Tech Demonetization Is Happening Now(And That’s Actually a Good Thing)
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In his most recent Market Mogul article: Demonetizing Everything: Technology Is Driving Prices to Zero, Daniel Jeffery, the founder and CEO of Lantah, discusses the downward trend of technology pricing. As things develop, they become less expensive.
One example Jeffery gives is the cost of broadband. In 1998, 1 Mbps of Internet cost a whopping $1200 per month; today, 1000 Mbps [1 Gbps] on Google Fiber is only $70. That is a 99.99% price reduction over 20 years.
As you go down the board, you’ll begin to see this same trend holds true for other technologies:
Everytime a new technology gets released, it begins the journey toward zero.
Companies like Amazon, Walmart, and Costco shave down the cost of goods, eliminating the competition in the process. The way they make up for this apparent loss of profit is through peripheral offerings.
Amazon provides good examples of this type of “side dish” to go with “the entree,” retail items, on their website:
These side services, bring in needed cash to support the main event, which is Amazon’s online store.
Where the topic of demonetization come from
Demonetization in tech actually comes from a prevailing trend that has been going on for decades. One of the first mainstream people to talk about it at length, publically, is Peter Diamandis. Daniel Jeffery is quick to state his admiration for Diamandis’ forward-thinking approach to big problems.
One such problem is the escalating costs of healthcare. The remedy for the high cost of treatment is using a predictive approach supported by genomic research. So rather than traveling down the road of life, while predisposed health problems develop into hard-to-treat illnesses, people can have their genes analyzed and take preventative measures that ensure they don’t become ill in the first place.
With all of this talk about decreasing value of technology from a monetization perspective, that does NOT mean that money will not exchange hands and that jobs as we know them will disappear. This is one place Daniel Jeffery’s take diverges from the Diamandis theory.
What will continue to monetize?
A cell phone provides a clear example of how this process will continue. A person just about anywhere on the planet can purchase a smartphone and use it, as-long-as there is service and access to retail or resale outlets. Unless you are purchasing the latest model, prices are still about half-a-grand US (~$500 + sales tax).
That’s is the least expensive part of the equation.
From that point on, the smartphone user will pay for service, upgrades, apps and the like. They will pay for data, numbers of devices per plan, and any accessories required to protect their precious phone.
In other words, as phones become cheaper the cost of operating will continue to increase.
The way providers like Verizon and ATT get people into the game is lure of the inexpensive smartphone.
Lantah is demonetizing the cost of global payments. Our fees will not reach zero but we will outperform most if not all of the competition, and because adoption of Lantah's cryptocurrency drives value, the cost of operation will stay low in the Lantah business model.
That means that those transacting will keep more of their hard earned dollars in the pockets. It's a win/win situation.
If you’d like to know more about our payments model or invest in our Pre-ICO, feel free to email us at email@example.com.
Peter Diamandis video, Demonetizing Everything: A Post Capitalism World: