The Benefits Of Building A Business Within A Digital Economy (Part 2)
How We Got Here
In the first part of this series, we looked at how the digital world has slowly, over time been incorporated, and made part of the real world. This is especially true in regard to business and commerce. This initially took place as a form of enhancement. It was a move that proved to be beneficial for both the customer, as well as the business owner. The introduction of digital interaction and enhancement in regard to real-world businesses has proven to be a real game changer.
This is something that has taken a couple of decades to mature and become an acceptable, and even desirable, part of everyday life and business operations. However, what we have seen take place in recent years, is a lot more than an enhancement. We now have completely independent digital economies that have zero real-world expression, or manifestation. This now opens up a realm of opportunity, especially for the more adventurous.
I believe that real-world businesses will continue to adopt digital technology, as it simplifies and reduces friction in multiple areas of traditional business activity. However, I also believe that we will see completely digital economies functioning independently of real-world economies. These two worlds will overlap and amalgamate, as well as operate independently of each other.
Now, in terms of building and establishing a business exclusively within a digital economy, there are numerous benefits and perks that make this idea extremely attractive, and even superior to existing models. At the end of the day, those who are not necessarily Crypto enthusiasts are going to require some sort of “selling point”, if they are to embark on such a business venture.
Starting a business, any business, is a risky endeavor, as there are no guarantees. Accepting a job is risk-free. If something goes wrong, you simply look for another. In terms of a business, there are running costs and overheads. There are expenses that need to be paid outside and on top of your living costs. Depending on the business, these expenses can, and have often brought people to ruin.
No Physical Site Required
This is often the biggest expense for many businesses. Many traditional business models require a site of operation, in terms of an actual store, shop, or office. Depending on the location and the size, this can amount to a hefty monthly rental expense. Even if a business owner is able to secure a mortgage and so, eventually own the site, there is still a monthly installment that needs to be paid.
A digital model has no physical location. There may be fees required, in terms of monthly website subscriptions and other minimal monthly charges. However, these expenses are minuscule, especially in comparison to the cost of commercial real estate. This is an enormous saving, as well as a burden removed. Nobody really wants to have a heavy monthly expense hanging over their head, especially in times of uncertainty.
Code Eradicates The Need For Employees
Depending on how deep you dive into this idea, there are models that require zero staffing. Coding, automation, and even AI are in many instances able to remove the need for employees. One thing I will say, in terms of a negative, it’s often a lot more challenging establishing a successful digital business, as opposed to a traditional legacy-styled business. This is not always the case though.
I say this to draw attention to the fact that just because there are benefits, don’t think that there are zero challenges and even difficulties within the digital world. What we do however have in the digital realm is simplification and the eradication of unnecessary expenses and human resources. There is also the ability to operate 24/7, as well as create passive and residual income arms of the business.
One Step Further
With the introduction of staking also came the introduction of completely passive business models. There are those who are simply able to deploy a million dollars into something like HBD, and simply sit back while their investment earns a cool $200K per year. Being a stablecoin, volatility is minuscule, as well as fairly reliable, in terms of a tight range. One can always turn to traditional Crypto assets for staking income as well.
However, these assets are susceptible to market volatility. That is why, like DeFi, this idea works incredibly well during bull markets. On the other hand, as a reliable means of income, it’s not the best idea during a bear market. These ideas enable individuals with significant capital to set up businesses that require zero effort, or management.
When we stand back and observe the global political landscape, it becomes rather clear that a healthy level of independence from the status quo is becoming a necessity, rather than a luxury, or even a choice. This is where the average Joe with a digital side hustle is no longer average. Such a person is positioning themself for an eventual transition point. Depending on your industry, your job may no longer be around in the world of tomorrow… and one thing you can always count on about tomorrow, it always comes! See you next time!
First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.
This article was first published on Sapphire Crypto.