Advise for financial advisors on how to wrap their solemn heads around new tech such as NFTs, DAOs and DEFI.
P/ART2: Space is the Final Frontier
Regulators, on all sides of the Atlantic and the Pacific, are overtly chasing those spaced-out cowboys, who are unwilling to comply. Crypto exchange Bitmex recently settled with regulators for 100 million dollars. Quite some crypto launchpads have wisely begun offering insurance against rogue actors, tempted to run off with investors money. These are all good signs. The overall industry is willing to grow professionally. And thus it is equally important, regulations concerning the creative repackaging of financial tools, should avoid stifling a nascent industry…
Easy to understand, that projects will simply hop to countries more welcoming and more clear on the legal front. Just like multinationals, small, agile and nimble teams nowadays get to pick where they set up shop. Countries are even stumbling over one and other to get projects to kick off on their respective territory. One could wonder if current behaviour of the SEC (Securities and Exchange Commission/USA) is versatile enough to cope with the complexity, as well as the vast amount of projects, exponentially growing? It is good that options to hedge crypto have been generated through a vast array of exchanges. If the SEC wants to weed out bad actors to protect small investors, it should do so with ample care.
After all, it is one thing hunting a golden goose; It is another thing coming to terms with an invention like Bitcoin. On the borderline of sweet cryptographic genius and manic inflationary money printing, a lot remains open and to be seen. In spite of overtly hidden agendas, symptomatic of power-hungry dinosaurs, the old must make way for the newly improved paradigm. Clinging to old school definitions of ownership, copyrights, creative collaboration and liquidity, will simply not stand. The broader picture is ‘forcing’ humanity into space. It requires us to deal with an ever more complex set of issues such as climate change & migration. And therefore, we should be grateful for heaven-sent tools like crypto…
Dogecoin will be sent to the moon, not only because Elon Musk is a man of his word. Simply, because big players have entered the game. Visa, for instance, has solidly chosen the Ethereum protocol, after authorities warded off Libra. Musk directed Tesla to accept Bitcoin. Space X will be likely opening another venue for commercial space discovery: advertising in space starting in low orbit… All of it is connected to crypto & its superior efficiency. As of January 2020, nearly any right or asset can be ‘packaged’ into a token, according to Liechtenstein’s container model. This paradigm shift is well under way & beyond merely seismic.
IF THE RIGHT CODE IS PROPERLY WRITTEN, IT INCREASES SECURITY
Maybe one should aptly realize space-coins are very real. Transactions must be coordinated beyond Earth, advertising regulated & science fiction not dismissed as a joke. The scope of cryptocurrency functionality reaches to the furthest corners of our known (and unknown) universe. We will have to deal with the fact, this expansion isn’t going to stop anytime soon. After all, what we are dealing with here, is a clear-cut renaissance, a technological revolution essentially generating higher efficiency on every level one can imagine. And again: those in denial will simply perish.
Yield, on the contrary, comes to those who correctly grasp the sheer magnitude of what is happening. Cryptographic code not only has improved the way Nasdaq functions, it has brought any stock to the fingertips of anyone who wants only a fraction of the action. Tokenizing one Amazon stock into a thousand smaller units, has almost become childs play. Enzyme ($MLN) allows anyone to start a hedgefund. Production processes within companies like BMW or Maersk, have been streamlined thanks to crypto. Some protocols are already even boasting un-hackable quantum cryptography. Opportunity comes to those willing to see.
ELIMINATION OF THIRD PARTIES BOOSTS ECONOMIC BENEFITS
Lasting elimination of third parties (wholesale merchants _in case of produce that can go directly from producer to consumer) brings an increasing amount of economic, as well as sustainable benefits (less office space, higher cost efficiency, lean modularity and so on.) One only must look at the growth of VeChain (VET) to figure out how some Fortune500 companies are digging in, into crypto, as well. They too have clearly understood smoother transaction mechanisms can better cope with the complexities of a postmodern society.
Introducing the tracking of goods anywhere: from wine to fresh salad, Vechain captured the imagination of luxury goods designers as well. It signalled Proof-Of-Authenticity, and was at the cusp of intertwining digital and real world information. Attaching real world data to sealed labels & QR-codes, in a certified way, turned out to be a blessing to producers as well as end-users. Moreover, it holds the promise of trust beyond borders. A clever leveraging of rewarding mechanisms, combined with functional applications is opening the doors to whole new industry ecosystems, and not only in supply chain management.
Perfectly extending into hybrid functionalities where art and banking are seamlessly integrating into interactive and collaborative gaming, who would have predicted this happening only a decade ago? Though blockchain is named a trust-less protocol, it is exactly the trustworthiness of the code (in case of good programming) that guarantees a better cooperation over the boundaries of former political, industrial and societal divides. Essentially, we are witnessing nothing less than a quantum leap in the making. Intertwining on the borders of real, virtual and augmented reality, a new almost surreal universe, is connecting people as well as artists and entrepreneurs…
Simply put? Early adaptors will reap its benefits. Dinosaurs will go extinct. Compare it to the invention of the television or the computer. Or, who wouldn’t want to have been at the forefront of the invention of the car and the combustion engine, for instance? Maybe smart fans of electrical? However, the astute notion, that we can sell a television, car or computer to anyone on the planet (and beyond) is a very powerful notion. Do we care if the buyer is a North Korean, or a North American? As long we are not selling plutonium door-to-door, we are fine with making a profit. So, the trick is rather to get the right audits in place, guaranteeing the code is well written, making transactions trustworthy & legally binding.
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