The Future Currency of Earth Isn’t Going to Be Digital

Meet the world’s most liquid asset.

There’s one thing worth more than any form of money.

It’s more valuable than any kind of asset or commodity. If you live in the developed world, you never think about it.

You take it for granted.

We’re talking about the one thing we can’t survive without, and yet we act like it’s not good enough to enter our bodies unless it’s carbonated or sweetened. We pay extra to put flavoring in it.

The earth’s future currency isn’t bitcoin or one of its rivals. It’s going to be the last thing you’d ever expect.

It’s going to be water.

I’ll tell you why.

We’re using up all of our fresh water.

An elite consulting firm named McKinsey & Company released a report that you should probably pay attention to.

Here’s what it says:

Demand for water will outstrip supply by 40 percent in less than ten years. Almost half the world will live in water-scarce areas.

Three billion people already do.

McKinsey is the most highly respected consulting firm in the world. They get a million applicants a year, and they hire 1 percent of them. Some of their analysts make $200K a year.

So, I trust them.

Say goodbye to your avocados.

Barron’s also recently published an article telling us to get our asses in gear when it comes to water scarcity. It was written by two leading experts on economic policy and agriculture.

Here’s what they say:

“The next victims of a changing climate may be our favorite foods and our wallets, as water scarcity hits American farmers.”

Yes, your favorite snacks might stop showing up at the grocery store. They’ll definitely get more expensive. It’s already happening in some places. The article goes on to explain the severity of ongoing drought. Most people don’t know how bad it’s been.

Well, it’s already worse than the Dust Bowl.

This year was the worst on record.

The country’s largest water reservoir, Lake Mead, has sunk to its lowest level since its construction almost 100 years ago. Experts predict crop yields will fall by 20 percent or more, starting this year. It’s going to affect corn and soy, along with dairy and meat.

It’s going to hurt water-intense crops even more.

No more avocados.

It’s going to get worse.

Water shortages should be front page news.

They’re not.

Gavin Newsom has called on Californians to reduce their water consumption by 15 percent. That’s a big ask. So far, they’re not listening. People haven’t even reigned it in by 2 percent. If they don’t do it voluntarily, the state will impose restrictions. It’s going to get ugly.

Local news is doing their jobs. 12News in Arizona recently aired a story explaining how La Nina is going to make next year’s drought even worse for the southwest. There’s going to be less snow in Colorado, which means less river water for the region. Lake Powell could get so low its hydroelectric dam won’t be able to generate power.

This is what people don’t understand.

Water is everything.

Our major rivers and lakes are running dry. Experts are literally testifying before congress on the scope and severity of the problem. They’re proposing we drastically cut back consumption.

We’ll have to pay more.

Water isn’t free.

We already pay for water. We just don’t think about it. We consider water a given, a human right. Of course, it should be.

It’s not.

According to the EPA, you spend $1,000 a year on water.

The average American use 82 gallons per day. That’s a low estimate. Some Americans exceed 120.

Shocked?

You use water to hydrate, to make food, to bathe, to wash your clothes, and to use the bathroom. Every time you flush the toilet, it uses at least a gallon of water — and that’s an efficient model.

Older toilets use six or seven.

We already sell water in stores. If you live in a house, you have a water bill. If you live in an apartment, it’s factored into your rent. Think about the last time you saw a water fountain, one that actually worked. Imagine a life where you depended on public fountains and restrooms.

You’d go nuts.

Corporations are stealing our water.

Farmers use a majority of our ground water, but corporations have been using up more and more of it. We’re talking hundreds of millions of gallons a year for individual factories and facilities. When you factor in tech companies, it crosses into the billions of gallons.

The biggest offenders are giants like Nestle and Coca-Cola, who siphon it off from public lakes and creeks, without paying for it.

Communities are fighting them.

It’s slow.

Then there’s companies like Google, who use billions of gallons of water a year to cool their servers.

Protests around the globe have forced these companies to make some slight gestures toward curbing their consumption. As you can imagine, they’re doing their bare minimum. Meanwhile they continue to push the boundaries and see what they can get away with.

Imagine the irony here. Massive corporations over-consume a resource that should be a human right. They use this resource to make cheap clothes and sugary drinks, which they sell back to us.

There has to be accountability.

Or we’re screwed.

Water is going to get more expensive.

This is all going to happen gradually.

We’ll be told not to panic.

After all, solutions exist. We can shift to higher-value crops that consume less water. We can decentralize water treatment, and institute water recycling while upgrading our infrastructure to waste less. We can eat less meat, and stop trying to manicure our lawns.

The question is, will we?

The last year tells me that lots of Americans won’t take on little inconveniences for the greater good.

So, we’ll be forced.

Experts are already recommending higher prices for water. It’s one of the only effective ways to make people to use less. They’re pitching 10 percent increases. People will notice.

They’ll resist.

Some cities are so dry, they’re turning to desalination. They have no choice. They’re literally running out of water.

They’re taking it from the sea.

We’re not talking about the middle of nowhere, in some desert. We’re talking about the world’s largest population centers:

• Cape Town, South Africa
• Mexico City, Mexico
• Cairo, Egypt
• Tokyo, Japan,
• Jakarta, Indonesia,
• Sao Paulo, Brazil
• Beijing, China
• Bangalore, India
• Melbourne, Australia
• London, U.K.

These places will probably run dry in our lifetime. Last year people were hoarding toilet paper. Soon they’ll be hoarding water. It’s going to make things worse, because people who hoard water will wind up wasting it instead of getting smarter about consumption.

Desalination is an expensive process, and it’s already becoming a booming industry, predicted to exceed $11 billion by 2026. States like California are starting to invest in desalination plants. Make no mistake, the cost for purifying ocean water is going to get passed along to us. I’m trying to be optimistic here, but I’m starting to wonder if some Americans even understand you can’t survive on saltwater.

Someone should do a poll.

Meet earth’s new currency.

Here’s something I keep hearing:

You’re panicking. Everything’s going to be okay.

No, it’s not.

We might survive. There might be a way out of this mess. That’s not the same as believing everything’s going to be okay. Things don’t get better on their own. Things will get harder, from here on out.

We’d better get used to it.

Everything is getting scarce. The cost of everything is going up, for various reasons. That includes water, the thing that currently comes out of your tap in endless quantities. Companies that invest in water renewal are going to make a fortune. Over the next ten years, we’re going to commodify water like nobody has ever seen. Pure, clean drinking water will become one of the most valuable assets in history, worth more than gold.

The future currency of earth is water.

You’ll see.