Why I published HOM3’s full source — and why it’s free for people, not corporations.

Every AI product asks for the same thing: trust. Trust the cloud, trust the policy, trust the company. I built HOM3 because I couldn’t extend that trust anymore — a personal AI stack that runs on hardware you own, signs its own history with Ed25519, and sends nothing out by design. This week I published the entire source tree. The license is deliberate: Personal Use — individuals get everything, free; corporations and governments don’t get a grant at all. That’s not open source by the official definition, and I won’t pretend otherwise. It’s a different bet: that people deserve to own their digital lives, and that the way to prove software is safe isn’t a promise — it’s a repo you can read line by line. Start here: https://github.com/onePaulKrause/hom3-desktop If you find something wrong, tell me. Otherwise I hope you enjoy the tech!

Making sovereignty an option worth choosing.

1<3

*A documentary essay. Third-party narration. Anchored to the public record where the record exists.*

— — - the story behind hom3.org

## I. The pattern nobody was looking for

Every few years, in a different corner of the economy, the same quiet argument surfaces: *the thing you depend on has been taken from you and rented back, and there is another way.*

It surfaced in energy before most people worried about the grid. It surfaced in peer-to-peer commerce before the sharing economy had a name worth trusting. It surfaced in money in 2018 and 2019, before the crowd arrived. It surfaced in digital ownership in 2021, at the screaming peak. And it surfaced again in 2026, in personal computing and AI, when the stakes finally became total.

What’s unusual is not that these ideas appeared. Sovereignty is an old instinct. What’s unusual is that they kept appearing *in the work of the same person* — a builder who was, each time, a step ahead of the room, and who paid the early-mover’s tax every time: too soon to be obvious, too early to be believed, occasionally too early to survive.

This is the story of that signal. Not the man so much as the message, and the strange consistency of someone who kept being right before it was safe to be.

— — -

## II. Power, literally (plasma pyrolysis)

Start with the least glamorous and most revealing chapter, because it’s the one that proves the rest was never about cryptocurrency.

For the better part of fifteen years — across multiple companies and iterations — the work was energy. Specifically, turning waste into power: a multi-stage thermal process that takes the garbage a community already produces and converts it into electricity and usable fuel, on site, owned by the people who generate the feedstock rather than purchased from a distant utility.

Sit with what that is. It is sovereignty applied to the most physical thing there is. Not “decentralize finance” as a slogan — *make a town’s trash into a town’s electricity*, so the most basic dependency in modern life, power itself, is generated and held at the source. The technical detail is proprietary and stays that way. The thesis is not: dependency is a choice, and the alternative can be built, even for the electrons.

Most people who later heard “sovereignty” and “own your data” assumed it was a crypto-native idea dressed up in politics. The energy work says otherwise. The conviction came first, and it came wearing a hard hat. Everything after is the same idea looking for a faster medium.

— — -

## III. The sea (MyCaptain)

Around 2014, the same instinct found water.

The idea was a marketplace for shared access to boats and aircraft — owners letting trusted others use what mostly sits idle — routed not through a platform that takes its cut and owns the relationship, but through a *trust graph*: friends, and friends of friends, vouching for one another. An early, primitive version of multi-asset peer-to-peer commerce, built on the premise that the people in a transaction should keep the value of it, and that trust travels through relationships, not through a rake-taking intermediary in the middle.

This was before the sharing economy had curdled into the thing everyone now resents — the apps that extract from both sides and own your reputation. The critique that’s now mainstream (“why does the platform get everything?”) was, in 2014, just a strange small idea about boats. Early again. The medium wasn’t ready and the cryptographic plumbing to do it without a middleman didn’t exist yet at scale. So the idea waited. But the shape of it — trust through relationships, value kept by the people, no platform that can deplatform you — is, line for line, the shape of everything that came later.

— — -

## IV. The diagnosis (Infinance, and the heist)

By 2018 the medium had arrived: blockchains could, for the first time, let strangers agree without a trusted third party. And the builder was *there* — not observing from a distance but in the rooms where it was being figured out. Island conferences. The offshore circuit where the early token world actually convened. Conversations with founders who weren’t famous yet, including people whose names would shortly be on the largest exchanges in the world.

The project of that era, Infinance, is worth understanding precisely because it reveals an honest mind in motion. Its argument was *not* the pure anti-establishment line. It was a reformer’s bet: that regulated, institutional money — the tens of trillions that sit under compliance and fiduciary duty — couldn’t enter this new world until the new world could speak the language of accountability. So build the bridge. Integrate the rules. “Let’s not throw away the governments that got us here; let’s help them get better.”

Read in sequence, this is the crucial chapter, because it’s the one where the thesis is still *negotiating* with the old order. The era also carried the era’s hazards — it ended amid one of the period’s signature crypto SIM-swap hacks, the kind that taught an entire industry, painfully, what “hold your own keys” actually means in practice. The lesson of that loss is written into everything the builder shipped afterward: custody you don’t physically control is custody you can lose.

Then, in 2019, came the long-form reckoning — an unedited manuscript titled *The Greatest Heist*. It is, even in its rough state, a remarkably early and complete diagnosis: that the 2008 crisis was solved with more of the disease that caused it; that index funds had quietly correlated the entire market into one fragile basket; that money itself had been turned from a store of value into an instrument of debt; and that something thrown to us in 2008 — a solution to the old problem of agreeing without a middleman — was a lifeboat not yet inflated. Written by a then-practicing registered investment advisor who understood, from inside the regulated system, exactly what he was indicting. It cost something to write. He wrote it anyway. Early, again — and this time, on the record, by timestamp.

— — -

## V. The peak, and the silence (BZC)

In 2021 the idea went loud.

The community project of that cycle reached, at its height, the kind of visibility that gets a name printed in Forbes beside Bored Ape Yacht Club — the reference point of the entire era. Underneath the visible collectible was the part that mattered to the builder: a decentralized organization with a multi-asset engine and the rails to move value through a community that held it together, most of it built. The memory worth keeping from that chapter isn’t the valuation or the press. It’s the community — viral, tight-knit, real, a genuine crowd of people who believed they were early to something together.

The work was nearly finished when the builder was removed from it. The asset lost its anchor. The downfall was public; the slander that followed was not answered, because the parting came with silence as a term, and the silence was kept.

That’s the whole telling, and it’s enough. Note only what it proves: the thesis had become real enough, and valuable enough, to be worth taking. A signal nobody believes doesn’t get jammed. This one did.

— — -

## VI. The synthesis (HOM3)

Which brings us to now, and to the chapter where every prior version of the idea finally lands in one place.

