Raoul Pal @RaoulGMI Founder/CEO - Global Macro Investor and Real Vision Group, Business Cycle Economist, Investment Strategist, Economic Historian, Traveller and Rum Drinker.. Dec. 08, 2019 3 min read

Had a fascinating ad hoc chat with @profplum99 in London in the last couple of days at the Real Vision Black List event. I think both us us began to further realise the magnitude of change/opportunity that is coming from crypto and blockchain...

In exchanging thoughts, we both started realising how tokenisation and smart contracts are essentially exotic derivatives and could be priced, traded and arbitraged accordingly, and how that lays the ability to price these complex contracts and thus create a deeper market.

This entire space of crypto and blockchain yields more ultra interesting developments as everyone scrambles to get their heads around the concepts and the possibilities, applying their own unique talents to the development of ideas and applications. I ha\ve literally never seen a

brain drain of this magnitude before. What is unique about this space is that it is a super massive black hole that is drawing in mathematicians and cryptographers, programmers and developers, entrepreneurs, economists, traders, derivative experts, central banks, tech companies,

banks, financial services companies, giant law firms, accounting firms, utopians, libertarians, the worlds largest corporations, shipping companies, logistics companies and governments.

Each participant is working hard in building on the foundations of those that saw the

staggering possibilities of the Bitcoin white paper. Those true visionaries who jumped on an idea and took it from concept, to a new system of money...

Others then took that and began to develop in it a set of possible outcomes for the future of an entirely new financial system

from the architecture, to the applications. This included incredible developments into Etherium, Bitcoin Cash, tZero and all the other giant projects that accelerated the developments and broadened the idea out further away from just finance but into the realms of the concept of

ownership, exchange of value or even exchange of services.

These developments in turn have drawn in more super smart people, seeing other applications. We haven't even started to see magnitude of the scale of opportunity in tokenisation and smart contracts. Even the simple

construct of digital ownership opens up even more possible futures as the world moves towards digitally secure verifiable ownership and trust. Projects like Block One might well change our own use of the internet, allowing for the financialisation of an individuals presence on

the web - such as being paid micro payments for absorbing ads and generating attention. It even creates new income streams for individuals and cements the "influencers" value in social media. I also think the very concept of debt, equity, custody, ownership ad even corporations

as entities might well change.

The more time I spend in this new world, the bigger it gets. It is a sucking in all the talent and $$ into a giant super crowd-sourced project. I've literally never seen anything like it....Libra, Hashgraph, CB coins, etc all adding to the pace

Who knows where it goes and what possible futures end up as reality, all I know is that everything has changed and this is certainly as big in its potential for change as some of the major scientific and medical breakthroughs of the last 100 years.

Yes, that sounds "wanky" and it is not meant to even compare the value of a medical breakthrough versus the crypto space, but its a comment on disruption. Disruption itself is a over used word these days, but there is no other way to describe what is going on.

We also shouldn't use mantras or tag lines line "digital gold", "the internet of value" etc as they are all anchored in what we know. How to fully describe it? I have no idea and I'm happy with that as it is more intellectually honest.

All I know, is that big change is coming.

You can follow @RaoulGMI.


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