Imagine being alive when the first automobile rolled off the assembly line. There wasn't a gas station on every corner or mechanics that knew how to fix cars, nor infrastructure that was already in place for cars to travel on. Basically if your car broke down, it sat there in your front yard until someone learned how to fix it and/or a replacement part was produced and installed. For those who had foresight into all of this, fortunes were made and wealthy families continue to pass down their fortunes generation after generation.
The Blockchain and Digital Currency are at the beginning stages similar to the example above. People are learning about it, using it, and coming up with new ideas for it as a result. Our economy and the way we do things are drastically changing. In the past, capitalism was based on what someone or a company could produce. Then that service or product was sold or done at a price that was higher than what it cost to produce. A good example of human capital is this: A person receives $10.00 an hour for their work and the company is able to obtain $12.00 per hour worth of production of that employee. What happened here? Does it sound familiar? Let's put it in digital currency terms: The company just "mined" their employee and took off $2.00 worth of value for themselves per hour. Then, the government "mines" a certain portion of the wages and value created and we call that "taxes". See the thought process here? As long as this process continues in the economy, mining will be conducted. The excess capital that is created is reinvested which causes further creation of additional sources of production. (A company makes enough profit to open another store or an employee saves enough to start their own business.) Digital Currency and the Blockchain work in a similar fashion. You "stake" a certain coin or token which is used to mine another then converted into one of your choice. Different opportunities to mine in different ways are popping up all the time. The ones that are the most productive and profitable will be the ones that survive. You may have found this out if you ventured into mining by yourself and realized you could not mine enough to pay for the resources that it took to mine. Thus, you looked for a different way. You will become very rich if you are the one to think of the next profitable idea. Kinda like knowing where to put a gas station in 1904.
So what does all this mean? My next post will delve into the reasoning and possible explanations how our economy and society will change....and it is and will. There will be no war or enemy to fight to stop it. You are already being conditioned to become apart of it and adapt. Use your imagination and take a look at your life right now and you will see some of the stuff I will write about next time. I encourage you to read my previous article to if you have not already done so: Digital Currency and the Massive U.S. Debt as it will give you further thought on the process.
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