Why is it important to “decentralize” water or power? If you’re a macroeconomics connoisseur, then you might understand the term petro-dollar. There’s a reason why the US lights up the middle east whenever they threaten to trade oil in other currencies.
What do oil and currency have to do with decentralized water and power?
Since currencies are now fiat, not backed directly by any precious resource, it means that their value is based on trust and the narrative that accompanies the currency. For instance if I say “peso,” you likely think money and cheap vacations in Latin America. If I say “US Dollar” it’s usually associated with money and value, and maybe world power.
Currencies have narratives just like other products and services in the market and they get valued similarly also. So the term petro-dollar means that most of the worlds oil is traded in US Dollars only, therefore other countries have had to trade their own currencies for USD to buy oil, which gives USD more demand, which makes it more valuable. Oh, and oil is in high demand mostly because of this, not because we drive our cars too much.
Whew, there’s a lot packed into this and it’s not easy to understand. We’re taught that money (or currency) IS value, not too distinct things. That’s a huge hurdle to get over initially, let alone try and understand what’s happening in the world.
So maybe we can all agree that if we had our own oil well, we would be happy, at least financially. What I’m suggesting though is that things change.
Other countries are fed up with the US holding control (a monopoly?) of the world reserve currency and those countries are no longer willing to put up with it. We are seeing things like Brexit and China and Russia teaming up to trade oil in their own currency so they don’t have to answer to the US. We see real estate at a premium and power companies investing heavily in cyber and physical security. What’s it all for?
These entities realize that fiat money is here to stay and that means their true assets need to be diversified to protect the downside. They see that the internet, 3D printing, virtual reality, drones, blockchains, real estate, electric power, and many other things have value too; not just oil. It’s a speculative game at the highest levels.
I can recall pausing at the end of the film The Big Short, a movie about traders discovering a flaw in the real estate market back in 2007 and capitalizing on it handsomely; the text was summarizing what all those traders are up to now and one of them is only investing in water.
My speculative assertion is to bet on man AND machine; water AND power. Further I’d like to put the trust in you, the individual, not some group of large entities (or Wall Street traders) to decide what’s best for us.
Decentralized water and power is giving the value back to the people. Because no, value does not equal money. Value is a human trait, and what’s more human than you?