We are entering into a new age of currency and its important that we remove our preconceived notion of what a currency is and what it can achieve. Digital currencies has the opportunity to reward producers, the true creators of value so that they can be properly compensated for their amazing contributions to humanity and society.
Leonel Chavez is a founding partner of Producers Market. Leonel has been a farmer his entire life. For the last 20 years Leonel has been using organic practices to grow avocados.
I asked Leonel "when was the last time you were economically rewarded for using the Mexican peso in your farming operations?"
The question took Leonel by surprise. He looked at me with confusion.
The concept of receiving an economic benefit simply by using a currency for transaction and storing of value seems preposterous. Leonel gets paid in Mexican pesos (or US dollars) for the market price of the avocados he is selling. There has never been an additional economic bonus by the simple use of the currency.
Well… Welcome to 2018, the age of digital currency.
Agricultural producers around the world transact trillions of dollars per year in a variety of fiat currencies and barter systems. Those trillions of dollars of value are limited to the value itself.
Assume the value of a digital currency appreciate based upon its usage, then the action of using a currency will increase its value. Furthermore, holding onto that value in the digital currency post-transaction will help to sustain this higher value. The aggregate action of usage and holding onto of currency by tens, hundreds, thousands, or perhaps millions of producers, can greatly enhance the value of the digital currency.
Therefore, selling a container of organic avocados worth $60,000 today could be worth $1,000,000 in ten years if Leonel keeps the transaction in the digital currency assuming the currency becomes highly transacted and appreciates in value.
Furthermore, the limitless boundaries of digital currency and the platforms on which they operate provides algorithmic opportunities to reward the users of the currency for mining and then transacting with the currency providing a direct incentive in addition to the simply appreciation of currency value.
With our @ag coin digital transaction currency and our @PMKT platform token we are developing algorithms that will incentivize producers for using the currency and platform by rewarding them with additional transactional coins and ownership tokens of the platform itself. While much work needs to be done with mathematicians and people much smarter than myself, I am very clear and optimistic that solutions are waiting for us to integrate into our currency and transaction systems to empower a better way of doing business and rewarding farmers for their risks and efforts.