Incentivization - is that a threat to cryptocurrency and web3 projects?
Many people that are not involved with cryptocurrency and blockchain projects love to say that the industry is not a value project and that soon all of it would fade away.
Some cryptocurrency users have fallen blind to these assertions, and so clearly they do not understand how incentivization influences growth rate in the long run. Everything has a pattern, there are defined rules on how economies change form and value doesn't just vanish in thin air.
Why Do People Love Real Estate?
In other to understand that it's literally all the same pattern of investment approach, let's look at other fields of assets and investment. So why do people venture into real estate? Is it because they just love houses? Or there's enough money to do practically anything?
This is obviously not the case and the best fit is "incentivization".
Real estate to many feels like a sure bet when it comes to investment assets, people tend to place value over it and believe it cannot just crumble and fade away, truth is, many people believe it can never seize to be a business.
Greed? Partly, yes, the housing business does seem like a long-term venture simply because people believe the utility is a long-term value piece, so why can't we say the same for cryptocurrencies?
Value Networks - Incentivizing Base Layer Growth
Ever heard that any system that doesn't create value will sooner fade away? The market space is practically too small to hold items that do not have any incentivization layers, call it greed or whatever but people need to be able to extract value from a system or it's not worth calling it a network or wasting time on it.
So when we see people say that the incentivization of cryptocurrency users is what kills the business model, one thing we don't realize is that cryptocurrency and blockchain technology in itself is not a business but an environment designed to enable businesses to flourish.
Applications are built with underlying technologies, with centralized applications most of the underlying technologies are "paid for" and quite restrictive in most cases, causing builders to pay more.
But with cryptocurrency and blockchain technology, many technologies are open-source, giving the vast majority freedom to utilize groundbreaking technologies and build out new structures, this tells us that there will be far more applications built on the blockchain than there ever were.
A country without a workforce is similar to a blockchain without builders
One thing that stands as a threat to any blockchain is its inability to capture builders, base layer applications are technologies often not appreciated by direct individual users, so, developers have to adopt the system and build applications that tackle specific industries, this is what buys the market.
When can see how from this, Ethereum is a cryptocurrency that has long flipped Bitcoin, in network usage, the blockchain has outpaced Bitcoin and it has suffered no network outage, impressive?
Cryptocurrency blockchains are new building environments that allow developers to reach and attract market participants. Via base layer incentivization structures, builders are able to leverage tools to create and distribute value across the network, this model in itself is resistive to sudden attacks, they are utility frameworks being developed upon and just like the housing market, there's rather a long time conviction in many that the value of this network would only grow over time.
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