Cryptocurrency Is Needed To Re-Start Human Progress
What would you say if I told you that the largest economy in the world faltered over the last 40 years? Would this come as a surprise to you?
Consider the fact that we live in the era of information, automation, and digitization. There is little doubt that over those decades, we saw more human progress than the rest of our existence combined.
Yet, a case is going to be made that we are far behind where we should be. The trend we established earlier last century actually was diverted from. In fact, it is easy to see how far behind we really are.
Decline In Economic Output
According to the San Francisco Fed, we see the total productivity factor falling off a cliff. The pace that was established in the 60s and 70s is a distant memory. Now, we are struggling along to maintain a positive direction.
Before going any further, what is Total Factor Productivity? Basically it is a measurement of the aggregate output as compared to the input. It tries to capture the overall effectiveness of economic output in relation to the different variables that are utilized.
Being in a rapidly expanding technological era, this does not seem to make sense? With the advancements that were made, we should be at a much higher level. Even if we followed the pace of those earlier decades, we would be double as to where we stand now.
So what is the cause of this?
While there is no one answer, a case could be made that we are mired in a period (decades) of misallocation of capital as well as low impact focus.
All of this amounted to humanity underachieving. If you are looking for your flying car, this is why it does not exist yet.
Society altered its path over the last few decades. Technological advancement became a game of money generation. The industry was taken over by Venture Capitalists who were only concerned about things such as ROI. While this is important, it has served to crush the maximization of our output.
For example, Snapchat was a project that received a lot of money in funding. Naturally, since it went public to the tune of tens of billions, it was a very successful project. However, in reality, did the world really need another messenger application? Nothing against Snap but would the money have been better off invested elsewhere?
At the same time, we saw the financialization of our global economy. Capital became the main driver. This meant that debt became commonplace. It led to an environment where most of the money is allocated to the "casino" of Wall Street. Look at the dollar amount invested in stocks and bonds. Unless this is an initial offering pertaining to a capital raise, the money is basically just speculation.
Essentially, this dwarfs the amount spent in funding projects either through Venture Capital or R&D.
We then couple this with the fact that a larger portion of our overall capital is going to servicing debt and we can see how this happened.
Of course, since the global debt load keeps growing and Central Banks are doing all they can to ensure mass defaults (an economic cleansing) does not take place, this will likely continue for a while.
Cryptocurrency To The Rescue?
Can we get back on the curve that was originally set so many decades ago? Is it possible that we can jumpstart technology to the point where it catches up in a couple decades?
With cryptocurrency, the potential does exist. However, it is going to depend upon what is done and how we approach things.
Thus far, the basic foundation of cryptocurrency was mostly tied to the same "casino" mentality that Wall Street has. We see it each day with people talking about "mooning". Everything pertaining to this is about speculation and how can instant riches be achieved.
Considering so many live with zero financial accumulation, this is not a bad thing. Nevertheless, we are going to have to shift our mindset very quickly if we are to see a radical change going forward.
Presently, we are on the edge of some very powerful technologies. When we look at the potential impact of quantum computing, AR/VR, renewable energy, and 3-D printing, we can see how massive economic explosion could be on tap.
This will not take place, however, if we are not "priming the pump". One of the keys to the last 40 years is the fact that money did not get where it was needed. When an overwhelming amount of money is locked up in the financial system, the other areas of the economy, those that provide the true growth, suffer.
Cryptocurrency has the potential to change this. One of the biggest benefits it has is that it is not tied to the debt-based system. Hence, no glaring misappropriation of resources.
Another is the ability to fund any idea. Presently, the VC world is established in such a way that only a small handful of projects receive funding. The numbers have to make sense thus we are dealing with larger firms going after the big paydays. This could be successful from a financial ROI standpoint yet does not achieve the desired result that will move the Total Factor Productivity.
Basically, we need more Elon Musks and less Mark Zuckerbergs.
Decentralized Finance (DeFi) as the opportunity to construct a system that can fund the endeavors that society needs. Through the pooling process along with tokenization, DeFi has the ability to take crowdsourcing to a completely new level. This is essential especially as the wealth within the cryptocurrency circles grows.
