*Note: For better viewing, please download a .pdf version of this article by clicking on this link: Bitcoin and the Cryptocurrency Revolutionpdf
For the sake of brevity, I will not go into basic Crypto terminology or how blockchain and trusted ledgers work. Please google it, or use the Glossary link below if you don’t know the term or concept – there are also many very good videos on these subjects, so if you do not yet understand how they work, or why they are “trusted” then please detour here to YouTube. Please be aware of the “hash,” timestamps, and how decentralization is used as a check and balance to ensure that we can trust our transactions. Once you understand these things, then the potential ramifications will start to become apparent, and this article will hopefully fuel your understanding.
We do need to have a common Crypto language so that we can all communicate effectively. The following link is a good one that defines most Crypto terms you’ll use on a regular basis: 100+ Terms to Understand Cryptocurrency – Basic Glossary.
This piece is not a 20 second read! But if you want to fundamentally understand why cryptocurrencies are the most important change of your lifetime, it requires investing time and energy beyond that 20 second sound bite. Learning in front of the wave is opportunity, getting swamped by the wave is not – there is a tidal wave coming! We must also keep an open mind to the possibility that we all contain flawed programming, but that the progression of humanity has been, and will continue to be, positive overall. I think a huge leap forward for humanity, and for our collective consciousness, is right around the corner. You are not going to want to miss out, so do not let the naysayers fool you, and do not delay learning about this sooner – you will HAVE TO learn it later.
If you need help getting involved, are just confused as to what exchange to use, or how to store your money, we can help. Please contact us at firstname.lastname@example.org.
HISTORY AND FLAWS OF MONEY
SCIENCE AND ECONOMIC REALITY
WHAT CRYPTO IS ACTUALLY GOING TO CHANGE
THE CRYPTO TECHNOLOGY ADOPTION CURVE
NATE’S THREE SIMPLE CRYPTO RULES
Written By: Nathan Martin – Sharing is allowed, reposting permission is granted with appropriate link and attribution, all other rights reserved.
Cryptocurrencies will raise our consciousness, and will change humanity for the positive. They are the first and only money system(s) in human history that conforms to a proper rule of law. This is a revolution that is going to spark an economic and technological renaissance.
DO NOT LISTEN TO THE NAYSAYERS! The entire paradigm is changing under their feet and they simply do not know how or why. They have so many Bitcoin opinions, but possess such little (unbiased, non-mainstream) knowledge! Those whose livelihoods depend on propagating the current system just can’t seem to get on board… but they will have no choice in very short order.
We’ve all heard that crypto currencies, blockchains, smart contracts, and trusted ledgers are “the future,” and they are! Those who think they “get it,” may or may not, but if they cannot verbalize why they “get it,” then they will fail to inspire confidence. So let’s move the crypto discussion forward!
To truly understand what’s occurring, one must first understand both the history of money and the flaws that have led to each system’s demise. Once you understand this, then you will have the context to look at the progression of money and humanity, and that will give you a direction to look into the future.
It’s also important to understand the physical universe as it really is; not as the current false science and economic narratives do. This is a huge subject we’ll just brush upon, and will save most of it for another discussion, but one that I think Cryptos will eventually bring to the forefront – understanding reality the way it actually is, is an important part of the revolution and coming renaissance.
Then we’re going to dive into what’s happening now, and what is very likely to happen in the near future that is so revolutionary. This change is going to completely change how you view the world and will certainly change how you interact with it going forward. EVERYONE will be affected, and EVERYONE will be using this technology – many already are.
Right now (going into 2018), there is approximately 1.5% – 2.5% of the population who own and use crypto. This group was the innovator wave. Next comes the TIDAL WAVE of people and money as the early adopter wave is just entering this space. I expect that by the end of 2018 that more than 10% of the people on the planet will own crypto, and that it will increase even more in 2019. By 2022 the majority of the world will be transacting in one crypto form or another.
Most importantly, they will not be making the vast majority of those transactions through banks! No, people will be making payments and trading from one coin/token/contract to another directly. Crypto exchanges will only be useful for getting your debt denominated money into Crypto. There will soon come a time when you will not want or need to convert it back!
Today, people already have a ton of options when it comes to money (most are not yet aware of all their options) – they will be able to choose money for the intended purpose. Some money will act as a store of value. Some “money” (coins/tokens) will be transactional – you will move in and out only to get the things you need or want. Still other money will be investments in new technologies – you’ll get to instantly choose who and what you want to support with your money (your life’s energy and productivity). Other money will act as a contract, while still others will act as title or registration.
All of which is going to diminish the role, the power, and the control of both banks and government. It is going to place the power where it appropriately belongs, in the hands of the people. Your hands!
This is a part of a bigger battle within humanity. It is a battle of FREEDOM and SECURITY – Good versus Evil, decentralization versus centralization, freedom versus control. Freedom is humanity’s natural state of being – it is decentralized and it is random.
The pursuit of freedom brings with it true security at very little cost. True security comes from being decentralized and not from being controlled. The opposite (evil to humanity), is the pursuit of security which brings with it NEITHER freedom nor security (think about the debts incurred post 9/11, the Deep State, Central Banking, Globalism, Marxism, Communism, Socialism and all forms of central control).
