Blockchain creates an economy based on the individual vis-à-vis organizations. Take the example of a project we manage, ArtChain AI. Their founders want to put together a system of tokens that galleries and artists can use to trade their stuff. Once an art piece enters their platform it automatically becomes a value on the ArtChain network, supporting the value of its tokens, as some paintings would only be available on their blockchain.
In a far away century, let’s say the 25th century, when all different art blockchain networks integrate, every artwork is contained in the blockchain, and there are almost no black or grey markets, the only way to profit from artwork will be to provide value to the ecosystem as an artist or gallery (let’s simplify it).
Once someone earns ArtCoins they will want to make a living from it, and they will be able to trade their ArtsCoins for USDT to buy food, for example. Given that he wants to get the food delivered to his home, he can also exchange ArtsCoin for DeliveroCoins and voilà: his earnings are transferred to other blockchain networks and he gets real-world stuff he can seize and enjoy.
All networks are always in balance, supply and demand are instantly adjusted, perhaps even on a global level. Market externalities and arbitrages are negligible.
Once the private sector and national governments enter the blockchain system, it is reasonable to expect that stock markets would also follow suit. The Australian Stock Market is already on the blockchain, for example. Having them onboard will arguably make it easier, technologically and otherwise, for blockchain to create an integrated global capital market.
Libertarian revolutionaries seem like creating Karl Marx’s dream a reality! Karl Marx… but isn’t this a libertarian revolution led by shirtless dorks like Pavel Durov who challenge Putin to a reality TV showdown? NO, DUMMIES!
Every founder gets a limited number of tokens that they own. With time, as their bodies deteriorate, and they get older (despite the gym Pavel, sorry!) they will have to spend those tokens, as they get no salaries after the initial fiat funds are spent. The growth of their tokens value will be slower than their price appreciation as visible today. After a few generations, there would be no accumulation of wealth as all initial founders’ tokens would be spent!
Hence, blockchainers around the world are creating a libertarian socialist kingdom! A place where there would be no place for extra profit from the labors of others (in most cases). Without ownership of assets backing most token/coin networks, it is safe to assume that this can become a reality!
But wouldn’t Apple’s shareholders still dominate and transfer the wealth to their brats? Perhaps. But consider the following:
1. Companies that are based on profit yielding shares are not sharing them with their consumers.
2. Companies that are based on token networks do share the benefits of profit (and, or) network growth with their consumers.
And based on the above, here is something as a food for thought:
CAPITALISM
Extra profit from the labor of others. Profits are transferred to investors and management who push employees to make bigger profits. Consumers have no benefits but large investment in marketing. Hence, Microsoft overtakes Linux despite being crappier at the time, more prone to viruses and less stabile in general. The masses rewarded marketing over quality! Microsoft is powerful and reinvests the profit of others (employees) in bran-washing the future generations and creating closed systems. (they buy GitHub…)
LIBERTARIAN SOCIALISM
No extra profit from the labor of others is generated in the long-run. Profit if there is any, is usually distributed among consumers. Lack of incentive to exploit others hinders short-term investment in marketing. Hence, Linux overtakes Microsoft for the segments that matter. In the long run as smarter people use it (Android) who eventually have more power because of their IQ and values, Mars would definitely have Linux over Microsoft. Less in number but better.
The blockchain revolution is a libertarian socialist one and it is fit for a smaller but chosen group of people who are qualitatively better.
Subscribe to my new book!
The Economics and Financial Mathematics for the Blockchain Era
www.tsm.global
Show Posts
