The Virtual Economy Will Be Enormous

Perhaps it is time that people start to truly understand how big this is going to get.

In short, the virtual economy is going to be much bigger than the existing one. The "GDP" of the former is going to be many orders of magnitude larger than what we have now. This is something that people truly need to internalize.

We are operating in the digital world. This is near-limitless in what can be done. Restricted mostly by bandwidth and processing power, both which are expanding every year, we can see how this is a near-infinite state.

That means all activity that is generated has the potential to be considered production. With Cryptocurrency, we have the ability to capture that.

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Punks On Hive

We recently got an example of how things operate with the project Punks on Hive. Some were astounded that something could generate so much money in such a short period of time. Welcome to the virtual realm.

Here is an example of where $160,000 was generated in around 36 hours. If we use the current price, this is over $200,000. Naturally, a lot more time went into the project than just the "Selling" period but it does show how quickly things can move.

Now consider this in the physical realm. How long would it take to generate $200K in sales? Also, what is the cost of goods sold associated with that revenue? With Punks on Hive, there is no cost to the actual product. The time invested coding everything along with some server space is all that is required.

These assets were created out of thin air. Some might say there is no intrinsic value to them and they would be correct. However, we should know by now that no intrinsic value does not mean valueless. After all, what intrinsic value does a painting have? Aside from some canvas and a bit of paint, what is someone paying for truly? Yet we see pieces of art going for, at times, hundreds of millions of dollars.

Ultimately, it is a lot quicker to create a NFT than it is a painting. Of course, we can even generate tokens that are associated with the piece of art. In other words, we can take the entire physical world and put together a digital representation of it.

For this reason alone we can see how much larger the virtual economy will be compared to the real one.

Speed

The biggest advantage the digital world has is speed. We saw a number of aspects of life converted from physical-to-digital over the last couple decades. We no longer write out and mail correspondence. Email is the preferred method in this instance. Of course, for a lot of interaction, that is too slow, thus instant messenger are used.

When you have an entire realm that is built upon accelerating speed capabilities, the potential grows enormously. At the same time, due to increasing bandwidth, more can be done by a larger number of people. The latest stats tell us there are more than 5 billion people online. These are all going to be part of the virtual economy in the near future.

With something growing so rapidly, and low costs to entry, we can see how the pace of economic impact is only going to increase. More projects results in a wider range of options. Couple this with automation and the numbers get really big.

Elon Musk talks about how scaling production in manufacturing is hard. He is right about that. The same thing could be said for expanding construction operations. A lot is required in terms of capital, labor, equipment, and time.

That is not the case in the digital world. The ability to scale can take place in a fraction of the time. Sure, it takes a certain period for the code to be set down. However, as more open source software is out there, this because condensed also.

The laws of physics become a barrier when dealing in the physical world. Look at the advancement, or lack thereof, of robots. Here we gain insight into how difficult it is to deal in this arena. Automation in the digital world is much easier. Once the software is written, it can take over. Also, things such as dexterity and the ability to grasp things with the proper pressure are not present. This only adds to the speed which things operate.

Tremendous Amounts Of Money

When we couple the speed of the digital world along with its ever increasing size, we understand the potential here is enormous. This is a situation we already see as evidenced by the most valuable publicly traded companies.

Is anyone surprised that the most valuable companies in the world, for the most part, are technology related. Many of them have direct operations tied to the Internet. They are either utilizing the digital realm or providing the ability to engage with it. Either way, it is very profitable.

This is still Web 2.0 stuff. We know things get really exciting when the idea of Web 3.0 is explored. Here again, we see the economic impact that is on a scale we rarely considered.

When this gets rolled out, individual platforms will have economies that are larger than many nations. The key is there will be more than a few like that. Ultimately, we are going to have many ecosystems that do trillions of dollars in activity.

Web 3.0 makes everyone a producer. This feeds directly into the economic activity of the ecosystem.

Automation is going to mean trillions of transactions daily on top of what we already see in the global economy. New mechanisms of funding and collateralization are being developed. This will help to feed into the ability to access capital, a move which is done with the intention of generating even greater economic output.

Bitcoin, in the minds of most, is going to exceed the market cap of gold. Serving as digital gold this makes sense since, even solely as a store of value, Bitcoin costs less to house, is easier to transport, and can be sold (and delivered) in a short period of time to anyone in the world.

