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Cryptocosm and Life After Google

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My appreciation for Andy Kessler’s way of thinking began with Wall Street Meat and Running Money. A few years ago I had the opportunity to hear him speak at a Cato 200 gathering in Laguna Beach, CA. I continue to keep up with him through his commentary at the WSJ where, in this piece, he shares some thoughts from another great mind, futurist George Gilder:

My friend the futurist George Gilder outlines a theory in “Life After Google,” his forthcoming book. He suggests that while advertising prices might be correct, the free-service model cannot deliver sustainable growth. Mr. Gilder explains that Google “achieved unprecedented scale by a commitment to ‘free.’ But free flow is not cash flow. It bypasses the entrepreneurial learning that is conveyed through the remorseless messaging of price. Without prices, all that is left to confine consumption is the scarcity of time. Beyond the scores of hours a week for its smartphone customers, time is closing in on Google.”

Google’s centralized architecture also could come under attack from the huge decentralized infrastructure scaling up to mine bitcoins. Even if bitcoin drops below $1,000, the installed glut of global blockchain servers could, Mr. Gilder argues, “marshal a virtual planetary parallel computer that dwarfs the CPU and GPU arrays in Google data centers with their mere millions of servers.”

Mr. Gilder notes: “The cryptocosm can mobilize computer power in volumes that dwarf even the data centers of the leviathans. In this case, the advances in computer science pioneered at Google serve to emancipate the world from Google’s silos.” This may be a way off, but investment implications come sooner than you think.

Read more here.

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E.J. Smith - Your Survival Guy

E.J. Smith is Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH. His first drum set was a 5-piece Slingerland with Zilldjians. He grew-up worshiping Neil Peart of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West and Paris. Please get in touch with E.J. at ejsmith@yoursurvivalguy.com