Crypto is Not a Get Rich Scheme. It’s Not a Fad. It’s Not a Scam. Crypto Creates the New Information Resource Economy.
Crypto is not a fad, scam, or get rich scheme. Crypto marks our inevitable entry into a new economic era. Today, we live in the elaborate remnants of an industrial economy — and yet we’ve entered an information age in which data can be considered the most valuable asset in the world. Crypto and decentralization mark our collective historical movement into a new economy: the Information Resource Economy.
One of the most frustrating aspects of working in crypto is the madness and inanity of its public discourse. On the one hand, there are the old worlders of mainstream media and the government saying all kinds of false things. On the other hand, there are the crass get-rich crypto folks—When lambo?! is one of their favorite declarations—who only see it as a way to make more of their national currency (aka “fiat” currency). Both miss the point: crypto is an inevitable historical shift with the power to reorganize civilization itself.
So what is crypto? It is to money what the internet is to information and communication. Before the internet, information was created, controlled, and distributed through a few anointed sources—big newspaper, network news, film studios. After the internet, anyone can create and distribute a film, be a journalist, share their opinions (for better and worse).
Crypto does that with money. Before bitcoin, there was only one source of money—the government—and only one financial system, namely, global banking. They controlled the creation and distribution of money. (Ever try to buy something with your debit card and been denied by your bank? How can they do that—it’s your money, right? Wrong: it’s not your money if you can’t spend it and move it around as you want.) Thanks to bitcoin and the thousands of other cryptocurrencies, each with a different value proposition, anyone can create and distribute money.
This is the rise of the Information Resource Economy. Our dominant banking system is premised on a petrol or precious metal economy—things that are scarce and so imply geopolitical involvement (that is, war). But, thanks to the internet and its proliferation of information, data can now be considered the most valuable asset in the world. There’s a reason social media and search engine companies dominate the stock market: they’re extracting all the value from our information just as oil companies extract oil from the earth—but it costs exponentially less to extract data than to extract oil from the ground. Which is why it’s no longer ExxonMobil at the top of the stock exchange.
There is a vast categorical difference between oil and information—so we need financial systems that suit an information economy.
Right now, all this new value goes to a few owners of large businesses—even though it’s all of us who actually create the majority of that value. Sure, these companies built the platforms. But after their return on investment, why do they continue to extract so much wealth from us and keep it for themselves? Yes, it costs money to maintain—but not that much!
Imagine now a social network that is “owned” by its participants. Imagine doing all the things you do on Facebook, LinkedIn, Twitter and rather than all the revenue generated by your information and behavior going to execs, it goes automatically and immediately to you. That’s impossibly expensive in the present banking system—but it’s easy with crypto and its smart contracts.
Now imagine this with ride sharing, house sharing, banking: why are those organizations extracting all the revenue for themselves when we’re the ones creating that value?
So, thanks to crypto and decentralization, we can eliminate the tops of these information based organizations and distribute all that value continuously to the very people creating the value—you and me.
This is how we finally enter the real Information Age—by creating an Information Resource Economy. And that, alas, is what crypto is all about. It’s not a fad: it’s the future happening now. It’s inevitable. So the question is: do you fight a futile battle with it? Or do you take advantage of this historical moment and help reorganize civilization as all this value is unleashed?
Chief Communications Officer