Thus, if we take the same mindset to the art world, this is what we see. At present, this is the global value of that industry.

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The number of $50 billion will be easily exceeded down the road. Think of the digital art that is being created. All of this is going to push the number of transactions far beyond the 34 million. In fact, it will get into the billions.

Obviously, the value per piece is going to be much lower than in the physical world. That is fine. What is vital is the totality of the economic activity. The size of the market for digital art is going to be orders of magnitude higher than the physical one. Certainly there will be "pieces" that go for millions of dollars. However, someone can get involved by spending a few dollars buying a piece of a NFT platform.

The inclusiveness means we are going to see a market worth many times the value of the physical one.

Spread this idea across many industries. What is the potential of eSports compared to physical sports leagues? The later is enormous followings but is limited in the number of teams that can exist globally. With eSports, we could see millions of leagues set up.

Take this same approach to real estate. We are aware that virtual real estate is going to be a tremendous opportunity down the road. What is the limit on that? There really is not one.

We can keep this process going for many different industries. As more is digitized and placed in the virtual world, the potential expands greatly.

Of course, we have to keep in mind, at the core of all this, is data. And that is something that only grows in value with each passing year, in spite of the fact that the amount doubles each year.

Therefore, get ready. The numbers tied to the virtual economy are going to be enormous.


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Bang, I did it again... I just rehived your post!
Week 80 of my contest just started...you can now check the winners of the previous week!
!BEER
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It is amazing when you look at it. Similar to how the stock market creates and erases wealth based on its swings, but as we have seen the growth in the virtual economy can grow much faster than brick and mortar businesses.

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Very insightful, it was from you that I heard about metaverse even before FB misappropriated the term for itself. And a lot has changed since you wrote that piece of article.

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Thank you.

The word is now in the over hype phase. People are putting together articles on the 5 Best Metaverse companies to buy and crap like that. It was like AR was the big buzzword a few years ago.

Nevertheless, I will keep pumping out articles about where I see all of this going.

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Governments doesn't seem to be embrassing cryptocurrency as an economy. Don't know why? Is it because they don't want people to be independent?

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they haven't figured out how to gain control and are hoping they can ignore it out of existence. They can keep ignoring while it grows.. works for me.

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Yes, of course, I also see a bright tech future coming. It´s just the beginning.

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How long would it take to generate $200K in sales?

This is the benefit of the crypto-verse, people can create, exchange and hold massive value, without even a structural framework needed in real-time to raise such a huge ammount in a blockchain concept like NFT. I must say that not a lot of people felt punk would create that massive value, but then that's where the power of a decentralized community lies.

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True and yet it not only generated that but like $5K a day in Punks are being sold in the market.

So there is something there. We will see what it becomes.

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Exactly, we will see what it generally becomes at the end of the day, I expect punk to go all the way up

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You are not the only one optimistic about it. We will see what the plans are. It is something to think if it just replicates punks on other chains.

Those skyrocketed. Either way it is a great addition to the Hive.

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Totally agreed as it will certainly grow enormously but the aspect that needs more input is the security of accounts.
If I could code, I would develop and app that could track the status of all accounts.
Should an account be hacked, this app will re-instate the status of the account and track the hacker whose account will be frozen and forfeited.
Maybe just a pipe dream and sorry that it's a bit off topic.

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The problem with that idea is then someone could freeze accounts. That is the opposite of own your account.

Because if you can freeze an account for hacks, you can do it for buying bubble gum. Or posting about something not liked.

Or the list can go on.

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I understand and I agree, as freezing could get out of hand, but then there has to be some other way to prevent the dangers of one's account to get hacked.
Enhanced security means peace of mind and many have lost all of their hard work overnight.

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Well that is where keys come in. Cant get hacked if one protects his or her keys.

Now on platforms, that is a different matter. A lot of the hacks are due to poor DeFi contracts getting exploited.

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Oh yes, one has to be very watchful and many make mistakes.
Hackers will always find a way to exploit.
Such is life.

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Cybersecurity is a great field to go into these days.

That one is not going away anytime soon.

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So true and security is growing all of the time.

Agreed with your second point and it might never be eradicated.

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Congratulations @taskmaster4450! You have completed the following achievement on the Hive blockchain and have been rewarded with new badge(s):

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To support your work, I also upvoted your post!

