Few would dispute that we operate under a financial system that simply is not working for most. Looking at the statistics from around the world, it is evident that the wealth distribution is moving into the hands of fewer people while the masses who are struggling to make ends meet is only growing.
Cryptocurrency is a bright spot in all that is taking place. By giving people the ability to create their own money, we see a system forming that provides many benefits. The challenge with this is the prospect of seeing a more efficient system under which people are enslaved.
There is little doubt that tokenization offers many benefits as compared to the present financial system. To start, removing the "middleman" is a way to cut costs while also speeding up transactions. Anyone who sent money internationally knows that it takes a number of days to settle while incurring costs of 5%-20%.
We can compare this to a platform such as Bitcoin where transactions occur in under an hour and cost a few cents.
Obviously, the benefits of using blockchain along with tokens is capturing the attention of the elites. They see the same abilities as the rest of us. However, their motive is a bit different. Instead of pursuing this as a means to freedom, they seek to retain (or grow) their control.
Like any technology, cryptocurrency and blockchain can go either way depending upon the intent of those implementing it.
To show how we could be creating a more efficient system of financial slavery, we see an article about tokenizing a Ferrari.
The idea of tokenizing collectibles is an interesting aspect of this relatively new industry. One of the problems with assets of this nature is the liquidity of the holding. We all know how hard it is to sell things such as exotic cars, real estate, and art. Tokenization streamlines all of this.
A company has decided to tokenize a limited-edition 2015 Ferrari F12 TDF. This vehicle has an estimate worth over $1 million.
One of the appeals of this type of offering, according to those who put it together, is the return that people receive.
Since the start of 2010, the Ferrari Index – an average of the 13 most collectible Ferraris from the 1950s and 1970s – increased by over 233%. During that same timeframe, the S&P 500 – which included its longest bull run in history – increased 173%. While infinitesimal compared to the stock market, Verboonen says it shows supercars are a viable investment option.
Certainly, this is an avenue that would appeal to most people. I am sure many of us might take a stab at this with a few dollars, if for no other reason than to say we own a piece of a Ferrari.
For this project, Ethereum was chosen with the ERC-20 protocol being used to create the token. The company, CurioInvest already partnered with Huobi to create the secondary market.
Of the 1.1 million tokens that are available, 60% were already sold to institutional investors. The remaining 440,000 go on sale on Monday. They will be offered to European investors with those in the United States not being able to participate.
Here is where we see thing going off the rails a bit.
This is a wonderful idea, one that can be extremely profitable on many levels. To start, it shows the power of tokenization for creating new opportunities. It also exhibits how tokens can be applied to present a fractional ownership situation. These are the main benefits of tokenization as an asset class.
However, we see the tentacles of the existing system reaching in. CurioInvest had to get the approval for this offering from the regulators in Liechtenstein. This means that we are likely seeing some form of "accredited investor" required to participate in the initial offering.
At the same time, the institutions were turned to for early participation. It makes sense on the company's part since they can sell larger chunks of the total offering very quickly. However, this cuts out the retail investor from the largest gains, something that is common in the new offerings on the stock markets.
Finally, certain parts of the world are cut off due to their regulatory guidelines. In this example, it is likely that the company does not want to deal with the potential blow back from the SEC in the United States. Thus, it is easier to just cut those people out of the offering.
We also do not know what requirements Huobi will put on its customers who are seeking to buy into this. Since it is on the secondary market, there might be none but we cannot be sure.
This exemplifies how a new system can be taken over the those who are in control of the existing one. Obviously, there is little that is more elitist than a Ferrari so the idea of this being structured in such a way is not surprising.
However, it is just one example of how the present powers are seeking to take this newer technology and use it for its own end. Just like the Internet ended up being divided among a handful of powerful technology companies, we have to be mindful of the risk of falling into the same patterns with cryptocurrency. This could be more powerful in terms of its impact on society, thus we need to be careful. Institutions are going to jump on board and try to take control.
The longer the elites stay away, the better it is for everyone. We all want the value of our tokens to moon and Wall Street, as an example, would cause that. However, there is a trade off when those sharks get involved. Inevitably, they structure the entire system to their benefit.