The next step to understanding is to actually put a toe in the water! That’s how to learn the nuts and bolts.
*A note about the term sociopath: I use this term a lot and purposefully – A sociopath is superficial, lacks remorse, and most importantly lacks empathy. Yet, we tend to elect these types as our leaders! It’s not best for us because empathy is actually the very first brick in the foundation to a proper rule of law! From empathy flows communication. From communication comes the need to enact trade, and then comes the need for a proper money system. Trade then either flourishes or it doesn’t – humanity progresses or it doesn’t. Thus if our laws lack empathy, then they will be improper, humanity will suffer, and such unnatural laws will not stand the test of time.
HISTORY AND FLAWS OF MONEY (IN THE SMALLEST NUTSHELL POSSIBLE)
WHAT IS A PROPER RULE OF LAW?
All proper rules come from the need to cooperate to ensure survival. Proper rules conform to both the realities of nature and human nature:
Step 1. Empathy: People begin to cooperate for survival – to cooperate we must first recognize and value the other person’s needs as well as our own. This is called Empathy.
Step 2. Language and Communication: In order to cooperate, we must be able to communicate. This gives rise to the need for language. The better and more precise our language, the more effective the communication, and the better our chances for survival.
Step 3. Trade: Once communication begins, trade is the next step. Trade starts with barter, then progresses.
Step 4. Money & Exchange systems: Advanced trade means having a medium through which trade can occur without bartering directly from one item to another.
Step 5. Rules and Laws: A common understanding of the rules of conduct are established. This includes the formation of governments. Proper governments have branches to afford checks and balances on power.
The better a society is at establishing and maintaining a proper rule of law, the more successful and wealthy it will become! Yes, societies differ – they are rich or poor based on their application of the above – this has NOTHING to do with skin color as many social justice warriors today wrongly confuse.
A wealthy and prosperous society is built upon a proper rule of law! It is the FOUNDATION to how a society behaves and how wealthy it becomes. The money system is THE MOST IMPORTANT aspect of a proper rule of law, for those who control its production get to make ALL the other rules!
Figure 1: The Wealth Pyramid
If a society fails to maintain a proper rule of law, and that includes a proper monetary system, then it will not gain true wealth and it will FAIL. This is natural – nature is about survival. Can you imagine a lion who does not hunt? Do you think nature will just provide it what it needs to survive? If you do think this, then you will make a good socialist, and your society will fail.
Note to social justice warriors – you cannot make another society wealthy by giving it things! Wealth comes from a proper rule of law. A proper rule of law CAN ONLY COME FROM WITHIN, it can never come from someone else! If you wish to help a society that lacks wealth, you must first role model a proper rule of law to them! Once you are a proper role model, then you can go in and begin to educate these principals. Education then brings desire and motivation. From that they will seek a proper form of money, and a proper form of government. Fortunately, Cryptocurrencies are the most proper form of money in the history of humanity, and it will spread to all societies in very short order.
HISTORY OF MONEY
Money has progressed over the history of mankind from shells, to beads, to bones, to sticks, to gold, to silver, to paper, to debt (paper, plastic, electronic).
All money systems throughout history have failed! ALL. Most people think that WHAT money is or isn’t is what led to its failure. This is complete nonsense!
What everyone must understand about money, is that it’s not at all about what it is, or what is behind it, but rather it is about WHO, and it is about how the quantity is kept under control!
GOLD & SILVER:
For those who are stuck on the “intrinsic value” of gold, let me point out that the “Roaring Twenties” (1920’s) was “Roaring” into a huge debt and margin driven bubble even though the dollar was on a “gold standard” at the time. The result? The stock market crash of 1929, the subsequent bond market crash, and WWII – millions of lives lost.
Gold has never had the quality of truly maintaining a constant value as prescribed. Be aware that Congress was forced to recast the ratio of gold to the dollar on several occasions – if gold worked to maintain value, then why was this necessary? President Nixon didn’t just willy-nilly take us off the gold standard for no reason – the actual reason was that the quantity of dollars to gold was rising rapidly out of control.
You see, gold simply does not have the ascribed magical power of being self-correcting as the Misses lemmings believe. In fact, if one looks unbiasedly at history they will find that gold as money or behind money has not only always failed, but those attempts have been the shortest lived attempts at money systems in history. Our own nation’s attempts at a gold standard have all been catastrophic failures and have actually not lasted nearly as long as the current debt as money system! Yes, the current debt money system is actually better for humanity than a gold standard!
Do you know what form of money was longest lived? The Tally Stick! Tallies were first used well prior to the birth of Christ, and have been used by many civilizations around the globe, including in China. England adopted the split Tally Stick around 1100 A.D. under the reign of King Henry I. That system was in continuous use until 1826, more than 700 years! No gold as money system has lasted even a fraction of that time, although the fantasies of “intrinsic value” myths live on.
