When it comes to making money, there is a concept out there.
If you want to become a millionaire, get into real estate. To become a billionaire, that requires private equity.
Fast fortunes are going to be made through crypto-assets. We need to truly understand what we are dealing with. When it comes to wealth generation, this is going to be a gold rush like no other.
History is on our side on this one. In fact, through this article, I am going to argue that we will see massive convergence of wealth generating sectors coming together. For this reason, those who are involved with ecosystems such as Hive are going to realize enormous success.
Let us dive right in and see where this all could be heading.
Billionaires
The above image is a snapshot of the Bloomberg Billionaire Index. What is it that jumps out at you?
When I look at that, I see that 8 out of the top 10 richest people in the world did it through technology. This should come as no surprise since the last 40 years saw the greatest technological boom in the history of the world.
Enormous fortunes were created. This is something that everyone associated with blockchain should pay attention to.
What we witnessed over the last 4 decades is likely to be child's play compared to what is ahead of us. The potential of Web3 is the "Internet on steroids". That means these numbers will be dwarfed.
For those who click on the link to Bloomberg, you will also notice how the top 100 is filled with people in finance. Here again, few should be surprised that we are seeing billionaires created via the financial sector. Wall Street is very powerful for a reason. The wealth generated by investment banks and hedge funds is stunning. Of course, it was surpassed by technology which only makes this more exciting.
Crypto-Assets
How big will crypto-assets get?
This is a question many asked. Over the years, I was resolute with my forecast of how we will see more than $1 quadrillion in value. This is simply through the major things we see being tokenized. It will likely enter the multi-quadrillion range.
The reason for this is progress. However, when looking at the convergence of sectors, we see something very powerful happening.
We know that blockchain is both technology and, when combined with cryptocurrency, financial. Here we are dealing with the two largest billionaire generators.
There is another piece to this which the article opened up with: private equity.
We see a lot of funding coming from Silicon Valley. One only needs to scan the tech websites to see start ups receiving another round of funding.
Private equity is the idea of selling portions of a private company for working capital. The successful course is that each funding round assigns a greater valuation to the company. This means that, by the time it goes public, it is worth tens of billions. Some household names such as Facebook, Twitter, Coinbase, and Snap were funded in this manner.
Guess what cryptocurrency does: it allows us to fund ourselves in the same way. We can apply financial and technological innovation to the process, resulting in the ability to fund our expansion.
This is a power that comes from being able to create our own money.
What is even more impressive is the fact that we can compound this through the network effect. Since most cryptocurrency is actually value capture tokens, we can see how this makes the value go up, resulting in "more bang for the buck".
How Does This Benefit Hive?
Many still look at Hive like a simply blogging platform.
For me, I spent a lot of time diving deep into what is truly here. When we see the development, it is addressing areas that can make what is being laid out in this article a reality.
It is easy to see how we are already dealing with technology. We only need to see all the developers required to reach that conclusion. Tokenization is rather evident, something that I believe will get a major boost once VSC is live with smart contracts.
All of this is going to tie into the concept mostly consider private equity. Hive has one funding mechanism in place, the Decentralized Hive Fund (DHF). This is one example of how the community developed a means of self-funding.
What happens if this, along with other ideas, are expanding to a degree of 10?
We can see how all of this rapidly changes.
Value Capture And Distributed
One of the unique aspect to Web3 is the ownership model.
Under the present system, much of the wealth pooled simply because that is how the stock-based system is. Those who were present in the early days of funding, before IPO amassed huge positions. After the company went public, many were cashed out. However, often the founders still held a huge stake.
Over the decades, this only grew in value. None of those technology names on the index are unknown to most of us. They also are household names by this point.
With tokenization, we are going to see the value captured from technological and financial innovate distributed to the token holders. This gets really exciting because Hive offers the potential to gain stake through activity. Try to do that on Mark Zuckerberg's platforms.
It isn't happening.
We keep pushing the idea of building in these articles. The reason for that is simply because that is the road to wealth. Technology offers exponential impact since nothing operates in the realm on a linear basis.
Most are aware of the concept of compound interest. Einstein is credited with calling it "the 8th wonder of the world".
When we stack technology on top of finance, with some private equity thrown in, I believe we are dealing with compounding the compounding of things that are compounded.
This is how I arrive at numbers which are so large.
Since people on Hive keep building, it is going to make a lot of people wealthy. There will be projects which absolutely explode in value over the next 5 years.
It is up to us to keep building them.