Cryptocurrency: Innovation Take Money

in LeoFinance8 months ago

Technology is a hungry bear and it takes a lot to feed it.

We live in a technological age, more so than at any other point in human history. As we advance forward, we are only going to see this situation accelerate.

Technological breakthroughs do not magically just happen. Innovation requires a lot of effort on the part of companies and individuals. It also needs money, lot of it.

This is something that is often overlooked in our world today. Since we have so much going on, we are continually having to feed this beast. The technology bear is large, meaning it takes a lot to satisfy it. As we move further along, the appetite is only growing.


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Any entrepreneur is cryptocurrency knows that developers are expensive. Creating software is not a cheap proposition. While this will not rival the GDP of Ecuador, anyone who has to pay these bills knows they add up.

Marc Andreesen said that "software is going to eat the world". If that is the case, how are we going to feed all these software developers?

Of course, that is just one facet. Can you imagine the bill that companies rack up for machine learning engineers? How about for rocket designers and scientists? Everywhere we look, at the center of technology, are a bunch of smart people who cost a tidy sum.

There is also prototyping as well as experimentation. SpaceX blew up another Starship last week. How many tens of millions of dollars goes up in flames each time they do that? Keep in mind it is not the first time this happened. In fact, it occurred with each Starship they build. Call it the cost of progress.

Unfortunately, that cost is going up. When we consider the internet of energy, bio-tech with all its facets, quantum computing, and the construction of the entire Metaverse, we are looking at tens of trillions of dollars. Those are just a few of aspects of the technological beast that is going to need feeding.

So where is all this money going to come from?

The obvious answer is the Central Banks. Since they are printing like there is no tomorrow, obviously they are going to provide enough capital to fund whatever is needed.

On the surface this might look plausible. However, the reality is that the central banks, along with their political counterparts, are just creating debt. This means that the cost of servicing is increasing, even with low interest rates. Ultimately, this siphons the money away from the productive aspects of the economy and funnels it to the rent-seekers, aka parasites.


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Over the last decade, we saw the growth of the global economy fall behind while tens of trillions of dollars in "stimulus" was generated. The recent increase in this is being done as the global economy looks like it is contracting.

When more money is going to debt, especially government, we tend to see a poor return on investment. This is precisely what is taking place at the moment. Unfortunately, since we are in "eternal easing", this situation is not going to change.

It is also a situation that sees the bear starving. While it would appear we are spending plenty of money on innovation, the reality is we are falling behind historic trendlines. Too much of our economy now concentrates capital on unproductive aspects. For example, we see hundreds of billions of dollars being funneled to zombie corporations, money that could be used elsewhere.

Here is where cryptocurrency has the ability to step in and solve an ever expanding problem. Since the present system appears to be maintaining course, a change is needed. Cryptocurrency has the ability to fund what is needed to re-ignite the innovation curve.

Cryptocurrency offers the ability to remove friction from the system. By offering the ability to easily get money, we could see a massive build up in innovative ideas that are pursued. This is obviously going to start small but could accelerate as the industry get bigger.

At present, we have roughly a $1.6 trillion market cap. That is a lot of money. We saw the first major, non-Wall Street corporation, Tesla, buy $1.5 billion in Bitcoin a couple months back.

This is helpful since Tesla is one of the innovators right now. As that $1.5 billion grows, it can be collateralized and leveraged for more productive purposes. It is helpful since that is almost the amount that the company spent on R&D in 2020 ($1.491 billion).


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We can see how this works. The more value that cryptocurrency has, in total, the greater the amount available to fund projects. Anyone who is building within the cryptocurrency world knows that it is easier to finance projects now with the prices going higher.

What happens when the crypto industry is worth $10 trillion? Or $20 trillion? Remember, this is not debt so there is nothing to pay back in the formation of the currency. Distribution takes place from the blockchains without an IOU being attached to each token.

There will come a day when we see medical, AI, or quantum research funded through cryptocurrency. Since we are dealing with a technology, as that follows the exponential curve, there will be a lot more resources available to invest in these productive fields. No longer will a growing proportion of the economy be sucked out by the parasitic rent-seekers.

Viewed this the technological innovation lens, it is easy to see how sick our present system is. The misallocation of capital is destroying our forward progress. How come most are questioning why we have abysmal economic growth in an era of unparalleled technological advancement? That is a huge warning sign that something is amiss.

Since this went on for so long, we are looking at a patient who is terminal. There is no way to restore health. That is why many feel it is vital to construct an entirely new system, one that is removed the bankers (and other parasitic entities) from the core of the system. This will provide a better allocation of capital which is desperately needed.

The timing is ideal because the innovators are in need of tens of trillions of dollars.

Fortunately, we are building a system that can provide it for them.


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I would love to see medical funding through crypto especially for those that can't afford it

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Over the next decade, we will see the healthcare industry changed a great deal. It is one, like construction, that hasnt change a great deal. Thus it is primed for technological disruption which will end upon pushing prices down.

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In the past 30 years it has changed a huge amount. A few examples: imagining - MRIs were being developed in the 80s and not available for diagnostic use, now they are common place; much much better CT scanners than anything available 30 years ago, medical implants like pacemakers and defibrillators have a evolved a lot in that time, cancer treatment and life expectancy for most types of cancers are not even similar to what was going on 30 years ago. I could go on :P

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I myself cant wait for the healthcare industry to change it's way of thinking. I have a client who had gotten covid, and the first thing the hospital wanted to do was see if they could make the client a DNR( do not resuscitate), as the client's guardian I said that this client wants the health industry to do CPR. Those he is still alive and is now do well. The health industry seems to be to quick to end ones life, rather than save it. Just my point of view. So I would love to see some big changes come in the health care arena.

