Peter Diamandis writes:
But what people aren’t talking about, and what’s getting my attention, is a forthcoming rapid demonetizationof the cost of living.
Meaning — it’s getting cheaper and cheaper to meet our basic needs.
Powered by developments in exponential technologies, the cost of housing, transportation, food, health care, entertainment, clothing, education and so on will fall, eventually approaching, believe it or not, zero.
In this blog, I’ll explore how people spend their money now and how “technological socialism” (i.e., having our lives taken care of by technology) can demonetize living.
As an entrepreneur, CEO or leader, understanding this trend and its implications is important…it will change the way we live, work, and play in the years ahead.
Sounds far fetched but …
To me, “demonetization” means the ability of technology to take a product or service that was previously expensive and make it substantially cheaper or potentially free (in the extreme boundary condition). It means removing money from the equation.
Consider Photography: In the Kodak years, photography was expensive. You paid for the camera, for the film, for developing the film, and so on. Today, during the megapixel era, the camera in your phone is free — no film, no developing. Completely demonetized.
Consider Information/Research: In years past, collecting obscure data was hard, expensive in time if you did it yourself, or expensive in money if you hired researchers. Today, during the Google era, it’s free and the quality is 1000x better. Access to information, data, and research is fully demonetized.
Consider live video or phone calls: Demonetized by Skype, Google Hangouts, the list goes on:
Craigslist demonetized classifieds
iTunes demonetized the music industry
Uber demonetized transportation
Airbnb demonetized hotels
Amazon demonetized bookstores
All good examples. Who spends on classified ads now? Photography only now costs time for most people. Calls to friends overseas are free and used to cost hundreds of dollars.
The automotive market (a trillion dollars) is being demonetized by startups like Uber. But this is just the beginning.
When Uber rolls out fully autonomous services, your cost of transportation will plummet.
Think about all of the related costs that disappear: auto insurance, auto repairs, parking, fuel, parking tickets. Your overall cost of “getting around” will be 5 to 10 times cheaper when compared to owning a car.
This is the future of “car as a service.”
Possibly the most exciting aspect.