Cryptocurrency: More Than Just About The Control Of Money
Cash is dead.
Make no mistake about this. CBDCs will kill cash, increasing the powers of government exponentially. By adoption a truly digital currency, governments around the world will be in the pocket of every citizen. From birth until death, they will know every transaction that took place.
Tax returns will be a thing of the past. Each time a profitable transaction is struck, the tax will automatically be removed. The governments of the world love this idea because they are all hunting for taxes. Since they can't cut spending, increasing taxes is their only option aside from more debt.
This will all bring in societal issues that the government does not see. Of course, this is nothing new since that entity seems to major on the Law of Unintended Consequences.
One of the goals is to cut down on cash activities. This is where a lot of "illegal" transactions take place. By getting rid of cash everything is above board.
The United States decided to wage the war on drugs 40 years ago. In that time, despite trillions of dollars spend, drug usage has only increased. CBDCs will give then another weapon in that wallets of those dealing in drugs can be cut off. Hence, problem solved.
Naturally, this will not be the case. People, especially addicts, are creative. We will see the turning to other measures of value transfer, most likely in an area that only raises the amount of crime.
Centralized Versus Decentralized Money
The Great Race is really the battle between centralized and decentralized money. Essentially it is the public (government) versus the private. CBDCs are all the rage among government institutions and Central Banks right now. Fortunately, they are more than a decade behind in trying to figure things out.
Here is where the race is won. With technology, starting so far behind almost makes it impossible to catch up. Each day, the decentralized network keeps growing. Regardless of the metric used, we see growth. More hashing power, networks, users, wallets, tokens, and projects is what takes place.
Bitcoin and Ethereum, as well as other blockchains, are base layers. The future is going to depend upon what is built upon them. We already see a thriving DeFi system that is being established. Over the next half decade this will expand.
Ultimately, it will put many industries out of business while also training our children of how to operate. In the future, the kids of today will trust smart contracts a lot more than they trust institutions. Banks, for the most part, will be a thing of the past. If one needs money, he or she simply will enter a "pool of peers" and get what is needed. Liquidity pools coupled with lending/collateralization applications is all that is needed.
A Lot Bigger Than Just Money
What is taking place presently is much bigger than money. People think this is all about money. That is incorrect.
Money is just the starting point, not the endgame.
We are going to see this extend to most facets of life. In our digital realm, we will see the Internet remade into a decentralized mechanism. Our identification system is going to be completely redesigned. Artificial Intelligence will enable us to generate new methods of identification that eliminates our present use cases.
Of course, probably the biggest change will be the ownership of our data. That is something that is in our future and will become possible when many of these things are developed and combined.
Government is not the solution. Government is the problem.
This is a point that is overlooked by those in government. While governance is needed, over the last half century, governments around the world fell down on the areas of responsibility that most would agree should be handled by them. Instead, they simply operated in a quest for more power, mucking up a greater part of the process.
What they do not realize is that governments are not invited to this party. In fact, those who call for more regulation and oversight are simply those conditioned to look to daddy for the answers. They simply cannot leave their mama's teat.
Each day, all over the world, there are people working on many different aspects of what we will see down the road. A lot of it is still in the embryotic stage. Yet, it does not take a great deal of forecasting to see where things are going.
Developers are hacking away at code that is generating the applications that we are going to be using. Right now, interoperability is one of the main areas of focus. We are still dealing with a disjointed system that is harder to use since very little is connected. That is being corrected.
Another area of great change will come with the addition of new governance models. Our existing system, all over the world, is filled with corruption. It is not a question if it exists, rather, how overt is it? Some systems do a better job at hiding it.
Few realize the battle that is taking place. Governments are known for their bureaucracy and inability to operate very quickly. The wheels seem to turn very slowly. This is not the case with the decentralized, permissionless world. Here people can do what they want. Have an idea? Develop it and hang it somewhere.
And that is exactly what people are doing.
The government wants to see a "Black Mirror" future where it is at the center of everything. This might have been a possible reality a few years ago but not anymore. The time to stop this was in 2015 when Bitcoin was vulnerable and Ethereum was just getting going. Today, it is simply too big for them to bottle up.
What happens when people take control of:
- money
- the Internet
- their data
- their privacy
- governance
Each of these areas have projects presently being worked up. The pace of innovation, overall, is astounding, Thus, we can expect a lot of progress over the next couple years.
So while governments are looking at this entire thing as financial, the reality is the battle is on a much larger scale.
The battle between private and public (government) is taking place. It is something that is already won since the later is already trailing by years. We will see the difference by the middle of this decade when we see other areas on the list "suddenly" advance forward.
In the meantime, we just need to keep building.
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