Digital Assets: The True Game Changer

Much of the world has not figured out what is going on. For most, what is being discussed each day about cryptocurrency makes no sense. Instead, there are a number of people who attack what is taking place, believing there is no value. This is not only a mistake but a complete misunderstanding of how the world is changing.

It is safe to say this is mired in a long time belief about what the world is and what is valuable. This makes sense yet it is also something that was not in place for hundreds of years. Yet somehow people hold onto it.

Let us delve into this.

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The Physical World

There are many who still believe in the physical realm. That is where they put their trust and belief. Basically, value only comes from something people can touch. It applies to everything in their opinion. The only realm that matters is the physical.

Here is where the challenge comes in.

What do Apple, Microsoft, Facebook, Amazon, and Google has in common? Obviously, they are the most valuable companies in the world. They also have very little physical presence. For example, Amazon has almost no retail square footage compared to its competitors yet dominates the market.

Obviously its value is derived from another realm.

The Digital World

Most of us are well aware that Google.com and Facebook.com have enormous value. But what are they? Is it the exact location in the digital arena?

We know that a URL points to a location. However, if the Facebook software was moved, would that URL have the vale? Would it be as valued at another location?

None of this really matters since it is the total package that provides the value. Yet very little of it is in the physical world. We cannot reach out and touch it.

Perhaps one could make the case it is part of the "real" world. This is the layer that society created on top of the digital world, mostly with the formation of civilization. For example, think of a town or a corporation. We can point to the physical attributes but that only captures part of it. A town, for example, has its laws, customs, and communities. All of that is an invisible layer that few would say does not exist.

The digital world is similar except that it is not local and has no physical ties. We know the Internet exists everywhere yet nowhere.

Virtual World

We know cryptocurrency and blockchain are changing everything. The reason for this is both were designed in the digital realm. They also are going to become more important as we forge ahead into the virtual arena.

Many ask what is the difference? A lot of people use the terms interchangeably and, to a degree, they are. However, the biggest change will be the switch to something that is more experiential. Presently, the Internet is something separate from us. We look at a screen of some sort which means that we are divorced from the activity.

This will no longer be the case. In the virtual realm, immersion begins to take place. We are not apart from what is happening onscreen but, over time, we become a bigger part of it. Through the advancement of technology, we will see more sensory stimulation to the point where many different experiences might be cast to us simultaneously.

As the graphics improve, which they did over decades, we know the line will blur. Early on, for example, it was easy to tell the difference between a video game and film. The quality of the two was light years apart. Today, that separation is not as great. We are seeing some gaming graphics which rival their Hollywood counterparts.

Digital Assets

It quickly becomes evident that, as we move into this new arena, an alternative monetary and financial system is required. We also have to denote ownership in a much different way than before.

Here is where cryptocurrency and digital assets enter the picture. Through the use of NFTs, we can clearly assign ownership as well as following the transfer of such assets.

Not only do we see how ownership can be marked, but how these assets can have value. Many discuss the Network Effect which is applicable. It does, however, go beyond that. As applications gain in popularity, the value at every level is enhanced. This means that digital assets can hold enormous value, even greater than in the physical world.

For example, a piece of land in some town might have value. If it is a small town in a favorable location, it could be worth a bit of money yet nothing lifechanging.

Looking at a virtual plot of land in a game, that could be worth millions of dollars if the game is extremely popular. The Network Effect of that game could be orders of magnitude greater than what exists in the small town.

All of this takes on added meaning when we factor in Artificial Intelligence. Down the road, we are going to see the development of systems that are far superior than what we have now. This means that the entire nature of transactions can change.

Obviously, the volume will increase drastically. We already saw this with the Internet. The majority of the communication traffic online is computer-to-computer.

Exponential Economic Output

The Era of Automation is upon us. This means that, over the next few decades, more of our output will be done sans humans. Robotics and AI are advancing at such a pace that we will see a massive shift in economic productivity.

In the virtual realm, we are likely to see low-code development emerge as the popular model of creation. This will usher in a major advancement in content creation. Suddenly, anyone will be able to develop applications simply from their imagination. What they can visualize will ultimately be transformed into a working part of the virtual realm. Here is where many believe the concept of the Metaverse enters. It is a fully decentralized and distributed system since anyone can create without permission or even the skillset to do so.

Here we see both the physical and virtual worlds changing in terms of economic activity. The level of output will be exponentially higher than today. Some even theorize what the upper limit truly is. Obviously, in the virtual realm, the only consideration is bandwidth and computational power. Both of these appear to be increasing as the decades go by.