Look at what HOM3 actually is, against the arc:

• From **Charis**: own the source, not the subscription. HOM3 runs on hardware you own; the intelligence lives under your roof, not rented from a landlord’s cloud.
• - From **MyCaptain**: trust through relationships, not platforms. HOM3’s design is a trust graph — sovereign nodes that verify each other directly, value kept by the people, no intermediary that can be captured.
• - From **Infinance and the heist**: the lesson the reformer learned the hard way. HOM3 doesn’t ask the intermediaries to behave. It removes them. Authority lives with the user’s own root of trust, and the AI is a tenant of that trust, not the landlord.
• - From **BZC**: a multi-asset engine and rails, community-held — rebuilt, this time on a foundation the builder controls, where the work cannot be taken because no single party, including him, holds the keys to all of it.

The technical spine is consistent with everything that came before, only now the primitives exist to do it right. A per-device signing key held non-extractably in the machine’s secure element. A master identity split into shares so a lost device is never a lost self. Every consequential action signed into an append-only chain the user holds, so behavior is provable rather than promised. A single switch that seals every outbound path. An AI that prepares everything and commits nothing without the human’s hand. The whitepaper’s own line: *we did not build a smarter assistant; we built a place to stand.*

It is the energy thesis, the maritime thesis, the monetary thesis, and the ownership thesis — collapsed into one substrate, addressed to the one frontier that contains all the others: the machine you think with.

— — -

## VII. Why the early ones look like failures and aren’t

Here is the part the market consistently misreads.

Being early looks identical to being wrong, right up until it doesn’t. The boat-sharing idea looked like a curiosity in 2014; the critique of platform extraction underneath it is now the conventional wisdom of an entire generation. *The Greatest Heist* looked like a doom essay in 2019; its core claims about correlated fragility and debt-as-money are now discussed on financial television. The energy work looked quixotic for fifteen years; distributed, community-owned power is now a stated goal of policy.

The signal was never the individual projects. Several of them ended — taken, hacked, or simply too soon. The signal was the *direction*, fired again and again from a different position each time, and consistently pointed at a future the crowd hadn’t reached yet. The pattern of a person who is reliably early is not a pattern of failure. It is the most valuable and least comfortable position there is: right, before it pays.

HOME is the same signal, fired again. The only question the arc leaves open is the one it has left open every time before: *how long until the room arrives?*

— — -

## VIII. The voice, and the claim it makes on you

There is an older phrase for someone who keeps saying the true thing before the crowd is ready to hear it. A voice crying in the wilderness. It is rarely thanked in its own season.

But the wilderness phase has a tell, and the tell is repetition. One early call is luck. Two is a coincidence. Five — across energy, commerce, money, ownership, and now intelligence, each one later vindicated by the mainstream — is not a person getting lucky. It is a person seeing the same thing the rest of us see only in retrospect, and building toward it while it’s still unpopular enough to be cheap.

The arc doesn’t ask you to admire the builder. It asks something more useful: *if the signal has been right every previous time, and the signal is now pointing at who owns your mind in the age of AI — what does it cost you to wait for the crowd this round?*

The lifeboat in 2008 was real and most people boarded late. The platforms’ extraction was real and most people noticed after they were already inside. The pattern says the same about now. HOME is the signal, fired once more, early as ever.

This time, you get to be early too.

— — -

*Anchored to the public record: the 2018 Infinance writing and the 2019 “Greatest Heist” manuscript are publicly dated and available. The 2021 community project’s peak visibility is a matter of public record. The energy work and the avatar engine referenced in current work remain proprietary and are described here only at the level of their purpose. Forward-looking elements of HOM3 are labeled as such in its whitepaper. This essay characterizes a pattern of work; it makes no claim about any private party’s conduct.*

HOME — or whatever you call the place you live digitally — HOM3.org

A Sovereign Substrate for Personal data compute and AI

White Paper · v1 · 2026

# Abstract

I want my life to survive me and my children digitally as I believe it will spiritually. I understood that my biggest assets were my ideas, my family, my memories not just crypto or money. But much of those things live on rented space which violates my foundation of trust no untrusted third party with the invaluable. No alternative existed so I built one.

The dominant model of computing, data, social media and personal AI asks you to send your life to someone

else’s computer. Your documents, your voice, your conversations, your

financial and identity data — uploaded, processed, and retained on

infrastructure you do not own and cannot audit. We needed an alternative. HOME is it.

HOME is a

**local-first sovereign substrate**: an AI-assisted operating layer that runs

entirely on your own machine, anchors your identity in your own hardware, and

records every consequential action in a signed, append-only chain that *you*

hold. The artificial intelligence in HOME acts **under** your root of trust,

not above it. Nothing leaves your machine unless you decide it should — and

when you decide it shouldn’t, a single switch seals every path, on both the

server and the browser, by construction rather than by promise.

This paper describes the architecture, the sovereignty guarantees, and the

design philosophy of HOME v1. To minimize my philosophical tendencies I have leveraged AI to present my project and ethos as audited an accurately as I can. I’m praying it is inspirational not just aspirational. I hope that it makes sense. Mostly I hope you understand the stakes and make your claim on your digital life will you still can.

— — -

## 1. The problem: rented minds, borrowed trust

Every mainstream AI assistant is a thin client to a remote brain. This

arrangement has three costs that compound:

1. **Custody.** Your data lives on someone else’s servers. Privacy policies
2. . are revocable; breaches are routine; the meter never stops.
3. 1. **Forgery.** When an assistant “acts on your behalf,” the authority to act
4. . lives in the provider’s cloud. You cannot prove what it did, and you cannot
5. . prevent it from being impersonated by whoever controls that cloud.
6. 1. **Dependence.** The capability is rented. When the subscription lapses, the
7. . policy changes, or the company pivots, the thing you relied on is gone.

The industry treats these as acceptable trade-offs for convenience. HOME

treats them as design failures to be engineered away.

## 2. The thesis: AI under the root

A sovereign system is defined by a simple question: *where does authority

live?* In the cloud model, authority lives with the provider, and the user is

a guest. HOME places authority in the user’s own **root of trust** — a

cryptographic identity the user holds and controls — and makes every other

component, including the AI, subordinate to it.

Concretely, this means:

• The AI can **prepare** actions; it cannot **commit** them except through a
• . gate the user controls.
• - Every consequential action is **signed into a chain** the user owns, so
• . history is provable and tamper-evident.
• - The user’s signing identity can be bound to the **secure element** of their
• . own device, so even the operating system cannot forge it.

The AI is powerful, but it is a *tenant* of your trust, not the landlord.

## 3. Architecture

HOME is built in four layers, each enforcing sovereignty in code rather than

in policy.

