Does Ownership Even Matter Anymore?

In 2016 the World Economic Forum famously published “8 Predictions for The World in 2030” with “You will own nothing and you'll be happy” as a top prediction. This turned into a meme which inspired this article and memes within.

The WEF isn't totally braindead. It is true that from a philosophical perspective, we do not "own" anything in the absolute sense, as we cannot control everything in the world around us except for our thoughts and actions.

On happiness, Marcus Aurelius, Emperor of Rome, wrote in his diary the Meditations:

"Very little is needed to make a happy life; it is all within yourself in your way of thinking."

Marcus also understood that money, property and even our bodies eventually go back to the source from which they came. However, if owning property is not guaranteed, what is?

Epictetus, a freed Roman slave turned philosopher, wrote:

“None of these things are foretold to me; but either to my paltry body, or property, or reputation, or children, or wife. But to me all omens are lucky, if I will. For whichever of these things happens, it is in my control to derive advantage from it.”

In essence, we may possess assets such as money or property temporarily, as fate permits. However, there is a nuance where, the unique human ability to control our thoughts and actions, enables us to manage ourselves and our property virtuously.

To explore this further, lets answer some other, basic yet pressing questions.

How is the nature of ownership changing?

In an expanding services economy, people are increasingly opting to rent or use services rather than buy and own outright. This shift is being driven by a variety of factors, including changing consumer preferences, environmental impact of consumption, and the rise of the sharing economy. A study by the consulting firm McKinsey & Company found that the global market for rental products and services, including housing, cars, and equipment, is worth around $1.5 trillion and is growing at a rate of around 10% per year. With the shift, large corporations have gained control over products, services and data. Millions of people use Uber for rides, Netflix and Spotify for streaming, Google for file storage and WeWork for office space.

Housing is trending in a similar fashion. Renting has increased as owning a home becomes more difficult to purchase due to housing supply in populated areas, inflation, stagnant wages, and cyclical interest rates. According to a report by the National Association of Realtors, the share of Americans who own their homes has been declining since 2004 and reached a low of 65.4% in 2020. Furthermore, investment firms like Blackstone, American Homes 4 Rent and others are buying up homes and apartments. The Wall Street Journal reported investment firms buying more than 25% of U.S. homes sold in some parts of the country is titled "Investment Firms Buy More Than 20% of U.S. Homes Sold to Institutional Investors" and was published on June 23, 2021.

When we deposit money in a bank account stocks, we often assume that we have complete ownership and control over these assets. However, in reality, there are some limitations and nuances to this ownership. The fractional reserve banking system means that banks are only required to keep a fraction of their deposits on hand, and can lend out the rest, potentially leading to issues if too many people try to withdraw their money at once. Additionally, when we own stocks, they are often registered in the street name of the broker rather than our own name, which means that technically the broker owns the stocks and we simply have a claim to them. These factors can limit our control and ownership of these assets and highlight the importance of understanding the systems and institutions through which we manage and invest our wealth.

Finally, the digital asset economy is a growing market for assets that can be owned and traded digitally, such as cryptocurrencies, art, equities, bonds, and real estate. This shift towards digital assets is reshaping the world in a number of ways, including increasing financial inclusion and democratizing access to investment opportunities. It also provides new ways for creators to monetize their work and enables more efficient and secure transactions. A study by the Cambridge Center for Alternative Finance found that the number of people using cryptocurrencies has grown significantly in recent years, with over 100 million people worldwide now using them.

What can history teach us?

Throughout history, there have been many examples of individuals and communities advocating and fighting for property rights. However, there are real consequences at stake when opposing forces go unchecked. ?

"The past is rolled up and behind us like a scroll, the present we open and read, and the future is ours to write." - Will Durant

The Magna Carta was signed in 1215 as a peace treaty between King John and a group of rebel barons who were unhappy with the King's abuse of power and disregard for their rights. The document outlined a series of basic rights and protections for all freemen in England, including the right to a fair trial by a jury of peers and protection from arbitrary imprisonment. It also recognized the property rights of landowners and protected them from arbitrary confiscation by the crown.