Digital assets are going to be at the core of both of these explosions. With physical items, it is going to be the representation of what is accepted in the "real" world. With the next generation Internet, it is going to be a completely new class, capturing near unlimited value.

This is a true game changer with where technology is leading us. To overlook the impact of digital assets misses most of what is taking place.


Here are some other articles that delve into the Metaverse:



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29 comments
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Even a person like myself, who has old school tendencies; mostly because I’m 55 years old.

I’ve always fought against having to act my age. When I was younger folks thought Ibwas older and now vice versa.

The point is that being blind to what you laid out in this post is truly surprising this day and age.

It’s also moving faaaaaaaast.

Folks better keep up!

Look forward to The Cryptomaniacs later on today @taskmaster4450 😎

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You are 14 years older than me and keeping up with the rate advancement isn't easy but I either keep up or suffer the consequences of being left behind.

The interesting thing though is, keeping up has been fun 😀

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@joetunex Im right there with, this shit’s got me hyped! Yes, you can teach old dawgs new tricks 🤪

!ALIVE
!BEER

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I am of the same generation, being 51. I can identify. We are in an era where things are changing rapidly. I just did a post about autonomous electric trucking and how it is going to change the nature of moving cargo around.

A lot happening.

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If plenty of people would get that they would rush into buying and earning crypto while at the same time ditching the traditional financial system. That's the point when crypto regulations won't make any sense. Although not palpable z digital assets are actually the proof of true ownership.

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I have always wondered that till where the gaming graphic will go. Beyond the reality? I think it is as high quality as in the demos/intros of games.

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I am not into video games... I tried decentraland, I got some message that graphics card in my MacBook Pro not good to handle it... therefore I can't feel excited about this.

I only see that all this alienates us from the real world. It's true, its good entertainment, it is visually engaging, creativity is there, enhances some brain processing power but immensing too deep into virtual is not that good I think, it is not real world.

The price of the land in Metaverse may go up expotentially, but I can't really live there and enjoy nature, eat food can I ...its all imagination.

I really wish can check this Metaverse stuff, but no time, considering I read concreate thinks like news and books, like to spend free time chilling in Nature than again going into the computer world.

I don't think this relates to the kind of cryptocurrency I deal this - BTC, ETH, DOT, ATOM, SOL, the Blockchain technology behind them. But ofcourse there is the gaving aspect of it, I am very much a HIVE person in the writting and reading ecosystem ofcourse so not able to connect with MEtaverse, VR, Artificial Intelligence and all that stuff...very fanciful for me and I can't escape off the real world too, grounded to it and part of it.

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somehow your approach to the virtual world is appreciatable, but I think manual work is being ignored and it has almost become extinct, everything is just a way for a second, it's reliable and good that everything can be done in seconds but don't you think it is also affecting human resources. we can make a better world, keeping both things in balance. an excessive amount of use can damage both.
@taskmaster4450

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While everything can be decentralized eventually, I am worried about the gateway to the metaverse. As of right now, it does look like one of the big tech companies will end up being this gateway.

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Looking at a virtual plot of land in a game, that could be worth millions of dollars if the game is extremely popular

And we wouldn't be paying some rates and taxes for owned properties like in the physical which is questionable when it comes to service delivery or probably rates and taxes in a virtual world would be making a lot more sense to me.

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Depends upon who would be paying taxes and why?

Where do taxes fit in?

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One of the many reasons life on blockchain/virtual world is appealing to me is there's no such thing as taxes.

I don't see taxes fitting in on what's being build and for me I will gladly opt for properties that are not only paying more than physical ones but also takes silly laws and bills away from me.

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I am going in a lot heavier than I would have guessed a couple of years ago on virtual assets. Land is many times more valuable on the blockchain than it is in the real world. It is crazy!

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Well keep in mind that it can keep expanding. That said, there is a lot to the Network Effects.

We are going to see some amazing changes taking place. This will all lead to enormous value.

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Yes and things are changing so fast we are constantly having to learn new skills to keep up. We are so far ahead of others not involved with blockchains that their learning curve will be far greater and will take time.

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It is getting to the point where, cash in the skills. There is no way to keep up. When code can be generated basically describing what one sees in his or her head, we are in a completely new world.

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The physical world versus the virtual world, two totally different realities, however, the integration and complementation of one reality with the other, I would dare to say that it has generated more money than any other human activity, on the face of the earth ... in fact currently the billionaires in the world, who occupy the first places in the lists, have obtained their fortunes through the virtual world

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