### 3.1 Root of Trust —identity that doesn’t live where it can be taken from you

HOME’s per-device signing key can be generated and held inside the hardware

secure element (TPM on PC, Secure Enclave on Apple silicon), where it is

**non-extractable**. The operating system can use it to sign, but cannot read

it out — so the OS itself physically cannot forge HOME’s signatures.

Crucially, the device key is *disposable*. The master identity is a BIP39 seed

held under **Shamir secret-sharing**, never placed in the chip. If the device

dies, you recover the master from your shares and provision a fresh device key.

**A lost device is not a lost identity.** Encryption at rest uses Argon2id;

signatures are Ed25519.

### 3.2 The Logbook — a chain you hold

Every consequential action becomes an event in an **append-only, Ed25519-signed

chain**, each event committing to the hash of the last. A single operation

re-walks and re-verifies the entire chain. The defining inversion: **the chain

is the source of truth, and every index or registry is merely a rebuildable

view of it.** Your state is *derived from your signed history* — not stored in

a database that history merely annotates. This is what makes HOME

tamper-evident by construction.

### 3.3 The home:// Authority Root — provenance without exposure

HOME addresses your own content as `home://you/...`. The resolver is an

*authority* root, not an execution root: it maps addresses to content with

signed provenance, and it enforces sovereignty fences directly in code. Two

are worth stating plainly:

• **Targets are committed, not disclosed.** When you bind an address to a file
• . or URL, the chain records a *salted cryptographic commitment* of that target
• . — never the raw path. You can prove a binding existed without leaking your
• . filesystem layout or private URLs to anyone you share the chain with.
• - **Content integrity is verified, never assumed.** Every binding carries a
• . content hash; resolution verifies it and flags mismatches rather than
• . silently serving altered content.

The registry holds **no keys** and has authority over **only** what you have

explicitly registered. It never auto-discovers your content.

### 3.4 Gated Action — the AI acts through the same door you do

When the AI executes a command, it is routed to *the exact gated function your

own clicks would invoke* — never a lower, ungated primitive. Drafting an email

stores a draft; it does not send. Adding a file goes through the same gated

ingest a human uses. The AI prepares; only a gated commit acts. This

“rehearse-then-commit” interlock is the mechanism that lets a capable agent

operate without ever becoming an un-auditable actor inside your system.

## 4. Sovereignty guarantees

HOME makes specific, falsifiable promises, each enforced in code:

• **Local-first.** The system runs on your machine. The listen port rotates
• . each launch to defeat screenshot/screen-share leaks; every internal endpoint
• . enforces same-origin.
• - **On-device by default.** The AI’s voice runs against on-device models.
• . Routing it off-device is a deliberate, hand-edited, disclosed opt-in — never
• . a silent default and never a one-click accident.
• - **No vendor lock.** Model providers, chat platforms, and the roles binding
• . them are *configuration*, swappable with zero code change. Your keys are
• . referenced by name and read from your environment; their values never touch
• . a config file.
• Airgap that actually seals. One switch puts HOME in a state where nothing leaves through HOME. This is enforced at a single server-side egress chokepoint and by a browser Content-Security-Policy that physically prevents the page from making outbound requests. Both sides sealed — because an airgap that only covers the server is not an airgap. Like SENTRY, this claim is honest about its boundary: it seals every path HOME controls; it cannot seal what the operating system or other software on the machine does outside HOME — that remains the domain of an external hardware watcher.
• - **You can prove it.** A built-in security suite verifies the chain’s
• . integrity, baselines your files, surfaces every connection HOME is
• . configured to make, and — through **SENTRY** — reports which applications on
• . your machine are using your microphone, camera, or screen, cross-referenced
• . against what is currently talking to the network. SENTRY is honest about its
• . limits: it sees software using your operating system’s official APIs; it does
• . not claim to see kernel-level implants, which remain the domain of an
• . external hardware watcher.

## 5. What HOME is for

HOME is a substrate, and substrates carry many things. v1 ships:

• A **provider-agnostic AI co-presence** — a voice you talk to, that runs on
• . your hardware, that you can give any model you choose.
• - A **creator and streamer suite** —
• an on-device AI co-host that performs on stream and answers chat in voice — within bounds the streamer sets and can stop at any moment — with no per-token meter and no audio ever leaving the machine, plus media tools that ingest without limit, transcribe
• . offline, and produce **provable clips** carrying their own cryptographic
• . lineage.
• - A **personal sovereignty toolkit** — the security suite above; a recovery
• . system that exports your identity and state under vault-grade encryption; and
• . registries for the things you own — your media, your collectibles, your
• . on-chain assets — each able to be **witnessed into your chain** as
• . self-held proof of provenance.

Every surface is optional and hideable; nothing you rely on is ever removed.

## 6. Why this matters

The last decade taught people to trade custody for convenience, and then

taught them what that trade costs. The next decade’s defining question for

personal computing is whether intelligence will be something you *rent from a

landlord* or something you *run under your own roof*. HOME is a bet on the

second answer — that the most capable personal AI will be the one that belongs

to the person, proves its own behavior, and can be sealed shut on command.

We did not build a smarter assistant. We built a place to stand.

## 7. Roadmap (forward-looking)

The following are *planned*, not shipped, and are presented as direction

rather than capability:

• True over-the-air radio receive via low-cost SDR hardware.
• - A trustless referral mechanism for distribution, settled on-chain.
• - Chain-anchored media provenance extended to live broadcast and speedrun
• . verification.
• - Additional chat-platform adapters and an in-system arcade for owned-media
• . emulation, contained entirely in the browser’s WebAssembly sandbox.
• - Hardware companion devices that observe the host externally, complementing
• . the in-system security suite.

*

## 8. The Dream (forward-looking)

Everything in this section rests on one observation about what v1 already

proves: a person can hold their own root of trust, run a capable AI under it,

and prove every consequential act in a chain they own. None of what follows

requires a new trust model, a new physics, or a promise. It requires only

that the same primitives be *repeated* — across rooms, across people, across

time.

#8.1 From a console to a home

v1 ships surfaces. The direction is *rooms*: the substrate addressed as a

place you move through rather than a tree you climb. `home://you/office` is

already an address; the office can become a room — your working tools, your

agents, your records, behind your gate. A library for what you keep. A vault

for what you hold. A parlor where your AI greets you. Same chain, same gates,

same airgap switch — rendered as a home instead of an app. Rooms are folders.

Tools are programs. The difference is not capability; it is dignity.

