What Crypto-Economics Is All About

I often mention crypto-economics and the fact we are seeing the paradigm shift. We presently live in the world of scarcity brought on by a system that is erected around controlled currency that is debt-based. We see a situation where the few are able to prosper while the masses suffer. Essentially, it is a broken system if you are one who cares about human freedom.

Crypto-economics is the exact opposite. It is based upon abundance. There is no limit to what can be accomplished. We are going to see breakthroughs we never dreamed possible simply because there is a new paradigm that takes hold.

At the core, crypto-economics is a decentralized blockchain coupled with a cryptocurrency. I state blockchain with reservation since that is what we have now but might only be the first iteration. There could be another technology down the road that replaces, or compliments, blockchain. Either way, the cryptocurrency aspect is vital since it monetizes peer-to-peer connections.

The challenge people have understanding what is taking place is that most are still using their scarcity mentalities when looking at the situation. This is where the mistake comes in.

We saw the first wave of success in this realm with Bitcoin. Suddenly, we had the Bitcoin millionaires (and probably a few billionaires). The symbol for this became the Lambo. Cryptocurrency is the path to riches.

Certainly, there are great riches available and, I believe, those who are involved now, as early adopters, will do very well. Nevertheless, that is not the point of crypto-economics. Remember, this is the realm of abundance. Riches are everywhere.

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Crypto-economics is about funding. It is a paradigm where individuals are compensated for activities they normally perform yet someone else benefits. At the same time, both individuals and organizations have different models of funding that never existed before.

Many fear that we will see massive price acceleration. After all, if money is "printed" up all over the place, like the Central Banks do, things are going to cost a lot more. Too much money chasing too few products means prices rise.

Won't Lambos cost twice as much?

That is not what crypto-economics is about. That is scarcity based thinking. It is impossible to have too much money chasing to few goods and services. The reason being is ideas are unlimited.

When one simply focuses upon the materialistic, consumerism, acquire all I can for me model, yes the old thinking is true. However, when funding is created under crypto-economics, human progress is accelerated.

How much research goes unfunded? Do you have any idea how many ideas are not tried because of a lack of money? How many diseases could we cure if the resources were available to come up with solutions?

We are entering a time where motivations will change. It might take a generation or more, but we will get there. Crypto-economics is going to teach everyone that there is enough. Ideas will be tested on a regular basis since people will not fear failure. It will simply be a learning experience.

In short, people are going to be presented with the ability to look at a problem and come up with a solution.

I ran an idea by a developer early today. It is something I came up with by looking at the crypto-economic nature of the world. It is a problem globally and one that can be alleviated through the application we see on a daily basis in the world of crypto.

What is fascinating, and often overlooked, is the value of the Steem blockchain in all of this. Think about it for a second: how many different ways to we have to fund something? We can give directly via currency transfer. One can also delegate Steem Power (and soon SMT Power) to help fund someone or a project. Finally, we can provide upvotes, which on the Steem blockchain have value.

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Venture Capitalists fund start up ventures in an effort to make a substantial return. They realize they will lose on 90% of the deals. They are looking for that one touchdown that covers all the rest. It can be a very profitable business and is a necessary part of innovation.

Every single Steemian is a crypto-venture capitalist. We all have the ability to help others. Through our upvote, delegation, and direct giving, we can help projects (or individuals) move forward. Actually, when you think about it, each time one takes a single STEEM and powers it up, that is an capital investment in this platform. We are helping to fund the growth of Steem AND everything else that is built upon it.

It is hard for many to see at the moment since the value of our holdings, in fiat, is, for the most part, not worth a great deal. Life changing money did not hit for most people. That does not mean, however, that STEEM is not impacting lives. There are many who use the proceeds from their Steem activities to feed their children or pay some bills. We are funding individuals often without knowing it.

This is all a part of crypto-economics. As we move further away from fiat, the realization will start to hit people. We are operating under a new paradigm that does not limit us. In fact, the more outrageous the ideas, the more that can be accomplished.

It is time to start thinking bigger. The possibilities are no longer limited by the same scarcity of resources.

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