Web 3.0 Is An Opportunity
Everything we discuss plays into a much bigger picture. Web 3.0 is a lot more than just the advancing of our Internet and creating a more advanced social media realm. Instead, it will be a blending of our physical, digital, and biological lives. With all the advanced technology, we see, so far, that the best humanity can come up with is the pursuit of selling people more stuff while increasing surveillance.
When we look at the forward progress of humanity, it is vital that we re-start the trendline from decades ago. Cryptocurrency can fuel this since it is part of the basis for Web 3.0. Incentivization occurs through the tokenization of projects. This not only gives people a stake in what takes place, it also enables them to focus upon those things that are important to them.
Looking back at the above chart, we can see that there was an improvement in the trendline during a short period in the late 1990s into the 2000s. This was the era of the Internet kicking off, something that provide radical impact. However, that faded as the "business as usual" return. Major innovation took a back seat to development of the silo system and a few corporations gaining control.
We must not repeat this same mistake. Right now, we are sitting on something that potentially is many orders of magnitude more powerful than the Internet. It can help humanity return to the historic TFP line and remain there.
So, unless Central Banks are willing to send money directly to individuals and bypass the banking/financial system, cryptocurrency is the only answer that is being offered up.
It is going to be needed to re-start human progress.
If you found this article informative, please give an upvote and rehive.
gif by @doze
logo by @st8z
Posted Using LeoFinance Beta
Congratulations @taskmaster4450! You have completed the following achievement on the Hive blockchain and have been rewarded with new badge(s) :
You can view your badges on your board and compare yourself to others in the Ranking
If you no longer want to receive notifications, reply to this comment with the word
STOPTo support your work, I also upvoted your post!
We are almost at that era where crypto can surely provide the best financial solutions through blockchain technology. This is the kind of motivation that allows me to add more assets to my truly decentralized wallet application from https://atomicwallet.io/.
I do agree with you that things have just stalled and needed a good kickstart. Companies looked at ways of making profit not by developing which was the case, but by reducing what they had and that thought process was bought on by greed and laziness wanting a quick buck with instant results.
Posted Using LeoFinance Beta
Yeah it seems the innovators are not really innovative. They are bringing out updates and different iterations but little is truly revolutionary.
Hopefully crypto can start to tap into that.
Posted Using LeoFinance Beta
The fiscal support to individuals is slowly drying up. I fully expect the economy to start tanking once unemployment bonus stops coming in and I don't think I heard anything new about giving checks to individuals either.
Posted Using LeoFinance Beta
That is true. Many states are stopping the $300 per week federal unemployment.
Look for the numbers from those states to be a bit lower in a few months when the impact is truly felt.
Posted Using LeoFinance Beta
This is profoundly true, I believe: "One of the keys to the last 40 years is the fact that money did not get where it was needed. When an overwhelming amount of money is locked up in the financial system, the other areas of the economy, those that provide the true growth, suffer." !BEER
View or trade
BEER.Hey @taskmaster4450, here is a little bit of
BEERfrom @fiberfrau for you. Enjoy it!Learn how to earn FREE BEER each day by staking your
BEER.I agree, cryptocurrencies really have gigantic potential to drive all these all sorts of productivity metrics and so on.
It's not even a question of price or token name that matters anymore but the technology itself. It is a well-known fact today that cryptocurrency solutions are more energy efficient and comprehensive.
Posted Using LeoFinance Beta
Cryptocurrencies are like a new beginning. It can fill in the hole that is so glaring in the present system.
Posted Using LeoFinance Beta
I like the idea of this article touching on the decline in productivity although generally technological advancements generally lead to the opposite effect. The problem of roi and profit is it has nothing to do with advancement. It just means generally a company and it's shareholders retain more money.
It doesn't necessarily equate to and there is this trickle down effect that we gain from. Yes we get new microwave technology with no food to put in it. We get new tablet tech but we can't focus on anything we learning because we still as dumb as ever because the educational structure we need to advance and learn isn't funded in our area and just aren't there.
So this setup to .. first of all i don't even call it capitalism.. i call it neofeudalism.. So the problem in crypto with this .. you have the big vc's come in and they spend billions of dollars in crypto. Okay but where do they spend it? You still see most of the money go to ethereum a crap of technology a truly crappy system .