In the United States we have had many different money systems that have come and gone! But our Constitution says that, “Congress (your elected representatives) has the power to ‘coin’ money and to regulate its value.” Nowhere is there permission for Congress to give this ultimate power away – yet they illegally gave it to a tiny group of individuals with the signing of the Federal Reserve Act in 1913. Not coincidentally, the IRS Act soon followed – both written by the banks for the banks. This was the ultimate act of Treason as giving away this power usurps all the other checks and balances built into our Constitution.
The definitive book about this event is called, “The Creature from Jekyll Island.” If you wish to learn about how this true conspiracy happened, and you should, then it is a must read. The creation of the fake and phony “Federal Reserve Bank” is spelled out, it is not “Federal,” it has no Reserves, and it is not a bank. What it is will really surprise you if you are not aware, same goes with how our money is created.
This event is what I call a “history supernova.” Most systemic flaws can be traced back in time to this point. Those time arrows point directly at 1913. Throughout history, improper money systems have led to quantities that spiral out of control. This impossible math can be found prior to ALL of the world’s great conflicts – it is, in fact, the root of most conflict. When one party feels cheated or abused, then it will eventually lash out. These real human emotions are a part of human nature and thus nature. Those who think money is just some sort of unreal game are very mistaken – the impossible math does matter in reality.
Just before and after the turn of the 20th century our country deeply debated what our money system should be backed by. In the year 1900, L. Frank Baum wrote an allegory of this debate called “The Wizard of Oz.”
In the original book Dorothy’s slippers were silver. She walked along a yellow brick road (gold). Her journey to Oz is where she learned about the “man behind the curtain.”
Today, most people have no idea that Baum was actually weighing in on the money debate – a debate that is really about WHO it is that gets to have the power and control over everybody else – it’s more about the man behind the curtain than it is about silver or gold – those are false arguments created by that man!
Debating what money is has always been a false debate as the only correct rule of law is to have a money system that does not favor one person or group of persons over another.
So, regarding gold or silver as or behind money, that is a red herring argument – in a monopoly of money (by decree) it is WHO controls the quantity that is important, not what.
But then along comes Cryptos… this is the universe breaking the monopoly on money to bring humanity free and open money competition – This, I believe, is how nature intended as the decentralized, competitive nature of Cryptos fits in with nature beautifully, it is attempts at control that do not.
Competition is wonderful, it brings choices. You will be rewarded for choosing “money” that keeps its quantity under control, and you will be punished for holding those that do not. But you now have a choice, the monopoly has been broken, and we will never again need or want a “man behind the curtain!”
Well before the time of Christ, both the Jews and Chinese learned that they could “fractionalize” gold. They would store it for others and issue a “gold receipt” so that the owner could come back and claim their gold. They reasoned that if only a few people at any given time actually claimed their gold, then they could take the rest for themselves or they could lend it out at interest. Of course all the gold receipts added up to far more gold than they actually possessed.
What we fail to talk about today, because fractionalization is today’s standard around the globe (and worse with derivatives and other “financialization”), is that this practice is STEALING. It is not a moral act, it does not conform to a proper rule of law. Why? Because it gives those individuals who use this practice an unfair advantage over those who cannot. A proper money system does not advantage one over another. Again, this is something that is entirely possible to do, yet history to date has not truly had such a fair and equitable system – ever, until now with the advent of Cryptocurrency.
Today’s system of debt as money is infinitely fractionalized, derivatized, and is nothing but pure fraud and fluff. You see, for any money system to last over time the QUANTITY OF MONEY must be kept under control. No system has accomplished this throughout history, especially gold as money systems.
Don’t get me wrong, I own gold, although I wish I didn’t have to. I hate what getting it out of the ground does to the environment – look at mines in Africa, or do like me and go to Dawson City up in the Yukon Territory of Canada and you will see what gold mining leaves behind – you can’t miss it.
I own gold because those who manufacture dollars cannot keep the quantity anywhere near under control, and until recently gold, property, and other inflating “tangibles” have been the only defense. If the growth in the quantity of money exceeds the growth of the population, then each unit of money will become worth less over time. Thus, the creation of excess money STEALS value from those who hold such money – another immoral act. Those who work hard and labor for their money are forced to spend it quickly or have it stolen from them over time.
Today’s economic statistics are also 100% fraud and fluff! No, I’m not some radical mouthing off, I base this factual statement on years of study and knowledge. You see, when one’s measurement is dollars, then one cannot possibly measure anything “real.” Yes, “production” rises year after year. How do we measure production and productivity? In dollars! But does that mean that we’ve made and sold more goods and services, or does it mean that we’ve produced more dollars?
Hard to tell without knowing more, is it? So our government tracks “inflation” and uses those numbers in what’s called a “deflator” to make the growth numbers “real.” But they are NOT real! The numbers have been massaged and manipulated over the years to the point that today they have no recognizable connection to reality. That is the cold hard truth.
DEBT DOLLARS MUST GROW IN QUANTITY OR DEFLATION OCCURS:
When one measures in dollars, they are not measuring reality. Speaking of not real, those who pay attention to today’s dollar index are even further from reality as comparing one mathematical nightmare to another is like comparing one shade of black to another. It doesn’t mean anything to real people.
