Digital Feedback Loop

7 Min Read
1385 words

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Decentralization comes from the metaverse.

I've been coming to the realization that everything in this world is going to be decentralized. Why? Because we can. The benefits of centralization are scaling, efficiency, and strong leadership. However, we've reached the tipping point on that front and can obviously see that diminishing returns have been kicking in for decades.

Corruption is running rampant and the centralized nature of production is the ultimate attack vector. Not only does this create an attack vector in terms of monopoly and ultimate control by a few individuals, but it also creates a huge vulnerability in that recalls for dangerous/defective products become widespread. This threat is increased greatly when we consider that these people will do anything to save an extra dollar.

The problem with decentralizing the physical world is that it is EXTREMELY unprofitable. That was the entire point of centralization in the first place. Streamline the production and make the thing for the cheapest price possible. Decentralization can not compete with centralization in this way. Centralized physical product will always be cheaper than "home made" ones, even if they are lower quality.

This is where the metaverse comes into play.

What I'm coming to understand is that resources in the digital realm are so cheap that the cost of decentralization doesn't really matter. It does not matter that thousands of people are hosting nodes all around the world that all store the same information. The benefit from decentralizing currency, the most corrupt and important asset on the planet, is far far greater than the loss of resources generated by robust redundancy. This exact same concept is on the verge of materializing in the "real world".

Anyone from twenty or thirty years ago would look at what we are doing today and wonder how any of this is even possible. Do you remember when RAM and Hard Disk space (sorry no SSD here) was measured in Megabytes? What about Kilobytes? Back then digital resources were expensive as hell, but technology has magically continued on an exponential pace since that time and everything is different now.

The value from the digital realm is going to bleed into the real world. Yeah, it might be really expensive to grow your own food, purify your own water, generate your own power, and built your own shelter. However, when everyone is a multi-millionaire, and that wealth was generated from the principals of decentralization, they aren't going to care. People will pay the extra money for robust redundancy and the ability to support local community.

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Happy Cows Come From California!

Razor thin profit margins

When we go to the store to buy eggs, many will just look for the cheapest thing without thinking about where those eggs come from. Oh, look at that, the package has a nice picture of farm on it, isn't that sweet? This tactic only works because the means of production is hidden from us. If there was a video (or a blockchain) that showed exactly how the products we buy were harvested/created we'd think twice before buying the cheap stuff. The corners that these people cut and the cruelty to animals is legendary. We greedily consume these products thinking there is no other price to pay; and we are wrong.

By buying and consuming these products, we become complicit cogs in a scheme that will be viewed as essentially Satanic in nature once the walls of these facilities are replaced with glass and transparency reigns supreme. Will we pay twice as much more things to avoid selling our souls to the Devil? I believe we will when the value we generate from crypto and the digital realm is exponentially larger than the price we pay to decentralize the physical world.

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Razor thin profit margins (part 2)

The reason I brought up eggs is that I used to have five chickens myself. I did the calculations, and based on the amount I was feeding them and the cost of that feed, my "homemade" decentralized eggs were costing about 50 cents each.

To turn a profit I'd have to charge even more than that. Of course I was probably simultaneously overpaying on feed and overfeeding the chickens (greedy little goblins) in addition to not having enough land to sustain them with plants I could have fed them with for free. They loved clovers and stuff like that: things that people don't eat can be turned into things that they do. The magic of farming.

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Even my chicken's shit was valuable. One day I was stoned as shit digging for buried treasure in my backyard (because the previous owner was weird like that and he had died there) and I raked all the dried out chicken shit and bedding into a big hole I had dug. After turning this gigantic compost heap a few times and waiting 3-6 months it became the most fresh smelling and effectively powdered dirt/compost I had ever laid eyes on. Plants I would grow with this compost were three times as big and would produce three times as much output as anything else that I had tried.

The thing we have to ask ourselves is pretty simple: What happens when we can basically automate all the drudgery out of this kind of work and have robots and machinery doing all of it? 1000 people all doing the same inefficient farming practices becomes worth it, just like 1000 people all running a copy of the same crypto node is already worth it.

When technology lowers the barrier of entry to near zero, on-site production becomes the way to go. Yes, it's very inefficient but the expensiveness has been cut out of the equation. The quality of the goods will go up because they are not mass produced, and the value of our own health/community is higher than the money we can save by outsourcing this job to a soulless corporation.

The giant MegaCorps out there make this more and more of an easy transition every day. How many more GMO experiments does Monsanto need to do before people reject them? How many more vaccine mandates need to happen before people realize that: hm maybe we shouldn't be trusting Big Pharma?

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The dinosaurs are signing their own death warrant. Slowly but surely they just keep pushing harder and harder. They think that the people have no other recourse but to submit to their rule. It's getting to the point today that it seems like this escalation is flipping exponential. Crypto/decentralization is literally the only thing we have left to fall back on. Good thing some random anonymous entity created it for us. So weird.

Market watch: $50k Price prediction

I went short on Bitcoin today for the first time ever. Even though I think BTC will be at all time highs ($65k) at the end of the month, we still have one more flash-crash to go to fleece all these weak hands I've been seeing that squirm and squeal on seemingly every 1% movement in the spot price.

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We are still in a bearish moon cycle, and this market got exactly what I said it was going to get: three pumps, the last of which was a little late. Couple this with the fact that we have never tested $50k as a support and it becomes even more likely that we will flash crash somewhere around October 18th. However, this will mark the signal for another two weeks up upward momentum that I expect to reach all time highs. We shall see if my predictions are getting any better.

Conclusion

Value from the digital world is pouring into the real world. The digital world already has near infinite resources which is why decentralization works there. Once those resources and technologies bleed into reality we'll start seeing the shift of decentralized production of physical goods (food/water/power/shelter/logistics are the main ones).

It may cost twice as much to make, buy, and sell decentralized assets, but the quality will be far greater and the trust will be superior as well, in addition to supporting the communities that made us rich in the first place. The dinosaurs have got to go; they had their time. It's our time now.

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