There is no doubt that cryptocurrency is going to change many industries. We already see how it is affecting music and video. By creating new distribution systems, those who can profit are greatly expanded. At the same time, we see new ownership models with the introduction of NFTs.
Basically, the centralization of industries is a barrier for most. Now, we are seeing things open up which is going to bring enormous benefits to millions.
It is a process we went through with the Internet. A couple of decades ago, everyone was going after the digital gold that was being offered by The Information Superhighway. While that did not work out as planned, it did open the door for many to enter. There are millions of people who "earn a living" online.
Fortunately, due to cryptocurrency, that number is going to grow significantly.
We are entering the Age of Abundance and it is clear to see where this is coming from.
Source
The Long Tail
The Long Tail was a model developed a couple decades ago to describe the difference in distribution and markets due to digital technology. This is something that is becoming even more paramount due to cryptocurrency.
Probably the best example of The Long Tail applies to Amazon. Whereas the traditional bookstore could stock roughly 50,000 titles, Amazon, being online, could carry millions. Looking at the above chart shows how the physical locations had to focus upon the head.
The reason for this is that shelf space is limited. Thus, it came at a premium. Each title carried required sufficient turnover to warrant a spot on the shelf. Hence, the store made money by carrying the most popular books.
Amazon's cost was limited. Since it was simply adding another page to the website, the digital space was near-free. In this instance, Amazon could offer millions of titles without an issue.
What makes the long end so valuable is that, while each title is not going to bring in a large amount of sales, the number is enormous. The physical bookstores were looking for titles that could sell 1 million copies. Amazon, on the other hand, we content have 100,000 books that sold 10 copies. Both lead to 1 million. Of course, Amazon carried the most popular titles also. Here is how it was able to leverage all ends of the chart.
For Amazon, even the titles that only sold a couple books per year were worthwhile. Again, the carrying cost was basically nothing.
Internet Money
Cryptocurrency is literally Internet money. It existed in no other realm than the digital world. while there is a lot of talk about making a digital version of our fiat currencies, cryptocurrency never had a physical counterpart. This makes it part of the Internet protocols that we are operating under.
People all over the world are starting to realize the potential facing humanity. We are embarking upon a new paradigm, one that will be further advanced over the next 5 years. However, many understand the possibilities regarding the Internet and making money.
That said, when we look at the chart of the Long Tail, we see something very interesting. The model cited "Niche Products". Amazon was able to take advantage of this to the tune of more than $1 trillion in market cap.
However, what if we swap the words? Could this radically change the situation?
We are going to replace the word "products" with "communities". Now we have the long tail discussing the idea of "Niche Communities". This takes on new meaning considering these communities can be tokenized.
Essentially, they become their own economies. What does this do the aggregate?
Today, we have a few major industries that dominate. However, there are millions that are overlooked due to their overall profit potential. This means that access to things such as funding is limited.
Just like Amazon was able to focus upon this end of the tail, cryptocurrency makes it possible for millions of communities to operate as their own economies. While none are going to rival the healthcare industry is size, they will provide valuable resources for billions of people.
Instead of focusing upon products sold, although that can be a part of it, the ability to monetize whatever is important to that community is paramount. Here we can see the hundreds of thousands of dollars in activity adding up in the collective.
Hive Is Ushering In The Age Of Abundance
It seems everyone wants to focus upon being at the "Head" of the chart. People in cryptocurrency consistently look at the Top 10 (or 20) tokens believing that is where the money is. Certainly, we cannot discount the potential of the likes of Bitcoin and Ethereum. They are already massive. However, they are not the only ones on the distribution curve.
Hive itself would likely be listed in the "Sorta/Kinda Popular" category. That said, it is primed to help usher in the Age of Abundance. Through its second layers, there are hundreds of different projects starting to take shape. Many of them are presently tokenized, with more to come. It is likely that many of these never amount to much but there is the possibility some will have value.
Is there another Bitcoin in there? Not likely. That, however, is not the point. When people understand that they can make money by people "large fish" in these smaller communities, the realization of the power being wielded becomes clear.
It is not necessary to have a token worth $1,000 each. Instead, it is highly profitable to have one that is worth 50 cent if you have 70,000 of them. As niche communities take hold, the network effect kicks off. Again, we are not looking at the next Facebook or Twitter. That said, even a few hundred dedicated people can have great value.
Changes in technology create paradigm shifts. Most miss what is taking place when they happen because it is easy to remain married to what we know. When we understand what made Amazon so powerful, we can then begin to understand cryptocurrency. The future of money is not going to resemble "physical retail". Instead, like Amazon, it is going to usher in something completely new.
We simply can focus upon the far end of the Long Tail model and see enormous wealth generated.
The next Bitcoin or Ethereum is probably not there. However, in totality, we will see value that outpaces either of those two at the Head of the chart.
What are your thoughts? Do you see how the digital distribution curve is now applicable to money.
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