The debt dollar numbers are laughably impossible! They have been impossible for decades! So much so that politicians, bankers, and stock market hucksters won’t even discuss it. Being “conservative” doesn’t today include any inclination to balance any budget (we all know it game over already).
A government cannot pay down their debt levels in a debt as money system, or they create deflation! If all debt was repaid, there would be no money! So the system as designed was doomed from the start – that was intentional, and those who created it, those who exercise power and control, know this, and have plans for the future. A future in which what money is will change, but the WHO behind it, in their eyes will not (this is Ripple and other coins embraced by banks and credit card companies).
FIAT means “by decree.” That decree can come from a King or from a “democratically elected” government. Thus all money to date has been fiat, even the supposed gold standards. Do you see where I’m heading with this? It will become clear soon.
MONEY IS ABOUT POWER AND CONTROL:
Those who produce it can then use it to buy their own rule of law. They make more of it to bribe those who seek office. They use it to buy judges who rule on behalf of their own interests. Those who control its production then wield their power like the sword of Damocles over those who they have made dependent on it.
Just look at how the U.S. today uses the Dollar’s reserve status to control other nations and people around the globe. And every power hungry sociopath who wishes to control the planet has jumped on board the game of debt as money production to control the non-sociopaths of the world. They reside in all the CENTRAL banks, at the “World Bank,” the B.I.S., the I.M.F., the U.N., the E.U. and act as most heads of governments. The non-sociopaths let the sociopaths who control money production spend unlimited money getting two of their equally sociopathic minions onto the ballot (one “left”, one “right” LOL), thus giving the non-sociopaths a choice of voting for two puppet lower level sociopaths who do not actually control the production of money, but wish to be as close as they can get to it!
The IMF is classic at this game of control – their founding charter required repayment for loans in at least half gold by the poor countries who were desperate enough to borrow from them. The IMF actually does NOTHING, their money is fake, it is created on a computer yet they demand taxes from those who work and payment in the form of gold. This is how the IMF, an unelected body, became the world’s third largest holder of gold. They then dictate laws and behavior to those who are “indebted” to them (illegally I would contend).
Those who are closest to the production of money prosper, while those furthest away suffer. That is the inequality of the current system, a system that illegally gave a small private group of individuals a monopoly over the production of our money system! It is why the .01% have the majority of the world’s wealth – it is the root of massive income inequality. This is exactly what Cryptocurrencies will change- the monopoly on money, is in fact, already broken! And this is why it is a history supernova that will benefit humanity!
The puppet politician sociopaths frame all the issues into left and right arguments, thus boxing in the electorate with a system that has nothing to do with “democracy” or “capitalism.” This while real answers to most problems facing societies today reside completely outside their box!
Those who create money from nothing, use that money to buy up the media and to fund all the spy agencies that comprise the “Deep State.” They produce the narratives, mostly fake, to incrementally move their ball in a more consolidated manner – that centralization gives them more power and more control, while leaving the populace with less power and less control.
This is ironic as the “globalists” who wish centralization will actually divide the world, while those who understand Freedom and Security know that decentralization, not centralization is the path to actually bringing the world together! If you wish to promote peace, end hunger, and raise living standards around the globe, then decentralization and Freedom are the answer, most definitely NOT “globalization” nor socialism! Seek a proper rule of law, one that conforms to nature, and society will prosper!
LIKE ALL THINGS, HISTORY MOVES IN WAVES, AND WAVES ARE CYCLICAL:
In their book “The Fourth Turning,” William Strauss and Neil Howe describe the 80 to 100 year cycle, each containing what can be described as correlating with the seasons of the year – spring, summer, fall, and winter. Many people have recognized such cycles, including the Kondratieff Wave named after Nikolai Kondratieff.
Yes, history and economies move in waves, as does everything. Yes, we have already moved into a fourth turning, a winter. This is a time of great turmoil, of rapid change. According to Strauss and Howe, this is likely to last well into the mid 2020’s.
But where they see social changes, I first see impossible math. I see accumulations of debts that simply cannot be repaid by productive efforts. Impossible, and thus doomed to fail.
Once the math begins growing exponentially, as it has now for quite some time, then the events of history begin to move faster and those moves become more powerful. To me, this math underlies the waves that are expressed in social upheavals, and eventually into wars.
Just look at every all-out war in history and you will find within the decade prior, the rise of impossible money math followed by the collapse thereof. The all-out war washes out the old mathematically failing system and brings in the new.
SCIENCE AND ECONOMIC REALITY
Those who are distanced from a correct understanding of nature and the universe around them will often fall prey to false narratives of all sorts! While technology has advanced dramatically, our understanding of the universe, of money, and of economics has not.
As humanity is set free from the fake narratives used to control us, a new understanding will emerge that will bring to humanity the next renaissance. This renaissance will be much more powerful than the advent of computers and the internet, it is a renaissance that would not have happened without them; yet it will be far more reaching and powerful as it is one that will use previous technologies as a springboard to disseminate a new truthful consciousness to our planet.
There are many false narratives in our current understanding of science, and I have a lot to say about many of them, but the point I want to get across here is that literally EVERYTHING is energy, and that all energy moves in waves through its respective medium.