#8.2 From one HOME to a household

A root of trust per adult; a room per child. A family’s HOMEs can bind to one

another by signed events — shared dna for what a household holds in

common, guarded rooms for those too young to hold keys, and, at the age of

majority, a transfer ceremony in which a child’s accumulated history moves

into their first sovereign HOME, co-signed by parent and child. Heritage,

made continuous. A person should not begin their adult digital life at zero,

and with a chain as the source of truth, they never have to. You leave memories and ideas intentionally.1

#8.3 From a household to a mesh

Two HOMEs that hold their own keys can verify each other without anyone’s

permission. That fact, repeated, is a social fabric: presence you can trust,

vouches that travel with the person vouched for, commerce between people who

share a friend rather than a platform. The chain already proves *what you

did*; between consenting peers it can prove *who you are to each other*. No

feed, no rake, no intermediary that can be captured — because there is no

intermediary at all. Trust spreads at the speed of relationships, which is

slower than virality and far more durable.

#8.4 Presence you can verify

An AI with a face raises a question the industry has not answered: how do you

know whose it is? HOME’s answer follows from the architecture: presence is an

asset under the root of trust like any other — bound to its owner, carried

with verifiable lineage, refused when the lineage does not check out. The

engine that mints such presence is its own body of work, protected

accordingly; what belongs in this paper is the principle it serves. In a

world filling with synthetic faces, *verifiable* presence — yours, provably,

or not rendered at all — is not a feature. It is the difference between an

avatar and an impersonation.

#8.5 From persons to offices

Nothing in the substrate is specific to an individual. A workshop, a

practice, a small company is also a root of trust with rooms, agents under

gates, and a chain of record. An office node is a HOME configured for shared

work — role-scoped keys, witnessed handoffs, provable books. The same

guarantees that protect a family protect a firm, and every office that joins

the mesh thickens it for the persons already there.

8.6 The universe on the substrate

If the base holds — sovereignty in code, the chain as truth, the AI under the

root — then what grows on top need not be built by us. Themes and avatars and

rooms designed by their makers and carried with signed lineage. Tools that

plug into gates rather than around them. Faces of the substrate we have not

imagined, built by people who hold their own keys and owe us nothing. A

marketplace is possible here, and a large one; but the order of operations is

the whole point. The platforms built marketplaces first and bolted trust on

after, which is why their trust is a policy. Ours is a property. The

marketplace, when it comes, inherits it.

8.7 What it asks

The dream asks nothing exotic. It asks that people believe a modest claim

that v1 already demonstrates: that a person can own their own digital ground,

and that an intelligence can serve them on it without ruling them from above

it. Every section above is that claim, repeated — for a family, for a

friendship, for a face, for a firm. The substrate is shipped. The chain is

yours. The rest is people deciding to stand somewhere they own.

We built a place to stand. The dream is what becomes possible when many

people are standing. What the enemy meant for evil we have turned for good. We vote with our attention and dollars. We steward every moment or “they do”. I choose sovereignty. I trust in the Lord Creator Almighty Sovereignty for the win.

— — —

*Status note: this paper describes a working v1 system. Sections explicitly

labeled “Roadmap” are forward-looking and not yet shipped; everything else

is implemented and source-verifiable in the v1 release.*

— — -

— — -

*HOME v1. Your own root of trust, with an AI that acts under it.

This document describes implemented architecture except where § 7 (Roadmap)

is explicitly forward-looking.

Everything else is audit and deliverable and bar a sovereign event or death will be publicly released within 5 days.

I built this for me, for you, for us and 0n3. With my children in mind and heart. May the lord bless you and keep you and cause his face to shine upon you, be gracious to you and give you peace. ~Paul 0n3 Krause

Aka Central Banking and How your money lost its power

Unedited- 2019

Chapter 0:

In the beginning was the Word. And the Word was with God and was God. Our words are powerful beyond measure. So when it comes to writing and as prolific and profetic. — or profoundly proposterous as to write about the history and future of money. None the less, Iv been traveling around sharing this idea that I can clearly see both the present and the future. Only time will tell if I was accurate.

Let me back up.

Prologue:

You see when I was maybe 10 years old, I wanted to be a stock broker. Both my parents were attorneys (look you can’t choose em — don’t blame me) and I didn’t want to get stuck in the whole hourly rate gig.

Growing up I always traded. Whether it was stocks to help pay through school by investing birthday money and dog walking money into trades like this little bank that became a. big bank that became a group called citigroup. In trading terms- it doubled then doubled then split a few times then doubled a time or two then did a three for one split before their big merger and went time and time again. What a weird teenager to be watching the merger of citibank into the global empire of citigroup on CNBC.

I got into daytrading, commodities and leverage in college. I traded futures succesfully on the chicago board of options exchange through RJ O’brien the big commodities brokerage. I was trading leverage to the tune of $5,000 margin buying me a $100,000 contract for 100 barrels at around $100 /barrel. I was trading against the trend which made it stressful but was still able to double up monthly on short term trades.

Just after I graduated college, I had a dream. Yes, a dream. And not the Martin Luther King kind either. An actual, in the night, Dream.

And it went something like this. I was on a cruiseship, which at the time was a first and was playing slot machings (you know, where everyone goes to make money). On the first pull, lucky me! JACKPOT JACKPOT JACKPOT. The lights strobe and the coins rain down. I look around happily, insert the token and pull again. JACKPOT JACKPOT JACKPOT! I again try to rake up my money $$$ . I enter the token and pull again for what comes up a BANKRUPT BANKRUPT BANKRUPT. In those classic block letters that just leave your heart dropped. Then I wake up.

See I had been sleeping over in the home- made dorm of my friend Eddie Brown’s House of Prayer (*affiliated with the International House of Prayer with Lou Engle, The Call and the likes) and had been dedicating myself to prayer and fasting. When I woke up I knew the dream had to be from God since I don’t play slots, hadnt been on a cruiseship and was extraordinarily pursuing the voice of God. When I prayed and asked God for his interpretation I felt the Holy Spirit told me in an internal voice that my first Jackpot was one trade in citigroup, the second jackpot was some other trade, and the bankrupt was everything coming down.

I called my mom and we sold everything. Starting with my largest holding of, Citi at around $120.

That was approximately october of 2008. The absolute height of the debt crises, housing buble, whatever you want to call it.

I want to call it just the warning shots.

Since then we (my parents and myself) have bought and sold plenty of stock in the financial sector. I have worked for the last 7 years straight full time in retail wealth management and currently own my own RIA (registered investment advisor). In fact, its my professional experience that makes it so hard to give extraordinary advice. You see a fiduciary such as one who works in Financial Advice in an RIA is held to an absolute best case standard. We need to advise a client as to what is best and most suitable for them in the midst of an almost infinant range of options. Likewise, we can be punished for trades that were honest and served our client well (such as a recommendation to buy bitcoin under $1,000) because it wouldn’t be deamed “suitable” for them, regardless of the gains or success.

But this book isnt about me. It may be a tad about regulation. But it is most certainly about: MONEY

$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

Ya that Dolla Dolla Bill yo.

And where it came from.

