The fantastic space age is not far away; at this time, hoarding assets like Bitcoin can give you a head start?

Author: Vanguard 0

In the vast universe, the stars shine brightly, and the mysteries and unknowns of space attract humanity to explore continuously. With the continuous advancement of technology, the curtain of the space age is slowly being drawn back. In the book "The Singularity Is Near," Ray Kurzweil reveals a shocking fact: the space age is not far away, and humanity's plans for space habitation are quietly approaching realization. In this new era, we need to rethink many issues, one of which is the issue of currency.

Ray Kurzweil, author of "The Singularity Is Near"
On Earth, traditional forms of currency can no longer meet the growing transaction demands, especially in the context of globalization and digitization. Cryptocurrency, as a new type of digital currency, is gradually gaining attention and acceptance. With its unique advantages, it is changing the way people transact and bringing new vitality to the global economy.

However, cryptocurrency is not just a new driving force for the Earth's economy. As we look forward to the space age, what role will cryptocurrency play? Does it have the potential to become the primary form of currency in the space age, driving the development of the space economy? This article will explore this question from multiple dimensions, analyzing the possible roles and values of cryptocurrency in the space age.

Exponential growth will become the underlying model of human development; the space age is not far from us

Human thinking tends to favor linear growth rather than exponential growth. However, the continuous validation of Moore's Law reveals that technology always grows exponentially. Before the final arrival, people always feel it is out of reach. This power of growth, although it may seem insignificant in the early stages, has an immeasurable impact over time.

The "Rice Field Chessboard" is an ancient Indian story that vividly reveals the power of exponential growth. A king wanted to reward his prime minister and promised to give him any reward he desired. The farmer requested the king to place 1 grain of rice on the first square of a 64-square chessboard, 2 grains on the second square, 4 grains on the third square, and so on, with each square containing double the grains of the previous square. The king initially thought this was a small request, but in reality, by the time he reached the last square of the chessboard, the number of grains required was more than all the grains on Earth.

This story, with its profound implications, tells us not to underestimate the power of exponential growth. We have reason to believe that future space technology will evolve rapidly. Kurzweil, the author of "The Singularity Is Near," believes that by 2045, humanity will have the ability to establish permanent habitats in space.

A depiction of humans traveling in space

The arrival of the space age not only signifies a significant leap for human civilization but also means we will face many unprecedented challenges. In this new era, the traditional currency system clearly cannot meet the transaction and economic needs of a space society. People evidently need a new currency, one that can adapt to the space age.

Unique advantages combined with changes in the external environment lead to the rapid global adoption of crypto assets

Globally, the speed of cryptocurrency adoption is accelerating in an astonishing manner. More and more investment institutions are beginning to lay out in cryptocurrency, including traditional hedge funds, private equity funds, and publicly listed companies. In 2022, American hedge fund giant Bridgewater announced a $1 billion investment in the Bitcoin market, marking further recognition of cryptocurrency by the traditional financial sector. Moreover, American publicly listed companies like Tesla and Microsoft have also begun accepting Bitcoin as a payment method, further promoting the acceptance of cryptocurrency in mainstream markets.

The application scenarios for businesses are continually expanding, with more companies adopting cryptocurrency as a payment method or settlement tool. Amazon, the world's largest e-commerce platform, announced that it will begin accepting cryptocurrency payments in the coming years, which undoubtedly provides a significant boost to the entire cryptocurrency market. At the same time, American airline Delta Air Lines also announced it would accept Bitcoin as a payment method for tickets, further expanding the coverage of cryptocurrency in practical application scenarios.

For the general public, awareness of cryptocurrency is also continuously increasing. According to a survey in 2022, over 10% of people worldwide reported that they have invested in or hold cryptocurrency. According to Statista, the number of cryptocurrency users globally exceeded 220 million in 2022, more than three times that of 2020. This rapid growth in numbers reflects the swift adoption of cryptocurrency worldwide.

In the United States, this trend is equally evident. According to Bank of America, in the first quarter of 2023, over 10% of American adults reported that they have invested in or hold cryptocurrency, more than double that of the first quarter of 2022. This data further confirms that cryptocurrency is becoming a new form of currency accepted and used by an increasing number of people.

In an increasingly globalized world, non-state currencies like Bitcoin provide us with a unified value exchange standard that transcends national borders. It is not affected by the monetary policies of any specific country, making international transactions simpler and faster, avoiding exchange rate fluctuations and additional transaction fees.

Traditional financial transactions typically require going through banks or other financial institutions, necessitating multiple reviews and confirmations, which slows down transaction speeds. In contrast, cryptocurrency transactions do not require any intermediaries, and transaction information is directly verified on the blockchain. With the development of blockchain technology, transaction speeds can be significantly increased, and transaction costs can be further reduced as technology advances.