Figure 2: WAVE FORM – All Energy Moves in Waves through its respective Medium
Understanding the waves, and what drives them, will help you understand the waves of the markets, of your own society, and of humanity.
Real waves are NOT like the two dimensional representation above! They actually are 3 dimensional, moving out in all directions from its source. Some waves combine to created larger waves, some waves cancel or diminish other waves. And a wave in one medium can and does influence waves in adjoining mediums! Think about how waves of wind create waves on the ocean. Waves in one stock, or in one currency can and do create waves in others – this is reality.
HUMANITY CAN NEVER RUN OUT OF ENERGY, differentials that drive the universe have always existed, will always exist, and they will always travel in waves!
Math can be used to describe these relationships, but we must be careful to ensure that we know and are aware when our math takes us from reality and into being fantasy.
While I can’t address everything about waves here, and I especially cannot address the flaws I see in science here, I hope that your curious mind will ask pertinent questions and seek to learn along the way. In future articles and interviews I will expand greatly, we should all have open minds and be aware that not all is as we are being led to believe.
When a debt money system first displaces something else, like a “gold standard,” the debt fuels true economic growth! This is because the economy has yet to be saturated with debt.
Thus, in the United States for example, saturation looked like this, where $1 of new debt produced this much actual growth in GDP:
Saturation occurs inversely with the buildup of debt as it begins to grow exponentially. Our economy was 100% saturated by 2009, so that each new dollar of debt produced actually created a negative return to GDP! Here’s what the chart with actual data looks like. I call it “The Chart of the Century” because it exposes the biggest lie in modern history:
Figure 3: Diminishing Productivity of Debt
Debt money has to lead to diminishing productivity! It’s a mathematical thing – a certainty. Business schools don’t teach this, economic books don’t discuss it, and you can bet your last trillion dollars that the central banks won’t either!
Debt also leads to a diminished velocity of money over time – the reason is simple. If everyone has debt that is getting beyond their income to service, then when that person, corporation, or government takes in money, that money can no longer be passed onto someone making something or performing a service! No, that new money HAS TO circle right back to the bank to pay debt. In this way debt is guaranteed to kill the velocity of money. In the chart below you can see that velocity has been declining ever since the year 1997:
Figure 4: Velocity of M2 Money Stock (Debt Dollars)
Again, while the “FED” will discuss velocity, the fact that it is clearly debt and debt saturation that kills it is never to be discussed (at least not in public).
Figure 5: The Debt Curve
Quantitative Easing and the purchase of bonds onto the “FED’s” balance sheet were their attempts to un-saturate the numbers! Of course it only hides the numbers for the time being, moves them from one seen place to a place where our accounting doesn’t track them – thus they give the appearance of backing away from saturation, but in fact the saturation has only gotten miles and miles worse – the deception has grown exponentially to hide what’s really happening.
In the end, no matter what, the certainty of impossible math means that our money system HAS TO CHANGE. Fortunately the universe has brought us the right answer! In fact, this answer is far better than anything I could come up with. The answer conforms to nature, and thus will likely survive the test of time.
WHAT CRYPTO IS ACTUALLY GOING TO CHANGE
What will change? Everything!
Now that the monopoly on money is broken, you most importantly have a choice. You can now store your productive life efforts in say Bitcoin that is strictly limited in quantity. If you need to purchase something you can trade a little Bitcoin for a more transactional coin like Litecoin, or any of the hundreds of others.
Your spending does not pass through middlemen, primarily bankers! It goes directly from one party to another. Bankers know they have already lost… thus they are now in the mode of “if you can’t beat them, join them.” And they are producing or supporting currencies like Ripple and hundreds more will follow that the banks and governments control. But beware, they will NOT be able to keep their quantities under control, and supporting them will not diminish their power.
That said, I WELCOME banks and governments into Cryptos with open arms! Why? Because their involvement helps to keep government regulators off the backs of Crypto Exchanges, and the banker produced BIG TIDAL WAVE of debt dollars would not otherwise flow into Cryptos. Bitcoin $1 million? Yes, but only with the banks involvement.
Thus I expect improper money to be exchanged over time for proper money. Owning Dollars, for example, that are made in unlimited supply, puts you on the losing side of the math! Owning Bitcoin puts you on the winning side of the math!
THE BIGGEST DIFFERENCE
The largest difference between a Crypto like Bitcoin and a debt money like the Dollar is this – if you work and get paid in dollars, those dollars originated to the benefit of a banker. As you work your life away, you get dollars, but the banker simply pushes a button to make more to replace them. This is STEALING from those who work, it is SOCIALISM for banks.
Now let’s say that you work your life away to get paid in Bitcoin – Since the supply is strictly fixed, when you EARN a bitcoin (or trade Dollars for it), you are taking that bitcoin from someone who CANNOT MAKE MORE OF THEM.
Get it? Being productive with your life takes money from someone else, thus your productivity diminishes the power and control of the person paying you. Not so with Dollars! And isn’t that exactly appropriate? You bet it is, this is THE most important change and is at the root of the revolution.
The renaissance is coming because almost anything can be put into a trusted ledger or smart contract – and these are coming for literally everything.
