Cryptocurrency Staking Will Accelerate The Time Price Of Resources
The last half century witnessed the greatest change in human history. We saw technological advancements that improved the lives of billions of people. This might come as a shock to many people who believe the mainstream narrative.
Throughout these articles, we present how things really are operating along with the advances that are taking place. To get a grasp of what is going on, we need to have a realistic framework about what is taking place. Sadly, many with the ability to garner attention use their platforms to promote gloom, uncertainty, ideologies, and outright lies.
Here we are going to look at things in a way that really show how much different life is from 1980. We will couple this with how cryptocurrency is shaping up. Blockchain is likely to bring a rise in the middle class, something that was lost over the last few decades.
All of this flies in the face of what we hear from politicians, gold bugs, and the talking heads on networks such as CNBC.
Time Price
Here is a fun exercise:
How much sugar could you get today compared to 1850 for each hour of work?
Give this some thought. Perhaps we could do better in a shorter time frame. Take the same question and start from 1980: how much sugar could you get today for each hour worked as compared to 1980?
Of course, with inflation, a concept misunderstood by most, it certainly would be less. After all, everything keeps going up.
We find the opposite is true. In fact, this is not only the case for sugar, it is for most commodities.
The answer to the question from 1850 is more than 200. For the amount of sugar each hour worked in 1950 would net out more than 200 times that amount.
As for the last 40 years, we will look at this chart.
Since 1980, the amount of sugar for each hour worked, increased by 7.25 times. This means we get over 600% more sugar
These are global numbers. This was compiled using the pricing of commodities on the international markets and the wages from countries around the world.
Going back to the chart, we see the average for all the commodities at 4.03. This means we have a 300% increase for each hour. Here is where abundance is entering society.
Time is the only constant for each of us. We all get 24 hours in a day. When working, each hour is comprised of 60 minutes, meaning that is our earning power. How much we earn per hour will vary but the time is constant.
Hence, when we price basic commodities in time, we see how vastly different our viewpoint can be. Keep in mind, the period we are discussing saw a massive increase in global population, something that we were told was going to put a strain on resources. If the demand is increasing, how can the time price be dropping?
The answer is simple: knowledge and innovation.
Humans get better are producing more with less. It really is that simple.
Cryptocurrency Puts This Trend On Steroids
Few truly understand how poor people truly were historically. They also fail to see how slow change was. It is only in the last 300 years or so that we saw any change. For centuries, families living basically as those generations before them.
Notice how it was basically flat for much of our time on this planet.
Let us look at it another way.
Looking at the first chart, we see it takes, on average, 20 years to double our abundance. When we see the historical context, previous doublings could have taken thousands of years. This shows how quickly things are truly changing.
So where does cryptocurrency enter into this?
Once we understand the basic concept within this framework, we can see how staking of cryptocurrency could massively accelerate things.
The basic premise uses time, which is constant, and pricing of both labor and commodities. Thus by having a standard unit of measure of each commodity, we simply establish pricing in time as opposed to currency. That variable cancels out itself in our equations as both price and labor contains it.
Here we are left with the time price of each item.
What happens, however, if we radically alter the components by taking income (the wage component) and increasing it significantly? We know the human component of knowledge keeps forging ahead. This is evident over the last 200 years. This does not show any signs of slowing down. If anything, it is only accelerating.
We know technology, over the medium to long term, drives prices down. Thus, if we increase the wage component, this will put this entire concept on steroids.
Enter cryptocurrency.
The entire premise of Web 3.0 is going to change these equations completely. Most are aware that one of the keys to wealth is to "put money to work". From this perspective, one of the easiest avenues for this is staking cryptocurrency. This is especially true if the coins or tokens were the result of rewards for some type of activity performed. The incentive based model is very powerful. As it expands, we could see billions of people having the income side of the model altered a great deal.
Of course, the biggest change, in percentage, comes from the bottom rungs of society. It is hard for someone like Elon Musk to double his net worth. However, we can see a massive difference if someone making $10,000 per year is able to generate the same amount via cryptocurrency operations.
Change The Comparisons
Most of us naturally compare ourselves to people like Musk and others. This does not but breed resentment and anger. The reality is, with the exception of a few countries, you are light years ahead of your ancestors, even going back a few generations. Anyone reading these works obviously has the ability to engage via the Internet, something that did not exist for the majority of the world in 1980.
When we look at how poor people truly were just a few centuries ago. Here is one final example that is worthy of considering.
Artificial light changed the world. Without it, the ability to operate outside the hours of sunlight is vastly diminished. Therefore, the cost of light is an important component to our abundance. It is something that most take for granted.
One hour of light (referred to as the quantity of light shed by a 100 watt bulb in one hour) cost 3200 times as much in 1800 in England than it does today, amounting to 130 euros back then (or a little more than 150 dollars). In 1900, it still cost 4 euros (close to 5 dollars). In the year 2000, we arrived at a cost of 4 euro cents (5 U.S. cents).
If we think about it in this context, we see how even a small stake in cryptocurrency is large in comparison. Getting a payout of 5 cents nets about 1 hour of light, the equivalent of $150 in 1800.
In other words, putting 1 Hive Backed Dollar (HBD) in savings will provide us around 4 hours worth of light per year, or the same as $600 a couple hundred years ago.
This last image sums it all up:
Our population, globally, increased by 75% yet our abundance of resources is up over 300%, a total of over 600%.
When cryptocurrency takes off, it is likely the next 20 years see this change even further. As more people are able to get involved at the funding and investing level, we will see another leg up in human ingenuity.
Technology is really nothing more than the application (fruition) of the increase in human knowledge. As we move deeper into the digital realm, we are seeing this explode.
In summary, cryptocurrency and blockchain are nothing more than pieces in a much larger trend that started centuries ago.
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