency, each is owned and governed by the users of each specific digital ecosystem.
A New Era
Blockchain could end up being the most important invention of our lifetime.
Outside of medicine the most important inventions of the modern era are happening in 2 sectors; language, and finance.
The internet is an invention of language that enabled a digital economy that has overhauled the way business is done throughout the .com era.
The internet has enabled instant communication and many new forms of communication within it for everybody to use. The internet is arguably the greatest invention impacting language since the printing press.
Blockchain
On the other hand, blockchain enables instantaneous and permission-less global finance and peer-to-peer trading of digital assets. This is as important to global finance as the internet was to global communication.
Currently, many people around the globe do not have access to proper financial systems.
In some countries government corruption creates inflation that suppresses their citizens.
People in these circumstances need digital currency to bypass lack of financial infrastructure and systematic financial oppression. Blockchain and digital currency can enable people in these situations to overcome their circumstances, and these are just two use cases for what digital currency on the blockchain is capable of.
Non-Bitcoin cryptocurrencies and tokenized assets are called alt-coins. For example, Ethereum is an alt-coin that is a layer one protocol for building decentralized applications on top of. Most digital finance (DEFI) currently runs on Ethereum. Alt-coins are the founding blocks of a digital revolution that will enable all types of utility for a decentralized global ecosystem.
Bitcoin will most likely stand to be the gold standard of this digital ecosystem.
There will be many ups and downs throughout the next decade, but there is surely a transfer of wealth going on that is happening for a reason. Together we will see how everything plays out.
Hopefully you have found this article to be educational and I have eased some headache about what is going on within the Crypto ecosystem.
To a bright future,
Jack Hahn
