Why Blockchains Will Eat the World

When legendary tech investor, Marc Andreessen, penned his famous ‘Why Software Is Eating the World’ essay six years ago, the world was sceptical.

It sounded like Andreessen was late to the party.

After all, the future was already here.

Don’t forget in 2011.

The internet was pervasive, Amazon was a 17-year old company, iPhones were around, Facebook had 845 million users and Netflix was streaming 2 billion hours of content each quarter.

Most people would have said we were at the pinnacle of technology. The internet era was here. Sure, there would be development, but the revolution was here already.

But Andreesen turned out to be right.

As he put it:

‘Six decades into the computer revolution, four decades since the invention of the microprocessor, and two decades into the rise of the modern Internet, all of the technology required to transform industries through software finally works and can be widely delivered at global scale.’

In other words, the last 60 years were just the warmup act.

And now we will see the real technology revolution.

The past five years have proven the wisdom of Andreesens thoughts.

And I think the next five years will be even more exciting. I touched upon it at the end of yesterday’s piece.

I stated that cryptocurrencies were only one important part of a whole new revolution that’s fast approaching.

And when I say fast, I mean in the next few weeks!

A world beyond bitcoin. One that could be immensely more profitable.

Just think about that claim for a second.

Seven years ago a bitcoin was worth a quarter of a cent. Today it trades around $5,500.

What on earth could be more profitable than that?

Well, you’ll find out next Tuesday. That’s when I release my full research on what I’m convinced could be the most explosive investment boom you’ll experience in your lifetime. And on several little-know listed stocks I believe will be at the forefront of that boom in 2018.

Before then, though, let’s cover a bit of background… 

Since 2011, the world has already changed significantly.

The internet is not simply an ecommerce technology now.

It’s the source of completely new business models.

Take Uber.

In 2011, Uber was a two-year old company, not that well known outside of its San Fran base.

Now it’s a US$68 billion giant. It has customers and drivers all around the world.

But its effects have been deeper than just its business.

Today we have ‘Ubers for anything’.

A whole new business model of on-demand, flexible services. It’s changed the idea of how people work. And what ownership actually means.

Similarly, Airbnb existed in 2008. But it wasn’t until the last few years that it became the default accommodation choice for an entire generation.

Here’s the crucial point…

The ideas behind these two revolutionary products were only possible when the technological conditions were right.

Uber and Airbnb saw the world of the cloud, the iPhone, the App Store, AWS and Google Maps, and said to themselves, ‘it’s not about what can we do now, but better; it’s about what can we do now that was simply not possible until today’.

It’s that leap forward moment — supported by the rise of new platforms — that led to the dismantling of the transportation industry and the reimagining of hospitality.

Even a more established company like Netflix has gone on to change the entertainment business.

It’s not just that you can access films and TV series on demand. The actual core business model has changed. Netflix is now a production company as well as a distribution outlet.

That factor has been a key reason for its huge growth.

And better TV viewing for you and me, in my opinion!

The evolution of these new business models has been enabled by technological collisions.

Moments when two or more technologies converge together to create new and exciting possibilities.

We are now entering the era of the blockchain.

And it will change everything…

The 21st century railways

Just like the railways revolutionised the movement of people and goods, blockchain will revolutionise the movement of data.

Until now, any transfer of value required a middle man.

Someone to vouch for both the buyer and seller. To make sure the transaction was completed fairly.

Whether this was money, shares, land titles, registrations, vouchers, bonds, loans…pretty much anything of value.

The middle man stood there, and took their cut.

It was time consuming and costly for users. But it worked.

When bitcoin came along in 2009, people thought that it was just a new form of e-money. And it is. But like the recent Uber and Airbnb revolutions, it means more than that.

In fact, a comparison to Uber or Airbnb is pretty lame. Because the blockchain is a lot bigger and more interesting. And its effects will be a lot wider.

This one simple change — cutting out the middle man — opens up possibilities no one thought possible.

How it will all end up, no one can know for sure.

But how will it begin? I mean PROPERLY begin?

Of that, we can be much more certain.

After months of research, I’ve concluded that history will record that the Great Blockchain Era will begin on a single day next month. In November, 2017.

On that day, something pivotal is going to happen in the blockchain space.

And the smart money is already moving — in VAST volumes — in anticipation.

Like software, blockchain is about to eat the world.

And it all starts next month.

Position yourself in the right investments now, and the gains you’ve seen from bitcoin could look positively modest.

I’ll have more to say about this tomorrow.

Good investing,

Ryan Dinse,
Editor, Money Morning

Editor’s Note: Please put Tuesday 24 October in your diary. I’ll be releasing some key research that could be pivotal in allowing you to create massive wealth over the next decade. I think we are at the start of a crucial turning point in history. And it’s only weeks away…

Ryan Dinse is an Editor at Money Morning.

He has worked in finance and investing for the past two decades as a financial planner, senior credit analyst, equity trader and fintech entrepreneur.

With an academic background in economics, he believes that the key to making good investments is investing appropriately at each stage of the economic cycle.

Different market conditions provide different opportunities. Ryan combines fundamental, technical and economic analysis with the goal of making sure you are in the right investments at the right time.

Ryan's premium publications include:

Money Morning Australia