Metaverse: The Replacement For The Nation-State

This is a concept that is truly incomprehensible to people. We are approaching a time when the nation-state will disappear. There is a new era that we are embarking upon and our existing governance models are useless in this realm.

All revolutions are evolutionary in nature. The collapse is rarely an overnight process and what we are involved in started long ago.

Source

The demise of the nation-state started a few decades ago with the introduction of the Internet. This medium changed everything. Of course, the main point is that things were so novel and weak at that time, it was hardly noticeable.

That said, we do have some evidence of how impotent governments are in this realm. Consider the situation with the sharing of music right after the turn of the century. Napster came onto the scene and made a big stink by enabling kids to share their favorite music with their friends. Of course, being a company, the government could shut it down.

However, here we are two decades later and the government is useless in the fight against the sharing of music and films. All the copyright laws have absolutely no impact. If the government tries to shut down a site, a few more pop up. This is due to the global nature of Internet.

Geography Means Nothing

Our present governments were designed to operate in the physical world. They are based upon geography, Everything is predicated around that.

The population is based upon where one physically popped out of the womb. This determines most everything about one's life. The rules that he or she operates under as well as the customs that influence each are ingrained within that area.

In this realm, we see a government system that works well. Through the use of force, "order" can be maintained. One is physically stuck, so a lack of obedience has consequences. Systems are put into place to ensure all operates within the system, with measures taken against those who do not abide.

People have few options but to comply. They can complain, throw a fit, or speak out against what is taking place but, in the end, obedience is achieved. In those rare instances that someone does get out of line, an example is made. Many sentences are pass, not to punish the individual culprit but deter others from doing the same thing.

As the Metaverse emerges, this is no longer the case. The present version of the Internet already proved how location means little. We can span time zones in an instant, communicating with people on the other side of the planet in the same way as if they were sitting next to us on the sofa.

The best example of this is online gaming. Decades ago, with a gaming system, kids (mostly) would get together at someone's house and play for hours. Of course, they had to reside in the same neighborhood and assemble in one area.

Contrast that with today. People play games with dozens of other participants spread all over the world. There is no limit to where people can come from according to the game. As long as one gets the log in credentials, gaming can take place.

This is going to spread to other areas of life.

Taxation

Of course, one of the hot-button issues with governments is taxation. Many have strong feelings about it and few are supportive of it. Even those who understand some taxation is necessary will likely admit that it goes well beyond providing basic services.

Again, the physical realm is ideal for this. In the past, it was easy to determine where commerce was taking place. With the age of digitization, monitoring transactions became even easier. Many fear that CBDCs will push this to another level, allowing governments unfettered access to people's accounts, thus ensuring that taxes are taken immediately.

Cryptocurrency is changing this. Operating on decentralized blockchains, we are seeing the foundation being laid for an entirely new model. This is one that is going to be outside the reach of governments. Similar to the file sharing, governments are going to be impotent against what is going to be taking place.

This will be a very difficult situation since, as more commerce takes place in this realm, the ability to tax will diminish. Naturally, we can foresee a time when this will eat into their revenues. This does not bode well for the ability to carry out their plans of control.

The threat of force is no longer valid if one has no idea what is taking place. Presently, we see cryptocurrency operating on a transparent basis with pseudo-anonymity. That will change however in the future. While the transparency might always be a part of the equation, the level of anonymity will only grow.

We are seeing the spread of decentralized systems. As this grows, the ability to move around without surveillance will gain in popularity. This is going to make it very difficult for governments to track what is taking place.

Play-to-Earn

There is another part of this equation that is going to make life difficult for our present form of governance.

Much of our present system, including taxation, is based upon income. How does this work in a world with a reduction of jobs? The old model is going to diminish as automation takes over as well as people finding other options.

The Play-to-Earn model is one such example. We can easily see how millions are going to end up flocking to games which rewards then in currency that can ultimately be converted to real money. They will be operating in a world that is not based upon geography, in a token that has no association with any government. In fact, it is highly likely that we see a point where this is not even interacting with the existing financial system.

How does a government handle that situation? This changes the entire structure of what takes place.

Of course, as mentioned, the Metaverse is going to be a lot more than just gaming. If we look at the foundation that is growing in the NFT market, we see a number of industries starting to shift. Music, art, and film are all generating different revenue and payment models, outside of what is known. This is financially benefitting those who were previously overlooked (taken advantage of). What is really interesting is many are starting to create solely in the digital world. None of this exists in the physical world.

Ultimately, we get a situation which is pitting power against efficiency. The Internet, in its present form and the next generation, is based upon the later. It is an instantaneous and infinite world. Power means little if something enters that can operate more efficiently. The most powerful platforms only are that way because they are efficient. If that is lost, then problems will arise.

The protection of government or any other artificial means does not exist. Even with our "siloed" situation of today, we can see cracks in the armor. For example, how will Amazon operate when there are millions of "worlds" that people are operating in? They excel as a centralized hub for commerce. However, will they be able to duplicate that success when people are spread all over the virtual world? Things get a lot tougher at that point.

Opting Out

Essentially, the Metaverse is going to provide alternatives. In other words, whatever we are looking at, people have the ability to just leave.

We are going to see billions opting out over time. As they realize the power of choice, it will be exercised in a direction that most benefits them, not the powers that are.

For example, we are seeing a bit of a tussle between employers and employees with the "work-from-home" situation. This is just the first round. Employees still have few choices yet that is going to grow. Consider what things will be like a few years down the road when blockchain based opportunities are, say, 100x what they are today. Suddenly, making a "living" online does not seem so odd. This will allow millions to leave the corporate workforce, telling their bosses to "shove it".

This idea will extend to the government level. People are going to be accustomed to operating under rules they prefer. Online, people will be free to select what networks they involved themselves with. If one does not like something, he or she is free to leave. It all will be voluntary.

That is the major difference between the system built in the physical world and the Metaverse. In the later, all is voluntary. No coercion is involved. If one is not having his or her needs satisfied, one simply moves elsewhere.

Now we see how governments are going to be in trouble. The nation-state is not something that is opted into. Hence, force and coercion are central tenets. However, as people get accustomed to opting out, they will carry this principle to all areas of life.

With the ability to earn online, physical location once again is not relevant. This will make governments have to appease the populations that are there. As we all know, this is not their forte. Therefore, it is a good guess that they will likely fail in this endeavor.

As more people opt out and head to locations that are more to their liking, the geopolitical situation starts to change. Powerful regimes begin to see their power basis diminish (as well as their money). This will create conflicts which will be violent in nature (after all that is what governments know) yet will not succeed. How do you attack someone who is simply opting out? It is much more difficult when the enemy will not fight but, rather, leaves.

It is hard to predict the future. However, if we try to project how people will behave, we can at least formulate general trends that likely will happen. This is what was done here. Do you think people will opt to pay more or less taxes? Will people, given a choice, opt for more tyranny or less? When the true "awakening" takes place, the realization of the power each individual has in the digital/virtual realm, do you think they will select the archaic power structure we see today?

This will take decades to unfold. It is a revolution that is evolving. The eventual change will happen in an instant or at least appear that way. It is however, a few decades in the making.

As the Metaverse is moved towards, we can see the nation-state becoming less important. Ultimately, it will go the way of the feudal state.

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