Be Careful Of Creating A More Efficient System Of Financial Slavery
Few would dispute that we operate under a financial system that simply is not working for most. Looking at the statistics from around the world, it is evident that the wealth distribution is moving into the hands of fewer people while the masses who are struggling to make ends meet is only growing.
Cryptocurrency is a bright spot in all that is taking place. By giving people the ability to create their own money, we see a system forming that provides many benefits. The challenge with this is the prospect of seeing a more efficient system under which people are enslaved.
There is little doubt that tokenization offers many benefits as compared to the present financial system. To start, removing the "middleman" is a way to cut costs while also speeding up transactions. Anyone who sent money internationally knows that it takes a number of days to settle while incurring costs of 5%-20%.
We can compare this to a platform such as Bitcoin where transactions occur in under an hour and cost a few cents.
Obviously, the benefits of using blockchain along with tokens is capturing the attention of the elites. They see the same abilities as the rest of us. However, their motive is a bit different. Instead of pursuing this as a means to freedom, they seek to retain (or grow) their control.
Like any technology, cryptocurrency and blockchain can go either way depending upon the intent of those implementing it.
To show how we could be creating a more efficient system of financial slavery, we see an article about tokenizing a Ferrari.
The idea of tokenizing collectibles is an interesting aspect of this relatively new industry. One of the problems with assets of this nature is the liquidity of the holding. We all know how hard it is to sell things such as exotic cars, real estate, and art. Tokenization streamlines all of this.
A company has decided to tokenize a limited-edition 2015 Ferrari F12 TDF. This vehicle has an estimate worth over $1 million.
One of the appeals of this type of offering, according to those who put it together, is the return that people receive.
Since the start of 2010, the Ferrari Index – an average of the 13 most collectible Ferraris from the 1950s and 1970s – increased by over 233%. During that same timeframe, the S&P 500 – which included its longest bull run in history – increased 173%. While infinitesimal compared to the stock market, Verboonen says it shows supercars are a viable investment option.
Certainly, this is an avenue that would appeal to most people. I am sure many of us might take a stab at this with a few dollars, if for no other reason than to say we own a piece of a Ferrari.
For this project, Ethereum was chosen with the ERC-20 protocol being used to create the token. The company, CurioInvest already partnered with Huobi to create the secondary market.
Of the 1.1 million tokens that are available, 60% were already sold to institutional investors. The remaining 440,000 go on sale on Monday. They will be offered to European investors with those in the United States not being able to participate.
Here is where we see thing going off the rails a bit.
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This is a wonderful idea, one that can be extremely profitable on many levels. To start, it shows the power of tokenization for creating new opportunities. It also exhibits how tokens can be applied to present a fractional ownership situation. These are the main benefits of tokenization as an asset class.
However, we see the tentacles of the existing system reaching in. CurioInvest had to get the approval for this offering from the regulators in Liechtenstein. This means that we are likely seeing some form of "accredited investor" required to participate in the initial offering.
At the same time, the institutions were turned to for early participation. It makes sense on the company's part since they can sell larger chunks of the total offering very quickly. However, this cuts out the retail investor from the largest gains, something that is common in the new offerings on the stock markets.
Finally, certain parts of the world are cut off due to their regulatory guidelines. In this example, it is likely that the company does not want to deal with the potential blow back from the SEC in the United States. Thus, it is easier to just cut those people out of the offering.
We also do not know what requirements Huobi will put on its customers who are seeking to buy into this. Since it is on the secondary market, there might be none but we cannot be sure.
This exemplifies how a new system can be taken over the those who are in control of the existing one. Obviously, there is little that is more elitist than a Ferrari so the idea of this being structured in such a way is not surprising.
However, it is just one example of how the present powers are seeking to take this newer technology and use it for its own end. Just like the Internet ended up being divided among a handful of powerful technology companies, we have to be mindful of the risk of falling into the same patterns with cryptocurrency. This could be more powerful in terms of its impact on society, thus we need to be careful. Institutions are going to jump on board and try to take control.
The longer the elites stay away, the better it is for everyone. We all want the value of our tokens to moon and Wall Street, as an example, would cause that. However, there is a trade off when those sharks get involved. Inevitably, they structure the entire system to their benefit.
This is a story that was repeated throughout history.
It is my view that the goal of these people is to financially enslave as much of the world as they can. The last 30 years showed me how they continually work the system to their benefit while crushed the masses.
Technology can offer a way out of this but only if we are as diligent about implementing it as they are. Instead, most are consumed with just surviving.
Cryptocurrency offers the potential for the masses to create as much wealth as the elites are holding. The question is are we willing to go for it?
If we do not, I fear we will be witness to a more efficient form of financial slavery forming.
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gif by @doze
Posted Using LeoFinance
