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IPFS News Link • Economic Theory

How The Revolution Of Money Will Reshape Our Future

• https://www.zerohedge.com, by Kane McGukin

During major shifts, the root desire for change is typically ignored. I believe that these generational shifts, our societal shifts, are tied to a mismatch in the speed with which people and money need to move. Let's take a moment to look at our major revolutions.

Each of these waves caused a drastic shift in how society operated. They disrupted every industry and old line of thinking. These periods experienced major shifts in lifestyle, access, and money.

Each major revolution was propelled by our ability to harness new technologies and resources. In turn, allowing us to apply and realize the potential of mathematical principles that had been understood, but not fully utilized, in previous eras. For example, the Industrial Revolution leveraged Newton's laws of motion to develop machinery that transformed production processes. Calculations, known for decades and centuries, became the powering force behind modern tools.

When we apply known calculations to new tools and technologies we typically see an unlocking of Gross Domestic Product (GDP) or "value" in a way never experienced before.

During each revolution, GDP trajectory seems unsustainable in the moment. Having a trajectory that resembles the path of a rocket ship. However, as time passes and we have the ability to zoom out, we find that the distant past looks much more normalized. Over long periods the chaos of the moment smooths, providing the continuous up and to the right movement for our economic systems.

As we enter into the revolution of money, we should expect a surge similar to the impact of the internet in the 1990s.

For instance, the adoption of e-commerce, enabled by the internet, contributed to a substantial increase in GDP, with online retail sales in the U.S. growing from $27.6 billion in 2000 to $1.1 trillion in 2023.

Integration of digital currencies into the global economy is expected to reform banking and create new industries, reduce transaction costs, and open up previously inaccessible markets. This shift can be seen in dashboard data from Coinmetrics.io which shows the Stablecoin market having grown from roughly $0 prior to 2019 to about $160B+ today. Thus, Bitcoin and protocol innovations should continue to be big drivers of innovation for our next major wave of growth.


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