Digital Coins to the Scope of Everyone
Money moves human energy, skills and time between us, in different “containers”, or stores of value. National value stores, such as the US dollar, have historically been controlled by governments and distributed by banks.
Notably, this model is much more inflexible and inaccessible than new cryptographic solutions, made possible by blockchain database technology that theoretically allows anyone to emit and distribute a digital store of value.
Cryptocurrences allow us to account for and transfer values securely to each other without the need for an intermediary, such as a bank. Finally, we can unite and create reliable local and group value networks with little overhead or monitoring tedious.
Now communities of any flavor can now be empowered to agree on credit policies and governance structures and enjoy domestic markets from which to buy and sell goods or services, without relying on access to national money. The first use cases are produced by the first adopters, and we already see hundreds, near thousands, of cryptocurrencias in the market.
However, as technical barriers to entry are eliminated, we are on the precipice of millions of coins generated by users, of all shapes and sizes. This is similar to the turning points in the user generated content that we saw with the increase of WordPress for blogs and YouTube for video.
Similarly, in business, the ‘long tail’ describes content and products in low demand or with low sales or volume of view that, collectively, represent a market share higher than the current best combined performance.
It is to be noted that, Internet history shows us that with the long digital queue, the accumulation of all niche contributions is actually two to three orders of magnitude greater than the successes. Think of all Instagram accounts after the 1,000 most followed.
Many local companies were eager to offer their products for the currencies of their customers’ communities, which would further improve product selection, but their inability to liquidate them back to national money was a barrier. What you see today are the early adopters limited to crypto companies with deep experience in development and a business strategy for liquidity.
Therefore, when technical barriers are reduced and the liquidity problem is solved, the appearance of the long tail of the currency generated by users may end up being the longest long queue in Internet history.
In turn, in cryptography, the long tail points to hundreds of billions in potential value by combining all small and niche coins beyond the few larger ones.
Warning: CryptoSolutions is not responsible for the opinions expressed in this article. The ideas and opinions expressed in this article do not represent a business opportunity of any kind and the reader should be properly advised before making a financial or legal decision.