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Stablecoins: The Next Gold Rush? – Article by Adam Alonzi

Stablecoins: The Next Gold Rush? – Article by Adam Alonzi

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Adam Alonzi


What money should be has been explored by more than one economist. What it is, strange as it may sound, is also up for debate. Yet amidst these disputes, practical and abstract, there is consensus.

At this time the entire crypto market is valued between 380 and 560 billion USD. The value of all the world’s stocks is around 70 trillion USD. The daily volume of the Forex is 5.1 trillion USD. Despite the excitement it periodically sparks in mass media and high finance circles, crypto is barely a drop in the bucket.

As I stated in my response to Robert Shiller’s critique of Bitcoin, tokenization is a means of dividing an asset. Tokenization, easily dividing an asset among stakeholders, is a strength of blockchain technology. Tokens can represent abstract entities issued on the blockchain, but they can also be tethered to a piece of real estate, a work of art, a trademark, or a freighter of Chilean copper.

A Stablecoin is related to this concept. A Stablecoin (SC) is a cryptocurrency that is pegged to fiat currency or a commodity in a fixed ratio. Stablecoins are being developed by massive corporations like JPMorgan Chase and are being looked into by governments around the world. The backing of mature institutions, whatever your opinion may be of them, can give crypto credibility and capital to move forward.

At this time cryptocurrencies are for the most part speculative toys or safe havens for those expecting for the fiat system to implode. In any case, common use remains elusive. While milk and eggs can be bought with crypto, it is not a normal occurrence. The major barrier to this is volatility.

Stability could come after a stampede into crypto by a reasonable percentage of the world’s population. Some authors have claimed an economic catastrophe could precipitate an exodus from fiat, but this seems to spring from wishful thinking – the same sort gold bugs have been indulging in for the last half century.

This is not meant as disparagement of gold or its advocates. Gold is a fine investment, but the issue at hand here is common use, something gold is not likely to readily lend itself to ever again – at least not in its most familiar forms. Several Stablecoins are currently backed by gold. By doing so, they combine the benefits of crypto with the timeless tangibility of precious metals.

Stablecoins are digital representatives of an item that may not be readily divisible and therefore inconvenient or impossible to use for daily transactions. Very few shoppers would want to overnight a tiny gold nugget to an eBay seller. Those hoping for a speedy ingress of users should consider that an equally rapid egress could follow.

Slow and steady wins the race?

While more users and more merchants could curb price swings, how and when this will happen remains an open question. If stability is not established, at least for long enough to secure investor confidence, conventional cryptocurrencies will never outgrow their reputations as dangerous playthings.

Some members of the crypto community are philosophically opposed to Stablecoins because they betray the vision of total decentralization. High ideals can clash with reality. Decentralization is not a strong selling point for most folks. It is not easy to explain beyond “no one controls it”, which is as likely to make them feel uneasy as it is to instill confidence.

It’s not as though Stablecoins are taking anything from the crypto community. Aside from bringing in new converts, they also add diversity to the cryptosphere. An orchard of identical apple trees is doomed when the right pest arrives. Monocultures are inherently weak. A diverse financial ecosystem is a resilient one. The proliferation of new blockchain projects, as overwhelming as it may be, is good for all of us.

There are a plethora of cryptocurrencies aiming to be “just” mediums of exchange. Monero (XMR), Ripple (XRP), and Dash (DASH), for all their differences, are innovating and are finding their niches. Anonymity, speed, and low transaction fees are attractive, but is it enough to convince Uncle Fred to begin buying his sweaters with them?

Although some have nuanced algorithms managing their supply, Stablecoins make crypto more understandable to the average person. Finance and technology are boogeymen to most consumers; there is no need to make either more arcane or frightening than necessary.

Adolescence is difficult because we feel pressured, from within or without, to choose a path. We are under the impression that our choices are final and our one-dimensional trajectories are set. Whether Stablecoins are a passing phase or a critical bridge to the materialization of Satoshi Nakamoto’s original vision, they seem poised to become permanent fixtures in high finance and daily life.

Adam Alonzi is a U.S. Transhumanist Party member, writer, biotechnologist, documentary maker, futurist, inventor, programmer, and author of the novels A Plank in Reason and Praying for Death: A Zombie Apocalypse. He is an analyst for the Millennium Project, the Head Media Director for BioViva Sciences, and Editor-in-Chief of Radical Science News. Listen to his podcasts here. Read his blog here.

The Need for Unity and Stability in Transhumanism – Article by Arin Vahanian

The Need for Unity and Stability in Transhumanism – Article by Arin Vahanian

 

Arin Vahanian


Although Transhumanism is heavily inspired by (and also inspires) advancements in science and technology, I believe the movement could also benefit from implementing cultural aspects; in particular, those from China.

This became very clear to me not just after living in China, but also after reading the works of Dr. Martin Jacques, British professor and journalist, who is, in my mind, one of the most knowledgeable Westerners when it comes to Chinese culture and history.

Specifically, in his writings and public appearances, Dr. Jacques has elucidated various aspects of Chinese culture, two of which I think are important for Transhumanism to consider: unity and stability. I shall cover each one briefly here, and explain how our movement would benefit.