And where its going.

And I couldn’t imagine a more timely or important topic to be discussing.

I mean have you ever felt that weird eerie feeling that someone was watching you. Or that the deck was stacked. Or… well lets just get real. Its been real.

History Repeats Itself

The weight of economic gravity will eventually submit to heigher Newtonian Laws than those of the IMF or FinCEN.

Its not just the Housing Bust, Dollar Dilution or Debt Bubble this time.

It’s the bigger problem of Equities.

Please allow me to explain.

You see, what makes a Bond Riskier than a Stock is that it is more volatile. That means its price is fluctuating more. A trader generally likes that, as they make money on volatility (not necessarily in one direction- key takeaway). Ok Ok. Everyone knows that. But WHY is the stock more volatile?

It has to do with creditor order.

SAY WHAAA?

That means who stands in line first at the bank.

Like what do you mean?

When everything is BANKRUPT.

Ok Paul. So we need more than a dream, cute poetic intro, and some trading experience to buy your end of times carboard box antics.

So here are the Facts:

CDO’s, or collateralized debt obligations, are financial tools that naks use to repackage individual loans into product sold to investors on the secondary market.

These are sold in the old ‘safer to buy the basket’ just don’t look inside it approach.

It was packaging in all the toxic debt with the good debt to prop up the pending debt crises.

HOW DID WE SOLVE THE BAD DEBT CRISES OF 2008/9 — MORE BAD DEBT

Bond buy back / purchase programs

Government / Bank bailouts

Zero Rate interest policy (more on that printing money stuff later)

Aka. More Bad Debt.

We took a House of Cards and Propped it up stilts.

So if this isnt crystal clear yet, or im speaking too technical don’t worry. Im going to still write a book not a pamphlet. But as my Dad always taught me. Tell em’ what your going to tell em. Tell them. Tell em’ what you told em.

But this time we added a few new tools to the mix. Unfortunately the Central Banking system, the world governments, world powers, you name me, couldn’t continue to. (or certainly wasn’t going to) continue to prop up the world debt problem.

So we look to the equity markets. During the massive downturn money is running for safety. And on the stock market we are teaching the “random walk down wallstreet” method.

The method comes from a book entitled “random walk down wallstreet” that theorized that a bunch of random guesses or “just randomly walking” down wall street would yield the same as intelligent investment decisions made by real investment professionals. The idea is that we again, would be safer buying the basket and not paying anyone to look inside. They harp on investor fees as the culprit to market underperformance (and not of course the massive cycles created by the derivatives market or massive leverage utilized by institutions) but rather the fact they were paying professionals.

These advice, however ludacris, led to the following trend:

Trillions flow out of actively traded mutual funds into ETF’s or “index funds”

Index Fund (according to wikipedia 9/26/19) is a mutual fund or exchange-traded fund designed to follow certain preset rules so that the fund can track a specified basket of underlining investments.

This means it’s a derivative. It is a basket that is designed to mirror or represent the whole. This doesn’t bother anyone?

We saw that movie already.

CHAPTER 1: History of Money

Just to make sure we are all playing on a level field of understanding, let me start at the beginning. Money was created as a medium of exchange to simplify the marketplace. This meant that I didn’t have to bring my camel to the market to sell in exchange for my eggs if that was my business. I could now sell the camel for a certain representation of value (aka money) so that every week when I went to the market I could use that value to buy the items that I needed. Original forms of money could have been as simple as sea shells or wooden coins.

Eventually, due to human’s natural tendency toward fraud (and printing money) we needed to find more unique and harder to print or replicate mediums. This led us to using precious metals. As we scaled towards world economies we found paper money to be easier to work with as denominations kept creeping up. Initially these notes were backed by actual assets. In the Federal Reserve’s Dollar Bill’s case it was backed by Gold. This allowed us to maintain a standard of value and curb inflation.

Interestingly enough, a dollar bill, or “federal reserve note” is actually a form of indebtedness. Technically speaking dollars are “notes” a debt instrument similar to a bond or IOU. To understand this is really quite intuitive. If I give you timber, you give me a note of what we agree its worth. Essentially, I owe you that value. However economically it is likely someone else will be paying you back since your most often using those dollars elsewhere. If you don’t belive me, just check the notes in your wallet. Each should identify itself as an indebtedness to the Federal Reserve. A private, hardly transparent, world power… I mean bank?

Chapter 2: World Wars

After the World Wars caused widespread damage through the use of airlifted bombs we had a huge need for. rebuilding. To make matters worse, much of the manufacturers had actually repurposed their machinery and companies to the production of artilery and war goods. In order to help reconstruct the world, the newly formed “central banks” or “world banks” began aggressive lending campaigns. This is the first time in history we see a move towards a debt centric society. As we continue to give money out in excess of value received (aka unsecured loans) we eventually over extended beyond our value. In order to not get caught with their pants down and show their less than endowed condition, the central banks moved away from the gold standard backing their dollars. This allowed them to continue to lend with no physical ceiling or responsibility to actually maintain the value they were printing. The only limits were now being imposed by regulatory bodies and governments that were deeply indebted to the governed central banks. This ultimately led to unspeakable world debt. When you add on the interest that’s compounded for close to a century now, this debt is unpayable by anyone. As we passed the dillema down the totem pole, we had to continue to sell the public debt in order to maintain the monstrocity created.

Chapter 3: Real Estate

Once upon a time you owned a home. Today the Banks own all the homes. Too many people who believe they own a home, are in fact the lucky owners of a mortgage! A mortgage is an “asset backed” bank note that says the bank owns the asset and you have to pay for it, plus the interest, for most of your life. Very few of these notes ever get paid off. If you have a. bad couple months or down year in your business they just take it from you and keep the asset plus interest (and trust me, they were *banking* on it). Alternatively they could just lower interest rates for 40 years straight to continue to incentivize you to refinance and allow the banks to extend their controlling interest.

This sick version of monopoly led to runaway housing prices. If you study the now famous Case-Shiller graph for inflation adjusted home prices we see that housing roughly tracked the CPI (commodity price index) for most of recorded history until the break from the gold standard. Said differently, housing went up in line with the cost of living — roughly 3%. This would make sense as food, water and shelter are the most basic of all commodities.

When we treat a house like a commodity, we will pay what its worth. You wont see many people paying for $30 /gallon gas prices in 2019 or 15 dollars for a banana. That’s because these items have intrinsic worth that the market is willing and able to pay based on normal supply and demand principles. However when we begin to speculate — things get a little more interesting.

You see, I traded oil futures. This is where people speculate on the price moving up or down in the future by securing prices today. This serves an important function for all kinds of industries that rely on understanding the pricing of their commodity when its deliverable. It also helps regulate price. So now I can pay slightly more now believing it may be worth more in the future.

