Fig. TEDx Talk: The future of an immersive Metaverse | Artur Sychov | TEDxUNYP
Metaverse in the context of physical and digital scarcity.
Automatization, by its nature, is a deflationary force, the unique force with delocalization of labor able of guaranteeing a profit margin sufficient to maintain profitable a businessin an environment with inflationary force in the game (monetary and fiscal policy). Mind share and brand awareness also preserve profitability but it goes beyond the scope of this article.
Inflation accentuates the competition, namely the rationalization in the uses of scarce resources (commodities). Thus the unavoidable consequence, for an over indebted western world, it’s to convert the labor force in an automated process (Software is eating the world – Marc Andreessen), namely the perfect optimization of the resources with a reduced environmental impact.
I see a natural trend that is resource rationalization. We follow that line since the beginning of the species, there is some volatility, but the millennial trend is here to stay. We are more and more on this planet, we must become more and more able to optimize our space, even building new dimensions (metaverse) or discovering new ones (space).
The last injection of liquidity by central banks accelerated this trend.
Side note: nat gas, water, healthcare, education, commodities and product/services are not localizable and difficult to automate. By the way there exists a solution for that, offered once again by technology, called the metaverse, to begin with digital socialization (social network), job digital environment (WFH), through digital education. It works if we implement global and portable digital certifications, as for example a Proof of Attendance (POAP)., These are all activities requiring less commodities and less energy (think about taking the car to go to work and the energy used to run he building where you work, or the physical mall where you do physical shopping, moreover think about the physical space occupied by this buildings, it’s a waste of scarce resources and space. Even more obvius the digitalization of paper as a mean to transfer and storing informations, the results is the preservation of forests, another scarce resource).
Entertainment has already undergone this process (i.e., Netflix), indeed it does not suffer from inflation. Once I created an intellectual property, I share it to the world by exploiting scale, scale defined by my network effect, here the value of the investment.
I personally participated in a series of lectures by Balaji Srinivasan in a digital environment with other people around the world, and it was a mind blowing experience.
People need to signal their social status through scarce items, support this behavior in a digital environment it’s necessary. The more extended the network, the more the item will have value. In a world where commodities are scarce and the environmental impact unsustainable, translating our social/hierarchical behavior in a digital dimension could be a good solution to maintain incentives and in the meantime protecting our physical dimension (planet).
The transaction to the metaverse has already started, metaverse being a series of intermediary destinations.
At the moment, I see an investing opportunity in owning these infrastructures, an intermediate crisis is highly probable, but past this moment our species could be free, freeing our time, and thanks to digital infrastructure, reducing the friction in our communication physical and emotional. That means more time for creative tasks, aka evolution, infinite attempts on infinite brains interconnected with infinite time without capital limitation, hyperbolic metaphor, etc.. Think about the number of geniuses in the underdeveloped country who can self-learn thanks to the internet. An example of decentralized real estate in the metaverse is my blog, it has a lot of visuals from India.
As usual, you gain freedom with intellectual work.
In a context like this, centralization is a threat.
Centralizing the metaverse, meant as a digital shared environment where every kind of data freely flows into a centralized entity (including data on our emotions states), would become a real threat for the survival of the species.
This means giving total power to an entity to manipulate and control our digital global platform, potentially this entity could give us tons of illusions, and lose our life forever in an infinite loop of illusions perfectly tailored on the basis of the data gathered in real time on our life and our emotions . In some ways it is already like it, consumers of illusions fed by the marketers, from the birth of Santa Claus. With the centralization of data, this threat could become exponential at the point to lose the reality, giving total power to the entity which feeds us realistic and abundant illusions.
“Morpheus: Everything begins with choice. Merovingian: No. … Choice is an illusion, created between those with power, and those without.” Matrix, directed by Lana Wachowski, Lilly Wachowski
“This Metaverse is going to be far more pervasive and powerful than anything else. If one central company gains control of this, they will become more powerful than any government and be a god on Earth.”
– Tim Sweeney, CEO of Epic Games
Gamers as precursors of the digital shared worlds are aware of this.
In my personal opinion decentralization of personal data and rendering the individual sovereign of himself is the only feasible way to follow, even if in some sense it goes against human nature, as explained by the founder of Signal in this article.
By following our millennial trend, I see an inflection point in the creation by Satoshi of a decentralized and antifragile platform as Bitcoin throught a consensus algorithm, the embryonic version of the backbone of our future digital reality, which preserves our identity and its portability and thus our freedom, this will challenge even the notion of state.
Orwell warns that we will be overcome by an externally imposed oppression. But in Huxley’s vision, no Big Brother is required to deprive people of their autonomy, maturity and history. As he saw it, people will come to love their oppression, to adore the technologies that undo their capacities to think.
Amusing Ourselves to Death: Public Discourse in the Age of Show Business, Neil Postman
…
Orwell feared that the truth would be concealed from us. Huxley feared the truth would be drowned in a sea of irrelevance.
Decentralization is the only way to pursue the truth and creativity is the ultimate scarce resource and engine of our evolution as a species. There is no innovation without creativity and there is no creativity without truth.
“The meaning of life is something we are using creativity to discover, to build. We can’t find the meaning of life in the world ‘out there’, nor just by pure thought, or by reference to an authority.”
David Deutsch
Moreover there is no shared reality without digital scarcity/uniqueness and the value will be conferred by the extension of the network.
Investment ideas:
- scarce resources bit and atoms
- decentralization
- network effect platforms
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