What happens when we break through the minimum transaction threshold?


MOST of the transactions that COULD take place do not actually occur because they fall beneath the MINIMUM TRANSACTION THRESHOLD (MTT).

The MTT is an artifact of the need to involve a “trusted third party” in all transactions.

Because of this MTT, it’s literally impossible to establish a TRUE, completely efficient pay-as-you-go plan for ANY GOOD OR SERVICE!

As a result, some segment of the market pays too much for goods/services they don’t use, and another segment pays too little for what they DO use.

This transactional efficiency problem affects everyone, and from my perspective, the most significant effects are psychological.

If you’ve ever looked at various payment models and thought, “This doesn’t quite fit,” you’re right! Thanks to the MTT, a perfect match is impossible.

Here’s where things get REALLY interesting:

Because of the MTT, ALL of the pricing models we know are gross approximations instead of exact matches.

But there’s more to it—

MOST of the transactions that WOULD take place would be below the MTT!

This means everything we know about the exchange of money is like the tip of an iceberg.

We are familiar with the idea of “bundled value,” as bundles are necessary to overcome the MTT.

But we aren’t familiar with true 1:1 micro-transactions…

By 2050, a MAJORITY of ALL economic activity will come in the form of these micro transactions.

Crucially, these will be conducted exclusively with cryptocurrencies because the legacy financial system cannot support anything below the MTT!

Astute readers will wonder, “But doesn’t crypto have an MTT as well?”

Indeed! But this MTT is comprised of just two components:

• Compensation for the amount of energy required to perform the transaction
• A tiny incentive for the network to provide computational power

Notice what’s missing? 🧐

No transaction fees for “trusted third parties,” simply because crypto prevents the need for the existence of such parties.

This changes everything we think we know about transactions 🤯