Dropping the Crypto Penny
Like a lot of people I know, I have only loosely flirted with crypto, blockchain and smart contracts over the past few years. This loose flirtation stopped recently when the crypto penny dropped, and I realised how everything felt like it was really about to change. Whether I was going to make any money or not, or whether I could buy a Tesla with Ether, was no longer my interest. The thing that was suddenly more interesting was the fact that life could look very different in the near future.
This feeling I have is much more intense than it was in 1998 with web 1.0, a time long forgotten when nothing was broken in the world and my peer group wrote internet business plans on an hourly basis, late into the night and met people to talk over them. Perhaps I was now more experienced? or perhaps transformation is possible faster than ever before? It doesn’t really matter, this thing, web 3.0, crypto or new, ‘new’ economy appears to be snowballing, and it is wickedly interesting and stimulating.
There is something to learn here and this is plenty to keep me interested. I will confess that I always have new things to learn, so I am also hedging this interest, but it’s surfaced, and it’s not going off my list any time soon.
The initial phase of crypto curiosity for me was to learn about this new shiny toy and the basics. What actually is it? This phase quickly moved to speculation, gold rush mentality and not much care for any deep-rooted structural economic change, as long as I was ‘out’ before the price fell and ‘in’ again before you were.
Over time, my curiosity started to lead me to try and understand things a little better. Over the last year, I also went back to study and this decision was at the time unrelated to crypto. I used some lockdown hours to learn key parts of my Economics degree from a non-western perspective. I studied Economic thought from a Chinese and Indian perspective through a short online course with Oxford University.
Today, my return to study and curiosity about all things crypto have collided. I get that there are parts of the crypto world that are about a speculation game, some about facilitating criminal behaviour and others about building products to service it, but I suddenly understand that there is a far deeper change happening. A deep economic shift that perhaps my old Marxist tutor would have called chaos.
There are three interesting features of crypto that I recommend you consider:
- It is a widely established world that is difficult to police and has spawned sectors, organisations and products that are currently worth billions of dollars. It is diversified, smart and has support, energy and momentum. It is not about one currency called bitcoin, it is about an entire economic environment that is established and evolving every day, with its own equivalents of banking, security, markets and even soul. It has different incentives, motivation and rewards. It is a place of new rules.
- You can’t understand it by looking through your current lenses. I remember having to rewire my CFO and accountant brain when I joined a capital markets business 12 years ago. The value of a company was not entirely about the business fundamentals, this was a shock, stock price was about what someone was willing to pay for that stock being sold there and there. It’s a different lens, obvious now, but when you form habits and wire yourself one way it’s all you see. For crypto understanding, I have had to change lenses again. Check this, you don’t need a company or bank account, no shareholder or payslip to be able to settle your bills, create revenue or fund ideas. It’s a different world that is only understood by changing lenses.
- The technology, infrastructure and attitude are making it possible for a revolution to happen. Yes, it’s entirely possible that the way life is organised can change. When I studied my degree elements again, I realised that over time and often at the same time, it is of course possible for there to exist completely different ways that parts of society are organised with the same or different goals. Whether it is the pursuit of good health, education, climate control, equality or better diversity – it is possible for things to be achieved in different ways and under different structures. Perhaps the most obvious contest is between the established capital markets and new coins. Coins are wrestling perceived control and power away from corporations and distributing this to the makers and customers. Decentralised machine networks are autonomously moving data around to incentivise, motivate and reward people to help shape a new world. It’s quite incredible to see people joining networks in a permissionless way and making lives for themselves.
So a new way to reorganise life is right in front of our eyes and there are so many people experimenting, building, thinking and developing new solutions that if you are not looking closely will be a shock to you. Of course, it all needs work and this is developing fast. There will be disasters, but there will also be new solutions.
We have a few projects in the Lab at Platform Worldwide that I am excited about ranging from the revolutionary to the highly amusing, ranging across the sector. The team, as always, are thoroughly enjoying making new things, solving problems, researching and tinkering.
If you are new to this, I would encourage you to start to look through sites like crytoslate.com or coinmarketcap.com to see the vast array of sectors, organisations, and values of the market. Of course, there are lots of other, less fundamental unique opportunities, like NFTs for memes, or even brands like Atari launching strategies but I would encourage you to look deep – there is something very big, and real, and possible here, in the way that parts of our economic life can be organised. It’s something to learn – and that’s good enough for me – but it’s still very early, and if you want to make a difference, or have a side-hobby I’d encourage you to learn about it a little more. It might bring you an advantage, joy or reward.