by Opinions expressed by Entrepreneur taxpayers own.
Smart entrepreneurs will always look to infrastructure and markets rather than companies. In Web2, it is the difference between creating Google and creating an online website visited through Google. In Web3, it is the difference between creating the Ethereum ecosystem or an ERC-20 token on Ethereum.
The infrastructure and architecture on which businesses and meta-businesses are built are vastly more profitable, as long as you can get in early and stay strong. The most important element is to think in terms of markets rather than businesses. If you create a market, you own all the transactions.
This is extremely relevant right now because large corporate monopolies are fragmenting and redistributing through distributed ledgers, creating new markets in a bold new world. This gives ambitious entrepreneurs opportunities for profit that are only available in times of disruption, not stability.
Related: 5 Things You Need to Know Before Investing in Crypto
The following are three extremely lucrative markets that are rapidly transforming into a more equitable model, and why you should consider diversifying into them (or any other industry being disrupted by cryptocurrencies).
Industry #1: The gaming industry
The problems of centralized gaming are well known. Platforms like Steam, Microsoft and Apple get more than 30% in exchange for publishing games. Game development is a competitive industry and between vendors and big platforms, developers often make very little profit. This is a problem given the size of the annual revenue of the esports and online gaming industry.
That is why this older model is rapidly becoming obsolete due to multiple innovations. The newer models are reward-based, which means that the entire game architecture is executed in such a way that all parties are rewarded for their participation. Crypto wallets are built into the system with in-game NFTs available for trade, sale and purchase. Assets are tradable between blockchains with minimal fees. The problem is bridging Web2 and Web3, although some decentralized providers, such as Ankr, offer a secure solution.
Related: Meet the Entrepreneurs Redefining the Crypto Space with Their Passion for Building Sustainable Blockchain Businesses
Industry #2: The Self Employed Industry
The freelance or “gig” market is gigantic. It is so large that it is difficult to obtain reliable estimates. Freelance work is independent of the industry. This means you can have hundreds of different industries (health, finance, gaming, esports, etc.) contributing to the numbers. With people currently being forced to work from home, freelancing is the future of the global economy in many ways.
However, many freelance platforms take more than 20% of all completed work, and this is outside of the VAT automatically charged. The self-employed then have to pay regular income tax and do not have any benefits. One of the biggest freelance platforms, UpWork, is also now charging freelancers to bid for jobs and turning down a number of new applications. Additionally, it has the power to suspend the accounts of the workers at any time. There are also withdrawal fees. It all adds up: Ultimately, workers and employers lose and centralized third parties win.
Decentralized companies such as “The Collective” are making inroads in this direction. The emphasis is on building a trust economy based on mutual collaboration rather than a concert economy based on competition. Based on Chainlink and automated through smart contracts, the goal is to build a marketplace similar to Fiverr and Etsy.
Related: 3 Reasons the World Will Never Go Back to Crypto
Industry #3: The Movie Industry
Television has long been associated with exclusivity. Breaking into this industry has historically been notoriously difficult. Even with a lot of talent, people have been required to go online and get to know someone “on the inside” to gain exposure.
But distributed records can break even this industry and give the public more power in terms of contributing to film and television. FilmCoin, for example, allows people to genuinely become part of a studio. The High Utility Token (FLIKS) can grant access to studios, actors, directors, and even win opportunities to appear in a movie. A whole new film market is being created through distributed ledgers and NFTs.
The long-term approach
A long-term approach to income generation is needed. Particularly with regard to the hype and hysteria inherent in cryptocurrencies, it is easy to feel like you are missing out on the huge gains made in one coin or another. But sustainable profits require time, commitment and dedication. There are always more winners than losers – the winners are the ones who write the blog posts. Losers don’t, for obvious reasons.
The most sensible solution could be found in diversification across blockchain projects and industries. Since all industries are being disrupted, it will be worth getting involved in as many projects as possible to take a piece of a very large pie that will be redistributed. As long as you’re patient, it really is like shooting a fish in a barrel.
Make no mistake, profits are redistributed from centralized entities to smaller organizations and individuals. Just be prepared to receive as much wealth redistribution as possible, whether it be in gaming, freelancing, film, or any other industry that is being shaken up through modern technological mechanisms. Positioning is key.
