Bill Tai || Cryptocurrencies & ICOs Will Fuel The 4th Industrial Revolution


You know, so I know it seems very new to people this whole wave of cryptocurrencies and I actually have a theory that it’s nothing new it’s actually a kind of a visit to the past and if you think about human history humans have been civilized for maybe a hundred thousand years you know they’ve been around in some form of primate or
whatever for you know a couple million years but over that entire period of
time there have always been multiple currencies until just recently so if you
think about what life was like when you were, you know, in the beginning
of civilization work was really more inspiration based; you would basically do
what you want to do whenever you needed to do it during the day and you were
flexible with who you worked with so you might pick four friends to go pick
berries with in the morning and six other ones to go fish with in the
afternoon but you did a variety of jobs throughout the day. It wasn’t until the
Industrial Revolution — so really only like a hundred and fifty years of the
hundreds of thousands or possibly millions of human organization it’s only
been the Industrial Revolution where the productivity model changed and where
people that could control capital could control capital assets and people were
sort of stripped down to hamsters running on wheels
performing single functions like you know some worker on the Henry Ford
assembly line and it’s only been in that period that currency looks the way it
does today, which is abnormal, so if you think about the US dollar, for example, it’s only been in place since 1944. I mean certainly there was a U.S.
dollar in the Revolutionary era, but in that period, even in the 1800s, there
were over 200 different currencies circulating inside the United States
even with the US dollar in existence and it wasn’t until the real
peak of the Industrial Revolution right at the end of World War II, the US
government called together all the leaders of European countries after
World War II and they created Bretton Woods where they basically declared the
the dollar would be on the gold standard and every dollar or $35 will purchase
an ounce of gold, so the scenario at the time you basically had
World War II end, you had maybe a hundred million people milling about in
Europe with literally nothing because everything had been destroyed so
economies had to be created and at that point in time Bretton Woods was called
the US basically had the leaders of the other nations come to Bretton Woods New
Hampshire and they just made an edict to give him everyone confidence that there
would be $35 per ounce of gold and individuals knew they could take their
dollar walk up to the Federal Reserve window and actually turn it in and get a
little bit of gold so that created a frame of reference that every other
currency in Europe was basically abstracted off the dollar so there was a
declaration that you know the lira a certain number of lira would be you know
X lira to the dollar a certain number of francs to the dollar certain number of
marks to the dollar British pounds to the dollar so there was sort of a tree
of value coming from one central thing that people trusted that was gold that
actually only lasted 28 years so the in 1972 the French government had
accumulated a lot of dollars and they literally took the dollars to Fort Knox
to the Federal Reserve window and asked for their gold and President Nixon
realized that if he left France do it everybody would do it and they didn’t
have enough to go around you know because what had happened was
basically because of the economic productivity of the nations using
currencies they had stored up dollar bills that was basically the key to
having an economy and once the gold standard broke we move forward into
another era you know; known as the “petro dollar”
because of the a forcing of the countries in the Middle East to accept
dollars as payment for barrels of oil now you had a way to essentially
guarantee your economic future as a nation by piling up dollars in your
foreign reserve and by doing so you’re essentially storing oil which was the
route of productivity in the age of the Industrial Revolution and an oil based
economy so what’s happened now is we basically move forward to a period of
time where oil is still relevant but electricity is more relevant you know if
I basically gave you a choice 24 hours from now to cut off your access to oil
or electricity — you would choose to keep electricity the root of all your
productivity today is not burning oil it’s what you do with the electrons in
your computers, your smartphones, your daily life with light and so I think
what’s happened is the backing of currency has moved from a fixed asset
like gold to something that you could turn into economic productivity in the
form of oil and it’s already moved to electricity but we just don’t know it
you know so I think you hear this term the fourth Industrial Revolution
electrons are effectively the backing of currency in the fourth
Industrial Revolution and we’re already there. So I think what you see in these
ICOs, is they’re basically encapsulations of electrons that perform
a certain function and there are communities of interests that form around each set
of those that believe a certain thing you know you can look at the
nation-state too – I think with the Industrial Revolution and military power, the nation-state as we know it that’s also only existed for a few
hundred years and the shape of the nation-state today is one that is there
to protect the economic assets from the Industrial Revolution as we go forward
now people are basically digital citizens where everybody’s a little
molecule in a distributed fabric and people can join or not, multiple
communities of interest that are beyond physical borders so what you see is
groupings of people that believe in certain things they have the same belief
systems and culture, same whatever it is that they are interested in and those have become Virtual Nations & Virtual Economies that are willing to trade amongst themselves. I mean a dollar is really
just a token of value exchange as were pebbles and shells and the stones of Yap
and credit default swaps so it’s, you know, what you believe in and so I think
we’re now in a period where there are multiple currencies just like there have
been for 99.99% of human history.

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