Let’s start with proof of ownership – a trusted ledger will replace all forms of title and registration. No more title searches for buying a home, no more title insurance necessary. Goodbye DMV, hello registration on a trusted ledger. Goodbye checks that take 10 usurious days to clear, hello Cryptocurrency.
But wait, there’s more! Social media platforms – going to be based on this technology. Movies, music, videos, advertising, patents, copyright, software, all will reside on these platforms. In fact, companies doing this already exist – in the next few years you will see this revolution take hold. The impact is that those who produce anything will be able to cut out the majority of middlemen, systems will be faster, more efficient, and less expensive.
Banks, stocks, bonds, and all of Wall Street will diminish in power and scope. Old companies financed through these means and who have cozied up to the bank cartels will lose in the coming renaissance if they fail to embrace this. Those who do will prosper.
Politicians will be forced to instead cozy up to Crypto holders. But since there is no monopoly on any one, your ownership of a particular Crypto will be like casting a vote – what do you want to see succeed? Own it. What do you want to fail? Shun it, you now have a choice.
Almost every industry will change! From accounting to the production of milk, encrypted trusted ledgers and smart contracts will make them all more streamlined, more efficient, and more trust worthy.
Our consciousness will rise as those who produce and disseminate fake narratives will be defunded! Our true history will no longer be depressed, a true understanding of science and medicine will be free to come forward. With documents that cannot be forgotten or altered our history and our politics will be forced to document reality.
These changes are huge – and there are many more yet to come. To see how quickly they will come, lets’ take a look at how I think this technology will be adopted.
THE CRYPTO TECHNOLOGY ADOPTION CURVE
Cryptocurrencies are just now moving from the Innovation Phase and into the Early Adoption Phase.
Figure 6: Diffusion of Crypto Technology
Bitcoin was founded in 2009, thus it has been 9 years to get to the end of the initial Innovators phase. This 9 year innovation phase is comparable to other large technology diffusion – but I think the pace will quicken from here.
This is the perfect time to invest – the Innovator wave starts slowly and takes time. But with the Early Adopters, and the following Early Majority, the wave swells dramatically and the math compounds to create huge movement. By the end of the Early Majority phase the largest part of the investment opportunity will be over, as remaining growth will largely be priced in.
I believe that the Early Adopter phase could occur faster than other technologies. Why? Because it is 100% software based, there is no hardware (however it needs hardware to run on, thus the “internet of things” will help it spread as well). Think about PCs or smart phones. These were hardware and software based, but Crypto is only software, thus diffusion will occur faster.
So fast, in fact, that if you project the growth path of Bitcoin and the number of users obtaining electronic wallets, then the Early Adopter phase could be as short as only 2 to 4 years in length! That would mean that 30% of the population of the globe would own Cryptos by approximately the year 2020. By 2022 the majority of the world will be transacting in one crypto form or another. For this year, 2018, I expect more than 10% by the end of year, up from the 1.5 to 2.5% today.
For those trying to ramp up their investments by owning small tokens or participating in ICO’s – be aware. At some point during the Early Adopter Phase there will be a Discontinuity event!
Figure 7: Discontinuity Occurs in Early Adopter Phase
Think of the NASDAQ crash. In 1999 there were thousands of new technology companies promising all sorts of innovation based on the internet. The vast majority of them went bust in the year 2000 as the NASDAQ lost the vast majority of its value. There was a sudden shift, a discontinuity, as the technology matured – this shift washed out the weak players, and the technology matured with those who were leading technologies that weren’t necessarily the first. In fact, many of the survivors were 2nd generation companies who were doing the original technology better.
This type of event will no doubt occur for Cryptos. So please don’t get too heavy with all your eggs in one place, the only thing certain is change!
THE MATH OF BITCOIN
The Bitcoin algorithm strictly limits total supply to 21 million. However, several million have already been lost, thus the actual total will be something less. At today’s 16 million Bitcoin, that is only 1 BTC for every 500 people on the planet! Think of it… only 1 in 500 people can EVER dream of owning a whole Bitcoin at once.
Now imagine the sum total of all the Dollar and Dollar equivalents in the world. That number is measured in Quadrillions!
So, for Bitcoin to have a price of $100,000, the Market Cap would be approximately $1.6 Trillion. Is that achievable? YOU BET. For comparison, the Market Cap of Gold is around $7.8 Trillion (ignore those who compare BTC, a currency, to the market cap of a business – they are not comparable).
For Bitcoin to have a price of $1,000,000, the Market Cap would be approximately $16 Trillion. Is that achievable? Certainly! Yes, I do think that will happen, in fact the math is growing at a rate that will put Bitcoin at that number by about 2020.
Will all the thousands of coins and tokens dilute the amount of money that goes into Bitcoin? YES. No doubt about it. Just the forks off Bitcoin will dilute it substantially, that is why I try to own equal numbers of the forked Bitcoins as I do Bitcoins! It may be that it takes the combined value of all the Bitcoins that have forked off to equal what Bitcoin would have been without them. But who cares? Own them all, and if you owned BTC at the time of the fork, then you got those coins as a part of the deal – that’s how I got my first Bitcoin Cash and Bitcoin Gold. This is another reason to own Bitcoin sooner than later.
