Project One

Alternative investments and retail use of cryptocurrency for the future of Oklahoma and America

April 7th 2024

Consumers, businesses, banks, local and state governments can cooperate in the use of cryptocurrency for alternative markets. This can generate new assets that function as investments and can fund future programs for education, law enforcement, employment, homelessness, and infrastructure. This new market will increase financial and technological literacy and attract technology businesses. This can secure the financial sovereignty of individuals and states, and serve as an alternative to new federal financial technology. This is not a competing alternative to cash or the modern banking system, or a system to evade taxation. No new technology needs to be created, the startup cost is minimal, and security can be maximized.

The use of cryptocurrency in retail businesses and banking is not clear. It occupies legal gray areas, similar to other alternative markets such as the medical marijuana industry. Cryptocurrency can be used for such markets. Litecoin is an ideal candidate, as it is faster and its fees are lower than Bitcoin. Businesses can choose to conduct transactions with a variety of cryptocurrencies, and should. A consumer can buy cryptocurrency with US Dollars from services such as Cash App, and then buy medical marijuana by transferring the funds to the dispensaries crypto wallet address. The dispensary conducts business in cryptocurrency using a hot wallet that is connected to the internet, and then transfers funds to a cold wallet, which is disconnected from the internet and is considered more secure. There are a variety of technologies that can be used as cold wallets, including USB drives, encrypted hard drives, and cards that are similar to debit cards with NFC chips.

Some of the security flaws of cold wallets containing cryptocurrency are similar to cash, as it can be damaged or physically stolen. It is also possible for cryptocurrency to be stolen from wallets without needing to physically steal the device as long as one can physically connect to it. Cold storage may offer some protection from future technology that can break cryptocurrency encryption, known as quantum computing. Banks are an ideal place to store cold wallets with large quantities of cryptocurrency, as physical access is highly secured. The purpose of cryptocurrency is to create authentic currency that cannot be recklessly duplicated, it offers very little for anonymity, as they run on public ledgers. Banks offer increased transparency, as individuals must verify their identity to store currency in the bank. Retail businesses can store a percentage of their sales from cryptocurrency in banks, for the purpose of paying state and local taxes. State and local governments can keep their taxed cryptocurrency in banks as a form of investment, as a free service from the bank. If the asset is managed properly, state and local governments can strategically draw from these funds in the years to come as the asset grows in value.

This new financial technology system cannot generate income immediately. This system is ideal for long term investment. If banks and governments were early adopters of Bitcoin, their investments would have multiplied many times over in the years since its creation. This system can mitigate bad actors and organizations that are not invested in the communities they occupy. This system must be created with retail businesses that are investing in their community. They must educate the consumers regarding the use and purpose of this new system. This is not a competing alternative to cash or the modern banking system, or a system to evade taxation. This system is a long term investment. Retail businesses should strictly limit and control the amount of transactions done using cryptocurrency. Examples of businesses that accept cryptocurrency as payment include Gucci and Tesla. Retailers that serve middle to upper class clients that are in favor of regulation are ideal.

In order to profit, consumers, businesses, banks, and governments must become long term investors of cryptocurrency, and must buy and hold their assets. As more people use the asset as currency, its value increases and stabilizes. Cryptocurrency mining operations will increase from increased demand and usage of cryptocurrency. This is a community investment strategy, with an international resource. The initial goals of such a system are proof of concept, security testing, and setting regulations, not profit. Cryptocurrency is already used in alternative medicine internationally. Its use will increase as states and nations continue on the path of conflicting health programs, including medical marijuana, peptide therapy, vaccinations, gene therapy, and agricultural genetic technology. Potential also exist in other industries such as the firearm industry, where financial institutions are increasingly scrutinizing such purchases.