Cryptocurrency Will Be Worth Quadrillions

There is a lot of excitement brewing around cryptocurrency. We are getting closer to the time when the masses start to wake up. Bull runs do that and we are certainly involved in one at this time.

However, many do not realize what the true financial potential is. A lot still look at this through the traditional lens. Thus, they tend to underestimate how big it can be.

Yesterday, in How Big Can Decentralized Finance (DeFi) Get Video, I covered some of what Decentralized Finance would do. Thus, we will now expand upon the idea in this article.

As with a lot of things, we are seeing a major paradigm shift taking place. This creates enormous possibilities, far beyond what was before us. It also moves us from scarcity to abundance.

DeFi Will Be In Everything

At present, we look at the financial market as its own industry. Within it is banking, insurance, equities, and bonds. We could consider those to be different sectors within the larger industrial pie.

Obviously, finance is different from social media, gaming, or nutrition. Each operate on their own without much cross-pollination. This is rapidly coming to an end. Web 3.0 is a concept that is gaining a great deal of attention which shows how radically things are changing.

It is also happening at a rapid pace.

Therefore, in the near term, we are going to see the implementation of DeFi into everything. There will be little that is not tokenized. Once that happens, "communities" become economies. We also see the formation of the Decentralized Network-States. This will place blockchain networks on an alternate level as compared to the present model of valuation.

Ultimately, all activity is going to be tokenized. Through the eventual interoperability of networks, wallets, and exchanges, we see a massive shift in how economies are formed. Value will be captures and transferred in ways we are not even considering at the moment. This is going to generate enormous wealth.

Networks As Countries

A few weeks back I put together Networked-States: The Transition Away From The Nation-State. The idea here is that we are going to see decentralized networks grow in stature that will be larger than the present Nation-State. In other words, our existing form of governance will diminish over time.

This not only affects governance. It also has enormous economic implications. While few are viewing it in this manner, the concept of the Nation-State can be applied to the Decentralized Network-States we are presently forming.

What this does is bring forth an entirely new valuation model. People are trying to compare Bitcoin and Ethereum to companies. They are not operating in a similar manner. Companies rely heavily on profits and valuations tend to use that as a barometer of financial health.

None of this applies to a country. There, the most important factor is activity (production). For example, we can look up what the GDP is for any country. However, try to find what the "profit" was. This gets into a very fuzzy area.

Countries with centralized planning, historically, fared much worse than those that let things develop organically. Many surmise we are seeing the situation evolving in China. The central party is exerting more control than before, stepping up their efforts to maintain control. This is leading to the conclusion that China is heading back towards the Mao era, potentially erasing many of the gains from the past 40 years. We will see how this goes yet it is in keeping with what took place traditionally.

If we look at the old Soviet Union, North Korea, and Cuba, we see other nations that suffered similar fates.

The power of Decentralized Network-States is the absence of centralized planning. These networks can grow organically in whatever direction the community desires. Since users are owners, there is a vested interest in the overall success of the ecosystem.

Cryptocurrency Worth Quadrillions

This is something few can envision. They are stuck in the old model of scarcity and limitation. However, when we understand how value will be captured in ways never done before then we can follow how explosive the numbers can get. Remember, all of this will be eligible for DeFi services applying market-based activity to that value.

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Here we see a chart comparing DeFi to traditional markets that most are familiar with. We can easily see how the present state of DeFi, in value, is far below what is in the traditional financial world. This means that is a lot of upside in that area alone.

However, what is vital here is the fact this misses probably the biggest future component. Consider the value that will be captures by social tokens. When communities can form, tokenize, and have their own economy, how much of an impact is there? Of course, this is further enhanced by the fact that DeFi application can be integrated forming a complete economic loop.

The key is we are focusing upon value that is present but not captured. This is an important distinction. Leaving market action aside, value is typically backed by something. When dealing with a currency, this ultimately breaks down to the productivity of the economy it is tied to. The USD is involved in a lot more economic activity than the Venezuelan Bolivar, hence will carry greater value on the international market.

Cryptocurrency will ultimately follow the same pattern. As the industry expands, those currencies that are tied to growing economic activities will excel. Others will suffer the fate of pump and dumps as markets realize the lack of output associated with them.

Nevertheless, we are going to see millions of cases of how captured value that is monetized will radically change things.

We have a good example in the @actifit project. Here is an application that rewards people for their physical activity. In other words, it monetizes the idea of moving around.

The next layer is being implemented. According to this post, they are now working on the ensuing phases of their DeFi expansion. This is going to allow the staking and farming of the tokens they created. Presumably, this could result in people establishing liquidity pools. Also, since it is being done on BSC, the value derived from the application can be swapped for another token if preferred.

How much could a project like this be worth if there were millions of people involved? What is the impact of capturing this value from the movement of all these people that is happening already? More importantly, what is the collective impact when there are millions of different projects like this developed, each offering similar opportunities?

From this simple example, we can see how existing value is being monetized and financialized. This also flows through to the coins representing the Decentralized Network-States, i.e. blockchains. As more of this constructed, the value of those networks grows. The "economic productivity" is expanding to create a greater value proposition as compared to before.

And much of this is due to value that presently exists yet it not captured.

Extrapolating this concept over millions of projects during the next decade, we can see how the numbers associated with cryptocurrency will reach the quadrillions. Sure, we are likely to see traditional asset classes all tokenized and that will really add to the total. However, keep an eye on those projects that are going to monetize value that is not captured at the moment.

This is where the creativity and innovation of humanity will alter things.