Truth is that each forked version of Bitcoin will have different characteristics – some will be better transactionally, some will store value better. Which will win? Who cares when you own them all (as I think you should)?
CHOOSING THE RIGHT CRYPTO – STORE OF VALUE, TRANSACTIBILITY, AND SMART CONTRACT SCALE
Being limited in quantity is not the only thing that makes a particular form of money valuable – but it is the largest in terms of how it behaves over time. I would put Bitcoin, for example, as a 9 on a 10 point scale for behaving as a store of value. But it would only be rated a 4 for transactability.
Coins that are high as a store of value can be held much longer than coins that are highly transactable but low as a store of value.
Other Coins, like Litecoin, seek to be both limited in quantity and yet maintain transactability. Litecoin, by the way, will have 4 times the amount of Bitcoin, or 84 million max. That puts the ratio at 4 to 1. It’s currently trading at 60 to 1, so I think over the next couple of years LTC will outperform Bitcoin in percentage growth terms.
Some Coins or Tokens are not meant to transact as money so much as they are meant to carry digital work, or to act as a smart contract, or to simply provide a secure ledger. There is value in all those functions.
Then there are coins, like Ripple, that are produced by the Billion. They are meant to be strictly transactional, and work with banks and credit card companies. They have no fixed quantity – and thus they will NEVER BE A STORE OF VALUE. That, to me, means that it can be used only to spend immediately if a non-central bank friendly alternative cannot be used. Coins like this should NOT be treated as an investment for anything but the very short run. They will actively produce more to keep the value down and the transactability up.
Some examples of how I would rate each below:
So it becomes clear that as you look at each “money” option available at this time, that in terms of overall value the Dollar scores low, but all of the Cryptocurrencies score better – and thus their value is justified. This is a question many entrants into this space have – namely how is Crypto value justified?
Of course that table is just a sample. Look for more comparison tables like this from Cryptonomic Edge in the future.
Why did I not score the Dollar even higher in transactibility? Because while it’s easy to exchange in person, it is not so easy to move electronically, and when you do so, it is much more expensive than the other transactable Coins.
Bitcoin is expensive and slow transactionally, thus it scores lower transactionally, but its fixed quantity brings it up to the top of the scale as a store of value.
OMG I rate highly for their technology that will enable crosschain transactions and exchanges using plasma. Due to this I rate their business case strong, they will rise greatly in value due to this.
While Ripple is a good technology, its support of the current central bank system makes it something I won’t buy or support. I actually don’t begrudge it, however, as it is necessary for the banks to play in this space so that their unlimited quantities flow into the more valuable crypto space.
NATE’S THREE SIMPLE CRYPTO RULES
Rule #1 – Choose to Support Humanity.
Rule #2 – Know Your Math!
Rule #3 – Be Responsible!
Your crypto choices wield POWER! The choices you make today will help determine all of our futures. Your smart choices will hopefully help raise the level of human consciousness, or alternatively, your decisions will impede our progress! So let’s make wise choices together.
Today’s coin and token market reminds me very strongly of tech run up into the year 2000. At that time there were many startups using the new technologies of the internet. Then came the crash! More than 90% of those companies WENT AWAY.
That is going to happen in this space!
There is a ton of great innovation occurring, but most simply will not make it, they will be flashes in the pan. So do not get too heavily invested in them, my advice is to follow Nate’s Three Simple Crypto Rules:
Rule #1 – Choose to Support Humanity.
Sounds easy, but even I get caught up in the excitement and lose focus on the ball. I’d say that my investment in Ripple was one – sure, it was profitable, but I was unwittingly supporting the wrong cause!
What makes that the wrong investment for humanity? Ripple, and those coins/tokens like it are working their hardest to integrate themselves into the existing banking world. Their founders see this as the road to quick wealth – getting in bed with the banks and credit card companies.
But think about it. What will having crypto technology working behind current credit cards change? NOT A THING THAT MATTERS! Credit cards will still be bank backed debt, only the technology of the transaction will change. Who cares?
So who should we back as an alternative? We should back companies like LEND who will be lending crypto to borrowers at low rates without the current system’s controlling ways.
We should support Cryptos like Tron (TRX) who will turn Google, Facebook, and Apple upside down. Tron is working to move all creative digital work onto a trusted ledger where there are no middle-men controlling what gets published and taking a usurious cut from those who actually produce the work (see how this revolution is going to change the old power base?).
Why not support companies like OmiseGo (OMG) who are developing Plasma technology that will lead to direct peer to peer token trades, even for non-like tokens and coins? Is that not the pursuit of Freedom? I think it is! And I support it by owning and holding OMG, and I’ve already been financially rewarded! That’s how this works.
Beware, that technology used by retailers will mean that you’ll be able to use any token or coin to purchase anything you want! You will not need a credit card or bank money! If the retailer wants, they can then use that technology to instantly convert to whatever they choose.
