Bitcoin Blockchain technology has progressed from a little known nerd interest, to media darling to Mt. Gox/Silk Road infamy, to the realization that modern finance and the burgeoning Internet of Things as well as large swaths of everyday personal and corporate life will likely be based on it for the foreseeable future. The last year has witnessed a sea change in understanding of this new paradigm.
Pathogenic Finance is the free research report that illustrates the how’s and why’s of how this new technology will takeover legacy finance, and more importantly – which players have a leg up in the intellectual capital and strategic space. Below are a few key excerpts from this groundbreaking study which currently has no peer.
The first couple of pages of the report are dedicated to illustrating how much capital (both financial and strategic) are going in the wrong direction in this paradigm shift. This wouldn’t be the first time such a massive malinvestment (or lack of investment) has taken place to the detriment of those involved.
Taking an autonomous, zero trust technology such as Bitcoin’s public blockchain and neutering it in order to retrofit the tech into bank’s back-end legacy systems is akin to trying to cram a Ferrari engine into a horseshoe and expecting the horse to move faster.
Of course, the need to improve the back-end of the legacy financial system certainly does exist. Financial services are one of the most – if not the most – expensive consumer and business expenses, even when adjusted for inflation.
The dilemma is, the introduction of peer-to-peer, autonomous finance concerns the current gatekeepers who reap the majority of the profits. We’ve seen this story before.
As excerpted from the page pictured above:
The Big Money Is Not Only Not Always Right – It Is Often Wrong!
Bitcoin tech was designed to create a fully autonomous system where the need to trust a middleman, third party or central authority is eliminated. As awareness of autonomy increases, and the sophistication of the technology progresses, autonomous computing, networking, and finance will become the de facto standard. This is not conjecture. Think about the last time you relied on a telephone switchboard operator (heteronomous middlemen, er … persons) to make a long distance phone call? This function has been replaced by cloud-based software and electronic cell networks. This ability is not nearly as new or novel as many believe it is. The rent seekers, luddites, and middlemen of the time went through material efforts to frustrate its proliferation.
According to internal memos,American Telephone & Telegraph discussed developing a wireless phone in 1915, but were afraid that deployment of the technology could undermine its monopoly on wired service in the U.S. Wu, Tim (2008-06-10).“iSurrender: Apple’s new iPhone augurs the inevitable return of the Bell telephone monopoly.”. Slate.
In 1947 Bell Labs was the first to propose a cellular radio telephone network. The primary innovation was the development of a network of small overlapping cell sites supported by a call switching infrastructure that tracks users as they move through a network and passes their calls from one site to another without dropping the connection. In 1956 theMTAsystem was launched in Sweden. The early efforts to develop mobile telephony faced two significant challenges: allowing a great number of callers to use the comparatively few available frequencies simultaneously and allowing users to seamlessly move from one area to another without having their calls dropped. Both problems were solved by Bell Labs employee Amos Joel who, in 1970 applied for a patent for a mobile communications system (patent No. 3,663,762, issued May 16, 1972].However, a business consulting firm calculated the entire U.S. market for mobile telephones at 100,000 units and the entire worldwide market at no more than 200,000 units based on the ready availability of pay telephones and the high cost of constructing cell towers. As a consequence, Bell Labs concluded that the invention was “of little or no consequence,” leading it not to attempt to commercialize the invention.
By year end 2015, the worldwide population is expected to reach 7.4 billion while the number of cellphone subscriptions is forecast to be slightly over 7.5 billion , marking the first time cellphone subscriptions will exceed the worldwide population. [ICI Insights] This makes the mobile phone the most widely spread technology and the most common electronic device in the world.
As was the case with telecommunications, was the case with media and the internet. Those early adopters old enough to remember the early 90’s may recall the big US newspapers posting photographs of their paper on their websites instead of utilizing the far superior text capabilities of hypertext markup language (HTML). In 1998, a company called Catalog City (now Shop.com) imagined e-commerce as scanning paper catalogs and providing images of the pages online. During a similar (and thankfully short-lived) period, several companies – Yahoo among them – thought the best way to organize information on the internet was into hierarchical directories of hand-picked websites.
Fast forward a decade later and you find record labels and video media producers still pushing physical disks and law suits (to tune of several hundred million dollars) instead of embracing the technology of peer to peer file sharing and centrally distributed, electronic music files. The result was the absolute devastation of that industry’s revenue streams – to the tune of 75% eliminated and still counting…
These participants could not conceive the value to be captured by modern approaches. Things are no different this time around.
The report also delves into the transformation of modern capital markets from centralized and heteronomous, to decentralized to fully distributed and autonomous.
The amount of money we’re discussing is almost unbelievably large – measured in the quadrillions…
Which is why there’s a mad dash to claim the “First to File” patent application trophy by the likes of Goldman Sachs, Bank of America, JP Morgan, IBM, NYSE and Veritaseum. One may be surprised who the front runners in that space are.
The most aggressive filer of patents and IP protection is Bank of America, although they are far from first and like Goldman Sachs, may be haunted by prior art issues…
Regardless, the sums and markets at stakes are quite large… potentially unprecedented. Patent applications filed by Goldman Sachs, Bank of America and Veritaseum can potentially be measured in hundreds of billions on a discounted cash flow basis.
Click here to download the Pathogenic Finance report now, for free.
The market research report put together by team Veritaseum illustrating the untapped potential of autonomous finance, distributed computing and antifragile systems. Of even more interest to many is a patent application landscape and overview, complete with hypothetical DCF valuations and prior art research for entities such as Bank of America, Goldman Sachs and the NYSE/ARCA