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RE: A New Wave of Pioneers: Mining the Unknown
Maybe my question is a reflection of my poor understanding, but what is going to prevent capital from pooling at the top for crypto-currencies in the same way that you described during the Gold Rush? Is it something intrinsic about the technology which will allow for a more equitable distribution of capital in perpetuity?
This is an excellent question! While inherently transparency may seemingly be the answer that many run to, it is NOT enough to prevent exactly the scenario you just stated. In fact, you are seeing a very similar thing with Bitcoin mining, and actual holders. If you think the 1% is bad, right now Bitcoin is held by the .001% or something.
There has to be more awareness by people investing their capital to not just rush towards pooling it in the same place. The more people saw investment opportunities that lined up with their personal interests, the more market investments would actually be diversified based on market demand. We are moving towards people putting their money into things they want to see.
You already see this model in the video game industry with pre-purchases for games. Even in films, pre-sale tickets for opening weekends sell out for high demand movies, essentially being "pre-sales" for a product with people anticipating that their "product" won't be received instantly, but they want it so much they do not care on the wait time.
So, I don't see any "panacea" solution, however as development of products becomes more accessible to the crowds, I do see the markets naturally aligning with demand, and in the process, it will be much more difficult for a 1% to form as diversity on its own is a good preventative measure for avoiding monopolies.