The price of admission

A friend of mine was saying how he had driven four hours to an exhibition, but once there, found out that there were no more admission places available for the day. He was pretty disappointed.

He is anti-crypto.

So I wonder what he would have done if they had said something like,

"There are no more admissions for today, unless you are willing to pay entry with Bitcoin".

If there was an ATM gateway where he could convert fiat to Bitcoin handily available at the gate, did he want entry badly enough to make a deposit?

I find this interesting to think about, because essentially, a business would be able to slowly limit the amount of fiat they take, while increasing their crypto participation, though I am not sure if there are legal considerations regarding this at a local level. But, there are various ways they could encourage crypto usage where for example, a discount is given for crypto purchases.

In the future, I am "banking on" the majority of people in the world having to interact with blockchain tokenization by "force" - where the force isn't from centralized authoritary, it is from incentivized community. For example, if someone is buying a new car and Tesla can offer a rebate if purchased in Bitcoin, will a new buyer who has never owned crypto before, buy some in order to qualify?

As businesses start to buy-into crypto and the likes of Bitcoin, they will be looking to also add value to their holdings, as essentially their Bitcoin is "stock" within their company and the way they manage their business will improve their profit margins on their stock price. Creating demand for Bitcoin by incentivizing the purchase works on this in two ways, as it increases the value of the Bitcoin token through buy pressure, plus it increases their holdings of Bitcoin, without them having to directly buy and pay transaction and trade costs. Since they pay for their stock at a lower price than what they sell it for, the profit margin is going to be affected by the fluctuations in Bitcoin price and while extreme, the businesses that can ride the waves will be able to extend the margins, giving themselves more future buying power.

As we are all driven by incentives of some kind or another, it is safe to assume that when there is a financial incentive to behave in a certain way or perform a certain task, we will. Sticking a "20% off" sale ticket on items will see an increase in the demand for the product, especially if it is already desirable. If companies choose to take a small hit now for a larger percentage gain later, they could incentivize their product and not necessarily have to sell more units in order to make up the shortfall, as the token they have taken appreciates in value independently of their business, in a type of value hedge.

If they simultaneously convert some of their cash purchases into decentralized tokens, they add additional demand on the market and enhance the value model of their holdings further. Not only this, they will increasingly be moving their value into the decentralized economy, which disrupts the value of the traditional economy, making it more volatile and likely to depreciate in value rapidly, as user trust is lost. This drives more people to secure their wealth by moving into digital economies, which again drives price while simultaneously reduces the value of the fiat currencies, pushing them into freefall.

What will be interesting to see s what happens when all of the money in the world (which is an enormous amount) that has no reality to really back it, is no longer used. For example, I signed my mortgage to be paid in euros, what happens when they are near worthless due to reducing demand on the currency?

The disruption that is coming to the global economy and money markets is going to be enormous and I think what is going to be quickly seen, is how superior blockchain is in the management and tracking of it. As the fiat currencies crumble, the cracks in the system will become frighteningly obvious and years of systematic abuse will be brought out into the light, further turning people away from the centralized authority on wealth.

Now, this is only one aspect of the coming disruption, but as said, at some point, the incentive to participate in crypto will be far too strong to not take part and as a result, the stability in the new economy will increase with usage, making it stronger. As the current global economies fall heavily out of favor, the decentralized replacement will go from strength to strength, using a process that is far more distributive and competitive, meaning that it will also incentivize innovation at levels never seen before across populations that weren't able to gain admission earlier.

If you want entry, there is a price to pay. In the case of this, the price is the economy as we know it.

Taraz [ Gen1: Hive ]