This is a story that was repeated throughout history.
It is my view that the goal of these people is to financially enslave as much of the world as they can. The last 30 years showed me how they continually work the system to their benefit while crushed the masses.
Technology can offer a way out of this but only if we are as diligent about implementing it as they are. Instead, most are consumed with just surviving.
Cryptocurrency offers the potential for the masses to create as much wealth as the elites are holding. The question is are we willing to go for it?
If we do not, I fear we will be witness to a more efficient form of financial slavery forming.
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This is why I believe projects like Hive are so promising and important. To overcome the repression of the generational system we have to change our mentality. Decentralization fosters a proactive mentality and a principle of equality along with the ownership of personal value and means of exchang. It gives individuals the tools to change the paradigm of manipulation and control. At the same time trustless permission less interaction creates an environment for collaborative efforts. I believe the problems we are facing in all aspects of society stem from the economic oppression you are speaking of and this is an historic opportunity for all of us. The really cool part about it, and what gives me hope is I see it happening from the bottom up and there's way more of us down here than they have at the top!
Thanks for the great work and all your efforts.
Peace
Yes the bottom up approach is key.
Also, along the same lines, is the fact that wealth can come from outside the main tokens. The long tail could enrich the masses.
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Once the technology's ubiquitous, its very nature makes it almost impossible to control; like torrenting software.
I don't mind if a few accredited investors each buy a small chunk of Ferrari; it legitimises tokenisation; aligns their interests with ours and helps propel the tech forward.
As long as I retain the capacity to issue my own tokens; and you retain the capacity to buy them; more interest, attention and money flowing into the concept might do more good than harm.
You are right about the sharks shaping every system by their selfish desire of universal control. Hopefully, crypto will not be another fishy to eat for the sharks and another way of gaining financial tyranny
It's ironic: the potential biggest driver in crypto adoption, the institutions, could also be the ones to fuck it up.
Very true although there is another driver of adoption...the 7 billion who are not involved with the upper tiers of society.
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Where there are winners there are loosers. Compare it with China population who are all getting richer last 20 years (some more than others but still) at teh cost of the US middle class. Luckily for the USA there is one who tries to change that.
This whole "tokenizing physical assets" thing is a complete farce.
You can't even begin to tokenize physical assets until the law of the land itself is governed by cryptocurrency (probably DPOS).
For the same reasons you can't peg a crypto to physical gold (and shouldn't want to even attempt it) we can not peg any physical asset. You can't secure ownership of physical products in the real world using the internet. When it comes down to it, all physical space is secured by military force at the base level.
This implies that the only way we can tokenize physical assets is to have a physical government with a military that's controlled by the same asset (IE crypto city-states).
Certainly the powers that be will try to retain all the control they can muster, which is exactly why they will fail, because the value of this entire movement is decentralization of power; something they know nothing about and don't want. Ironically they will embrace crypto anyway because the value of it is simply too great
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I strongly agree with the above line, I believe we've got the house to ourselves now before the big brothers come around. What we do while they are undecided on what or react to cryptocurrency/blockchin is what will determine how much we really want to be free of their strong hold on us.
Wow!
This is one of your most powerful pieces. It speaks to my bad dreams about the effect of the Digital Yuan in China being a model for authoritarian control. It speaks to the double bladed nature of this technology to free or enslave. It speaks to a financial technology Tokenization which should equalize financial opportunities, but instead is misused to benefit the same elites the current system selectively benefits. The ludicrousness of KYC and qualified investors requirements for one dollar Tokens is clearly a hurdle or filter, when no such limitations apply to Lottery tickets which are far less likely to even return your capitol.
Good Post
I always love your articles. It gives more additional lengthening information and details.
Very nice! You have a very good point... The question there is, how the owner of the tokens maintain their specialty to people? How long they will doing it?
I did saw one project (cryptocurrency) from start to the end how did they success! It's too difficult! But they prove their importance... This is the ELECTRONEUM... Invented by the smart guy with 5 IT only from the beginning and now they are international used like PayPal.
Why so pessimistic?