According to the Bank for International Settlements (BIS), the average processing time for global cross-border payments in 2022 was 3 days, with an average cost of $25. On the blockchain, transactions can be completed in seconds to minutes, greatly improving transaction efficiency.

Although considerations of decentralization and security are necessary, the current performance and costs of blockchain still cannot match traditional payment systems. Currently, Ethereum aims to achieve 175 TPS through EIP-4844, with a maximum of 350; in terms of costs, some blockchains can achieve transaction fees as low as $0.001. With the development of underlying blockchain technology, it is expected that blockchain can significantly increase transaction speeds while maintaining decentralization and security, and transaction fees may also be reduced to zero.

More and more traditional payment institutions are beginning to adopt blockchain technology. Cross-border payment giant Visa has decided to collaborate with Circle to launch a stablecoin payment service based on USDC. This service utilizes blockchain technology to enable instant, low-cost cross-border payments.

The head of the Visa team stated that despite various flaws and issues, blockchain technology is similar to the early internet, evolving from obscurity to ubiquity. He believes that blockchain technology—regarding its efficiency, related costs, and ease of use—may mature within the next decade.

Gold is precious because of its scarcity. However, with the development of space technology, gold is likely to become no longer scarce. According to videos captured by NASA's "Curiosity" rover, there is a high possibility of abundant gold on the surface of Mars. In the video, a grid-like and irregular golden substance can be clearly seen on the Martian surface, looking very much like gold embedded in the crevices of Martian rocks. Recent studies suggest that gold is formed during the explosive death of massive stars; initially, gold existed in the form of dust and gas, and during the formation of Earth, gold, being denser, sank into the core. When geological activity became active, it was then brought to the surface through volcanic eruptions.

In contrast, Bitcoin has an absolute scarcity characteristic, which is why it has the potential to become an effective currency of the future. The supply of Bitcoin was capped at 21 million coins at its inception. Once Bitcoin miners mine the last Bitcoin around 2140, no new coins will be created. This stands in stark contrast to traditional monetary policies, where the Federal Reserve can create $100 billion in just a week with the click of a button.

The potential of crypto assets in the space age is limitless, but they also face multiple challenges

In the dawn of the space age, we face opportunities and challenges in redefining currency. In the context of space habitation, the characteristics of cryptocurrency become particularly important; compared to physical currency and rare metals, it is easy to carry, requires no physical storage medium, and greatly saves space and energy. This is especially crucial in the space environment, where every inch of space and every bit of energy is precious.

On Earth, we have already seen the limitations of the traditional financial system. Governments and central banks manipulate the economy through monetary policy, which can lead to excess money supply and asset bubbles. However, non-state currencies like Bitcoin are not subject to such manipulation; their supply limits are fixed, and all transactions are publicly recorded on the blockchain, ensuring transparency and authenticity.

Recognizing these advantages, some cutting-edge space companies have begun to adopt cryptocurrency. On August 3, 2023, American aerospace company SpaceX announced that it would accept cryptocurrencies such as Bitcoin, Ethereum, and Dogecoin for launch services. This is not only to meet customer demand but also to make its launch services more convenient and flexible.

Cryptosat, a crypto satellite company, uses SpaceX to launch its second crypto satellite, Crypto2

These developments indicate that the application of cryptocurrency in the space field is continually expanding. With the ongoing development of technology and the improvement of regulatory policies, we have reason to believe that cryptocurrency will play an increasingly important role in space. In the space age, we indeed need a better currency, one that can adapt to the uniqueness of the space environment while meeting the financial transaction needs of globalization and digitization. Cryptocurrency is the ideal choice to meet these needs.

In the process of exploration and analysis, we see the infinite possibilities and potential of cryptocurrency in the future space age. It transcends the limitations of traditional currency, demonstrating the strength to become a more advanced financial system and the central hub of future human civilization. Its scarcity, decentralization, transaction transparency, and portability make it the ideal currency for the space age.

Of course, we also see some problems and challenges currently facing cryptocurrency, such as transaction speed and costs. However, compared to these issues, the potential and future value of cryptocurrency are undoubtedly more deserving of our energy and attention. We should not overlook the long-term development and significant implications of cryptocurrency due to some current difficulties and problems.

It is precisely because cryptocurrency has such enormous potential that we should delve into and build the world of cryptographic technology, continuously optimizing and improving it to better serve future human society. Let us work together to promote the development of cryptocurrency, as it is indeed the ideal choice for the upcoming space age.