|What are cryptocurrencies?
If you don’t know, you should. It’s inevitable, wallets in the future are going to be irrelevant other than to keep your family pictures… but that’s what smartphones are for, right?
You may have heard about them with all the talk around digital currencies like Bitcoin. And if you’re like me, you may have missed on the opportunity to win big.
In context, if you would have bought $1,000 worth of Bitcoin one year ago, you would have ended up with about $8,500 earlier this month.
And it’s still growing. According to Aurelian Menant, CEO of Gatecoin, Bitcoin is expected to hit $6,000/coin by the end of the year. Although many experts think that Bitcoin won’t really explode until 2019, the same experts expect to see a $13,000+ Bitcoin by March 2018.
That’s a lot of opportunity.
Yesterday, I had the opportunity to meet with Garland E. Harris, the CEO of Troptions Corp, Inc. to talk a little bit about another digital currency called Troptions (Trading Options).
Garland caught my attention because he’s marketing his coin as the first to be truly asset-backed. Looking to tackle the fear among would-be investors hesitant to purchase the coin because of lack of buying power, the organization is building up a “marketplace” of assets for shareholders and coin carriers to purchase items from.
The point I want to make here about Garland’s coin is that there’s nothing inherently valuable about a digital token economy, or a dollar bill, or a coin. The only reason these things have any value is that we’ve all decided they should. And because we’ve decided that, they do.
Money isn’t about paper or copper that we exchange with each other. It’s a collective story that we tell each other about value. A fiction that centers around “assets” that justify this fiction. And that’s really powerful.
We’re about to enter a new phase of money. For years, we’ve relied on big entities like banks, government and credit companies to establish trust in our economy. These intermediaries perform all the business and transaction processes, from authentication and clearing to setting and record keeping.
But there are problems:
- They’re centralized, so they have a higher susceptibility to cyber attacks. JP Morgan and Experian come to mind.
- They exclude billions of people who don’t have enough money for a bank account.
- They take a big piece of the action (10-20%) to send our money across countries.
Above all else, they empower asymmetric economic growth — the rich are getting richer, the poor are getting poorer.
The future of money is programmable. When we combine software and currency, money becomes more than just a fiction of value, and we don’t have to rely on intermediaries for securities.
In this world, we can remove human error from the process.
Digital currencies will be the first step toward this new reality. Imagine a world where we could rent out our own data to Facebook and Google. They can run large-scale data analysis and provide me with a cryptographic proof they’re only using my data in the way we agreed.
And they can pay me for what they found out. This is a crucial moment in the evolution of the internet. People can get paid to live. We will essentially become the service economy of the future.
We’re entering a new era of programmable money. And it’s very exciting, but it’s also a little bit scary. My grandpa used to say that there would never be a reason for credit cards to exist as long as there’s cold hard cash. He’s passed since then, but I think he’d be surprised to hear that I hardly ever carry physical cash.
The future generation is already being programmed to think this is normal. They pay things with their phones, with their watches, with apps that look nothing like the velcro wallet I used to proudly carry around when I was their age.
There will always be trade-offs. With programmable money, we remove the part where big brother sticks its hand in our pockets. That’s right, digital currency democratizes money. And because of this, things are going to change in ways that we could never imagine.
I’m going to let you think about that for a while.
As for Troptions, they will complete the Initial Coin Offering on November 11, 2017. If you’re interested in learning more, visit www.TroptionsICO.com. And if you’re ready to invest in the future of money, let me know.
This is the future. It can happen faster if we will it.