The American Revolution, which was largely motivated by a desire for property rights and self-determination. American colonists were frustrated by British policies that restricted their ability to own and develop land, such as the Proclamation of 1763 and the Quartering Act. The American Revolution was fought in part to secure the right to own and control property without interference from the British government.

The Homestead Act of 1862 provided free land to settlers who agreed to improve and cultivate it, as a way of encouraging westward expansion and settlement. It helped many people become landowners and build new lives for themselves and their families, although it had devastating consequences for Native Americans who were dispossessed of their lands.

There have been several instances in history where governments have taken away gold from their citizens. One of the most well-known examples is the Executive Order 6102 signed by US President Franklin D. Roosevelt in 1933, which made it illegal for US citizens to own gold coins, bullion, or certificates. The order required citizens to exchange their gold for paper money at a fixed price, effectively confiscating their gold. The purpose of this order was to combat the effects of the Great Depression by controlling the money supply and stabilizing the value of the US dollar.

Following the fall of communism in Eastern Europe, many countries faced challenges in establishing clear property rights. In many cases, property was previously owned by the state and individuals were not allowed to own property. Establishing clear ownership rights was critical for economic development and helped to spur investment and growth. For example, in the Czech Republic, property rights reforms in the 1990s led to increased foreign investment and economic growth.

What are the benefits of owning property?

Property rights are an essential aspect of ownership and personal autonomy. They provide the legal right to control, use, and dispose of physical and intellectual property, within the limits of the law. These rights are critical for protecting personal and financial interests, and for providing a sense of security and stability.

Without property rights, individuals and businesses may be less likely to invest, innovate, or engage in productive economic activity. The "Economic Freedom of the World" report by the Fraser Institute (2021) found that countries with greater economic freedom, including strong protection of property rights, tend to have higher levels of income and greater economic growth.

Furthermore, a Harvard study conducted by Simeon Djankov et al. in 2003, examined the relationship between property rights and economic development. The study found that countries with strong property rights tend to have higher levels of economic development and lower levels of corruption. This is because strong property rights provide individuals and businesses with a sense of security and stability, which encourages investment and entrepreneurship. When property rights are weak or non-existent, individuals are less likely to invest in their own assets, as they may be taken away by others or the government without compensation. This lack of investment can lead to slower economic growth and development. Additionally, weak property rights can lead to corruption, as government officials and others may use their power to take property or extract bribes from those who wish to keep their property.

How is data privacy linked?

Privacy rights are also closely related to the concept of ownership and property rights. In the digital age, our personal information and data have become valuable assets that can be collected, analyzed, and monetized by companies and other entities. Privacy rights like GDPR and California Consumer Privacy Act, provide individuals with legal protection over their personal information, which allows them to control how it is collected, used, and shared.

The Pew Research Center found 81% of the US public say that the potential risks they face because of data collection by companies outweigh the benefits, and 66% say the same about government data collection. At the same time, a majority of Americans report being concerned about the way their data is being used by companies (79%) or the government (64%). Most also feel they have little or no control over how these entities use their personal information.

Without privacy rights, individuals may be subject to surveillance, profiling, or other forms of invasive monitoring that can undermine their personal autonomy and freedom. Some real consequences are:

Financial losses: According to the Federal Trade Commission (FTC), identity theft was the second most common category of consumer complaints in the United States in 2022, with 2.8 million reports. The FTC also reported that consumers reported losing over $5.8 billion to fraud in 2022.

Damage to reputation: Another study by the Pew Research Center found that 59% of U.S. adults who had experienced a major data breach believed their personal information was less secure as a result. Additionally, 47% said the breach had a major impact on their personal life, and 74% said the breach had a major impact on their trust in institutions.

Threats to physical safety: A report by the Electronic Frontier Foundation (EFF) found that the use of surveillance technologies such as facial recognition can lead to false identifications, which can have serious consequences. For example, a false identification could lead to an innocent person being arrested or even injured.

