10. Mechanism Example - Financial

Unique Mechanism Example: Financial (Book + Newsletter)Show more

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I. Mechanism Behind The Problem
Every one of our biggest companies today — Apple, Facebook, Microsoft, Amazon, and, of course, Google — is a tech titan that’s built their empire on what most of us know as “Big Data.”

That is, they feed off of the information we give them. They give away their services in exchange for advertising dollars.

They give you stuff and you give them data. And then they sell ads.

Think about it. You give Facebook a list of your friends. Your travel plans. Your opinions and interests. You give Google your shopping plans. Your iPhone tracks your location, literally to the last fraction of a mile.

What you get in return can be amazing. Ease of travel. Ease of communication. Ease of search. And even “free” search besides.

Yet it will also be the fatal flaw that dooms Google and every other business built on those same data-thirsty foundations. Why?

Don’t get me wrong.

Each one of these giants is among the most important companies in financial history. And each has replaced the biggest corporations of 10 years earlier — Exxon, Walmart, China Petroleum, and others.

But just as those firms have cycled out of the top positions on Wall Street and across our economy…

So will these tech giants be forced into retreat, thanks to the very same phenomenon that once helped them explode in size…

As I write on page 90 of Life After Google…

“The most important effect of [the Google model] is… [that] you avoid the real-time demands of preventing hacks and thefts… [Google can] place the burden of security on the customer… This very lack of concern with security will be Google’s undoing…”

In other words, our new “Big Data”-driven universe has a fundamental flaw.

As it stands, literally billions of items of personal data is hacked every year. The Google model cannot last. It’s destined to crumble. And with it, we’ll lose a major cornerstone of today’s massive digital economy.

As I said, one thing for sure is that 10 years from now, the big tech companies that dominate our world will NOT be the same companies you hear about and read about so much today.

Who will take their place?

You see, today’s internet wasn’t built for protecting your credit card information, guarding your online banking transactions, or shielding your family photos from prying eyes.

It was built for openly sharing information, like a gigantic encyclopedia.

This makes it deeply unsafe and insecure by design.

How many hacks and how many billions of data breaches will it take before we admit that?

Scan your memory and ask yourself…

Have you ever bought a bag of topsoil or a lawnmower at Home Depot?

Because if you have, you need to know that hackers broke into their computers in September 2014 and stole 56 million credit card numbers.

Hopefully not yours.

Meanwhile, have you or anyone you know ever taken an Uber?

Because in 2016, two hackers stole names, emails and mobile numbers for as many as 57 million of their customers.

Again, I hope you weren’t one of them.

And do you have health insurance?

Chances are you do.

In which case, you should know that Anthem, America’s second-biggest insurer, suffered a major security breach in 2015.

Foreign hackers broke into Anthem’s database and swiped names, Social Security numbers and even job histories for close to 79 million customers.

And the list goes on…

77 million names hacked from Sony PlayStation databanks… over 110 million names hacked from Target… 145 million customer names hacked at eBay…

500 million names hacked from Marriott International… another 412 million hacked at the X-rated dating site Adult Friend Finder… and of course, the 143 million accounts that were famously hacked from Equifax.

This Equifax breach alone represents exposed financial secrets for nearly half the United States! No wonder they got slapped with a $700 million settlement suit by the FCC.

But that still does nothing to guarantee that your data is safe.

If you haven’t been exposed already, how long before you are?

And how long before Wall Street’s other biggest companies get hit with similar fines?

How long before hackers go after an even bigger prize, say a trillion-dollar heist from America’s banking system? After all the SWIFT system for transferring money overseas has already been hacked.

And how long before you wake up to find your assets frozen… or to the news that some hacker in Russia or Singapore has used your name to take out a new mortgage, open a bank account, or get a line of credit? Or some military hackers have brought down crucial parts of our power grid?

And get this, as an American you’re especially vulnerable.

Because 97% of all records stolen originate in the United States.

II. Mechanism Behind The Solution

But it doesn’t have to be that way.

As I say on page 92 of my book…

“Some thousands of companies you’ve never heard of are investing billions in that effort [to fix the lack of security on the internet]. Collectively they will give birth to a new network whose most powerful architectural imperative will be the security of transactions… So fundamental will security be to this new system that its very name will be derived from it. It will be the cryptocosm…”

If that’s the first time you’re hearing that term — cryptocosm — I’m not surprised.

The cryptocosm is what I call this new “system of the world.” As you can guess, it gets its roots in the cryptographic revolution that gave us Bitcoin.

But it’s so much more.

As I reveal on page 267…

“Bitcoin aimed to burst the overstuffed $5.1 trillion daily piñata of modern currencies and unleash a crypto-Copia. But the units of account — the monetary measuring sticks — remained in the world of fiat and gold…”

This is why you still see values for cryptocurrencies surging and collapsing, to this day.

Until Wall Street and Main Street overcome the key flaw of all these currencies, that won’t change. But the real miracle, the real innovation, isn’t the financial one.

It’s the underlying technology.

This is the blueprint that’s going to give us the brand-new infrastructures. And it’s going to do so much more than disrupt our money or today’s internet.

As you’ll see in Life After Google, this new system will give us new ways to escape the swamp of overregulation, cut out intermediaries, and radically lower costs for doing business.

It’s going to help us free up capital, give power to legions of new entrepreneurs, and freely expand wealth creation.

And all of this, with real privacy and true identities at its core.

In short, this was the internet as it always should have been.

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