What do Google, Amazon, Facebook, Microsoft and Apple have in common? you might say “They’re all tech giants,” but if you live in Europe or China you might have a different answer: “They’re all American.”
In the late 90’s and early 2000’s, the tech revolution hatched in America, largely in Silicon Valley, and and proceeded to take over the world in the form of iPhones, ads and social networks. A period of benign neglect meant that these companies were free from government interference, both in the US and abroad. No one realized that a website for teenagers to hookup would end up a center of global power.
All that is changing. The world has woken up to the importance of technology, and they no longer want the US to dominate.
China is the leader in blocking US tech companies using the “Great Firewall” of China. Outside social networks are banned, and the government has been accused of stealing intellectual property from Google. They want to grow their own Silicon Valley, not merely be a playground for America.
Europe is catching up as well. While historical norms and a long alliance with the US means they are not as brashly protectionist as China, recent policies show a trend. GDPR and a proposed 3% tax on tech giants are both targeted at American companies. With the Trump administration’s anti-free trade policies, why should Europe play nice?
ICOs to the Rescue
What does this mean for American entrepreneurs and investors? Will they be locked out of the global market for good?
The answer is simple: if you cannot beat them, join them.
The American tech sector needs to align its interests with the rest of the world. They need to be allies, not rivals, if they want continued prosperity.
Fortunately, the way to do this has just emerged: the ICO.
Unlike traditional funding models, which favored a tightly connected group of investors on Sand Hill Road, ICOs are international. Anyone, located anywhere, can buy tokens in ICOs for as low as a dollar in bitcoin.
Moreover, the business model of an ICO is decentralized. There isn’t a company based in Silicon Valley calling all the shots and collecting 20% monopoly profits. Development of open protocols like bitcoin and Ethereum takes place on IRC and github with coders around the world.
Routing Around Tariffs
China has blocked Google and Facebook, and they have blocked Bitcoin Exchanges, but they haven’t blocked the bitcoin protocol. Why not?
They are not dumb. They know you cannot block an open protocol, and even if you could, there’s no point. The profits are not going to America. You’d only be cutting off your native tech industry from a new market.
The lesson for Silicon Valley is clear: get on board with ICOs, or get locked out of the global market.
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