The Open Money growth story

Five reasons why digital asset systems are growing so fast

In a previous post we talked about why the timing is right for Open Money. Another part of the timing story is why open, permissionless money systems are growing so fast.

Like the timing story, the growth story is about the synergy of various forces all coming together at the same time.

1. Code-enforced digital scarcity

In traditional economics, scarcity is often tied to physical resources. Gold is rare because of geological processes. Fiat currencies, or government issued currencies, are managed by central banks to simulate scarcity.

Digital assets, by contrast, enforce scarcity with code.

Smart contracts ensure unique ownership of NFTs. This scarcity isn’t natural – it’s a constraint baked into the software running the digital systems. It's also transparent (anyone can check the code) and immutable. The result is digital value systems with foundations that are resistant to tampering, debasement, or the quirks and shortcomings of human governance.

There are still plenty of risks related to using Open Money systems, which we will dive into in future posts. Also, not all digital assets systems are created equal, and the generalities described here are summaries of the bigger, more established digital money systems and don't accurately describe all systems.

2. The internet’s speed and connectivity

Digital money is native to the internet’s connectivity. Transactions aren’t bound by borders, banking hours, or intermediaries. The rise of Web3 — where applications are built on decentralized networks — adds a new layer of potential.

Imagine sending money directly through social media apps or swapping assets seamlessly across platforms. Open Money isn’t just fast, it’s interoperable, blending financial activity with the internet’s existing fabric. The goal is to make money more like information and less like its own standalone entity with a unique set of rules and rituals.

3. Monetizing attention differently

In Web2, attention became currency. Platforms like Facebook and YouTube amassed fortunes by selling users’ attention to advertisers. Open Money flips this model, allowing individuals to directly monetize their attention.

Instead of being commoditized, your focus and attention becomes an asset you control – the explosion of memecoins is a great example of the new attention economy. This shift aligns incentives, offering a fairer exchange between consumers, creators, and platforms.

4. Enhanced safeguarding

The rise of decentralized systems introduces a better balance between connectivity and control. Blockchains provide transparency and security without central gatekeepers. Meanwhile, cryptographic tools like zero-knowledge proofs offer privacy in a way centralized systems can’t.

Open money leverages these innovations to create financial systems where users own their data and identities — restoring a sense of agency in a hyperconnected world.

5. Insulating from algorithms and AI agents

In an era where algorithms dictate our feeds, choices, and even moods, Open Money offers a form of resistance. Decentralized assets and platforms provide an alternative for people to have more individualized control over their digital footprint and operations.

Some of the importance of Open Money is future-proofing. As artificial intelligence becomes more powerful, the autonomy and individualized levels of control of Open Money systems becomes a safeguard — ensuring value remains in the hands of people, not machines.

A paradigm shift in progress

The rise of Open Money isn’t just about the assets themselves. It’s a shift in how value is created, shared, and controlled. These five forces — digital scarcity, internet-native speed, new monetization models, enhanced security, and algorithmic insulation — are converging to make the internet better.