There will be credit Crypto! If you choose to go in debt to purchase things and services, then yes, you will be able to borrow in Crypto, you already can! But again, you will have a choice in who to support with your business, and there will be no middle-men!
The areas that will be changed by this revolution are way more widespread than most currently think. It will affect every person and every industry. PLEASE CHOOSE TO SUPPORT EACH OTHER, choose to support overall humanity, and not greedy sociopaths. Say NO to bank and government sponsored Cryptos!
The great thing is that YOU NOW HAVE A CHOICE! It used to be that you could only choose to use central banker debt money. Now you can choose, so choose wisely. You can earn, spend, and move “money” around the globe almost instantly and at little cost. Why use banker or government money at all?
I will personally choose not to whenever I can, and will only use their “money” very temporarily when I have to. I will avoid owning things that are priced and sold only in dollars – as many countries around the world are also doing. They are moving away from the failing Dollar.
Some Cryptos will be a store of value, others will be transactional. You now have a choice and that is wonderful! But with that freedom comes responsibility to learn it, and to wield it wisely, otherwise we all could lose the freedom humanity deserves.
So what if some sociopath creates his own Crypto and uses it unwisely or in a damaging manner?
You have a choice, use something else! See how freedom works? Freedom places a check and balance on bad actors because you are free to use some other form of “money.” Right now the government and central controllers think differently, but they have no choice, no say. Yes, they will resist, but that resistance is already checkmated by this technology that they cannot stop – their controlling ways have already failed and aren’t coming back.
What happens if your government “outlaws” the use of cryptocurrencies or exchanges?
Most exchanges are going to go away regardless, due to Plasma technology anyway. This is the same technology that will trump governments and any “centralized” attempt to stop this revolution. Governments and central banks cannot stop them, nor can they control them. Most people will simply choose to ignore such dictates as they go against the freedom seeking will of humanity. Laws that do not conform to math, nature, and human nature always fail – it is those unnatural “laws” that are truly illegal. No, they will not shut off the internet – that will also lead to their loss of control. Either way, they have already lost control, humanity wins as power and control rightly returns to the people.
Choosing the right Cryptos should increase freedom and thus true security will follow. Choosing the right Cryptos will lift our consciousness and will help bring reality forward. Please know WHO you are supporting, and choose wisely! By choosing to support those who support freedom and decentralization, you will be choosing to support humanity!
Rule #2 – Know Your Math!
It’s simple. Since you now have a choice, do you choose to support a coin or token that has endless supply, or one that is strictly limited in supply?
I hope the answer is obvious. Always know about the supply and the timing of coins and tokens – also know how many the founders are holding. If you don’t know, don’t own them, you have a choice!
For example – if you choose to put your earned dollars into a crypto, would you rather have one that is strictly limited to 21 Million coins, or one limited to 10 Billion? Again, that one should be easy to answer.
At this time, there will only ever be just one Bitcoin for every 500 people on the planet! That scarcity puts the math on your side. As debt based “monies” around the globe are created in unlimited quantity, they flow into Bitcoin, thus pushing the value of Bitcoin higher and higher. Its price is not the bubble – it is simply a mirror to the true bubble that is the Dollar. Unlike tulips, and even unlike gold, its math is strictly limited, so why not put the math on your side?
Bitcoin is a store of value coin, not a transactional coin, those who complain about this simply aren’t aware that they now have a choice in money features. Bitcoin will potentially live into infinity, and it can even be sent across space.
How about coins that are not limited in supply, like Ethereum, how can they be going up in value? Transactional coins do have value! If they are in high demand, like ETH, then value rises. But can they ever be as valuable as say Bitcoin? I think not, so be careful. ETH may be the backbone of new tokens today, but will it be in the future? I bet not, I’ll bet the technology changes.
Do not invest in coins or tokens that are not “mined” into existence over time. Any ICO that floods the market with massive upfront quantity should be avoided holding for any length of time.
When making a choice of Cryptos, please choose to put the math on your side. Only touch momentarily those that do not.
Rule #3 – Be Responsible!
Going forward, you will be 100% in charge and responsible for your own money actions! Isn’t that appropriate? It is, it is why all centralized concepts, like socialism, fail. They go against human nature as responsible, productive people will not tolerate forcefully donating their productive efforts to those who are not!
So, you must educate yourself and you must pay attention as changes are occurring every single day in this space. Yes, you can be taken advantage of! And you will be unless you work to become aware.
Know what safe storage is and what it is not. Keep as much off of exchanges as possible. Know that when you are trading on an exchange, you are not creating an entry in any coin’s ledger, you are in fact not trading any actual coins or tokens at all! Take possession of actual coins and tokens when you can, and store them as safely as you can – this is an entire lesson in and of itself, one that everybody must learn (this is what the Mt. Gox debacle was really all about (not just a hack) – the exchange did not have enough actual tokens to cash out those with deposits).
TRIPLE CHECK whenever you are sending Crypto anyplace or to anyone. You can lose it if you’re not careful – the most common way is to send it to a non-compatible wallet that doesn’t recognize what you just did.
Choose low cost transfers and trades when possible. Transaction costs, even though they are substantially less, can still eat away your money over many transactions.
Categories: Crypto White Papers