People were baffled by the internet in the 1980’s, even though it seemed unusable for another decade, back then. However, the community of tech geeks and science nerds loved it. They knew it meant big things for the future of us all.
Then, eventually everybody seemed to get on board, using it whether or not they liked it. Every living body we know today, has been affected and in a lot of ways been disrupted by this crazy lil’ invention.
This has been made possible by genius ideas that are based on the open-source platform. Meaning, that everybody can access the internet, everybody can review it and become a part of it, by launching something that is created by them. This led to the proliferation of this wildfire hit around the globe, everywhere.
Then personal computers, games that could be played on the internet, photo editors, Film and animation tech, Visual effects and Visual reality became the next big hotbeds of innovation and public love, one after the other. This changed things for more and more industries. Some of these industries, only exist today because of these technological advancements. The market for iPhone mobile covers would not have existed if Apple’s IOS wasn’t created. The market for Mario Brothers’ toys would not have existed if the game was not categorized as a classic nowadays.
Today, people are as excited about Bitcoin and other cryptos just like they were back in the day for the internet. Bitcoin and other currencies rely on blockchain tech, which itself is responsible for spreading an enormous powerhouse of possibilities and ideas. This mushroom growth of ideas has allowed us to be able to imagine a thing called digital scarcity.
A Brand New Concept
So in the traditional marketplace, we can have the same product as another, it will not be the same piece physically, it may seem similar, be of the same size, model, have the same attributes or be from the same manufacturing lot. This means if 100 scarves were made in a lot, of the same design then only 100 people or 100 times the design can be sold. This means with every item sold, there is one less available to be bought by another person. After all 100 are sold, no more could be bought of the same item.
This is true for all resources, all products, all items. In economics textbooks there is always the example of a cake with six slices. After each slice the cake left is lesser than before. The next person to eat will have less and after the last slice has been taken there will be no more. This means there is a scarcity of all items in the world.
Law of scarcity means an item is mutually exclusive. Scarcity means only a few or one can have it. Internet helps in cutting the scarcity bit by replication. For example, pirate bay copies a game and uploads, this means that even when the compact-disks of the game software has been run out of the market, people can still have it.
But, this also means no or lesser profits for the makers. Or profits for the person copying illegally and selling fake CD’s. This is unfair to the ones putting in the work. So, in some cases, scarcity is good.
It is good when it raises the value of an item by putting a limit on it. It makes things exclusive and therefore special. This raises their market value.
It is hard for digital goods to be scarce. People replicate, checks and balances are poor and slow, the networks are lazy sometimes among other reasons why piracy can not be curbed properly. Also because the internet is too big to be regulated, and it is not a self regulating body.
This is whereby the Blockchain technology becomes relevant. It is self regulating. It is self conscious.
Each blockchain system’s values are based on the user’s value system. And it helps in creating mutual exclusivity that prevents from people forging money, assets and items of high prestige such as your $100,000 virtual pet. How is that for a safe internet?