Atomization of values regardless if decentralized or centralized is what will sustain the bitcoin's growth.

I have been debating the sustainability of bitcoin and the rest of the cryptos absent continuous net inflow and conversion of the fiat currencies. In an earlier post, I did contend that either bitcoin continues to moon indefinitely or it will go to zero, i.e. it needs to outpace inflation in the least.

I am trying to see what corollaries I can draw. One is data. Before we had digital databases, only very limited types of data were kept, tracked, and sliced and diced. One could argue that it was the ability to endlessly parse data, esp. that of the individuals that lead to the greatest wealth creation via the social network generation of ~2000 to ~2020.

It is what will happen to values. The decentralized ledger technologies mated to the continuous atomization of user tracking and “influencing” will set off the next economic boom in tech.

That we are going to attach values to smaller and smaller “units” of activities. We see this in part the car insurance by miles, and health insurance by lifestyle (I think). So, I am saying — in principle that VELOCITY of economic units can be increased SOLEY by breaking down the grosser things into smaller things. And that as this — I think — in part happened as we were able to track everything and make data out of it… in other words, mainframe days we could only parse data to “days” and “city”, now we can to the second and which commercial I click on most. So, now we can attach money units (atomically) directly to and at the point of these activities (instead of waiting days) and punish/reward the behavior… and now this increases the velocity more. What I am saying is that in the mainframe, we could only slice the pie to x units and the monetary reaction to such took days or months, now we can slice to x² (at least) and attach monetary values at the point of the event. Both the velocity AND the segmenting increases the size of the pie!

In other words:

That we are going to attach values to smaller and smaller “units” of activities. We see this in part — the car insurance by miles, health insurance by lifestyle. So, I am saying — in principle that VELOCITY of economic units can be increased SOLEY by breaking down the grosser things into smaller things. And that as this — I think — in part happened as we were able to track everything and make data out of it… in other words, mainframe days we could only parse data to “days” and “city”, now we can to the second and which commercial I click on most. So, now we can attach money units (atomically) directly to and at the point of these activities (instead of waiting days) and punish/reward the behavior… and now this increases the velocity more. What I am saying is that in the mainframe era, we could only slice the pie to x units and the monetary reaction to such took days or months, now we can slice to x² (at least) and attach monetary values at the point of the event.

Both the velocity AND the segmenting increase the pie!?
For example, I can pay you $1000 for a work. But, if I break that $1000 down to 1000 pieces and optionally pay at the time of each associated work, that alone increases the economic value and activity…?

I am saying that a greater deal of recent economic activity was created as a result of being able to parse my movement from home to work to drive back home into 1000 micro units of data. That, this micro-atomization ITSELF creates value.

I’d say it’s more like the minimum transaction size produces economic friction. I can’t hire someone for a $0.25 job, so that job doesn’t get done. Or you have websites forced to rely on advertising instead of being able to charge users 1 cent per visit. So if you can reduce the minimum size of an efficient transaction, you create more economic activity in the gaps where people just don’t perform any transactions right now.

That movement from A to B, if broken down into 10 steps vs.1 creates the ABILITY to know more and generate more economic activity. This is what happened from our move from the mainframe era to them knowing if I am on my toilet.

Thus, now when we attach payments to this and do it trustlessly, we are again taking the SAME gross A to B movement and now doing 10².

Result:

• in the 1960’s, my drive from home to work = single $1 unit of economic value;
• in the 2000 to 2020, that same $1 unit is divided into ten 10 cent units of value and results in greater economic activity;
• now add the DLT, and its one hundred units of 1 cent units of value and now the activity is 100x that of the mainframe days…