INTRODUCTION
As I’ve stated in several recent interviews, fiat currency, etc. is part of Financial System v1.0. Blockchain and cryptocurrency is Financial System v2.0. Picture them as two islands, with shark-infested waters in-between them. The Financial System v1.0 island is safe, but everyone knows it is a matter of time before all of the resources on the island run out, and everyone dies. The Financial System v2.0 island is fresh and green with virtually unlimited resources.
We, the early-adopters of Financial System v2.0 sense the eventual collapse of Financial System v1.0, and have decided it is worth the risk to jump into the shark-infested water to get to Financial System v2.0. Of course, 25% get eaten by sharks on the way, but the other 75% make it safe and sound and live in an environment of freedom, liberty and prosperity.
Every individual on the Financial System v1.0 island has their own threshold that needs to be hit, before they realize it’s time to jump into the shark-infested water, and start swimming. With every passing day, more and more people on the Financial System v.1.0 island have their threshold hit and jump in the water.
Eventually, so many people are on the Financial System v2.0 island that their sheer numbers kill the morale of the people on the Financial System v1.0 island, and they start leaving in droves. Every person that leaves the Financial System v1.0 island is ditching the old fiat currency system, just like we ditched gold and silver in favor of paper money, and then again, starting in the 1950s with the first credit card, Diner’s Club, we moved to more and more of a cashless system.
Now, we are at the same point, where we are moving from Credit Cards to blockchain/Cryptocurrency. At first, the majority says that “it will never catch on,” but it does, and the old way dies. Every time a currency paradigm shift transpires, there will be a transition period where there will be a few early-adopters, and the remainder of the people will be in a state of distrust and fear of the unknown.
Every individual has a specific fear threshold, and so, a certain period of time will need to go by before that individual’s threshold is hit and they will ditch the old currency (fiat) for the new one (cryptocurrency). I am thinking in the next five years the island analogy will transpire in real-life and when 80-90% of people on the planet have adopted Financial System v2.0, the remaining people on the Financial System v1.0 island “go down with the ship,” the island sinks into the murky depths and thus ends the era of fiat currency, and thank God for that.
Now, we might also have what fireman call “an accelerant,” and just like lighter fluid will start a fire blazing more rapidly, the introduction and adoption of credit cards (that everyone is used to as “normal”) that are loaded with Cryptocurrency will act as a bridge between the two islands, a liaison between Financial System v1.0 and v2.0, and suddenly we have an accelerant in the form of products like TenX, Monaco, Centra, Metal, etc. In this case the transition will transpire far faster than any of us think currently possible. However, it’s like a crack in a dam or your car’s windshield.
Once the crack forms, it will only get larger and larger, faster and faster. When the dam breaks and tons of water start spewing through it, the dam will be utterly destroyed. At any moment, we will have a flash point where the first crack forms, and in a sudden rush, cryptocurrency will take over the entire world en force. With every passing second, that moment comes closer and closer, with blockchain on its inexorable path.
Just like Smart Contracts, cryptocurrency has started its journey, and nothing can stop it.
~ Michael Stollaire, October 26, 2017