Furthermore, If I think something is an investment that could grow, then I may be willing to pay more than current intrinsic value for it. A great example is Amazon. When Amazon was still early I was recommending to my family that they buy the stock even though their “P/E” or “price to earning ratio” was way out of whack. Even though they didn’t make any money I could see them dominating a critical market of the future (e commerce) and so we could invest now at a higher than common price.

Back to housing.

In order to keep moving forward on what I believe is the greatest world scale scandal in history, we needed the public at large to keep funding our debt spiral. Since the average person held the greatest amount of their debt in real estate, we had to change the narrative. Housing was no longer a commodity one needed to live. It was now an “investment”. This shift in understanding allowed us to speculate based on future growth. And due to the interest rate dropping, over leveraged antics of the banks we were experiencing massive growth (*price inflation). This brought us to when in the early 2000’s I was constantly hearing things like “anyone I know who is rich, got that way in real estate”. Or how about “invest in something you can see and touch”. OR my personal favorite “real estate never goes down, it only goes up”. The list of outlandish lies goes on and on… just like the debt buble it affords.

As the consumer gets stretched so far beyond what they can actually afford, a growing number of the notes turn toxic or default. Trying to buy more time, Wall Street repackaged the debt and sold it to the general public in another debt instrument called “CDO’s”. A CDO or “collateralized debt obligation” was a safer in numbers approach to investing in debt. Essentially they packaged the good debt in with the back debt and sold it as “safer to buy a basket than an egg”.

We know how this goes. The CDO’s blow up and default left and right. The market tanks. Unbelievable numbers of Americans loose their homes to the banks. People loose their jobs, their lives etc.

This is what we call a “House of Cards”

Which leads me to our next chapter

Chapter 4: House of Cards on Stilts

Ok Paul. I didn’t mean to buy a rewrite on the 2008/9 financial crisis. Hasn’t enough been written?

Did we learn our lessons?

How did we solve the runaway debt crises of 2008 exactly? More Bad Debt.

A Lot More.

Approximately 300% more.

Through government Bail outs, lesser known Bond Buy Back Purchase Programs, Stock purchase programs, Zero Interest Rate prime (AKA free money AKA printing gone bananas) and more

We have skyrocketed to almost triple the Personal, Corporate and Sovereign/Gov’t Debt from 2009.

And this doesn’t seem to bother anyone?

I mean we have a 10 year long Bull Run in the stock markets. This is unprecedented even in great economies.

We have an unfunded social security with baby boomers just settling in.

So what are we to do? Well the government has a plan and has colluded with the powers that be.

For now, you are to buy Index funds.

Index funds?

Yes Index funds.

Index Funds or “ETF’s” are exchange traded funds that package a wide array of stocks into a basket that is “safer” due to the large number of equities/stocks that are represented.

They are sold (almost regulatoraly requireD) based on their lower fee structure. Aka Its safer to buy the basket and FOR THE LOVE OF THE SEC — *DO NOT pay anyone to look inside.

Ouch.

Quite Literally this is the most devastating hoax ever played on any financial market, ever.

We have massively over corrolated (tied together) the financial markets using this new instrument.

So what EXACTLY is an ETF and why do I care?

An ETF is a group of stocks that trade as one instrument. A stock is riskier than a bond. Lots of people know that. But Why? You probably would say because its more volatile and youd be right. If you are one of those people who didn’t miss out and read my preamble then you know its because you sit last in line at the bank as a creditor compared to every other investment class.

ON THAT NOTE: if you did not read the preface, GO BACK. Or just throw out the book. Either way.

You should care because this is where trillions of dollars are flowing into for the last decade. But why? How could anyone be that dumb post 2008?

THEY DON’T WANT TO GO TO JAIL

Its that serious. I am a registered Investment Advisor and I am responsible to very harsh regulatory bodies called the SEC and FINRA. You know the Blue and Yellow lab coats that come blow up your world right there along with FINCEN and the FBI whenever they feel like it. Their fines are astounding and they hand out jail time like candy, yet often withhold it from the real fellons.

They deam all financial advice to be suitable or not based on a set of standards. These standards have been updated to indicate that regardless of performance, the lowest fee structure should be considered in the clients best interest. This along with other regulations has forced the majority of pension plans such as 401k’s and some of the largest assets in the world to run for regulatory shelter in the near mandated ETF offerings.

At this point the investment community has been polarized into two camps… with one new emerging I’ll introduce in a second.

The FIRST — Passive Low Cost Investments. This philosophy harps on fee’s. It purports that it is impossible to tell a good company from a bad company (unless of course you’re the SEC, cause they can tell and prosecute right?….). So don’t waste fees paying a financial advisor. These are companies like Vanguard, Spidershares, iShares etc. These use automation, computers, or simple mass buying to replicate the market as a whole or desired outcomes without humans looking up the skirt of each investment.l

The SECOND- Active Management. This philosphy believes in paying qualified investment professionals for the selection of stocks or bonds or other instruments. They may be mutual funds that have CFA’s on staff, an independent advisor picking stocks, or a private family office handling their private or exempt investments.

I wonder where all the billionaires invest their money? Hmmm…

Probably blindly. That’s what I’d do if I could pay the smartest people. Pay the least in fees?

Obviously the wealth understand cost in terms of VALUE. They don’t mind paying for what they get. No one pays the least and expects the best outcome anywhere else. They probably arent going to start with their hard earned money.

Yet the average bear, is all but required to. I mean try to invest in all individual stocks in your 401k or with your financial advisor. Is it even an option anymore? And if it is, are the qualified professionals even around to help you in such a feat? Probably not.

They work for some wealthy private family office and are probably exempt from SEC. It wasn’t worth the risk to them to help you.

You may hear that financial advise isnt worth it. Funny enough Vanguard, the worlds most significant index fund company, produced a study called “the value of financial advice”. They obiously initiated this study hoping to disprove the need for advice in favor of their “passively managed funds”. The conclusion THEY came to was on AVERAGE financial advice was worth close to 3.8% a year over non advisor facilitated investing!

I have also heard the top quartile of hedge funds DOUBLE the market on average. We can check the facts but its not the point.

The point is far more severe.

Loosing 40%+ in 2008 vs my personal record of a GAIN?! Priceless.

Again, not the point.

The point is that whether your in active or passively managed funds that the markets have all been entertwined due to these giant “baskets” that will cause all ships to rise or sink together.

AND SINK THEY WILL. BE ASSURED.

THIS HOUSE OF CARDS IS COMING DOWN.

Oh God, Paul. You really are a doomsday profit.

Well maybe. How bout a transparent realist. Economist or Historian? You Decide.

I’d prefer to be a futurist.