Although the Transhumanist movement is rather decentralized, and I believe in keeping it this way, we most definitely need unity, especially in regard to our values and objectives. To this end, the U.S. Transhumanist Party has published its values on its Web site, which include but are not limited to: eradicating disease; the cultivation of science, technology, and reason; support of all emerging technologies that improve the human condition; life extension; reversing aging; tolerance and inclusivity of all individuals, and so forth. I believe every Transhumanist would support these values, all of which are noble, and all of which would most certainly contribute to having a better, more prosperous, and safer world.

Any organization, family, company, group, team, or political party, for that matter, needs unity in order to stay together and fulfill its goals and aspirations. Conversely, lack of unity may lead to chaos, discordance, and dysfunction. According to Dr. Jacques, the primary political goal for the Chinese is unity. Indeed, there would have been no way for Mandarin to become the national language, nor any way for the dizzying progress (whether it is technological, societal, or economic) we have seen in the country to have occurred, without unity. Please note that I am not advocating for a change in the political process anywhere else, nor am I suggesting that other countries adopt the same political or economic system as China. I am simply stating that being unified in our goals and values is incredibly important if we wish to fulfill these goals and proliferate our values.

Just as the Chinese look at themselves as Chinese, so we must look at ourselves as Transhumanists. However, there is one major difference; while not everyone can be Chinese, anyone can be Transhumanist. Our movement is inclusive to all individuals, regardless of race, gender, class, religion, and sexual preference. Therefore, I believe that we can be unified while also being open, tolerant, and accepting of all humans.

This leads me to my next point, which is stability. There is no question that in China, as well as other Asian countries, stability is paramount. After all, an unstable society cannot work together to fulfill its objectives and protect its values. Fortunately, we have stability in the Transhumanist movement in the areas of political leadership (Zoltan Istvan, Gennady Stolyarov II), life extension (Max More, Keith Comito), aging (Aubrey de Grey), and more. What’s fascinating is that the movement is so diverse and broad, and the areas for improvement on Earth so plentiful, that we have had individuals naturally dedicate themselves to causes they deemed worthy. This has contributed to stability in the sense that people are working on what they are passionate about, and these same people have, as a result, provided stable leadership in these areas. We must ensure that this stability continues, and that we help advance the causes we believe in by promoting them on social media and mass media. We must also support those who are bravely and selflessly dedicating their lives to helping humanity move forward. All of these actions will contribute to further stabilizing the movement and what it stands for.

Additionally, we must maintain stability in our relationships with each other, as well as the messages that we communicate to others. No matter how small or large a role we each take on, our mandate as Transhumanists is to push for reforms that will improve the human condition for as many people as possible, with as much beneficial impact as possible. In doing so, we must communicate our message that science, technology, and rational discourse should be used for efforts such as curing disease, increasing human longevity, alleviating poverty, and battling climate change.

While we are completely opposed to the proliferation of nuclear weapons, we are completely open to tolerance and inclusivity of individuals, and offer assistance to those who may have been shunned by the system, either due to disability or the desire to challenge society so that we may be better humans. We are an organization that values and promotes pacifism, and by doing so, we are creating a more stable society, and world.

So my call to action today is this. Rather than argue whether a certain economic system is better than another for Transhumanism, we should focus on our values and goals, thereby fulfilling our mission, and be supportive of whichever economic system best helps get that done, whichever country we happen to live in. Different economic systems work in different countries, and we should not be dogmatic, but rather, flexible and solution-oriented.

Additionally, rather than debate one another, we must instead discuss and cooperate, again, with the intent of pushing forward our goals. Debating takes valuable time and resources away from achieving our goals, and the time that is spent on needless arguments could be spent on finding solutions to challenges that threaten humanity. While it is perfectly acceptable and in fact, desirable, to have differences of opinion, we should use these differences to collaborate and help develop solutions to the problems we humans face. We are finally getting more traction in social media, mass media, and in various communities and countries all over the world, and so we should take advantage of these trends to further spread our messages of peace, increased health and longevity, and technological innovation that will benefit humanity.

One of the challenges the Transhumanism movement currently faces is an inaccurate and unfair perception that it is a niche movement, unable to appeal to most people, and the product of wealthy technophiles in Silicon Valley. However, nothing could be further from the truth. Among our ranks are people of all nationalities, social statuses, races, genders, and religions, and we are the only movement that supports morphological freedom. Further, we are dedicated to goals such as alleviating poverty, curing disease, eliminating nuclear weapons, spreading peace, and using science and technology to make life better for all humans, not just a privileged few. Surely these are values that most, if not all humans, could stand behind. Based on this, it is quite clear that Transhumanism is most certainly not a niche movement, and that it is one of the most progressive and inclusive movements the world has ever seen.

Therefore, the best way we can promote our messages and fulfill our objectives is by being unified in our purpose, mission, and values, and be stable in our leadership, approach, and relationships. Let’s not do our detractors’ work for them by being splintered and divided, nor become detractors ourselves. Let us coalesce for the betterment of humanity, and turn our detractors into friends, supporters, and partners. Indeed, the future of the world, and that of humanity, depends on it.

Arin Vahanian is Director of Marketing for the U.S. Transhumanist Party.