Crypto Insights 9/27/21

Stream of consciousness thoughts and ideas. Enjoy.

1) Blockchain is the future. More than people even realize. This is a bigger technological revolution than the internet and is the DNA of an entire new ecosystem. The potential is beyond immense. But don’t take my word for it; learn how it works and contribute your ideas and your concerns, both of which have real value.

2) This is a space in which early movers are rewarded. It’s crazy to think that if I had put my first flush of money that I made from internet business into crypto in 2014, it would be worth hundreds of millions now. I simply didn’t know. There are still massive opportunities though – you just probably don’t know about them. SHIB went 2000x, briefly, in less than 2 months earlier this year (before settling back down at around 300x the level it was at in early 2021). By observing the exponential adoption rate of this technology and these ideas, we can interpret that there will be more (and bigger) opportunities to come – and overall we are still in the early phase. But you can’t be an early mover unless you are on the edge of the wave of knowledge and understanding how this all works.

3) This is a space in which knowledge and ideas essentially become a form of capital. We are seeing capital migrating towards mindshare and out of other structures. Study and knowledge will become prime drivers of value – as they well should!

4) In the new token ecosystem, money can be whatever you want it to be. Literally and directly. The boundary between tangible and intangible assets is removed. Anything can be “tokenized” so we have the incredible opportunity to attach authenticated monetary value directly to intrinsic value, emotional value and even to ideas – rather than to “fiat currency”; which by monetizing one thing (gold, bills, whatever) effectively demonetizes all other things and people and excludes them from participation, thus creating an “unfair” and centralized architecture of power. That may have gotten us to where we are today, but it’s not unreasonable to say that it’s obsolete. With NFTs and “memecoin” tokens, marketplace value is driven by the collective perception of value alone – and the size of the marketplace is dictated directly BY THE PEOPLE participating in the marketplace, rather than by an authoritarian structure or body. This is the essence of decentralization and it informs and ennobles autonomy, participation and innovation. Big stuff!

5) Growth is exponential and moves in cycles.

6) Volatility will be immense for the foreseeable future. Why be scared of that? Again, knowledge is power and helps to eliminate ‘bright shiny object syndrome’ and differentiate projects that have real value from those that don’t.

7) Scams are rife, so do your due diligence. It certainly is the wild west – but that is not necessarily a bad thing. But for God’s sake. If someone – anyone – asks you to send them some crypto and they will send double back… it’s a scam. If someone DM’s you out of the blue claiming to be an admin from a platform, asking for information, passwords, etc – it’s almost certainly a scam. If you see a video on Youtube purporting to be from Cardano, click the channel icon to see if it is the real channel or an impersonator. In general, anything that offers you a large gift, but requires something from you first – personal information, money, etc – is a scam. My wish is that the regulators would focus their energy on catching scammers and into educating the public about scams to help them avoid them; rather than attempting to decide whether or not something “is a security”. Let’s hope they do that.

8) Blockchain is a new system of governance. This is not just a fancy phrase but has deep meaning which requires a full understanding. This understanding tends to take a while to sink in and you will ‘get it’ in stages; at least, that’s what happened to me.

The old structures are toast. Literally toast. Why do you think China is banning cryptocurrency? It’s because they are shit scared, they know it’s going to eat them for breakfast. I like to think it’s too late and that they cannot stop the future… but they will try – and they are dastardly. We cannot afford to underestimate the dangerous, bladed tail of dictatorship as it convulses in its death throes. Same goes with all the legacy structures but it’s starting to look as though blockchain literally undoes and eradicates them. It creates the potential for participation in power that is possibly unbreakable; and flips the script on a macro level from a top down power hierarchy into one where if people opt out, the system loses value – which precipitates the creation of consensus structures and the dismantling of elitism. This is what they are scared of.
I do think that by moving against it they are only hurting themselves. As we saw with mining; which simply made all the miners go elsewhere. China didn’t “ban crypto”… China banned themselves. Fucking stupid, but quite nice in a way: Let the corrupt old structures exclude themselves from the new world and fizzle out in their miserable little redundant shell. Poetic justice! Although I feel bad for the Chinese public, if you can even call them a public at this point… but things have huge potential to turn around.
So it will be interesting to see what happens as authoritarian structures attempt to muscle in and take over, which is what they are doing right now; attempting to recreate the only thing they know, which is systems of enforced participation rather than those of voluntary participation.. that’s exactly what is at stake and I like to think that the technology itself is robust at its core and incorruptible due to its nature and essence. What a fascinating point in evolution where technology and ethics may be able to merge for the first time. It makes sense when viewed from a macro level: Entropic structures have decay at their heart and are therefore ultimately doomed to fail. Once a synergistic structure has been birthed, it is logical that it will disassemble the old, by its nature. “You can’t keep ’em down the farm when they’ve seen gay Paris…”

9) Distributed architecture creates a new form of identity and a new type of permanent record – which has potential benefits that have barely even begun to be envisaged.

10) The pace of growth and of potential gain is off the scale of anything seen before. We are seeing billionaires created in timescales measuring months rather than decades! This exponential acceleration will only continue.

Fasten your seatbelt and prepare for hyperspace… 🙂

I will be posting a “knowledge drop” shortly with a study list of the good things I have been feasting on.

(Note of course, none of this is financial advice or a buy/sell recommendation.)

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