You see there is a THIRD group of investors remember….

I think its time to inject some hope.

Chapter 5: The Life Rafts

Something very curious happened in 2008. No No No. Im not rehashing THAT again. Something else.

It was one of the most significant things in history. Any Guess?

Someone threw us a life raft.

It. just wasn’t inflated yet.

It was the solving the the Byzantine Generals Problem at scale. It was the solution to/ or the elimination of the Banking problem. It was Bitcoin.

Now before you go running out on me, hang in there. I thought Bitcoin was a scam too. In fact maybe it is. But HOLY SHIT, it is SIGNIFICANT! So ignoring it isnt going to help you anymore.

I’ll explain;

I first got introduced to Bitcoin as a young financial advisor by one of my fellow advisors, Kyle Miholic. Kyle showed me silk road and these +/- $10 bitcoins. I was intrigued but ultimately decided that as a regulated broker I couldn’t invest or recommend a currency for the black market used to buy and sell illicit things on sites like infamous “silk road”.

It wasn’t until a couple years later that I began to understand the undergirding technology of blockchain that the light bulb went on. What is so significant about blockchain is that it solved the Byzantine Generals problem. Well actually, I believe my friend Ann Greenburg did it in the 90’s, but Bitcoin did it at scale.

What is the Byzantine Generals Problem? It was an ancient math problem that enquired to how two unrelated or even combative parties could come together and reach mutual agreement (consensus) without a trusted third party (think bank/escrow agent/middleman). Blockchain was an algorithm that accomplished that. It single handedly democritzed finance, removed the potential future need for banks, increased transparency of money, increased individual anonymity, decreased cost/friction in movement of money and was limited in supply (undilutible). Not to mention the cryptography which leads the charge in Data Security, one of the worlds largest growing issues. It was exactly what we needed should a hard reset of a maxed out debt ceiling occur.

Now I don’t know if Bitcoin wins the cryptocurrency race. But someone will.

It’s a lot like the internet. I couldn’t have told you AOL would loose their footing, that Google would crush Alta Vista, or which .com in the boom would be bankrupt or soar. But what I could tell you, is that it was here to stay. The industry of cryptocurrency is as cluttered with empty hopefulls as the internet was then.

Better technology prevails. It cant go back in the box.

So regardless of what Jaime Diamond want to say publicly, he is scraping up every last bitcoin personally he can! I thought it was SO funny. (also incredibly illegal, collusion, market manipulation, probably even Fraud) when the banks all publicly disgraced EVERY blockchain or crypto to emerge while privately developing their own, migrating their whole systems and posturing privately for the transition. I knew this for fact both through friends and through hiring a couple of Bank of America’s blockchain Devs for my own project.

So the governments, banks, financial institutions and other powers that be have been in a private land grab while publicly lying to you about what they knew to be the prevailing winds of our financial future.

Because they currently own the world and they weren’t about to let you beat them to the next chapter.

Chapter 6: The End of the World

So before we talk about the transition, I am going to take on the outlandish task of predicting the crash.

Truth is, I have No Idea how this will actually play out. We have NEVER seen anything like this.

I have explored the dollar bills being deflated, inflated and just plain executed. Housing prices going up, deflating or stagnating.

But does it matter what the price is if the denomination has changed?

I think it does.

Ultimately, I believe we are looking at a massive devaluation of the dollar. I think a return to actual intrinsic values, fair wages and commodity pricing and investments valued based on cashflow and projected asset and revenue growth.

Since all of these things can be naturally facilitated more accountably on cryptographic platforms, we are likely to see large outflows from the current exchanges onto the exchanges that allow for crypto. We will also see mass adoption from existing infrastructure. We have already seen whole governments, like south korea, or exchanges such as the Toronto Stock Exchange (TSX) open up and adopt the inevitable. This will be the most historic transition of wealth ever. No close second.

You may think you will never transition.

You wont have a choice.

Have you tried to operate in just cash lately? I have! It is damn near impossible.

You cant pay for your itunes in cash. How about your netflix?

Amazon? Pretty soon even your local grocery store or favorite coffee shop will only recognize digital currency. The only difference between the digital currency you currently use at Wells Fargo or Chase and Cryptocurrency is who maintains the data. With a bank your information is stored on a private ledger (a giant row of numbers in and out) where they aim to keep your account in good order and anonymous. For me personally that looks like letting the EDD come and yank money whenever they feel they want more payroll regardless of owed, misaccounting, changed fees and policies and of course the subsequent lawsuits. Not to mention hacking, fraud and data leaks.

In a cryptographic world the ledger is public and accountable to all. The individual remains anonymous and is the only one who can release their funds or information. This of course will vary from company to company, or with different cryptocurrency nuances. Some will be designed to integrate with regulatory bodies such as tax levying agencies and others. Still others will maintain complete anonymity and autonomy. Ultimately, we will adopt the future we want and are allowed regulatorily. This is where I hope to add my .02 to our trajectory.

Chapter 7: Crystal Ball

This. is where we go from drawing the obvious conclusions and recounting history to guessing what the future will hold. I’ll just go ahead and give you my straight forward opinion. I’m sure about two things. 1) I will be right about some things. 2) I will be wrong about some things.

I mean even if I am right about everything (as of course Id like to believe) I am sure there will be periods of time where my forecast is incorrect.

By that I mean to say, If I project that it will be sunny in the future… It may very well be. But we will likely have some cloudy days along the way.

So here it goes…

My prediction is that we will initially adopt lots of various coins/tokens/cryptocurrencies (which I will use interchangeably, though they will not always represent the same thing) that will serve different functions. These will range in so far as being non-currency chains that aim to execute contracts, to infrastructure for things like healthcare or government, to transactional coins that are used for purchases, storing value and other purposes more traditionally assigned to “currency”. Of course we have also seen other popular uses emerge such as crowdfunding/raising capital, representing title or ownership and other investment related purposes.

Initially we will see these tokens segment to serve the unique needs of separate industries. One or two tokens will emerge and gain dominant marketshare in things like real estate and healthcare. The unique token will handle the contractual, escrow, payment, accounting, encryption, permission, value exchange and transaction needs of that specific industry.

To demonstrate what that could look like; A real estate token could be used to capitalize projects in a crowdfunding type way. These tokens would go into a digital, code-based, escrow that would dole out the tokens to developers, land owners in acquisition, builders for costs, and ultimately return back to investors. Handling the unique and complex financial ecosystem within the smart code based contracts inheritely in the coin saves lots of time and money wasted on intermediaries and quickens execution.