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This is too weird. Just last night I was talking to some friends after dinner about how we are now in a digital world. Look at how easily streaming overtook all of the video rental places. People still rent videos but it is all on the net.
Now the cable companies are losing market share, to the streaming companies. People don't really have a problem paying a little more as long as they can have what they want when they want it.

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And wait until you see what something like Starlink does to the telecos.

Then we will see what is developed around the platform.

Things are moving quickly. A lot happens behind the scenes. But now, and for the next 20 years, a lot will come to the forefront.

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The virtual economy will be amazing and the costs of doing business will just be the transaction fees on the block chain. However I still think the liquidity of NFTs will be an issue. So in a way, the NFTs might have a high value but no buyers.

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So in a way, the NFTs might have a high value but no buyers.

Why do you think that? Art has no liquidity yet tremendous value. The liquidity in real estate is very low yet people are selling stuff all over the place.

In reality, it only takes one buyer to make a deal.

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The problem is that real estate is still a part of daily life while art seems more like a hobby. After all people need a place to live.

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And Art is a hobby that people spend million on.

The point holds regardless of the reason for the need. There are many non-liquid markets where stuff is sold.

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I'm curious though about the role CBDCs will play in the virtual economies. It's clear already that we have no escape from them, but how are they gonna blend, or will they be the bridge between the virtual economy and real life. It would be great if BTC would act as a bridge between the two realms of reality.

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CBDCs will not have much of a role. Enterprises nor most individuals will want to use them because they are controlled completely. They will opt for other currencies that are tied to the platforms they are using.

Bitcoin is going to be mostly a store of value. The fixed money aspect is not going to work in an expanding realm, especially one going as fast as the digital world.

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Maybe we'll see the CBDCs integrated with Thorchain at some point 😂

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Yes, and with the arrival of the Metaverse, the Internet Of Things, 3D printers and other stuff, I imagine a world where everything will be always interconnected: work, health, social interactions, fun... Everything could be done via online — with the obvious exceptions of course.

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Throw in a bit of quantum computing for fun and we will blast off into the future.

Going to be a very interesting couple of decades in my opinion.

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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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Agreed @taskmaster4450 as things move forward i wonder where it will all go basically crypto could eliminate poverty if everyone switched and adopted.
Then there would be all those extra funds to speed it all up even faster, we will be living in VR pods in no time LOL

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We are seeing the opportunity to reduce poverty. The question is whether people will take advantage of it. Too many want everything handed to them. We see this all the time on here.

Few are willing to put in the long term effort to grow their accounts and focus upon the end game. Instead, it appears they just leave.

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Yeah @taskmaster4450le agree SOS mate
Shiny Object Syndrome
LOL
People get side tracked thinking the grass is greener but people really need to start building their roots base first then branch out that is what i have learned recently.
Great thought invoking post my friend
Have a wonderful day
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I agreed on this one. Cryptocurrency and NFT games did help me a lot not just me but so many other people out-there that stop thinking about the debts and bills it helped them to be financially stable. So keep it up and spread the word this might be there opportunity so grab it 😁

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We have to keep pushing things forward. That is all we can do. There is the opportunity for everyone who enters.

So far, as a percentage of the overall population, few have.

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I agree the virtual economy is limitless and will far exceed the physical economy. In the physical world, skill sets will start shifting to align with the virtual world. There will be a shift and a lot of skill sets will become obsolete. I hope the younger generation is deveoping the skills to survive in this new world that is being created.

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I hope the younger generation is developing the skills to survive in this new world that is being created.

I dont think there is a doubt about that. They excel in this arena since they were reared in it. It is the older generations that have to adapt.

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Yes, I know what you are saying as I am of the older generation and it takes me a bit longer to get up to speed on this new technology than before.

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(Edited)

We are not even at 0.1% of what the virtual economy will be in the future. Most of the infrastructure is ready (smart contracts, NFTs, DeFi), what is left is resilient platforms, 3D worlds for the Metaverse, big funds make some bold moves. The excitement for a prosperous future in the virtual world is there and its economy will be matching the real-world one running in parallel.
I only wish I was born today. In the next 25 years, there will be enormous evolution.

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We are not even at 0.1% of what the virtual economy will be in the future.

Yeah. This is so early it will make people's head spin. What the world will be like, technologically, by the time those in their 20s are in their late 50s is going to be night and day. It will be incredible how much different things will be.

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