Thought of Leadership

Why everyone is a Speculator, Whether or not they choose to be

Post impressionism, sowed the seed for Cubism, while the muscular certainty of the industrial revolution laid the foundations for art deco (and the rejection of straight lines)…..

With hindsight, such shifts in taste and fashion couldn’t appear more inevitable; but if you were speculating in 1900, how likely would you have been to trade in your Gauguin for Picasso? 

And the vagaries of taste are not limited to the world of art.  Honestly, who would have bet against Nokia at the height of its domination? In 2007, the Finnish brand accounted for one-in-to mobile phones sold globally; six years later – following the emergence of smart phones – it accounted for less than 9%!

The vagaries of fashion, style, technology and – even – regulation make such speculation a precarious past-time; and certainly not the basis for financial security. 

But such speculation is what everyone – consciously or otherwise – is obliged to do, every time they make a purchase.  We are taking a chance on the viability of our interlocutor (with whom we trade), and on any intermediaries (banks or platforms) that form part of the transaction, not to mention on the very currency that we choose to trade it.   

In the US$ dollar we trust, today; but its dominance stretches back less than a century[1]; history – since the 15th century – suggests that no reserve currency maintains domination for more than a hundred years[2]

So, now may be a good moment to reflect on the myriad of alternative mediums of exchange that exist, not merely to challenge the US$, but the entire concept of Government-controlled, centralised currencies.

According to data from NASDAQ, in 2022 1.1 million Ethereum denominated trades were completed every day (compared to 225,000 per day for Bitcoin transactions); while US$24.7 billion worth of NFT trades were completed during the same period[3].  Today, there are over 84 million crypto wallets open across the World (compared to just 3 million in 2015)[4].

Who could have predicted this rise 10 – or even 5 – years ago?  What does it mean; and where is it heading….? Will the US$ gradually lose its reserve status; will this be assumed by another FIAT currency, or – given the growth of decentralised transactions – is the concept already irrelevant?

The smart – ie. correct – answer is: ‘I simply don’t know’. 

But every time anyone makes a transaction, they are effectively making a bet on the integrity and perennity of every single element in the transaction chain.   Fair enough, society functions perfectly well on such (rarely qualified) assumptions.

But as the World becomes more volatile and transaction alternatives more ubiquitous, such choices will cease to be trivial; especially, as amounts and stakes rise. 

We don’t believe that consumers – or most business – should be forced to speculate, just for the privilege of completing a transaction, whether or not they are aware of it.

 

With Metaverse Bank, such speculation is removed entirely; consumers and businesses can transact in any currently or currency-type of their choosing. In fact, they can even combine currency-types or – potentially – decide later, when they actually complete their exchange.

Our Encrypted Digital Assets contain all the information, not just the value of the asset but – courtesy of the Blockchain – its ownership, provenance, history and, even, physical location or jurisdiction.  Users at either side of the transaction are at liberty to select their own asset of exchange as/when they enter into a transaction.   

The use of EDAs enables complete reconciliation of any transaction in any denomination (or combination of the same) instantly and transparently, in addition to providing a wealth of other information on the individual assets at play that would be inconceivable through traditional payment systems. 

Now, consumers and businesses will no longer be forced to speculate on the next trend – whether it be around art or technology – just to complete a transaction. 

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[1] https://www.investopedia.com/articles/forex-currencies/092316/how-us-dollar-became-worlds-reserve-currency.asp

[2] https://www.thriveng.co/the-history-of-world-reserve-currencies-since-1450

[3] https://decrypt.co/118438/2022-versus-2021-nft-sales

[4] https://www.zippia.com/advice/cryptocurrency-statistics/#:~:text=As%20of%20August%202022%2C%20there,3.16%20million%20crypto%20wallets%20globally.