Healthcare is also a great example, largely do to the large amount of privacy required and parties involved. This will likely look like governments, hospitals, insurance companies and individuals all to participate in a smart system that will handle privacy and payments/value exchanges based on a set of permission systems and will be used initially to protect the individuals security while increasing the efficiency and accuracy of their care. Doctors, Hospitals, Insurance companies and the like now having a central database of information and payment point that is secure yet accountable.

These currencies will likely be linked through exchanges, wallets and eventually “cross-chain” or “inter-chain” linking protocols. Governments will initially seek to regulate each based on geography, industry and use case. Ie. Whether they see each coin as a commodity, currency, investment, store of value etc. . Some governments, especially those that lend themselves towards more communist trends like China and Russia will likely opt for government sponsored systems that have automatic integrations for things like regulation and tax.

All of these coins will be quickly interchangeable and likely reference back to bitcoin or gold for a stable value reference point. Ultimately due to the inevitable evolution towards seamless frictionless ease of transacting and uniformity, one superchain will emerge. This will be one fast, flexible, likely free system that can scale immediately to work across all chains in the world or to generally replace them all. This will ultimately make the most sense. All governments will be so deeply entrenched in the electronic systems of the day that though many will have great reservations and hold out… they will inevitably yield to the desire of the people.

Epilogue: Throwing my cautions to the wind

We will see a one world blockchain. Blockchain won’t exist within governments, Governments will exist within blockchains, held together by one superweb of a superchain. This is the inevitable evolution of the Newtonian force of which this technology will move forward.

The good: This provides equal opportunity across the globe. This is the largest redistribution of wealth in the history of the world. Wealth is now rightly accounting value and held with impeccable accuracy and valuing truly ideation and creation not just execution. This will bring great prosperity to many who have previously been held down by the old system. This will also collapse very large economies and redistribute massive wealth. The partnering of this techonology with the mega trends of social media and cameras, satellites and drones lends itself to a future much like the score system of China.

If you haven’t heard about how china is tracking its citizens and given them points for their social value, now would be a good time to research it. This is where we are headed on a mass scale. While this can be an amazing thing, it comes with some massive cautions. For example, that guy who stops and picks up the trash he sees tumbling down the street and doing good when no one is looking is now rewarded. The person in the trenches of a company who brings massive value will no longer be overlooked.

The challenge is how we assign the value. Who is the one saying what is good and what is bad. For example, if I vaccinate my kids do I get points or loose them. If I have lots of kids am I adding value or improperly using my birth control at a cost to the planet? If I eat animals am I good or bad? These and countless other critical questions have always remained in intense debate.

Truly this comes down to a problem of morality. Traditionally societies have found their morality through religion or a sense of right and wrong. Today we are largely trending toward more humanistic or science based views. As a philosophy and theology major in college I will have to be careful here not to go too far down the rabbit hole, but let me try to summarize my thoughts.

Morality in the context of God, Religion or Spirituality will be far too polarized in opinions to reach concensus at the scale we are talking about. Ultimately a humanist (or godless or god-neutral) means of weighting ones worth and decisions will prevail. For many, this may be your favorite view of mine yet. For me, it is a terrible mistake. Humanity will be tyrannical in its own super-religion of humanism in that it believes it has finally evolved or arrived at the one great truth: science. This Godless society will drive anyone with a devout faith into marginalization due to its lack of compliance and general inability to function healthily within the systems incorporated. Many of you will understand exactly what this could look like. Still many others will consider these views preposterous. Again, only time will tell.

My final pleas, my cautions tossed out upon the wind, would be to enjoy the great redistribution of wealth. To be your most amazing self. Focus on creating value as that is what will be largely rewarded in the future. Fight for those “values” to be rightly accounted within a lense that protects diversity of thought. Protect your own and others freedom in any system you adopt. And if at all possible, let the God of this Universe, the creator of all have His place at the top of the new system. A Godless future will be no future at all. -Unedited 2019

I recently unveiled our intention to create integrations for Jurisdictional government as a part of our permissions or “proof” process for validating transactions on the blockchain for Infinance.io . I thought it may be beneficial for the community to take a second to unpack some of these thoughts on this “medium” . Thanks in advance for all of your continued support in realizing this dream of a tokenized world post ICO.

Currently most ICO or token projects are running on some version of proof of work that requires large super computer farms to solve complex algorithms draining whole companies of electricity. While this may stick around to compete for the limited supply of bitcoin — it is not the scalable protocol of the future. Proof of Stake attempted to solve this via allocating voting rites to token holders and removing the need for expensive computing algorithms. But its not just a green issue…

As we look to scale past the current ceiling (is it 20k or 10k? I cant remember), we need to understand where the money will be coming from- and more importantly- why its not here yet. Out of the worlds 85+ Trillion money supply approximately 65 Trillion is “managed” money. This is essentially institutionally held, traded or otherwise managed money outside of direct consumers hands. Unfortunately for most blockchain projects, that money is often tightly regulated and requires transparency and accountability. Currently many projects exist to protect their consumers from such regulation and privacy concerns. In order to bridge the gap we need to create a consensus balance between the people and the governing bodies that they have chosen to align their lives or businesses. Infinance.io exists to bridge that gapFor an institutional bank or national exchange, this is not simply a matter of choice, it is a legal barrier to entry.

But let me take a step back. How did we get here? And am I sure the problem is real? Oh, its real. Running a small but growing RIA (registered investment advisor) in america I found out in 2017 that I could manage digital assets side by side traditional assets. After publishing my necessary legal amendments with the SEC (such as our ADV 2a , 2b and Investment Advisor contracts/wrap brochure) to add the new language to allow for digital asset management I found that the necessary infrastructure to accomplish the same standard of accountability and performance reporting were lacking to say the least (not to mention custody issues and other significant hurdles). This birthed Infinance.io our financial infrastructure platform for financial companies looking to bring digital assets into their mix of portfolios. Once I mentioned to the world this was happening, we immediately had dozens of requests from financial companies in america looking to onboard their funds. But still- with the regulatory environment for tokens so challenged in the US we were advised by our first hedge fund partner to take our project base offshore while we establish our “utility”. I mean seriously how can we treat every flow of coin in and out of our system as constructively received income taxed at ordinary income rates and regulated as a security transaction when we exist solely to add tracking, reporting and compliance? Clearly their needs to be more clarity on how to play in these sandboxes. And furthermore with a new “worldwide economy” it is imperative that any scalable solution will have the flexibility to deal with territories differently.

This is where the blockchain is beautiful. By leveraging the power of blockchain hash protocols and distributed ledger technology we can automate the tracking of trades and exchanges and handle varied permissions/integrations for tax and regulatory input. Ultimately this will allow digital territories to be more clearly defined and people, companies and governments to play nicer in more clearly defined sandboxes that they create together. So for those of you who are building the fabric of our future world — lets not throw away the governments that got us here. Let’s help them get better.