Monday 14 November 2022

War for the future and parallel economy - Fall of FTX

I have always been vocal about my doubts about the ability of a cryptocurrency-based unregulated economy. Since one mistake could bring down a company, it is undoubtedly not wrong to support niche technologies as they emerge. History has not been very kind to CXOs and company founders who were unwilling to embrace change, so I would argue that any effort made in such developments can have a positive effect or teach us a valuable lesson.

Blockchain is undoubtedly a technology of the future, but 80% of the issues we are currently attempting to solve could be resolved using a centralised database, whereas a distributed database requires additional space and bandwidth to replicate it across all nodes that require it to verify authenticity. However, cryptocurrency goes further than that. These digital assets are susceptible to volatility. If you have the money to purchase enormous mining equipment and mine as many cryptocurrencies as you want, if you are a founder with the resources to market a joke (DogeCoin), or if you are an exchange with the resources to sell your cryptocurrency at a higher profit margin and have the freedom to accumulate wealth as you please.

People have compared cryptocurrency to a variety of physical assets, but all of these assets either have value for the customer (such as gold, real estate, etc.) or are governed by the federal government. The rest would just result in inflation based on speculative assumptions about which no one is aware of the facts.

The next inline is Metaverse.  It is possible to assume that you are playing in a virtual avatar at times, but I don't believe I would choose to communicate with my team or family members through an avatar over a real-time video. Despite the fact that we are far apart, I could still see them and their faces. My interest would largely shift away from 3D avatars and toward near-eye displays based on 3D holograms. In video games, things are different because I play as the character that I control, but in real life, I prefer to be myself when I'm interacting with my team, my family, or my friends.


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