Unfortunately, technological innovations in the health area are always aimed at those who can pay for it, that is, 5% of the world's population, the rest must simply be content to endure pain, self-medicate or use natural medicines. That is the reality that cryptocurrencies must change, making advances in health technology accessible to the vast majority of everyone in the world.

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that would be awesome if it will happen

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I guess we have already started seeing mass adoption in services for the crypto currencies. Few years back crypto currencies were just a joke now people make living out of even blogging. It has becoming the reality of the life.

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Just wait til the blockchain gaming starts to pay up..Getting paid to game will be the future.

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It is amazing what we saw is going to be the future with this.

Bitcoin will be the future. Get paid to play games is the future. NFTs are the future. Getting paid for social media is the future.

We sure will have a lot in the future. LOL

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No longer will a growing proportion of the economy be sucked out by the parasitic rent-seekers.

It would be great to see this happening not only in the US but throughout the world. Maybe one day.

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One day will be a day when we have an economy based upon what is being constructed here.

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I hope that day comes soon.

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There will come a day when we see medical, AI, or quantum research funded through cryptocurrency. Since we are dealing with a technology, as that follows the exponential curve, there will be a lot more resources available to invest in these productive fields

We will surely see the day when we are paid in crypto. I do agree that the cost of R&D is to high that debt becomes higher. The eternal easing will go for a long time. I think with crypto we can fund R&D to accelerate and not rely on huge debt. We know that in no time crypto will grow in value.

poor return on investment

Yes this is why people have been betting on the stock markets. Who wants a 1% or 2% return that is less than the true inflation. I think crypto is nice because of it's high return but the risk is also just as high if its not BTC/ETH.

I wonder if there will be something beyond crypto currency in the future. If we were looking back 20-30 years ago, I doubt people would of thought crypto currency would work out. So I think its possible something else can show up as well.

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There will be, we just dont know what it is.

Nothing lasts forever and we are seeing things moving rapidly.

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The more value that cryptocurrency has, in total, the greater the amount available to fund projects

That is the beautiful thing about cryptocurrency. The more value it has the more projects it funds with no debts to be paid.

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The lack of debt is a huge part. The other is the fact that the value is derived, in large part, from network effect. Thus, the more people who are joining the system and using the applications, the more value is there. This should be reflected in the pricing, increasing the resources available.

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The more the merrier like they say, I guess it is applicable here as well. :)

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Yes, and you know those financial parasites aren't going to go away easily. I see the coming tussle as the mother of all battles in the struggle against the paradigm shift taking place. It'll be interesting to see how this all plays out as they try to stop or co-opt, this growing movement.

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They are already putting up a fight. You are right, they are not going to give up their golden goose. Instead, they will use all tactics to try and counter what is taking place. FUD is a big one since they control the media. Government regulation is another.

The fact that Wall Street is entering shows they are trying to buy their way to control. It is what they do. However, we can innovate and develop more.

That is why I feel the social media aspect to all this is vital. It is where the masses are. Attracting them will bring in big numbers which will spread through the entire system.

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Nice

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There will come a day when we see medical, AI, or quantum research funded through cryptocurrency. Since we are dealing with a technology, as that follows the exponential curve, there will be a lot more resources available to invest in these productive fields. No longer will a growing proportion of the economy be sucked out by the parasitic rent-seekers.

@taskmaster4450 i see this happening so soon and it will really be interesting for everyone especially for those of who have always believed in the world of cryptocurrencies...

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I am in a confusion, of course, due to my lack of information and understanding ...
In many of your blogs, you present a future in which tokenization and cryptocurrencies will be the solution to get rid of banks and bankers. And yet, you mean cryptocurrencies that will bring in the billions of dollars needed for technology. Dollars, meaning fiat money, meaning banks and bankers! I mean, do you see a symbiosis between fiat money and crypto in the future? A cohabitation?

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I love reading your posts, you always give me something to think about.

Crypto may save us from the Weimar-style hyperinflation to come--I hope. With no way to stop Biden's communist party, the US dollar might as well be toilet paper very shortly, I think. !BEER

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Hey @taskmaster4450, here is a little bit of BEER from @fiberfrau for you. Enjoy it!

Learn how to earn FREE BEER each day by staking your BEER.

Unfortunately, the cost of progress is paid by us, the common society.

But with cryptocurrencies we are taking a different path, a path of progress and true innovation.

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The true shift and test of the entire paradigm shift will be when companies figure out how to use crypto to finance their companies. For example, if you have a company that wants to manufacture the chips for 7G, can you go to the crypto world instead of Wall Street to finance that and make it happen? Who will come up with a way to tokenize their company where their value is based on company performance? That token will be centralized but....just thinking out loud here. I would think the moment that starts happening is when the paradigm shift truly begins. I can't really wrap my brain around it right now.....but it seems like something you, @taskmaster4450, would have a field day envisioning. lol Stimulating topic as always.....

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This just makes me think of the Akash Network. They just launched their decentralized cloud computing marketplace that is powered by their token. The holders of the tokens will receive a portion of the marketplaces take fee's. They are setting up infrastructure to prevent corporate monopoly censorship by enabling peer to peer cloud compute to be bought and sold on a DEX.

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I believe that no sector can earn as much as the technological sector (and I am not just referring to money).

Innovation is everywhere and the companies involved in it have a great chance of becoming increasingly powerful.

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