How crypto and blockchain will change the world
It’s time for a confession.
I’ve been ignorant.
I had no idea how cryptocurrency and the blockchain technology associated with it will disrupt every business model on the planet. This goes for the businesses my clients work for and the impacts to my self-employed business clients in terms of their products, markets, and suppliers. Even the way our kids today will bank, save, and invest in the future is going to change significantly. And it was high time that I engaged my brain to better understand our changing times.
It started just over a year ago when my mentor had to set me straight. I was ignorant toward the rise of blockchain and its strong march toward mainstream adoption. With the barrage of Covid uncertainties, day-to-day business complexities and of the unfolding events around the world, I had information fatigue. There was just too much information vying for my attention. So, I just paid the most attention to the information that shouted the loudest. But it was during this time when I received some wisdom which helped me to re-focus my attention to the important, and not the loud.
We’re at a key moment in history. Cryptocurrency awareness is high, mainstream adoption is underway, and the technology is rapidly moving towards a full integration into our daily lives.
I’m not just talking about more people investing in crypto for dreamy returns here. I’m talking about individuals and businesses using the underlying blockchain technology to solve real-world problems and make existing business processes more efficient.
To give you some context, think of where the internet was in the mid-1990’s. It went from a novelty to an integral part of our lives in less than a generation. And it was the earliest adopters who saw the biggest profits as they rode the internet wave – think Google, Facebook, Amazon etc. Right now, we have governments, global investment funds and billionaire upon billionaire who see where this opportunity is at – and they’re backing this move with significant financial resources. It’s a really big deal.
We’re already seeing blockchain technology used in the ownership of high value real-world assets, like businesses and property. These assets can have their ownership split among multiple owners by using a dedicated cryptocurrency token to represent “shares” of the asset. If the asset generates income (ie: rent) the token holders receive a share of the profits in the form of a regular dividend.
And keep an eye out for blockchain technologies already underway which are improving everyday lives of people around the world:
Protecting personal data with crypto-based privacy where you will own your digital identity
Financing models designed as alternatives to borrowing money from the traditional ‘bank’
Payment of artist royalties to truly reward our creatives in a fairer way
Providing economic opportunity to the world’s poor, providing basic financial services such as lending and banking for business start-ups to help break the poverty cycle
Supply chain management to better manage inventory and quality control
New ways to vote with anonymity and in a way so that your vote cannot be altered
In the recent past, crypto has mostly been seen by the mainstream population as a form of tech-gambling – with many chasing returns in the realms of fantasy. Now, with the regulatory frameworks being discussed to standardise investment operations and protect our consumers, we’re hoping we’ll soon see cryptocurrency investments for financial advisers to recommend to their clients as part of a well-diversified portfolio. Until then, your financial adviser can only provide general information.
So, I share this wisdom as it was given to me in the hope that you won't be ignorant like I was. Take some time to educate yourself and your family, and be informed to the world that's changing around you.
Shaun O'Keefe helps families feel more financially secure. He's found that he can help more people, more effectively when he helps families. As a fee-based financial planner, he works with families just like yours to bring personal values and financial resources in line so that you can keep focussed on the priorities in your life.
The information contained in this article is general in nature only. It is not intended to be a recommendation, offer, advice or invitation to purchase, sell or otherwise deal in securities or other investments. Before making any decision concerning a financial product, you should seek advice from an appropriately qualified professional. We believe that the information contained in this document is accurate. However, we are not specifically licensed to provide tax or legal advice and any information that may relate to you should be confirmed with your tax or legal adviser.