As the last century was coming to an end, the internet of information was only just beginning, connecting and giving us access to information in a way that we had never known before. A little over 20 years later and how we interact and transact online is changing. Topp Jirayut saw it coming before it was even here. Welcome to “The Internet of Value”.
To understand what is happening you must have a basic understanding of cryptocurrency, blockchain and, to some extent, bitcoins although they are now one of many options that you can transact with online via blockchain technology. So what is it all about?
In episode 2 of Topp Jirayut’s Cryptocurrency Revolution series on CI Talks, Topp, the founder and CEO of BItkub, gives you a simple definition of cryptocurrency, blockchain and bitcoin. Get insights from Topp into how the economic principles of abundance and scarcity are set to transform the world of finance by creating a digital economy in entirety.
The reason why cryptocurrency has value is because it creates scarcity. Up until now the internet has been a destination of “abundance” where all digital files are uploaded from a computer (but also can remain on that computer) and once on the internet, can be copied infinitely. This is digital abundance: “everyone can have all of everything they need” (i.e. information).
Scarcity, on the other hand, occurs when demand for a resource is greater than the supply of that resource, as resources are limited. It can be defined with the following formula:
Scarcity = Wants > Available Resources
(Scarcity equals Wants or Demand which is greater than Available Resources)
When digital scarcity is created, we can create digital files that have value. Think assets such as stocks or digital bonds. Now broaden your imagination to include property, for example, that can also be fractionalized to accommodate collective ownership.
With blockchain, files can be unique and, therefore, have value. There is no copy residing on the originator's computer and such files cannot be copied in any way. Blockchain transactions are also void of intermediaries (banks, credit card companies, etc). We no longer have to put our trust in the unknown when exchanging value.
There is every indication that cryptocurrency is the future and that we are on the cusp of massive disruption in the global financial markets as cryptocurrency supersedes traditional banking and ways of transacting to create a global economy that is 100% digital.