So nobody really wants to use it but it seems to be some weird protection racket where the vc's keep putting money in ethereum and ethereum devs hands that can't seem to build anything worth anything thats worth using. So they go on to keep getting billions of dollars and there is no exploration into anything better than those guys.. its just crap and its just the old ethereum money controlling everything so crypto is still, let me put it this way there always exist this potential that blockchain technology is offering us something that one day is going to reset many of these catastrophies.
The problem though is when you say "crypto" i'm thinking as in project. .is there a project where you're seeing this potential future happening. .I don't mean any disrespect but i hope you not talking about like what happens here on dpos systems because its just you and a handful of people really getting any benefits here.
So i hold the hope open for blockchain tech but i have no idea what projects you talking about because your posts are very optimistic thats fine. There is nothing wrong with that. I just would like to hear more specifics when you use ideas like this is happen or is going to happen? Is going to happen where? is there an actual place this is happening or you just kinda doing like me thinking maybe one day in teh future some place because right now i don't see any projects doing any of what you talking about and i'm not going to count again these dpos systems because i feel at best they still only favor a few and thats not helpful to the world and i think its going to take a great deal to fix that.
So when this happens here's what i think it will likely be. It will be the tech and the logistics and the system doing this probably won't be like a for profit system that only goal is to create profit. Profit in the hand of an inanimate object and entity means nothing because the only thing that only mattered was the human being. .its just like that ole saying from the author he goes no matter what you write about.. if it doesn't include the human heart" it means nothing.. its relevant to no one.
In corportations similar to what i believe happens on dpos right now is.. You got the inanimate corporation.. organization.. the syndicate .. vc's.. those people and then the shareholders.. and these is whom roi and profit serves it doesn't serve anyone else. Then they say well it does because it incentivizes them to spend all the money they raped from society back on society how they wish which is ridiculous.
So we buy that and we go along with that and we've went along with it now all the way up until it became neofeudalism and we still pushing it. The reality is things should work similar and i dont have a name for it yet because i'm thinking of it more like a model where ai creates all the wealth and robotics and artificial humans do the rest of the work and nobody is a designer to pocket every dime from the invention because every invention is based on someone elses patent and designs and technology and learning.
This is how we advance as humans we take creations and findings and progress of other humans and use it to build on top of it to create more value. Nobody starts off from point A and goes to Z. We're all benefactors of one another. So i think its pretty dumb for a guy to wake up in a world and see a mountain top and go you know what since i see it first and nobody around i got the right to claim something i never produced. I think thats utterly stupid.
This is how we think though. I can tell you that i'm confident in the future we'll stop this thinking. These crony capitalist neofeudalist types will be with us no more because in teh future we will see that as backwards thinking. We will see it as ridiculous and we won't have a society that is welcoming to those type of people anymore because it is on the verge of barbarianism. .it is on the verge of sociopathic tendencies ot live in these dog eat dog worlds and let people starve based on ideas like profit.. all those primitive ideas and concepts and philosophies will be gone i know this because i'm not that smart and i already i'm sick and tired of it. .so i know we will do away with this.
Posted Using LeoFinance Beta
There's a special word which describes this situation: malinvestment. A crash is necessary so that the "gamblers" who made "losing bets" pay for their mistakes with losses so that resources could be reallocated to where they make more sense and the recovery can begin.
Unfortunately, the powers that be keep kicking the can down the road hoping that a crash happens when "the next guy" takes charge. Crashes suck no mater when they happen, but it's cheaper to pay the piper today than in the future when it's more expensive.
As I read this post I was reminded that most people still have the employee mentality and seek solutions in tune with that mentality. One way for us to get out of our shared predicament is for every one of us to switch to a business owner mentality. Along the way we can move away from playing the zero-sum game and begin playing a pie growth game or a no-loss game. While not everyone will do this (and that's OK), as many of us as possible should make that switch.
This way we can relate to each other as fellow owners and help each other find win-win situations where we both (or we all) benefit from our interactions with each other. If the business owner mentality became the norm among us, then we can come up with more systems and methods which align with Web 3.0, decentralization, and perhaps even abundance.
Posted Using LeoFinance Beta
In the US, it could just be the same thing that eventually crashes every successful democratic society throughout history. People vote to give themselves more and more free stuff, get lazier and stop producing and innovating. Then it resets, historically with other powers or societies taking over, here we are looking a financial takeovers.
Posted Using LeoFinance Beta
I found the information and chart of Total Factor Productivity interesting... thanks for sharing very good posts