Inhibiting economic growth and innovation: “The Value of Our Digital Identity” by BCG found that businesses that have strong data privacy practices are more likely to achieve above-average financial returns. The study also found that strong data privacy practices can lead to increased customer loyalty and trust, which can drive growth and innovation.

What assets can never be taken away (even after death)?

There are assets that may be difficult for authorities to confiscate, such as physical assets that can be easily hidden or transferred outside of the reach of authorities. For example, cash or gold that is buried in a secret location or held in a safety deposit box that only the owner has access to may be difficult for authorities to seize. Digital Assets and cryptocurrencies like Ethereum also have this property.

However, Bitcoin's decentralized and pseudonymous nature, combined with its limited supply, makes it the only asset in the universe that cannot be take away and helps users if you lose it or go to the grave with it. Bitcoin is difficult to confiscate without the owner's cooperation, assuming the owner has taken appropriate steps to protect their private key and remain anonymous. If the owner of Bitcoin does not give away their seed and is killed or otherwise incapacitated, then their Bitcoin holdings would effectively become inaccessible and could not be confiscated. Obviously, if inheritance is an option this is not an issue.

However, unlike cash, gold and Ethereum, which can be manipulated by central authorities, Bitcoin has a limited supply of 21 million. This means that every time Bitcoin is lost, the remaining coins become more valuable, which can lead to an increase in the price of Bitcoin. In other words, a philanthropic donation to the network and the people still alive using it. Bitcoin also has diffuse network of miners, node operators, and users, with no single organization or individual having significant control over the network. This makes it more resistant to attempts at central authority manipulation, as there are no single points of control or intervention within the system.

How to manage digital assets and data?

As we continue to shift towards a more digital economy, the value of digital assets and data is going to increase, making it even more critical for individuals to have control over their digital property.

Non-custodial wallets, such as hardware wallets or software wallets like Exodus, ensure control over assets by allowing the user to maintain control of their private keys. Private keys are essentially passwords that provide access to the user's assets on the blockchain. Non-custodial wallets do not store or manage the private keys on behalf of the user, which means that the user is solely responsible for safeguarding their private keys.

Decentralized identity (DID) systems, for example, are being developed to give individuals more control over their digital identities. DID systems use blockchain technology to enable individuals to create and manage their own decentralized identities, rather than relying on centralized identity providers. This can give individuals more control over their personal data, as they can choose what information to share and who to share it with.

Similarly, there are decentralized finance (DeFi) platforms being developed that allow individuals to manage their financial assets without relying on centralized financial institutions. DeFi platforms use blockchain technology to create decentralized lending, trading, and other financial services that can be accessed and managed directly by users. This can give individuals more control over their financial data and assets, as they can manage them directly without relying on intermediaries.

In the future it may be possible for a wallets to store financial profile data and integrate with decentralized identity (DID) systems to share with centralized banks or other financial institutions for loan applications or other services. However, this would require development and integration work to ensure that the data is stored securely and only shared with authorized parties.

One of the challenges of storing personal data on a blockchain is ensuring that the data is kept private and secure, while still being accessible when needed. There are various approaches to addressing this challenge, such as using zero-knowledge proofs to enable selective disclosure of data without revealing the underlying data itself.

Additionally, integrating with centralized banks or other financial institutions would require some level of regulatory compliance and coordination with those institutions to ensure that the data is being shared in a secure and compliant manner.

In short, as long as the user has access to their private keys, they can transfer or manage their assets without relying on a third-party custodian. This can help to ensure that the user has complete control over their assets and that the assets cannot be accessed or confiscated without their permission.

Conclusion

Making a strong case for property and privacy rights can be difficult. At its core, it is true that many of the assets we possess, such as money or property, are temporary, and their ownership can be fleeting. However, what is certain is our ability to govern our own thoughts and actions, which in turn empowers us to manage our assets efficiently and use them to enhance our own and others' lives. Ultimately, our capacity to control our choices and make informed decisions can help us make the most of what we have, no matter how temporary our ownership of it may be.

Please share your thoughts on the topic. I am curious to see where everyone is on this issue.