How Tokenization Will Shift The Global Economy

Many focus upon the market aspects of cryptocurrency. They fail to realize the profound impact that digital assets are going to have on the global economy. When we look at what is taking place, coupled with the potential, the entire economic system could be rewqrked.

This is a lot bigger than just Bitcoin. It has nothing to do with simply a new monetary system (which it really is not). Instead, we are dealing with a rehypothication and securitization of the primary mechanisms of money creation along with new co-operative models.

In short, this is more profound than the majority realize.

What is happening could be called "hypertokenization". This is going to change life for everyone on the planet.

The global economy is going to be radically different in a decade.

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Blockchain: Global Players

Public blockchains are going to be the global players in the future. They will end up replacing Nation-States in terms of their impact. At the present we discuss the United States and China as the major players. Down the road, we will be discussing Ethereum or Hive.

The economies of these blockchains will rival those of nations. It is a process that will be augmented by the fact that all assets will be tokenized. That means we are dealing with an abundance of money being generated. Once something is liquid and simple to transact, it takes on the properties of money. When this is combined with the ability to collateralize, we can see another shift in the nature of money and credit.

Of course, I have made the case this is not really a new shift since the banks did it decades ago. It is, however, becoming open to everyone.

Decentralized digital networks are already taking on some of the characteristics of national economies. Economic productivity is being captured by these networks, growing their value. This will evolve into other services being developed, all which have a different model of distribution as compared to what we are accustomed to.

The network-state is a more fundamental concept than most people are making it out to be.

Labor

The nature of work is also shifting.

Instead of focusing upon the activity, we can concentrate on the change in payouts. Today, for most, labor capital is the most important component. This is true for individuals, businesses, and the economy as a whole.

Staking opens up a new mechanism for the masses. We are likely to see capital and staking income eclipse labor income for most people. The ability to invest is going to become a required skill for all.

As the most basic of income units shift, we are going to see a massive change in the distribution of value tied to economic productivity. To start, tokenization means everyone will have something on-chain to collateralize. This creates enormous funding opportunities. The value generated from those platforms or businesses is captured both at the token and coin level.

One way to look at this is with a company like Amazon. Right now, as the value of Amazon grows, this helps the United States economy. Actually, the success of Amazon also plays into the global economy.

Who financially benefits under this scenario?

Obviously, the shareholders of Amazon do well. The economies U.S. and global economy see slight improvement. Yet, with the latter two, who gains financially?

Here is where we see the major shift. It is why tokenization is so powerful. In fact, it will be the subject of an upcoming article.

For now, we just need to understand how impacts with tokenization are on multiple-levels.

Web 3.0: Exponential Value Creation

The entry into Web 3.0, with its different technological components, is exponential. In fact, when we look at this from an economic output standpoint, we see massive economic value created.

Investment opportunities are going to be available to everyone. There are going to be massive fortunes made from platforms or companies that go parabolic. It is likely much of this is based upon shared values that traverse national borders. For all the talk about de-globalization, the fact is that when we mentioned anything digital, it is by default, global.

Anyone with an Internet connection can participate.

So what happens when billions of people are able to collateralize trillions of dollars in value and invest in different projects? The solution is a collective increase, massively in my opinion, of new value created.

Thus, ones who benefit financially could be millions of people located all over the world. It is not isolated to an individual country or group of shareholders.

What gets really exciting is the fact the digital world moves fast. A couple years of coding can surpass what it takes a traditional company such as a manufacturer a decade to accomplish. There are no supply chains, distribution networks, or factories to build. Web 3.0 will naturally speed up this process by digitizing and automating many of these processes.

Blockchains will be successful because that will be where we will find both the eyeballs and monetary liquidity. Here is how the new economic model will start to unfold. As both increase on a network, the value will follow suit. This should be captured by the coins and tokens associated with that Network-State. Through the collateralization mechanism, people will be able to invest in other opportunities which will further the economic output.

Rinse and repeat.

All of this is starting to happen. We will find the shift from embryo to toddler is rather quick.

Within 5 years, this will not be something in the theoretical realm. It will be a daily part of the lives of most people.

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