naval ravikant

Will Your Phone Do Everything? – Naval Ravikant on Appetite for Disruption (Part II)

Check out the Appetite for Disruption Episode Page & Show Notes

Check out the Podcast Notes for Part I

Key Takeaways

  • “Over time, I think Apple Pay and Google Pay are going to completely replace credit cards”Naval Ravikant
    • As the concept of a credit card number goes away: “Your identity becomes your new wallet. Your face is your new credit card.”
  • With crypto, money is becoming code (and code is just speech)
  • The physical world is becoming more digital
  • The gig economy/internet will change the way we think about employment:
    • “We may be heading toward a world in which, if you’re employed, your employer is either one of these gargantuan companies that’s running an entire industry, or you’re self-employed. There won’t be that much in between.”Naval Ravikant

Intro

The Death of Credit Cards

  • “Over time, I think Apple Pay and Google Pay are going to completely replace credit cards” Naval Ravikant
    • This may sound controversial, but with Google and Apple, you essentially have a wallet in your pocket with incredibly accurate biometric ID – your phone knows where you are, where you’re going, who you are through face/touch ID, etc. (it has a zillion ways to authenticate you that are always evolving and getting better)
    • The effects of this?
      • Since there’d be no fraud (due to face/touch ID), Apple/Google would be able to kick back more points than you would get from your normal credit card
      • As Apple/Google have tons of data on you, they’d be able to extend better credit terms
      • For the merchants, there’d be fewer charge-backs (because there’d be less fraud)
      • As the concept of a credit card number goes away: “Your identity becomes your new wallet. Your face is your new credit card.”Naval Ravikant
  • 🎧 “All credit and payments is, is basically you saying, ‘I’m going to pay,’ and the system saying, ‘He/she is good for it.’ That system really belongs inside the smartphone. Those people [Apple and Google] have more data on you than anybody. A smartphone with data can authenticate both you, your trustworthiness, and your reliability to pay better than anything else.”Naval Ravikant
  • “There will come a day when you won’t even be reaching for Apple Pay or Google Pay. You’ll literately be walking around, and purely through facial recognition and hand gestures, you’ll be getting access to buildings, credit, money, and opening/closing doors. It’s not that far off.” – Naval Ravikant

Merging the Physical and Digital Worlds (Part I)

  • “So much of the physical world is actually the digital world in a clunky way, and it’s going to become a lot more seamless. – Naval Ravikant
    • Take money – it went from cash and gold to numbers in our bank account (but even then t’s backed up by physical banks)
      • With crypto, money is becoming code (and code is just speech)
  • But here’s the thing…
    • “All of financial regulation essentially depends on this idea that you can restrict the flow of money where you don’t want it to flow. But at the same time, speech is a free thing. We have freedom of speech. It’s going to be very interesting to see how freedom of speech combines with regulations around money.” – Naval Ravikant
      • With crypto, much of what happens will be out of the bounds of regulation

Merging the Physical and Digital Worlds (Part II)

  • Phones are used for everything
    • Even if you plan to shop for shoes at a store, you’ll likely use your phone for directions, to look up reviews, etc.
  • “So much of the physical world is going to become digital” Naval Ravikant
    • For example, because of camera innovations, new apps are popping up that allow you to measure things (like you’d do with a tape measure)
  • “Humans want to map everything in the digital domain because in the digital domain we have control”Naval Ravikant
    • In the digital domain – we can make fantasy worlds, have conversations with anybody, read anything, watching anything, etc.
    • But in the physical world, we’re much more limited

The Rise of the Gig Economy

  • “I think it’s inevitable that most of us will end up working in very small companies or for ourselves, and I think that’s a good thing” – Naval Ravikant
    • 🎧 “I look forward to the day when the average worker can role out of bed, and they’ll have a new gig on their phone, or a couple of them, vying for their attention. They’ll pick the one that most conforms to how they wan to spend that week or that time. They’ll do that job, they’ll get rated, ranked, and paid online, maybe through crypto. They’ll be able to work with people all over the world, and then, if they want to take the following week off, they can.”

The Internet’s Effect on Employment

  • The internet does two things simultaneously: Aggregates extreme at the core, and atomizes/shatters at the edge
    • Before the internet, industries tended to have 5-10 large players that ran the show separated by long distances
    • But now, we have one internet company in charge that runs everything, and next to that company, there are millions of small players
      • For example:
        • There’s Amazon, and then a million smaller shops
        • There’s Facebook, and then a million smaller websites
        • There’s YouTube, and then a bunch of random videos sprinkled all over the internet
  • So how will this affect things?
    • “We may be heading toward a world in which, if you’re employed, your employer is either one of these gargantuan companies that’s running an entire industry, or you’re self-employed. There won’t be that much in between.” Naval Ravikant

The Unbundling of Socialization & Work

  • As work becomes more distributed, how will this affect us on a relationship level?
    • Well…
      • Just like education was unbundled from school and you can now learn online, through books, and with YouTube…
      • The same is happening here – socialization and the way you make a living are becoming unbundled. In the future, you’ll be able to work with who you want, when you want, and where you want.
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Notes By MMiller

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