We are embarking upon a very interesting decade ahead. As infrastructure is put in place, we will see the acceleration of tokenization. This is going to reach the point where it could be consider "hyper-tokenization".
It is a shift that is going to have a radical impact in our world. This will forever alter the power structure and who is in control.
Most of the planet is not aware of how much is taking place. Those who are involved in cryptocurrency on a daily basis gained a lot more insight. We have a front seat to the power of blockchain.
This insight is vital because the next level that is constructed will be based upon this knowledge. Having a firm grasp of how things actually operate, not how we would like them, cannot be understated.
We will uncover some of them in this article.
Hyper-Tokenization
The world is about speed.
Few can dispute the impact of the Internet on our lives. This is a medium that not only altered society but also sped up how quickly things occur. The transfer of information, became almost instantaneous. We know there was a time when the fastest medium for news was the radio. Television, unless there was something breaking, would hold off until the nightly broadcasts. The major information source of the time was the newspaper and that usually appeared every 24 hours.
Today, a couple decades into the Internet Age and we see how different news (information) delivery is. We are dealing with instant distribution.
Cryptocurrency is actually bringing a similar model to money. Using the traditional system, it takes days to send money around the world. This is, of course, better than the weeks (or months) it took to send gold or whatever. Because of blockchain, we can have transactions settle in just a few minutes. A blockchain like Hive is working on turning this into a few seconds.
This is one of the features that will lead to the hyper-tokenization of everything. The ability to transfer value at the pace of information is a boom to society. Just like the flow of information had profound effects, the same is going to happen with money. In fact, it will likely have a greater impact since it is fundamental to how we operate.
Anything with cashflow will end up tokenized. Public blockchains are going to be at the core of this because they will have both the attention of people along with the liquidity to operate. We will eventually be dealing with stocks, bonds, and real estate all on the chains.
Large blockchains will have the same impact upon the global economy like nation-states do today. When we look at the United States and China, the two largest economies by GDP, we will see their importance replaced by blockchain networks.
Trillions of dollars in economic activity is going to take place on these chains. Just think of the volume of activity in online shopping. It takes a lot of 99 cent songs to equate to one Tesla. Yet, we have a lot of both being sold.
Tokenization simply adds the monetization component to what we already know and understands. Of course, the real change comes from the innovations that we cannot even comprehend. After all, the early developers of the Internet did not envision cars being sold on here.
The Downside
We have to issue a warning about where we are heading. Again, we are dealing in reality and not fantasy.
The benefit of technology is that it advancing all of humanity. Anyone who has access to it can see an uptick in their lives.
Let us take the personal computer as an example. There is little doubt that everyone benefits from the power of computing. It did for our minds what we cannot do natural. The information stored is far greater than any one person could retain.
At the same time, computation keeps growing. This is providing humanity with the ability to set up things such a neural nets which are providing a host of breakthroughs in many different areas. In short, all of humanity gained from the computer.
There is a factor that is equally relevant. The computer is a dis-equalizer. What this means is that some benefit more than others. There are people who use this it to create applications that generate billions of dollars. Zuckerberg used the computer to produce a trillion dollar company. On the other hand, billions of people use the computer to make him that money by spending hours on Facebook and Instagram doing very little that is productive.
Technology has wide impacts but it is not spread evenly. Some are going to utilize it for much greater gain. As the systems get more powerful, the ability to outpace others keeps growing.
This is why many of the top billionaires are from the technology area. According to the Bloomberg Billionaire Index, 6 of the top 10 are from that sector.
Cryptocurrency is going to end up the same way. There is tremendous opportunity presented to everyone. Overall, all of humanity will gain from this. However, we have to forewarn that it will not be evenly distributed. Many are going to end up using this technology for rather unproductive means. At the same time, others will take the concept of tokenization and run with it. They will be the trailblazers who create generational wealth. Their impact will be felt across the world.
Each of us has a choice. Cryptocurrency is still in its infancy. Those who are spending the time to educate themselves about financial matters along with the power these technologies are bringing will have a head start. Some of these individuals will build based upon their ideas. A few might end up becoming household names as they create applications or games that span the globe.
After all, impacting a billion people never was easier. Today, most of the world is only going to be a few clicks away.
Even if we do not reach this scale, understanding how DeFi will be interwoven into everything is vital.
The opportunities are starting to unfold rapidly. This is only going to accelerate as more is added especially with infrastructure.
Unfortunately, the early results are telling us something very telling. The percentages remain the same. Those who take advantage of what is before them is far outweighing the rest.
The hyper-tokenization of everything is going to change all of humanity. Some, however, will position themselves to take advantage of it.
This is no different than the impact of the Internet.
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