The President of El Salvador, Nayib Bukele, has agreed to what we have been discussing on here for years.
He basically said Web 3.0 is the future and every citizen in El Salvador must participate.
Of course, he didn't say it in these words. In fact, what he is proposing might not be viable. However, he is spot on with his thinking with regards to the direction things are going.
A lot of what we cover deals with the shift away from labor capital and what will replace it. My conclusion is the means of production, as captured by Web 3.0 networks, is distributed to the token holders.
For Bitcoin, coin ownership doesn't reflect the network since there is no staking and it is run by the miners. This is where Bukele decided to alter things.
El Salvador President Bukele: Bitcoin Node In Every Home
Anyone who follows cryptocurrency knows the name Nayib Bukele. He is a leading proponent of crypto, pushing his country to purchasing 1 Bitcoin per day. The country also made BTC legal tender in the country, along with the US dollar.
El Salvador also sold what was termed "Bitcoin Bonds". While those were not so well received, it was an innovative idea of raising money based upon utilizing the countries geo-thermal (volcano) energy to mine cryptocurrency.
Now he has come up with another idea:
Max Keiser spoke about President Nayib Bukele’s bold vision to introduce a Bitcoin node at every home thereby setting up global precedence in crypto adoption. The broader goal here is to promote economic decentralization and promote financial inclusion. Additionally, it also seeks to promote a decentralized nation-state model in the country.
To me, this is starting to get in the ballpark of where the mindset needs to be. There are benefits to this approach, according to the President:
It would also mean greater decentralization of citizens’ finances while reducing reliance on centralized points. Furthermore, it would improve accessibility, empowering more people to safely and effectively engage in the crypto economy.
Naturally, there are critics and it is questionable whether this is feasible or not. It is unclear what is meant by nodes. Are they referring to mining of Bitcoin or providing nodes for a payment network simliar to Lightning?
Either way, the basis for what he is proposing is aligned with what Web 3.0 is about.
Participation In Decentralized Systems That Have Growing Value
The way to achieve wealth is to think like this who know how to amass it.
To me, this starts with the shift from income to net worth. Income is not the measure of wealth, something that is crucial. Governments talk about tax revenues while driving their populations deeper in debt. When what comes in is exceeded by the outgoing, negative net worth is acehived.
El Salvador made the move to try and offset this by having an asset that could appreciate over time. Bitcoin as a store of value has worked out well for the country so far.
Web 3.0 is a path to enable people to increase their net worth. By owning stake in something that can appreciate, people are in a much better position as compared to simply receiving an income.
Cash flow is always important, whether individual or government. WIth Web3, there are opportunities to generate staking income, cash flow that is derivced from assets that can further appreciate.
There are also opportunities in infrastructure, depending upon what the system is. Obviouisly, Bitcoin mining can be very profitable but does require a major investment in hardware. Many other networks are not as costly.
I agree with the President's sentiment here. Perhaps his idea will work out. However, I would say that it is imperative that the people of El Salvador (actually anyone in the world) get involved in Web3 networks and applications. Here is where things can change in a short period of time.
Long ago, I asked if you could achieve financial freedom (whatever that meant to you) in 5 years, what would you do? Crypto offers that path to those who take it. Over most 5 year periods, crypto have runs that appreciate the holdings in one's wallet significantly.
We have a bit under 5 years left in the decade. What if you could achieve financial freedom by 2030 (at the latest)?
Does that seem unreasonable? Considering what is happening with technology and Web 3.0, it isn't. There are going to be many networks and applications that skyrocket in value. We probably have 2 bull runs before the end of the decade. This will see some tokens or coins do a 10x-1000x.
The big question is who is participating?