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Bang, I did it again... I just rehived your post!
Week 79 of my contest just started...you can now check the winners of the previous week!
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One thing about Crypto currency is,some people are seeing it as Scam and some are seeing it as waste of money but they don't know that,the digital currency has come to stay and is dominating all the whole world. Is people that make use of opportunity is the one investing on it.
Thanks for the information.

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I'm a crypto skeptic still (Only got involved cause of Splinterlands.) I think crypto currencies (most of them) are pyramid schemes. That might have a semi-stable foundation.

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If there is development the foundation is likely to be stable.

And do not overlook the power of the network effect. Viewing this realm through the lens of the traditional is a mistake. It is more in line with what happened with Facebook, Amazon, and Apple.

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That's it. People thought that Crypto currency are pyramid scheme,for me.i am investing in all of them for future use.

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People thought the Internet was a scam for a long time. Most simply cannot wrap their heads around change or a shift in paradigm. That is their issue.

It is also why they miss most of what is taking place technologically.

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They fair to believe that technology is changing the world now, that most of the companies are now investing in Crypto currency and many of them now have their own crypto token for payment.

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Gaming will become a way bigger part ( and digital ownership) than today.

With Metaverse, NFts, Ownership crypto will become massive. I think one of the biggest revenue streams ( that are open/public Blockchains) will be gaming and Finance.

Also things with real-world connections, Tickets, Hotel access and so on and things we can now don't imagine :D

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The opportunities are enormous and that is, in my opinion, how to look at things. We have a great deal of innovation still yet to happen.

Those who are looking at the connections will see things before they unfold.

Sadly, for most, they will arrive after many of the big moves.

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The existence of cryptocurrency has really helped a lot with more people trooping in daily. It is really a progress and improvement in the blockchain

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What a fantastic time to be alive.

!BBH

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As Dickens said once, it is the best of times (crypto/defi) and the worst of times (legacy economy controlled by politicians.)

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That is true but we could likely say that about most eras since we only now how primitive things are after the fact. LOL

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Because this is such an awesome post, here is a BBH Tip for you. . Keep up the fantastic work

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Because this is such an awesome post, here is a BBH Tip for you. . Keep up the fantastic work

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Completely informative.
I’ll love to know more on how to know a good coin to invest in. Hopefully you write about it soon😊
Thank you

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Development is key. Focus upon those projects where that is taking place. In my view, that is where long term value will come from.

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(Edited)

Eaaash! I have no idea how to bend my mind around what Actifit is doing. Like, i can read your words in that paragraph -- but, the meaning i have difficulty understanding!! Lol Good thing i got a University degree. Haha!! Always great posts @taskmaster4450! Thank-you.

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What are you missing about what Actifit is doing?

Do you mean the particulars or in general?

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:). Good to know notifications for LeoFinance dont show on Hive Blog, which i usually use. So much is going on on the blockchain!!

I really should just ask @actifit what i am missing!! I super love this aspect of Hive 🥰 i want to get innon the exciting stuff their posts are saying is happening! I think 182 Actifitters is getting the goods i want to be among them!! Haha get up to speed on all the good stuff!! I was away for a while.

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Play to earn and even walk to earn are just the start. Once everything we do can be monetized for it's data, people will have a new way of life. However I wonder how everything will play out since there are a lot of things that can happen.

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Once everything we do can be monetized for it's data, people will have a new way of life.

It certainly takes things to a completely different level doesnt it?

This is a concept that is hard to imagine but it is the path we are on.

Perhaps it will be clearer to the masses in a year or two.

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I have hopes in the crypto and wish to tryout. But I'm still not fully knowledgeable.

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Nobody is fully knowledgeable since it is such a different realm. We are seeing more expansion each day. It is impossible for one person to keep up with it all.

Just keep learning as much as you can. That is what I do.

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Thank you. I believe that this platform will enlighten me

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There's a core problem with DEFI (and tokenization.) Most tokens don't provide value in any tangible form. Staking and generating other tokens of no tangible value doesn't count. So, we're left with assets that people invest in because they expect others to do so (thus ending up with something like Bitcoin, too big to fail.)

DEFI also has a huge risk of loss of funds due to typos (stuff sent to the wrong address.) I think Binance is doing something to help those who lost funds somewhere. Mistakes will happen.

Luring people in with high APRS (liquidity pools) feels like a pyramid scheme. That might last, but a pyramid nonetheless.

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If you think about it, then everything real in this world is also a pyramid of people. If there are no people who need to eat, then the bubble of the food industry will also burst...

Therefore, I think cryptocurrency has been occupying its niche for a long time and for good reason. I think that growth and development will continue...

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What is tangible? What does that even mean?

What does Twitter do that is "tangible"? Facebook?

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Twitter and Facebook provide value by being communication platforms and ad revenue generators.

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Is quadrillion bigger than a gazillion and fucktonillion?

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No. Those are the next layers.

In a year or two I will write the Crypto will be worth gazillions and then, by 2026, you will see my crypto will be worth a fucktonillion article.

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"value that is present , but not captured" is such a fabulous way to describe what is happening. We are not making up play money, but we we are monetizing value/wealth that already exists in our ideas, creative writing, video content, etc. !BEER

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It is out there, in millions of forms.

What is truly mind blowing is the idea of automation partaking and capturing value that is automated.

Think of what that will do.

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Sometimes, I feel lucky to live in this era and that our kids won't forgive us if we don't make a fortune for them with crypto

Thanks for this nice article

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LOL that might be true.

However, a fortune in the future will likely not be the main goal as the monetization of everything will likely push us towards a post monetary world.

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