Thursday, September 26, 2019

CRYPTOCURRENCY, MINING, BLOCKCHAIN, DIGITAL SHARING ECONOMY FOR DUMMIES?

Many people are asking me to make my explanation simpler about cryptocurrency, blockchain, mining, digital sharing economy etc.
So, let me connect the "dots" for you - ABCD. Remember the word "cashless"?
Let's take an example : Grab (Please be reminded that I am simply quoting an example. It is not in any way imply that they are into blockchain and cryptocurrency - so don't sue me please  )
Let's say you pay for their services via Grab Pay, Grab Credits or Cash.
Paying = mining
You'll get back a certain amount of points - Digital Sharing (Economy)
Points = cryptocurrency
Cryptocurrency can be redeemable for discounted rides, buying food, delivery services etc.
When you redeem = payment from an e-wallet to e-wallet
Blockchain = is where the Grab app is placed, where all transactions are done - very high traffic and volume
Example no. 2 :
Touch and Go E-Wallet - linked to your Touch and Go Card and other services like RFID (Please be reminded that I am simply quoting an example. It is not in any way imply that they are into blockchain and cryptocurrency - so don't sue me please  )
You topup your Touch & Go e-wallet - what you have topped up is no longer deemed as cash - it is made to look like cash (psychologically speaking)
You purchase using QR code of Touch and Go E-Wallet - scan it and you bought the goods.
Your purchase = mining
You get a certain amount of cashback having done purchasing - Digital Sharing (Economy)
Blockchain= is where the Touch and Go E-Wallet app is located, high turnover. QR code IS related to en"crypt" (crypto) and blockchain.
As long as there is a win-win situation - whether you use your petrol card to redeem certain goods - it's known as "Digital Sharing" (and updated on your phone apps) - used to be known as "timeshare". Now even Timeshare is being absorbed into Digital Sharing Economy.
BUT - if you only or still on "sell-buy, buy-sell" concept of business - or having a beautiful website or apps - but you are still on the buying-selling basis - this is NOT Digital Sharing Economy - this is "Consumption Economy". Consumption economy will eventually make your business DIE!
It's what I called in the late 90s as "brick and mortar" business at the beginning stage of e-commerce despite it has a B2B or B2C. If the potential customer walks up to you and asked you, what do I get back by downloading your app? You said "nothing", you will loose your customer!!!
I haven't mention the impacts of doing business in the "Red Ocean" - not yet - if I am to touch on this issue - coupled with our lack of understanding on "cashless" or "digital sharing" or microentrepreneurs*, hmmmm. *It's not limited to RM200,000.00 turnover of sales with 5 workers, but it's MORE than that.
(personal note : Angry because of the extra RM2.00 charges for cash transactions on the bank counter? Ever wonder why than simply being angry without any proof to substantiate your agreement? Do you know what would be the impact on our currency whenever there is a US-China Trade Wars? So... READ and most important UNDERSTAND before you REACT. So, why do you think "cashless" is very important? How would it save economy?)